Condition: During our testing of the major program, we noted numerous errors on draw requests. In addition, accounting for construction costs and federal grant and loan proceeds under this program were difficult to identify in the records. Criteria: Draw requests should be reviewed to ensure proper management of grant funding. Auditor?s Recommendation: We recommend Town work with engineers to review and approve the draw requests for all grant funding. Each draw request should agree with the Town?s underlying accounting records. Management?s Response: Management will hold meetings at least quarterly with contractors, the project engineer, and the state or other funding sources to review construction claims and draw requests. Regular reviews of large-scale projects being paid with federal funding will ensure that costs and activities are properly captured and submitted for reimbursement. Cheryl Schneider, Clerk/Treasurer, is responsible for this corrective action and it will be implemented with all grant draws starting in January 2023.