Finding Text
Finding #2024-003 Lack of Reporting – Rural eConnectivity Pilot Program (ALN 10.752) Federal Agency: U.S. Department of Agriculture Assistance Listing Number (ALN): 10.752 – Rural eConnectivity Pilot Program (Reconnect) Award Year: 2024 Compliance Requirement: Reporting Criteria: In accordance with 2 CFR §200.328, non-federal entities must submit performance and financial reports as required by the terms and conditions of the federal award. These reports must be accurate, complete, and submitted timely to allow the awarding agency to report the project’s progress and financial status. Condition: The Town did not submit required performance reports for the Rural eConnectivity Pilot Program during the 2024 audit. The Town was unaware of the specific reporting requirements required by the USDA and did not have effective communication with the awarding agency to clarify these expectations. Cause: The noncompliance occurred due to a lack of awareness of the reporting requirements and inadequate communication between the Town and the USDA. The Town did not have adequate internal procedures in place to ensure compliance with federal grant reporting requirements. Effect: Failure to submit required reports limits the awarding agency’s ability to monitor the progress and financial integrity of the federal award. Continued noncompliance could result in the withholding of future federal funds or other enforcement actions. Questioned Costs: None. Recommendation: We recommend that the Town develop and implement written procedures to track federal reporting requirements and deadlines. The Town should ensure that all required reports are submitted accurately and on time. Additionally, the Town should establish regular communication with awarding agencies to clarify expectations and maintain compliance throughout the life of the grant. Views of Responsible Officials: Town of Sandwich, New Hampshire’s management concurs with this audit finding.