Audit 350945

2024-004: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN 21.027, Late Filing of Data Collection Form Condition The Town filed the data collection form one day late due to issues with the Federal Audit Clearinghouse website. Criteria Under the requirements in the Uniform Guidance and the Office of Management and Budget (OMB), all entities are required to file the annual data collection form with the Federal Audit Clearinghouse the earlier of either 30 days after the issuance of the entity’s annual audit or nine months after the entity’s fiscal year-end (March 31st for the Town of Elkton). Cause Management did not complete and certify auditee portion of the form before the deadline. Effect The Town’s form was not submitted to the Federal Audit Clearinghouse on time. Recommendation Management should take steps to ensure that the form is filed timely. Views of Responsible Officials and Planned Corrective Action As noted above, the Town Manager had issues with submitting the report through the Federal Audit Clearinghouse website. The Treasurer is aware that an annual audit needs to be completed for all major federal awards. She will work with the auditing firm and the Town Manager to ensure that the report is filed by the deadline.

2024-005: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN 21.027, Controls over Reporting Condition The FY23 expenditures reported to the Treasury did not reconcile to the audited SEFA and the FY24 expenditures did not agree to the tracking spreadsheet. Criteria Reporting should reconcile to accounting records and have a review by an individual other than the preparer. Cause Lack of review and reconciliation to the general ledger prior to submission. Effect The annual reporting was inaccurate for FY23 and FY24 expenditures. Recommendation Ensure that all information reported as been reviewed and reconciled prior to submission to the grantor. Views of Responsible Officials and Planned Corrective Action Going forward, the Treasurer will compile the information and have the Town Manager approve the report prior to submitting it through the online portal.

2024-006: Federal Procurement Policies Condition There are no written procurement policies specific to the federal awards cost principle requirements under Uniform Grant Guidance. Existing procurement policies are minimal and do not meet federal requirements. Criteria Federal award recipients must have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D and E. Cause Certain required policies under 2 CFR 200, Subparts D and E are not present. Effect Lack of required policies may create noncompliance with regulations as stated requirements may not be followed. Recommendation Develop procurement policies and financial policies that meet federal standards. Views of Responsible Officials and Planned Corrective Action The Treasurer drafted a Federal Procurement Policy for consideration in May 2024; however, it was not presented to Council. Therefore, the Treasurer will get the proposed policy added to the Council’s agenda for consideration and approval at the next scheduled meeting.

2024-004: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN 21.027, Late Filing of Data Collection Form Condition The Town filed the data collection form one day late due to issues with the Federal Audit Clearinghouse website. Criteria Under the requirements in the Uniform Guidance and the Office of Management and Budget (OMB), all entities are required to file the annual data collection form with the Federal Audit Clearinghouse the earlier of either 30 days after the issuance of the entity’s annual audit or nine months after the entity’s fiscal year-end (March 31st for the Town of Elkton). Cause Management did not complete and certify auditee portion of the form before the deadline. Effect The Town’s form was not submitted to the Federal Audit Clearinghouse on time. Recommendation Management should take steps to ensure that the form is filed timely. Views of Responsible Officials and Planned Corrective Action As noted above, the Town Manager had issues with submitting the report through the Federal Audit Clearinghouse website. The Treasurer is aware that an annual audit needs to be completed for all major federal awards. She will work with the auditing firm and the Town Manager to ensure that the report is filed by the deadline.

2024-005: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN 21.027, Controls over Reporting Condition The FY23 expenditures reported to the Treasury did not reconcile to the audited SEFA and the FY24 expenditures did not agree to the tracking spreadsheet. Criteria Reporting should reconcile to accounting records and have a review by an individual other than the preparer. Cause Lack of review and reconciliation to the general ledger prior to submission. Effect The annual reporting was inaccurate for FY23 and FY24 expenditures. Recommendation Ensure that all information reported as been reviewed and reconciled prior to submission to the grantor. Views of Responsible Officials and Planned Corrective Action Going forward, the Treasurer will compile the information and have the Town Manager approve the report prior to submitting it through the online portal.

2024-006: Federal Procurement Policies Condition There are no written procurement policies specific to the federal awards cost principle requirements under Uniform Grant Guidance. Existing procurement policies are minimal and do not meet federal requirements. Criteria Federal award recipients must have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D and E. Cause Certain required policies under 2 CFR 200, Subparts D and E are not present. Effect Lack of required policies may create noncompliance with regulations as stated requirements may not be followed. Recommendation Develop procurement policies and financial policies that meet federal standards. Views of Responsible Officials and Planned Corrective Action The Treasurer drafted a Federal Procurement Policy for consideration in May 2024; however, it was not presented to Council. Therefore, the Treasurer will get the proposed policy added to the Council’s agenda for consideration and approval at the next scheduled meeting.

2024-004: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN 21.027, Late Filing of Data Collection Form Condition The Town filed the data collection form one day late due to issues with the Federal Audit Clearinghouse website. Criteria Under the requirements in the Uniform Guidance and the Office of Management and Budget (OMB), all entities are required to file the annual data collection form with the Federal Audit Clearinghouse the earlier of either 30 days after the issuance of the entity’s annual audit or nine months after the entity’s fiscal year-end (March 31st for the Town of Elkton). Cause Management did not complete and certify auditee portion of the form before the deadline. Effect The Town’s form was not submitted to the Federal Audit Clearinghouse on time. Recommendation Management should take steps to ensure that the form is filed timely. Views of Responsible Officials and Planned Corrective Action As noted above, the Town Manager had issues with submitting the report through the Federal Audit Clearinghouse website. The Treasurer is aware that an annual audit needs to be completed for all major federal awards. She will work with the auditing firm and the Town Manager to ensure that the report is filed by the deadline.

2024-005: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN 21.027, Controls over Reporting Condition The FY23 expenditures reported to the Treasury did not reconcile to the audited SEFA and the FY24 expenditures did not agree to the tracking spreadsheet. Criteria Reporting should reconcile to accounting records and have a review by an individual other than the preparer. Cause Lack of review and reconciliation to the general ledger prior to submission. Effect The annual reporting was inaccurate for FY23 and FY24 expenditures. Recommendation Ensure that all information reported as been reviewed and reconciled prior to submission to the grantor. Views of Responsible Officials and Planned Corrective Action Going forward, the Treasurer will compile the information and have the Town Manager approve the report prior to submitting it through the online portal.

2024-006: Federal Procurement Policies Condition There are no written procurement policies specific to the federal awards cost principle requirements under Uniform Grant Guidance. Existing procurement policies are minimal and do not meet federal requirements. Criteria Federal award recipients must have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D and E. Cause Certain required policies under 2 CFR 200, Subparts D and E are not present. Effect Lack of required policies may create noncompliance with regulations as stated requirements may not be followed. Recommendation Develop procurement policies and financial policies that meet federal standards. Views of Responsible Officials and Planned Corrective Action The Treasurer drafted a Federal Procurement Policy for consideration in May 2024; however, it was not presented to Council. Therefore, the Treasurer will get the proposed policy added to the Council’s agenda for consideration and approval at the next scheduled meeting.

2024-004: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN 21.027, Late Filing of Data Collection Form Condition The Town filed the data collection form one day late due to issues with the Federal Audit Clearinghouse website. Criteria Under the requirements in the Uniform Guidance and the Office of Management and Budget (OMB), all entities are required to file the annual data collection form with the Federal Audit Clearinghouse the earlier of either 30 days after the issuance of the entity’s annual audit or nine months after the entity’s fiscal year-end (March 31st for the Town of Elkton). Cause Management did not complete and certify auditee portion of the form before the deadline. Effect The Town’s form was not submitted to the Federal Audit Clearinghouse on time. Recommendation Management should take steps to ensure that the form is filed timely. Views of Responsible Officials and Planned Corrective Action As noted above, the Town Manager had issues with submitting the report through the Federal Audit Clearinghouse website. The Treasurer is aware that an annual audit needs to be completed for all major federal awards. She will work with the auditing firm and the Town Manager to ensure that the report is filed by the deadline.

2024-005: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN 21.027, Controls over Reporting Condition The FY23 expenditures reported to the Treasury did not reconcile to the audited SEFA and the FY24 expenditures did not agree to the tracking spreadsheet. Criteria Reporting should reconcile to accounting records and have a review by an individual other than the preparer. Cause Lack of review and reconciliation to the general ledger prior to submission. Effect The annual reporting was inaccurate for FY23 and FY24 expenditures. Recommendation Ensure that all information reported as been reviewed and reconciled prior to submission to the grantor. Views of Responsible Officials and Planned Corrective Action Going forward, the Treasurer will compile the information and have the Town Manager approve the report prior to submitting it through the online portal.

2024-006: Federal Procurement Policies Condition There are no written procurement policies specific to the federal awards cost principle requirements under Uniform Grant Guidance. Existing procurement policies are minimal and do not meet federal requirements. Criteria Federal award recipients must have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D and E. Cause Certain required policies under 2 CFR 200, Subparts D and E are not present. Effect Lack of required policies may create noncompliance with regulations as stated requirements may not be followed. Recommendation Develop procurement policies and financial policies that meet federal standards. Views of Responsible Officials and Planned Corrective Action The Treasurer drafted a Federal Procurement Policy for consideration in May 2024; however, it was not presented to Council. Therefore, the Treasurer will get the proposed policy added to the Council’s agenda for consideration and approval at the next scheduled meeting.