Finding 1078273 (2023-003)

Improve Controls over Reporting Federal Agency: U.S. Department of the Treasury Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Award Year: 2023 Type of Finding Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Management of the Town is responsible for establishing and maintaining effective internal con-trol over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of per-forming their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Reports required to be submitted to grantors do not have a separate preparer and reviewer. Cause Weaknesses in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with the finding. Recommendation The Town should implement formal policies and procedures regarding separation of duties and the requirement of a second individual being involved in the reporting process. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.