Finding Text
Finding Number: 2025-004 Federal Agency: U.S. Department of Treasury Cluster/Program(s): Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number(s): 21.027 Compliance Requirement: Reporting Type of Finding: Significant Deficiency on Internal Controls over Compliance Criteria: Under the requirements of reporting, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Condition: During our review, we noted that the Town had not established or documented a formal internal control process governing compliance with reporting requirements. Cause: Management has not implemented a formal process to identify, document, and maintain internal controls over ARPA program activities. As a result, during our testing we identified several immaterial errors in the completed annual report. Effect: Failure to submit accurate information could result in the loss of future federal funding. Recommendations: We recommend that the Town implement procedures to ensure reports are completed accurately and in a timely manner to meet the federal requirements as outlined in the grant agreements.