Finding 1089076 (2024-001)

2024-001: Written Internal Control Policies and Federal Grant Award Procedures Finding Prior Year Findings: Yes, 2023-002 Department Agency: Department of Treasury State Department: Wyoming State Loan & Investment Board Office of State Lands & Investments Assistance Listing Number: ALN #21.027 Type of Finding: Significant Deficiency Questioned Costs: None Criteria: Federal regulations 2 CFR 200.303 state that non-Federal entities establish, document and maintain effective internal control over the Federal awards. Internal controls is generally defined as a process effected by an entity's oversight body, management, and other personnel that provides reasonable assurance that the objectives of an entity will be achieved. Internal control is not one event or circumstance, but a dynamic and iterative process-actions that permeate an entity's activites and are an integral part of the way auditee management runs the entity. Condition: The Town did not have written internal controls and Federal grant award policies in place. Cause and Effect: The Town was in the process of adopting internal control policies but did not have them completed at June 30, 2024. Repeat Finding: Yes Recommendation: We recommend that the Town of Dayton develop and adopt written internal controls and Federal grant award procedures. Response: Please see the last page of this report for the Town's response to this finding.