Finding Text
Federal Agency: U.S. Department of Homeland Security Federal Program Name: Assistance to Firefighters Grant Assistance Listing Number: 97.044 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 15, 2024 to July 14, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Guidance 2 CFR §200.305(b), non Federal entities receiving reimbursement based federal awards must maintain adequate documentation to support requests for reimbursement, demonstrating that costs were incurred and paid prior to requesting federal funds. Additionally, 2 CFR §200.303 requires the establishment and maintenance of effective internal control over federal awards to ensure compliance with federal statutes, regulations, and the terms and conditions of the award. Condition: During our testing of cash management, we noted that the Town did not maintain the request submitted to the grantor to support to evidence of review and approval. Questioned costs: None. Context: The Town did not maintain complete and accurate property records for request for reimbursement for the Assistance to Firefighters Grant (AFG). Cause: The Town has not implemented formal procedures requiring the retention for grant reimbursement requests. Effect: Without adequate documentation of the reimbursement requests, the Town is unable to demonstrate compliance with federal cash management requirements. This condition increases the risk that unsupported or ineligible costs could be reimbursed and limits the Towns ability to substantiate expenditures during monitoring or audit review. audit. Recommendation: We recommend that the Town establish and implement written procedures requiring the preparation, review, and retention of all federal grant reimbursement requests. Views of responsible officials: There is no disagreement with the audit finding.