Audit 401275

2025-001 U.S. Department of Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Material Weakness in Internal Controls Over Compliance and Compliance Finding Criteria: Per 2 CFR section 200.309 grant funds may only be obligated upon the date of approval by the awarding agency through the end of the grant period. Condition: The Town’s files for a project totaling $90,550 that was obligated at December 31, 2024 only contained quotes and not documentation that showed that an obligation to pay was incurred at December 31, 2024. Cause: The Town does not have documented federal award policies that address internal controls over grant award administration. Effect: The Town may not have properly obligated costs totaling $90,550. Questioned Costs: Could not be determined due to lack of documentation. Repeat Finding from Prior Year: No. Recommendation: The Town should implement procedures to maintain appropriate documentation to support the obligation date of all federal award purchases. Views of Responsible Official: Management agrees with the finding.

2025-002 U.S. Department of Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Significant Deficiency in Internal Controls Over Compliance and Other Matter Criteria: The Uniform Guidance requires written policies regarding cash management, determination of allowable costs, employee travel, procurement and subrecipient monitoring. Condition: The Town has not documented in writing its policies regarding federal awards. Cause: Lack of documentation of policies and procedures. Effect: The Town is not in compliance with the Uniform Guidance requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to properly document all federal awards policies required by the Uniform Guidance. Views of Responsible Official: Management agrees with the finding.