Finding 2025-001 Audit Finding: In accordance with 2 CFR § 200.332(a) of the Uniform Guidance, pass-through entities are required to clearly identify to the subrecipient certain information and requirements at the time of the subaward, including federal award identification information, applicable compliance requirements, and additional terms and conditions imposed by the pass-through entity. The agreements should also include the applicable U.S. Department of Transportation and Federal Aviation Administration award terms, conditions, and assurances. The Town executed written subrecipient agreements with Fishers Island Ferry District for $2,401,993 passed through for the Airport Improvement Program (Assistance Listing 20.106), however the agreements contained errors and omitted required information. Recommendation: We recommend that the Town develop and implement procedures to ensure that all subrecipient agreements are reviewed for accuracy and completeness and include all required information specific to the grant award. Corrective Action Plan: In coordination with the Supervisor’s office, Town Attorney’s office, and Comptroller’s office, formal subrecipient agreements will comprise an additional level of review for accuracy and completeness, and include the applicable U.S. Department of Transportation and Federal Aviation Administration award requirements and disclosures. Responsible Individual: Albert J. Krupski Jr., Town Supervisor Benjamin Johnson, Town Attorney Michelle Nickonovitz, Town Comptroller Planned Date of Implementation: Corrective action plan procedures have already been communicated and implemented to ensure that all formal written subrecipient agreements with pass-through entities are reviewed for accuracy and completeness and include all required information specific to the grant award.