Finding Text
Finding 2023-004 – Significant Deficiency
Award No.: 16.710
Federal Grantor: U.S. Department of Justice
Compliance Requirement: Reporting
Condition: The Federal Financial Reports (SF-425) final report for the reporting period and date of December 31, 2022 was submitted on September 19, 2023. Quarterly federal financial report for the period of January 1, 2023 to March 31, 2023 was submitted on May 8, 2023.
Criteria: According to 2 CFR Part 200.303, the Town is required to establish and maintain effective internal controls over Federal awards that provides reasonable assurance that the Town is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Police Safety Partnership and Community Policing Grant program resolutions require the Town to file financial reports throughout the year. Federal Financial Report (SF-425) final report shall be submitted no later than 120 days after the project or grant period end date. Also, quarterly federal financial reports shall be submitted no later than 30 days after the end of each reporting period.
Cause: The Town experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2022-23.
Effect: The Town was not fully in compliance with reporting requirements.
Recommendation: The Town needs to ensure that reports are complete by the due date.
Views of Responsible Officials and Planned Corrective Action: We concur that the reports were filed late. Additional staff were hired to track reporting requirements.