Audit 387603

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Unknown Pass-Through Agency: Norfolk County Pass-Through Number(s): Unknown Award Period: July 1, 2023 to June 30, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Recipients of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) must comply with Treasury’s Final Rule, Award Terms and Conditions, and the Uniform Guidance (2 CFR Part 200), including §200.303 on Internal Controls. This requires recipients to establish and maintain effective internal controls to ensure: - Funding decisions are for eligible uses and properly documented. - All expenses are accurately recorded and reported in the correct fiscal quarter’s financial statements. Condition: 1 of the 16 reports tested did not accurately report expenditures for the year ended June 30, 2024. These expenses were subsequently reported in FY25. Questioned costs: None Context: Per 2 CFR Part 200 and Treasury’s SLFRF Compliance and Reporting Guidance, recipients must implement internal controls to ensure accurate and timely reporting of all eligible expenses in the correct reporting period. Cause: The omission occurred due to the accounting software expenditure report used to prepare the report did not capture the activity. Effect: The report did not reflect the full expense amount, resulting in understated expenses for that period. Recommendation: The Town should review and improve internal controls over the review and reconciliation procedures at quarter-end to ensure all expenses are captured in the correct reporting period. Views of responsible officials: There is no disagreement with the audit finding.