Audit 372237

2024-002: CDBG – Community Development Block Grants/Entitlement Grants – ALN #14.218, Reporting Condition Housing and Community Connections did not timely file Cash on Hand Quarterly Reports in two instances of testing. Criteria Under the requirements in the Uniform Guidance, reports are to be filed within 30 days after the end of the reporting period. Cause Housing and Community Connections typically files all reports timely, however, two quarterly reports during the same quarter were filed late. Effect Failure to file timely reports could result in improper reporting of the use of Federal funds. Perspective Information Two Cash on Hand Quarterly Reports of four tested were not filed within 30 days after the end of the reporting period. Recommendation Management should implement a procedure to ensure that reports are filed within reporting periods. View of Responsible Officials and Planned Corrective Action To address this finding, Housing and Community Connections has taken the following steps: 1. Compliance Calendar & Reminders – Staff have implemented calendar reminders for all HUD reporting requirements. Reporting deadlines are also reviewed at bimonthly staff meetings to ensure awareness of upcoming due dates. 2. Defined Roles and Responsibilities – The HOME/CDBG Program Coordinator now assembles applicable data and prepares a draft of each quarterly Cash on Hand Report. This draft is reviewed with the Housing and Community Connections Manager before submission. 3. Approval and Retention Process – A final review and approval is conducted by the Manager prior to submission. Copies of all submitted reports are retained in office files as part of our strengthened workflow.

2024-003: CDBG – Community Development Block Grants/Entitlement Grants – ALN #14.218, COVID-19 Coronavirus State and Local Fiscal Recovery Fund – ALN #21.027, Late Filing of Financial Report and Data Collection Form Condition The Town did not submit the data collection form or financial report for the year ended June 30, 2024 timely. Criteria For June 30, 2024, year-end audits, under the requirements in the Uniform Guidance and the Office of Management and Budget (OMB), all entities are required to submit 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. Cause Management did not complete and certify their portion of the form before the deadline. The form cannot be completed before the audit is issued. Effect The Town’s form was submitted to the Federal Audit Clearinghouse late, delaying completion of all annual audit requirements for the Town. Recommendation Management should take steps to ensure that the form and financial report is filed timely. View of Responsible Officials and Planned Corrective Action To address this finding, the Town has strengthened internal processes to ensure timely submission of all future financial reporting and audit certification materials through the following measures: 1. Submission Tracking and Deadline Control – A centralized federal reporting tracker has been created to monitor all post-audit submission requirements. The Housing and Community Connections Manager will receive automated deadline reminders beginning 30 days before each reporting due date. 2. Defined Accountability Chain – The Town Manager’s Office and the Finance Department are responsible for completing and certifying the data collection form promptly upon issuance of the audit. The Housing and Community Connections Division will verify completion and coordinate any supplemental financial information required for submission. 3. Post-Audit Compliance Review – A post-audit checklist has been developed to confirm all required submissions – including the Federal Audit Clearinghouse filing – are completed and documented. Completion status will be reviewed in the first Finance/Housing coordination meeting following each audit.