Finding Text
Preparation of Schedule of Federal Awards
Condition and Criteria: Although the Town was aware of its requirement for an audit in accordance with the Uniform Guidance for the year ended December 31, 2023, the Town did not prepare a schedule of expenditures of federal awards. The schedule should include all federal awards expended during the reporting period in accordance with section 200.502, “Basis for Determining Federal Awards Expended.”
Cause: The Town does not have a formal internal control system in place to ensure it has met the reporting requirements of Section 200.502 of the Uniform Guidance.
Effect or potential effect: By not instituting an internal control system over the preparation of the schedule of expenditures of federal awards, the single audit requirement may not be properly identified and performed in a timely manner.
Auditor recommendation: The Town should prepare a schedule of expenditures of federal awards on an annual basis that incorporates all sources of federal awards the Town expends (USDA, CDBG, etc.).
Town’s Response: Please see the corrective action plan issued by the Town.