Audit 395927

Federal Agency: U.S. Department of Homeland Security Federal Program Name: Assistance to Firefighters Grant Assistance Listing Number: 97.044 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 15, 2024 to July 14, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Guidance (2 CFR §200.313) requires nonfederal entities to maintain property records for equipment acquired with federal funds, including a description of the property, a serial number or other identification number, the source of funding, acquisition date, cost, location, use, condition, and disposition data, and to perform a physical inventory of the equipment at least once every two years. Condition: The Town did not maintain complete and accurate property records for equipment purchased with Assistance to Firefighters Grant (AFG) funds. Specifically, required information such as equipment description, serial number, acquisition date, acquisition cost, location, and disposition information was not consistently documented and retained for all federally funded equipment. Questioned costs: None. Context: The Town did not maintain complete and accurate property records for equipment purchased with Assistance to Firefighters Grant (AFG) funds. Cause: The Town did not have formalized procedures or controls in place to ensure that all federally funded equipment was recorded and tracked in accordance with federal property management requirements. Effect: The lack of complete property records increases the risk that federally funded equipment may not be adequately safeguarded, properly tracked, or accounted for in accordance with federal requirements. However, no instances of missing equipment or questioned costs were identified during the audit. Recommendation: We recommend that the Town establish and implement formal procedures to ensure that complete and accurate property records are maintained for all equipment purchased with federal funds, including periodic physical inventories, to ensure ongoing compliance with federal requirements. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Homeland Security Federal Program Name: Assistance to Firefighters Grant Assistance Listing Number: 97.044 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 15, 2024 to July 14, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Guidance 2 CFR §200.305(b), non Federal entities receiving reimbursement based federal awards must maintain adequate documentation to support requests for reimbursement, demonstrating that costs were incurred and paid prior to requesting federal funds. Additionally, 2 CFR §200.303 requires the establishment and maintenance of effective internal control over federal awards to ensure compliance with federal statutes, regulations, and the terms and conditions of the award. Condition: During our testing of cash management, we noted that the Town did not maintain the request submitted to the grantor to support to evidence of review and approval. Questioned costs: None. Context: The Town did not maintain complete and accurate property records for request for reimbursement for the Assistance to Firefighters Grant (AFG). Cause: The Town has not implemented formal procedures requiring the retention for grant reimbursement requests. Effect: Without adequate documentation of the reimbursement requests, the Town is unable to demonstrate compliance with federal cash management requirements. This condition increases the risk that unsupported or ineligible costs could be reimbursed and limits the Town’s ability to substantiate expenditures during monitoring or audit review. audit. Recommendation: We recommend that the Town establish and implement written procedures requiring the preparation, review, and retention of all federal grant reimbursement requests. Views of responsible officials: There is no disagreement with the audit finding.