Audit 410131

Finding 2025-003 – Material Weakness – Single Audit Reporting Package Not Submitted in a Timely Manner (Repeat Finding of 2024-003) Federal program: All federal programs Criteria: Pursuant to 2 CFR 200.512 of the Uniform Guidance requires the organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline. Cause: The Town did not prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner. Effect or Potential Effect: The late submission of the audited financial statements and data collection form resulted in the Town being noncompliant with the provisions of Section 200.512 of the Uniform Guidance. Recommendations: We recommend the Town strengthens the year-end close process to provide ample time to finalize the general ledger and trial balance to meet the federal audit clearinghouse nine-month submission deadline. Views of Responsible Officials and Planned Corrective Action: The Town's management concurs with the finding and will implement the recommendation above.

Finding 2025-002 – Material Weakness – Period of Performance Assistance Listing: 97.036 – Disaster Grants – Public Assistance (Presidentially Declared Disasters) Federal Grantor: US Department of Homeland Security, Federal Emergency Management Agency (FEMA) Pass-through Grantor's No: N/A – Direct Grant, Contract No: FEMA PJ0359-130763 Criteria: Pursuant to 2 CFR 200.309 and the terms and conditions of the FEMA award, a recipient may charge to a federal award only allowable costs incurred during the approved period of performance unless an extension has been approved by the awarding agency. Condition: The Town incurred and charged expenditures totaling $30,826 to a FEMA Public Assistance project after the approved period of performance ended on October 31, 2024. The Town submitted a formal request to extend the period of performance on September 8, 2025. As of March 19, 2026, FEMA had communicated that the extension request has been denied. However, FEMA reimbursed the Town for the expenditures incurred after October 31, 2024. As of the date of this audit report, FEMA has not indicated whether the reimbursement will ultimately be retained or subject to recovery. Cause: The Town lacked an effective review control to ensure expenditures incurred after the approved period of performance were not charged to the federal award or included in reimbursement requests until an extension had been approved by FEMA. Consequently, management continued requesting reimbursement for expenditures incurred after the approved period while awaiting FEMA's decision on the extension request. Effect or Potential Effect: Expenditures charged to the federal award were not incurred within the approved period of performance, resulting in noncompliance with the terms and conditions of the federal award and the possibility that FEMA could require repayment of reimbursements received. Known Questioned Costs: $30,826 Recommendations: The Town should strengthen controls over monitoring grant periods of performance and ensure expenditures incurred after the approved period are not charged to federal awards, and requested for reimbursement, unless and until an extension has been approved by the awarding agency. Views of Responsible Officials and Planned Corrective Action: The Town's management concurs with the finding and will implement the recommendation above.