Finding 1174196 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-02-18

AI Summary

  • Core Issue: The annual project and expenditure report was not submitted on time, violating compliance requirements.
  • Impacted Requirements: Reports must include financial details and be submitted by specific deadlines as outlined in the U.S. Treasury’s guidelines.
  • Recommended Follow-Up: Strengthen procedures to ensure timely filing of reports in the future.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Programs: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: State Department of Revenue Pass-Through Number(s): Not Available Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or Specific Requirement: Per the U.S. Treasury’s Project and Expenditure Report User Guide, each State and Local Fiscal Recovery Fund (SLFRF) recipient is required to submit periodic reports with current performance and/or financial information including background information about the SLFRF projects that are the subjects of the reports; and financial information with details about obligations, expenditures, director payments, and subawards. The Project and Expenditure Reports are required to be submitted by specified dates in the User Guide to the U.S. Department of Treasury. Condition: The annual project and expenditure report selected for testing was not submitted by the required due date. Context: The condition above occurred for the one annual report that was due during the year under audit. Questioned Costs: None. Cause: Procedures were not in place to file the report timely. Effect: The report was filed after the due date. Repeat Finding: No Recommendation: We recommend procedures be strengthened to file reports timely. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Recommendation: We recommend procedures be strengthened to file reports timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In January of 2025 the Town received correspondence that the required compliance reports had not been filed with the Department of Treasury. The Town worked diligently to rectify the situation. The previous Town Administrator was the only employee with access to the portal or communications with the Department of Treasury so several notices were never received. The Town immediately worked with the SLFRF Program to add both the current Town Administrator, Chad Lovett and Assistant Town Administrator/Town Accountant Lauren Taylor to the portal for access. The Town then worked to complete the Annual Project & Expenditure Report for 2024 and submitted the completed report on March 13, 2025. Name(s) of the contact person(s) responsible for corrective action: Lauren Taylor Assistant Town Administrator/Town Accountant Chad Lovett Town Administrator Planned completion date for corrective action plan: Completed March 13, 2025.

Categories

Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1174197 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $913,339