Audit 365457

2024-001 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 requirements related to federal awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial program management. Specifically, written policies are required for the following compliance requirements: • Cash management • Determination of allowable costs • Program income • Eligibility determination • Equipment and real property management • Period of performance • Procurement • Subrecipient monitoring and management Condition and Context The Town does not have written policies and procedures related to federal awards, as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determina¬tion, equipment and real property management, period of performance, procurement, or subrecipient monitoring.   2024-001 Document Policies and Procedures Over Federal Awards (Continued) Cause Weakness in the design of internal controls. Effect or Potential Effect The Town is not in compliance with the Uniform Guidance requirements for written policies and procedures. Questioned Costs 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 The Town should develop and implement written procedures that are in compliance with the requirements of the Uniform Guidance. Views of Responsible Official Management agrees with the finding.

2024-002 Improve Oversight Over Reporting of Federal Awards (Material Weakness) Federal Agency: Department of the Treasury Cluster/Program: COVID-19 Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2024 Compliance Requirement: Reporting Type of Finding Material Noncompliance Internal Control over Compliance – Material Weakness Criteria or Specific Requirement A non-federal entity is required to submit a performance report annually using a form or format authorized by OMB (2 CFR section 200.329) based on expenditures reported in the Town’s general ledger. 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 pro¬gram. 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 per¬forming their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.  2024-002 Improve Oversight Over Reporting of Federal Awards (Material Weakness) (Continued) Condition and Context When comparing annual amounts reported to the Treasury to the actual Town expenses, we noted several expenses were omitted from the Treasury reports. Cause The Town has not established adequate procedures to ensure expenditures reported on the annual report agree with the Town’s general ledger. Effect or Potential Effect The Town is not in compliance with the Uniform Guidance requirements for reporting. Questioned Costs There are no questioned costs as a result of this finding, as these costs were allowable and did occur, but they were reported in the incorrect reporting period. Recommendation The Town should implement controls to ensure that reports are reconciled to the general ledger prior to submission. Views of Responsible Official Management agrees with the finding.

2024-001 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 requirements related to federal awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial program management. Specifically, written policies are required for the following compliance requirements: • Cash management • Determination of allowable costs • Program income • Eligibility determination • Equipment and real property management • Period of performance • Procurement • Subrecipient monitoring and management Condition and Context The Town does not have written policies and procedures related to federal awards, as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determina¬tion, equipment and real property management, period of performance, procurement, or subrecipient monitoring.   2024-001 Document Policies and Procedures Over Federal Awards (Continued) Cause Weakness in the design of internal controls. Effect or Potential Effect The Town is not in compliance with the Uniform Guidance requirements for written policies and procedures. Questioned Costs 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 The Town should develop and implement written procedures that are in compliance with the requirements of the Uniform Guidance. Views of Responsible Official Management agrees with the finding.

2024-002 Improve Oversight Over Reporting of Federal Awards (Material Weakness) Federal Agency: Department of the Treasury Cluster/Program: COVID-19 Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2024 Compliance Requirement: Reporting Type of Finding Material Noncompliance Internal Control over Compliance – Material Weakness Criteria or Specific Requirement A non-federal entity is required to submit a performance report annually using a form or format authorized by OMB (2 CFR section 200.329) based on expenditures reported in the Town’s general ledger. 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 pro¬gram. 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 per¬forming their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.  2024-002 Improve Oversight Over Reporting of Federal Awards (Material Weakness) (Continued) Condition and Context When comparing annual amounts reported to the Treasury to the actual Town expenses, we noted several expenses were omitted from the Treasury reports. Cause The Town has not established adequate procedures to ensure expenditures reported on the annual report agree with the Town’s general ledger. Effect or Potential Effect The Town is not in compliance with the Uniform Guidance requirements for reporting. Questioned Costs There are no questioned costs as a result of this finding, as these costs were allowable and did occur, but they were reported in the incorrect reporting period. Recommendation The Town should implement controls to ensure that reports are reconciled to the general ledger prior to submission. Views of Responsible Official Management agrees with the finding.