Audit 344064

Finding 2023-001 Information on the Federal Program: Disaster Grants – Public Assistance (FEMA Reimbursements), CFDA number 97.036, Grant period January 1, 2020 through December 31, 2023. Criteria or specific requirement: FEMA evaluates the eligibility of all costs claimed by the applicant. Costs must be directly tied to the performance of eligible work; adequately documented; reduced by all applicable credits such as insurance proceeds and salvage values; authorized and not prohibited under federal, state, or local government laws or regulations; consistent with applicant’s internal policies, regulations, and procedures that apply uniformly to both federal awards and other activities of the applicant; necessary and reasonable to accomplish the work properly and efficiently. Condition: Project worksheets were not provided for review; thus, expenses submitted for reimbursement could not be verified. Questioned Costs: $1,707,074 of reimbursements could not be verified. Context: Expenses submitted for reimbursement could not be determined or verified as allowable. Effect: Amounts reimbursed by FEMA could not be verified to actual expenditures. Cause: Project worksheets were not provided for review; thus, expenses submitted for reimbursement could not be verified. Recommendation: Project worksheets should be maintained to support amounts submitted for reimbursement. Management Response: The Town will provide project worksheets and supporting documentation for all amounts submitted to FEMA for reimbursement

Finding 2023-001 Information on the Federal Program: Disaster Grants – Public Assistance (FEMA Reimbursements), CFDA number 97.036, Grant period January 1, 2020 through December 31, 2023. Criteria or specific requirement: FEMA evaluates the eligibility of all costs claimed by the applicant. Costs must be directly tied to the performance of eligible work; adequately documented; reduced by all applicable credits such as insurance proceeds and salvage values; authorized and not prohibited under federal, state, or local government laws or regulations; consistent with applicant’s internal policies, regulations, and procedures that apply uniformly to both federal awards and other activities of the applicant; necessary and reasonable to accomplish the work properly and efficiently. Condition: Project worksheets were not provided for review; thus, expenses submitted for reimbursement could not be verified. Questioned Costs: $1,707,074 of reimbursements could not be verified. Context: Expenses submitted for reimbursement could not be determined or verified as allowable. Effect: Amounts reimbursed by FEMA could not be verified to actual expenditures. Cause: Project worksheets were not provided for review; thus, expenses submitted for reimbursement could not be verified. Recommendation: Project worksheets should be maintained to support amounts submitted for reimbursement. Management Response: The Town will provide project worksheets and supporting documentation for all amounts submitted to FEMA for reimbursement