Audit 409909

COVID-19 Coronavirus State and Local Fiscal Recovery Fund – AL# 21.027, Highway Planning and Construction – AL# 20.205, Late Filling of Data Collection Form Condition The Town did not submit the data collection form for the year ended June 30, 2023, timely. Criteria For June 30, 2023, year-end audits, under the requirements in the Uniform Guidance and the Office of Management and Budget (OMB), all entities are required to submit the annual data collection form with the Federal Audit Clearinghouse the earlier of either 30 days after the issuance of the entity’s annual audit or nine months after the entity’s fiscal year end. Cause Management did not complete and certify their portion of the form before the deadline. Form cannot be completed before audit is issued. Effect The entity’s form was submitted to the Federal Audit Clearinghouse late, delaying completion of all annual audit requirements for the Town. Recommendation Management should take steps to ensure that the form is filed timely. Repeat Finding Similar conditions were present in the prior year. See finding 2022-003 in Summary Schedule of Prior Audit Findings. Views of Responsible Officials and Planned Corrective Action We agree with the finding and will ensure the reports are filed in a timely manner.

Schedule of Expenditures of Federal Awards (Material Weakness) Condition The Schedule of Expenditures of Federal Awards (SEFA) was prepared without supervisor review, resulting in several auditor corrections. Criteria Segregation of duties and review procedures should be applied to federal award workpapers. Cause The Town has not designed effective internal controls with regard to federal awards. Effect Risk that the Town’s information in the SEFA is not accurate, complete, or appropriately presented in accordance with Uniform Guidance. Perspective Information Audit adjustments of $661,299 were necessary to correct the Schedule of Expenditures of Federal Awards. Recommendation Management should establish and implement internal controls with regard to federal awards. Views of Responsible Officials and Planned Corrective Action We agree with the finding and we’re working towards developing a written policy.