Finding Text
Condition - The Town Schedule of Expenditures of Federal Awards presented for audit for the year ended June 30, 2023 listed total expenditures under this program of $2,978,816 which includes nonfederal expenditures totaling $1,129,712. The Schedule of Expenditures of Federal Awards has been corrected to account for this error. Criteria - Uniform Guidance §200.510 states that an auditee must “prepare a schedule of expenditures of Federal awards for the periered by the auditee’s financial statements which must include the total Federal awards expended”. Cause - When preparing the Schedule of Expenditures of Federal Awards the Town did not account for and exclude certain non federal expenditures. Effect - The Town’s Schedule of Expenditures of Federal Awards presented for audit was overstated by $1,129,712. Recommendation - We recommend that the Town closely review the grant agreements for each grant listed on its Schedule of Expenditures of Federal Awards and verify that only federally funded expenditures are included on the Schedule of Expenditures of Federal Awards.