Finding 1073775 (2023-003)

Finding 2023-003 Coronavirus State and Local Fiscal Recovery Funds Reporting (Compliance) – 2023 Criteria The Town is required to complete the project and expenditure report annually for obligations and expenditures. The report is required to include current period obligations, cumulative obligations, current period expenditures and cumulative expenditures. The report has key line items that are quantifiable and should be reconciled to the Town's general ledger. Conditions The amounts reported in the March 31, 2023 project and expenditure report for current period and cumulative expenditures were not able to be reconciled to the amounts expended in the Town’s general ledger. Additionally, the current period and cumulative obligations reported were lower than the $1,357,672 obligated by the Board of Selectmen by March 31, 2023. Questioned costs None noted. Context Not applicable. Effect The Town was not in compliance with the reporting requirements. Cause The Town did not follow the established procedures and internal controls for grant reporting. Recommendation We recommend the Town implement procedures to ensure amounts reported in the project and expenditures reports agree to the general ledger expenditures in accordance with the grant requirements. Views of responsible official and planned corrective actions Management agrees with this finding. The Town will implement procedures to ensure reports are based upon the Town's general ledger and properly reconciled and in compliance with U.S. Treasury guidelines. The reporting was corrected for the March 31, 2024 filing and the expenditures reported were based on the general ledger. The implementation of this recommendation will be monitored by the Finance Director.