Audit 414033

Federal Agency - United State Department of the Treasury Federal Program - Coronavirus State and Local Fiscal Recovery Funds - (21.027) Federal Award Year - 2021 State Agency - Not applicable Criteria - Management is responsible for submitting accurate quarterly reports to the United States Department of the Treasury (the Treasury) for the Coronavirus State and Local Fiscal Recovery Funds (ARPA). Condition - The total expenditures on the ARP A quarterly reports submitted to the Treasury did not agree to the total expenditures in the Town's accounting software as of December 31, 2025. Cause - The quarterly reports were not reconciled back to the accounting software for accuracy. Effect of Condition - The quarterly reports are incomplete and are missing material expenditures. Repeat Finding - This is a repeat finding of item 2024-002 as reported for the year ended December 31, 2024. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - The Town should revise the quarterly reports and review future reports to ensure all ARP A related expenditures reported to the Treasury. Views of Responsible Officials and Planned Corrective Actions - (2) Audit Finding 2025-002 - The Town had significant variances between its quarterly Coronavirus State and Local Fiscal Recovery Funds (ARP A) reports submitted to the United States Department of the Treasury (the Treasury), and its expenditures in its accounting software. (a) Implementation Plan of Actions - The Town has contracted with a new third party consultant to file these timely. (b) Implementation Date - This will be implemented for the year ending December 31, 2026. (c) Persons Responsible for Implementation - The Comptroller and the Town Board.

Criteria - Review and approval of purchase orders by department heads should be performed for each purchase order. Condition - Our testing revealed that 8 out of 20 expenditures that were sampled regarding the Coronavirus State and Local Fiscal Recovery Funds disbursements did not contain approval from a department head. Cause - Established internal controls for purchase orders are not being followed. Effect of Condition - The Town is not in compliance with its established cash disbursement controls. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs - None identified. Recommendation - We recommend that the Town monitors policies an procedures for verifying that all purchase orders have been approved by a department head before funds are disbursed. Views of Responsible Officials and Planned Corrective Actions - (3) Audit Finding 2025-003 - The Town department heads did not review and approve the purchase orders before funds were disbursed for 8 out of 20 expenditures that were sampled. (a) Implementation Plan of Actions - The Town will monitor that all paid purchase orders have been reviewed and approved by a department head before funds are disbursed. (b) Implementation Date - This will be implemented for the year ending December 31, 2026. (c) Persons Responsible for Implementation - The Comptroller and the Town Board.