Audit 415766

Prior Year Finding: No Federal Agency: U.S. Department of the Treasury Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: N/A Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Condition: The Township was required to submit quarterly Project and Expenditure Reports to the U.S. Department of Treasury. We tested 2 of the 4 reports that were required to be submitted. For 1 of the 2 reports tested, the report was not filed timely based on the date of submission at the bottom of the quarterly reports. Criteria or specific requirement: Compliance: The Project and Expenditure Report is required to report on financial data, projects, funded, expenditures, and contracts and subawards over $50,000, and other information. Based on the reporting tier, these reports are required to be submitted by the last day of the month after the end of each quarter. Control: Per 2 CFR section 200.303(a), a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes, regulations, and the terms and conditions for the award. The internal controls should align with the Standards for Internal Control in the Federal Government or the Internal Control – Integrated Framework issued by COSO. Questioned Costs: None Cause: The Township did not have adequate controls to ensure the reports were filed on a timely basis. Effect: The Township was not in compliance with the programs reporting requirements. Recommendation: We recommend that management review their policies and procedures and make the changes necessary to ensure reports are filed timely. Views of Responsible Officials: Management agrees with the finding.

Prior Year Finding: No Federal Agency: U.S. Department of the Treasury Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: N/A Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Condition: Of the 5 selected transactions for testing, the Township was unable to provide documentation demonstrating that suspension and debarment verification was performed prior to entering into the transaction. Criteria or specific requirement: Compliance: 2 CFR 200.214 Suspension and Debarment, restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. 2 CFR 180.300 states that an entity must determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person Control: Per 2 CFR section 200.303(a), a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes, regulations, and the terms and conditions for the award. The internal controls should align with the Standards for Internal Control in the Federal Government or the Internal Control – Integrated Framework issued by COSO. Questioned costs: None Effect: The Township could not demonstrate compliance with the suspension and debarment requirements to verify whether the contractors were not excluded or disqualified prior to entering into the contract, however per review of SAM.gov, the contractors were not suspended or debarred. Cause: The Township did not have sufficiently documented internal controls to ensure compliance with federal suspension and debarment requirements for the retention of evidence showing the method or date of verification. Recommendation: We recommend that management review and update its policies and procedures to include suspension and debarment verification requirements and establish steps for retaining supporting documentation, such as evidence of verification obtained from SAM.gov, including the date of verification. Views of Responsible Officials: Management agrees with the finding.