Federal Agency: U.S. Department of Treasury Federal Programs: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: State Department of Revenue Pass-Through Number(s): Not Available Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or Specific Requirement: Per the U.S. Treasury’s Project and Expenditure Report User Guide, each State and Local Fiscal Recovery Fund (SLFRF) recipient is required to submit periodic reports with current performance and/or financial information including background information about the SLFRF projects that are the subjects of the reports; and financial information with details about obligations, expenditures, director payments, and subawards. The Project and Expenditure Reports are required to be submitted by specified dates in the User Guide to the U.S. Department of Treasury. Condition: The annual project and expenditure report selected for testing was not submitted by the required due date. Context: The condition above occurred for the one annual report that was due during the year under audit. Questioned Costs: None. Cause: Procedures were not in place to file the report timely. Effect: The report was filed after the due date. Repeat Finding: No Recommendation: We recommend procedures be strengthened to file reports timely. Views of Responsible Officials: Management agrees with the finding.
Federal Agency: U.S. Department of Treasury Federal Programs: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: State Department of Revenue Pass-Through Number(s): Not Available Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Nonfederal entities must verify that contracts with certain parties are not debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The Town did not document verification that certain vendors were not suspended or debarred from participation in Federal assistance programs or activities. The vendors in our audit sample were not suspended or debarred. Context: The condition above occurred for four vendors in our audit sample. Questioned Costs: None. Cause: Procedures were not in place to document the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: Lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No Recommendation: We recommend to annually (at a minimum) document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.