During fiscal year 2025 the Town had not yet consolidated all federally required grant administration practices and procedures into a comprehensive written federal grant policy. The Town did, however, maintain policies and procedures applicable to grant-funded activities, including a Procurement Policy effective January 1, 2025 that applied regardless of funding source and addressed grant-funded purchases, procurement, conflicts of interest, record retention, and compliance with grant-specific requirements. The Town was first formally advised of the need for additional comprehensive written federal grant policies and procedures in connection with the audit of its 2024 federal awards, which was conducted in late 2025. Once the finding was communicated, management responded as soon as practicable by developing a comprehensive Grants, Donations & Fundraising Policy incorporating the requirements of 2 CFR Part 200. The policy was adopted by the Board of Selectmen on March 31, 2026 and became effective April 1, 2026. Corrective action has been completed through adoption and implementation of this policy. Management also notes that the 2025 audit reported no questioned costs associated with this finding, identified no material weaknesses in internal control over the major federal program, and resulted in an unmodified opinion that the Town complied, in all material respects, with the applicable compliance requirements. Planned Implementation Date of Corrective Action: Occurred on April 1, 2026 Person Responsible for Corrective Action: Tammy Penny, Finance Direct & Assistant Town Administrator