Audit 326566

2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to Federal Awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to Federal Awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to Federal Awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to Federal Awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-002 Improve Time and Effort Documentation Federal Program(s) Information Federal Agency: U.S. Department of Agriculture Cluster/Program: National School Lunch Cluster AL Number(s): 10.553/10.555 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with Federal requirements that have a direct and material effect on a Federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. Condition and Context A sample of disbursements charged to the grants were tested for proper supporting documentation in order to determine if in accordance with Federal Allowable Costs/Cost Principles. As a result of testing of payroll disbursements charged to grants, certain costs were found that did not meet the time and effort documentation requirements. Cause Weakness in the design and operation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to Federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported equal to $9,899.87, as follows: AL Questioned Number(s) Name of Federal Program or Cluster Costs 10.553/10.555 Child Nutrition Cluster $9,899.87 2022-002 Improve Time and Effort Documentation (Continued) Recommendation The Town should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-002 Improve Time and Effort Documentation Federal Program(s) Information Federal Agency: U.S. Department of Agriculture Cluster/Program: National School Lunch Cluster AL Number(s): 10.553/10.555 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with Federal requirements that have a direct and material effect on a Federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. Condition and Context A sample of disbursements charged to the grants were tested for proper supporting documentation in order to determine if in accordance with Federal Allowable Costs/Cost Principles. As a result of testing of payroll disbursements charged to grants, certain costs were found that did not meet the time and effort documentation requirements. Cause Weakness in the design and operation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to Federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported equal to $9,899.87, as follows: AL Questioned Number(s) Name of Federal Program or Cluster Costs 10.553/10.555 Child Nutrition Cluster $9,899.87 2022-002 Improve Time and Effort Documentation (Continued) Recommendation The Town should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-002 Improve Time and Effort Documentation Federal Program(s) Information Federal Agency: U.S. Department of Agriculture Cluster/Program: National School Lunch Cluster AL Number(s): 10.553/10.555 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with Federal requirements that have a direct and material effect on a Federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. Condition and Context A sample of disbursements charged to the grants were tested for proper supporting documentation in order to determine if in accordance with Federal Allowable Costs/Cost Principles. As a result of testing of payroll disbursements charged to grants, certain costs were found that did not meet the time and effort documentation requirements. Cause Weakness in the design and operation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to Federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported equal to $9,899.87, as follows: AL Questioned Number(s) Name of Federal Program or Cluster Costs 10.553/10.555 Child Nutrition Cluster $9,899.87 2022-002 Improve Time and Effort Documentation (Continued) Recommendation The Town should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-003 Improve Compliance with and Controls Over Reporting Federal Program(s) Information Federal Agency: U.S. Department of Homeland Security Cluster/Program: Assistance to Firefighters Grant AL Number(s): 97.044 Award Year: 2022 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees are required to file semi-annual Federal Financial Reports to report expenditures under Federal Awards and cash status. Grantees are also required to file Performance reports at least annually highlighting key grant information and use of funds. Condition and Context A sample of reports required to be submitted were selected for testing of compliance. Each report selected was not submitted to the appropriate party in a timely manner. Cause Weakness in the design and operation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, the Town is not in compliance with grant requirements, and there is risk that funds may be withheld for the Town’s currently active grants as a result. No questioned costs are reported, as they are not quantifiable. Recommendation The Town should address the weaknesses in internal controls noted above in order to comply with reporting guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to Federal Awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to Federal Awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to Federal Awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to Federal Awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-002 Improve Time and Effort Documentation Federal Program(s) Information Federal Agency: U.S. Department of Agriculture Cluster/Program: National School Lunch Cluster AL Number(s): 10.553/10.555 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with Federal requirements that have a direct and material effect on a Federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. Condition and Context A sample of disbursements charged to the grants were tested for proper supporting documentation in order to determine if in accordance with Federal Allowable Costs/Cost Principles. As a result of testing of payroll disbursements charged to grants, certain costs were found that did not meet the time and effort documentation requirements. Cause Weakness in the design and operation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to Federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported equal to $9,899.87, as follows: AL Questioned Number(s) Name of Federal Program or Cluster Costs 10.553/10.555 Child Nutrition Cluster $9,899.87 2022-002 Improve Time and Effort Documentation (Continued) Recommendation The Town should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-002 Improve Time and Effort Documentation Federal Program(s) Information Federal Agency: U.S. Department of Agriculture Cluster/Program: National School Lunch Cluster AL Number(s): 10.553/10.555 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with Federal requirements that have a direct and material effect on a Federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. Condition and Context A sample of disbursements charged to the grants were tested for proper supporting documentation in order to determine if in accordance with Federal Allowable Costs/Cost Principles. As a result of testing of payroll disbursements charged to grants, certain costs were found that did not meet the time and effort documentation requirements. Cause Weakness in the design and operation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to Federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported equal to $9,899.87, as follows: AL Questioned Number(s) Name of Federal Program or Cluster Costs 10.553/10.555 Child Nutrition Cluster $9,899.87 2022-002 Improve Time and Effort Documentation (Continued) Recommendation The Town should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-002 Improve Time and Effort Documentation Federal Program(s) Information Federal Agency: U.S. Department of Agriculture Cluster/Program: National School Lunch Cluster AL Number(s): 10.553/10.555 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with Federal requirements that have a direct and material effect on a Federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. Condition and Context A sample of disbursements charged to the grants were tested for proper supporting documentation in order to determine if in accordance with Federal Allowable Costs/Cost Principles. As a result of testing of payroll disbursements charged to grants, certain costs were found that did not meet the time and effort documentation requirements. Cause Weakness in the design and operation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to Federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported equal to $9,899.87, as follows: AL Questioned Number(s) Name of Federal Program or Cluster Costs 10.553/10.555 Child Nutrition Cluster $9,899.87 2022-002 Improve Time and Effort Documentation (Continued) Recommendation The Town should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

2022-003 Improve Compliance with and Controls Over Reporting Federal Program(s) Information Federal Agency: U.S. Department of Homeland Security Cluster/Program: Assistance to Firefighters Grant AL Number(s): 97.044 Award Year: 2022 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees are required to file semi-annual Federal Financial Reports to report expenditures under Federal Awards and cash status. Grantees are also required to file Performance reports at least annually highlighting key grant information and use of funds. Condition and Context A sample of reports required to be submitted were selected for testing of compliance. Each report selected was not submitted to the appropriate party in a timely manner. Cause Weakness in the design and operation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, the Town is not in compliance with grant requirements, and there is risk that funds may be withheld for the Town’s currently active grants as a result. No questioned costs are reported, as they are not quantifiable. Recommendation The Town should address the weaknesses in internal controls noted above in order to comply with reporting guidelines. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.