The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Town of Worcester, Vermont under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Worcester, Vermont, it is not intended to and does not present the financial position, changes in net position or cash flows.
During 2024, the Town was reimbursed $785,927 under the FEMA Public Assistance Program (ALN 97.036) for Project #731907 (Grant #02140-84720-204) for $873,253 of expenditures incurred in 2023. In 2025, FEMA issued a denial of eligibility, which the Town subsequently appealed. In 2026, prior to the issuance of this audit report, FEMA issued a final determination partially approving the appeal. Eligible project costs were finalized at $524,753 (Federal Share: $472,277), with the remaining $348,500 of expenditures to be covered by a separate Federal Highway Administration grant approved in 2026. Accordingly, the 2024 Schedule of Expenditures of Federal Awards has been adjusted to report only the final approved eligible federal share of $472,277. The Town is currently processing the return of the disallowed amount of $313,650 back to the grantor agency.
During 2024, the Town expended $1,399,431 (Federal Share: $1,259,488) under the FEMA Public Assistance Program (ALN 97.036) for Project #739565 (Grant #02140-84720-204). In 2025, the Town received a federal cash reimbursement of $1,133,539. Subsequent to the cash receipt, FEMA issued an eligibility denial. The Town has filed a formal appeal, which is currently pending. Since the facts are similar to the appeal that was approved, the Town expects it will be successful. The Town expects to retain the $1,133,539 previously received which is included in the federal expenditures reported. If unsuccessful, the Town may be required to refund up to $1,133,539 to the grantor agency.
Included in the Schedule of Expenditures of Federal Awards is $698,288 in federal expenditures for other projects under Grant #02140-84720-204 for the FEMA Public Assistance Program (ALN 97.036) that were incurred in the prior year. These costs were reported in the current year Schedule of Expenditures of Federal Awards due to the timing of formal project obligation and approval by FEMA. In addition, $40,973 was spent in 2024.