Finding 51900 (2022-001)

I. FINDINGS?FINANCIAL STATEMENT AUDIT See finding 2022-001. II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2022-001 Budget Authorizations U.S. Department of Treasury ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Allowable Activities Condition: The use of the grant funds is not consistently formally authorized by the Board. For certain authorization there is no Board Resolution authorizing the use of the grant funds. 3 out of 7 projects were not authorized. These projects had expenditures of $409,975 out of the to grant expenditures of $1,233,348. Criteria: Specific new revenues not initially included in the budget may be appropriated by resolution of the town board at any time (Town Law, Section 112 [3]). These specific revenues are limited to the following: ? Grants-in-aid from the State and federal governments ? Gifts which must be expended for particular objects or purposes ? Certain insurance recoveries when proposed to be used for the purpose for which the insurance was maintained. Effect: Noncompliance with Town Law and risk of unauthorized expenditures. Known Questioned costs: None noted. Recommendations: We recommend that all budget adjustment for the use of grant funds be clearly authorized by a Board resolution. Managements Response: Authorizations are being verbally authorized, but not consistently passed through a Board resolution in 2022. In 2023, the authorizations are being formally documented in the Board Minutes.