FAC Explorer

Finding 1164491 (2024-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-12-11
Audit: 374063
Organization: Town of Bristol, Vermont (VT)
Auditor: RHR SMITH AND COMPANY

AI Summary

  • Core Issue: The client lacks a written cash management policy for federal grants.
  • Impacted Requirements: This finding relates to compliance with 2 CFR Section 200.302(b)(6).
  • Recommended Follow-Up: Implement internal controls to ensure policies align with federal regulations.

Finding Text

2024-001 - Cash Management Federal Program Information: EPA - Direct Award: ALN - 66.468 – Drinking Water State Revolving Funds Criteria: The following CFR(s) apply to this finding: 2 CFR Section 200.302(b)(6) Condition: During audit procedures, it was identified that the client did not have a written cash management policy. Cause: There was a change in personnel responsible for federal grants. Effect: Transactions could occur that did not comply with federal regulations. Identification of Questioned Costs: None identified. Context: The finding was based on requesting the Town’s written financial policies related to federal compliance and therefore was not the result of a statistical sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit implement internal control processes and procedures to ensure that policies are in compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Town of Bristol, Vermont.

Corrective Action Plan

CORRECTIVE ACTION PLAN (Concerning Finding 2024-001) Contact Person Responsible for Corrective Action: Gregory Faust, Town Administrator Corrective Action: The Town of Bristol will take the following actions to address finding 2024-001: The Town of Bristol will adopt and implement Cash Management Policy that ensures compliance with federal requirements. This policy will cover drawdowns, disbursement timing, and reconciliation of federal funds. This policy will be reviewed and approved by Town Administrator and the Selectboard. Once the policy is adopted, training will be provided for all staff involved in managing federal funds. The Town will establish procedures for reviewing and reconciling balances and drawdowns. Anticipated Completion Date: January 1, 2026

Categories

Cash Management Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $752,218
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $360,000
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $128,388
20.205 HIGHWAY PLANNING AND CONSTRUCTION $29,941
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $19,210