FAC Explorer

Audit 306431

FY End
2021-12-31
Total Expended
$3.04M
Findings
12
Programs
8
Organization: Town of Cicero (IL)
Year: 2021 Accepted: 2024-05-16
Auditor: Benford Brown & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397049 2021-002 Material Weakness Yes P
397050 2021-002 Material Weakness Yes P
397051 2021-002 Material Weakness Yes P
397052 2021-002 Material Weakness Yes P
397053 2021-002 Material Weakness Yes P
397054 2021-002 Material Weakness Yes P
973491 2021-002 Material Weakness Yes P
973492 2021-002 Material Weakness Yes P
973493 2021-002 Material Weakness Yes P
973494 2021-002 Material Weakness Yes P
973495 2021-002 Material Weakness Yes P
973496 2021-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.231 Emergency Solutions Grant Program $263,124 - 0
16.710 Public Safety Partnership and Community Policing Grants $118,589 - 0
14.218 Community Development Block Grants/entitlement Grants $115,843 Yes 1
10.704 Law Enforcement Agreements $104,850 - 0
16.607 Bulletproof Vest Partnership Program $13,680 - 0
20.600 State and Community Highway Safety $11,004 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $8,983 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $2,000 - 0

Contacts

Name Title Type
LE8EBPHCZ5Z9 Arturo Vasquez Auditee
7086563600 Timothy S. Watson Auditor
No contacts on file

Notes to SEFA

Title: Schedule of Expenditures of Federal Awards Accounting Policies: The Schedule of Expenditures of Federal Awards (Schedule) has been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Schedule includes the federal grant activity of the Town and is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Schedule of Expenditures of Federal Awards (Schedule) has been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Schedule includes the federal grant activity of the Town and is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.

Finding Details

Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could
Finding 2021-002
Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could