FAC Explorer

Audit 366485

FY End
2024-12-31
Total Expended
$7.87M
Findings
1
Programs
12
Organization: Town of Exeter (NH)
Year: 2024 Accepted: 2025-09-17
Auditor: Plodzik & Sanderson P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1153290 2024-001 Material Weakness Yes G

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $1.51M Yes 0
66.202 Congressionally Mandated Projects $928,934 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $540,687 Yes 0
66.458 Clean Water State Revolving Fund $363,234 Yes 0
16.710 Public Safety Partnership and Community Policing Grants $110,002 Yes 0
66.460 Nonpoint Source Implementation Grants $62,530 Yes 0
66.468 Drinking Water State Revolving Fund $44,958 Yes 0
15.904 Historic Preservation Fund Grants-in-Aid $20,000 Yes 0
20.600 State and Community Highway Safety $11,766 Yes 0
21.016 Equitable Sharing $11,558 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4,713 Yes 0
16.607 Bulletproof Vest Partnership Program $2,433 Yes 0

Contacts

Name Title Type
HLQQGW7ZJZR5 Corey Stevens Auditee
6037736109 Sheryl Pratt Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Town of Exeter under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Exeter, it is not intended to and does not present the financial position and changes in net position and fund balance of the Town of Exeter.
Non-federal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s project worksheet (PW), and (2) the nonfederal entity has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are to be recorded on the nonfederal entity’s SEFA in those subsequent years. The $14,261 reported for Disaster Grants – Public Assistance (Presidentially Declared Disasters), ALN 97.036, represents expenditures that occurred in prior years which were approved by FEMA during fiscal year 2024.
The Town of Exeter had the following loan balances outstanding at December 31, 2024. The loans made during the year are included in the Federal expenditures presented in Schedule II. Assistance Current Loan Balance Listing Program Year Outstanding Number Name Expenditures December 31, 2024 66.458 Clean Water State Revolving Fund $ 3,279,901 $ 3,279,901

Finding Details

Finding 2024-001
2024-001 Use of Unallowable Funds to Meet Matching Requirement (Material Weakness) Federal Agency: U.S. Environmental Protection Agency Pass-through Agency: N/A Cluster/Program: Congressionally Mandated Projects Assistance Listing Number: 66.202 Passed-through Identification: N/A Compliance Requirement: Matching Type of Finding: Internal Control over Compliance – Material Weakness Material Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.306, matching contributions must be (1) verifiable from the Town’s records, (2) not be paid by the Federal Government under another federal award except where authorized by statute, and (3) be allowable under the terms and conditions of the federal award. In addition, the EPA award terms and implementation guidance, it specifically states that “American Rescue Plan Act (ARPA) funds cannot be used to meet the non-federal cost share requirement.” However, the use of the Clean Water State Revolving Fund (CWSRF) funds is allowable. Condition: During testing of reimbursement requests and supporting documentation, we noted that the Town reported ARPA funds as the source for the required 20% non-federal match on certain project costs. Documentation did not show that CWSRF funds were applied to the match during those reimbursement periods. Cause: The Town used ARPA funds for the 20% non-federal match because personnel did not realize these funds were ineligible under the grant terms. Although eligible CWSRF funds were available, they were not applied or documented as the match. Effect: The Town did not comply with the EPA grant’s matching requirements. As a result, the expenditures reported as match in the amount of $262,500 were not allowable under the award terms. This creates a risk that the EPA may disallow the federal share of costs if sufficient eligible match cannot be documented. Questioned Costs: $262,500 – which represents the portion of match applied to an unallowable source. Identification as Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the Town reclassify the match to eligible CWSRF funds for all affected reimbursement requests and provide updated documentation to the EPA. In addition, the Town should strengthen internal controls to ensure that only allowable funding sources are applied toward matching requirements and implement review procedures to verify compliance before submitting reimbursement requests. Finally, staff responsible for grant administration should receive training on grant terms and allowable match sources to prevent similar errors in the future. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.