Finding 1104721 (2024-001)

2024-001 U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the March 31, 2024 reporting date, the Town’s Project and Expenditure Reports overstated expenditures by $821,704. Cause: The Town did not reconcile the Project and Expenditure report with the Town’s general ledger before submitting. Effect: The Town did not properly report grant expenditures in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to reconcile the financial information in the Project and Expenditure reports to the Town’s general ledger before submission. Views of Responsible Official: Management agrees with the finding.