Failure to File Required Federal Financial Reports (SF-425) Auditor Description of Criteria, Condition, and Effect: Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. The Township failed to file the semi-annual SF-425 reports as required by the Township's grant agreement with the U.S. Environmental Protection Agency. As a result of this condition, the Township did not comply fully with the reporting requirements under this federal award. Auditor Recommendation: We recommend that the Township review its procedures for compiling financial data for external reporting purposes and develop a calendar by which grant managers and Township administration are notified of pending due dates. Financial reports should be supported by general ledger reports (which should be retained internally along with a copy of the report) and subjected to review and approval by an independent employee or administrator prior to submission. Corrective Action: We have notified the Department of Public Services, who has since had the SF-425’s that were not submitted filed with the EPA. Additionally, the Township’s finance department will produce a grant management calendar as recommended with all Township federal and state external reporting deadlines. Responsible Person: Karen Trombley, Accounting Coordinator Anticipated Completion Date: December 31, 2026