Finding 1181375 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-18

AI Summary

  • Core Issue: Reimbursement requests included duplicate expenditures, leading to inaccurate reporting.
  • Impacted Requirements: Policies for accurate reporting to Federal agencies and pass-through entities were not followed.
  • Recommended Follow-Up: Finance Department should review all reimbursement requests for accuracy against the general ledger.

Finding Text

Criteria: An entity should have policies and procedures in place to provide for accurate reporting to Federal agencies and pass-through entities. Condition: During our test of controls over compliance with reporting requirements, we noted that a reimbursement request submitted to a pass-through entity included expenditures that had previously been submitted for reimbursement. Cause: The reimbursement requests were not reconciled to the general ledger. Effect: The amount requested from the pass-through entity was not accurate. Questioned Costs: None Recommendation: We recommend that reimbursement requests prepared by departments and submitted to Federal agencies and pass-through entities be reviewed by the Finance Department to ensure that the reimbursement requests are accurate and agree to the general ledger.

Corrective Action Plan

Corrective Action: The Town will adopt a formal policy establishing procedures and internal controls for the administration and reporting of grant activities to ensure accurate and timely reporting to Federal and pass-through agencies. The policy will provide clear guidance to all departments regarding the preparation and submission of grant reimbursement requests. In addition, all reimbursement requests will be subject to review by the Finance Department prior to submission to ensure compliance with grant requirements and proper documentation of expenditures.

Categories

Subrecipient Monitoring Cash Management Reporting

Other Findings in this Audit

  • 1181372 2025-003
    Material Weakness Repeat
  • 1181373 2025-003
    Material Weakness Repeat
  • 1181374 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $1.01M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $446,714
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $232,862
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $143,079
21.029 CORONAVIRUS CAPITAL PROJECTS FUND $135,923
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $112,650
93.788 OPIOID STR $103,290
10.555 NATIONAL SCHOOL LUNCH PROGRAM $99,989
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $94,237
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $63,849
15.926 AMERICAN BATTLEFIELD PROTECTION $39,815
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $39,490
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $36,695
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $30,467
10.553 SCHOOL BREAKFAST PROGRAM $27,180
90.404 HAVA ELECTION SECURITY GRANTS $22,204
16.922 EQUITABLE SHARING PROGRAM $13,025
84.425 EDUCATION STABILIZATION FUND $12,735
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $11,485
10.000 PEOPLE'S GARDEN PROJECT $8,411
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $4,966
20.219 RECREATIONAL TRAILS PROGRAM $4,326
97.067 HOMELAND SECURITY GRANT PROGRAM $2,000
66.456 NATIONAL ESTUARY PROGRAM $2,000
10.675 URBAN AND COMMUNITY FORESTRY PROGRAM $1,078
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $654
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $480