Finding Text
2022-001 U.S. Department of the Treasury COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds - CFDA 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the March 31, 2022, reporting date, the Town reported obligations of $5,044,950 while actual obligations were only $1,134,400. Cause: The Town reported its entire award allotment as obligated due to a misunderstanding of the grant reporting requirements. Effect: The Town?s reporting is overstated. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should only report obligations for amounts that represent orders placed for property and services, contracts and subawards made that require payment in the same or future period. Views of Responsible Official: Management agrees with the finding.