2024-002 – U.S. Department of Agriculture Assistance Listing #10.553-10.582 School Nutrition Cluster for the period July 1, 2023, through June 30, 2024 Criteria: Per 2 CFR §200.303, the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our audit of the School Nutrition Cluster, we noted that the Town lacked adequate documentation of internal controls to ensure the accuracy and completeness of required federal reporting. Specifically, the Town did not have documented review procedures in place for the submission of monthly claim forms. Cause: There are no formalized policies and procedures governing the reporting process, including oversight responsibilities and documentation standards. Effect: Without adequate controls, there is an increased risk that reports submitted to the federal awarding agency may contain errors or omissions, potentially leading to improper reimbursement amounts. This could affect funding decisions and compliance with federal requirements. Recommendations: We recommend that the Town implement formal policies and procedures for the preparation and review of federal reports under the School Nutrition Cluster. This should include documented supervisory review, reconciliation to source documentation, and retention of supporting materials to substantiate reported data.
2024-001 U.S. Department of Treasury, Assistance Listing #84.027 – 84.173 Special Education Cluster for the period July 1, 2023, through June 30, 2024 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Condition: The Town contracted with several companies for special education services under a grant-funded project and did not document that the contractor was not suspended or debarred prior to contracting. Cause: According to the Town’s procurement policy, the Town is prohibited from contracting with another party that is suspended or debarred. Therefore, the Town should have obtained proof that the company in question was not suspended or debarred. Effect: The Town runs the risk of performing projects with parties who have been suspended or debarred, which could result in the loss of federal funding. Known Questioned Costs: unknown Likely Questioned Costs: unknown Recommendations: We recommend that the Town implement procedures to annually check active vendors and contractors and document that they are not suspended, debarred, or in some way prohibited from working on Town projects, especially those working on federally funded projects.