Finding 1155099 (2024-003)

Criteria or Specific Requirement: Per 2 CFR § 200.303 (a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The required SF-271 report was not submitted timely and was submitted after being requested for the audit. The required SF-425 report was not accurately completed and not submitted. Questioned Costs: None. Context: The Town did not submit the required grant reporting in a timely manner. Cause: The Town does not have adequate policies in place to ensure accurate and timely financial reporting for federal awards. Effect: The Town was not in compliance with the financial reporting requirements. Repeat Finding: No. Recommendation: The Town should continue its efforts to strengthen internal controls to ensure continuous monitoring and review of project obligations resulting in reports that are submitted in compliance with the grant requirements. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. The Town’s grants team will continue to work with departments and any outside consultants to ensure reporting is completed timely and accurately.