Finding Text
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. Cause: Town management relied on the engineer and USDA staff to aggregate and monitor costs. Effect: Records related to grant and loan draws were incomplete. Repeat of Prior Finding: No. This is a new finding in the current year. 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. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan.