Finding 559002 (2024-003)

Finding 2024-003 Coronavirus State and Local Fiscal Recovery Funds (Compliance - Reporting) – 2023 Program 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria The Town is required to complete the project and expenditure report annually for obligations and expenditures. The report is required to include current period obligations, cumulative obligations, current period expenditures and cumulative expenditures. The report has key line items that are quantifiable and should be reconciled to the Town's general ledger. Conditions The amounts reported in the March 31, 2024 project and expenditure report for cumulative expenditures only included the current year expenditures. Cumulative expenditures at March 31, 2024 should have totaled $3,032,459, the sum of the current and prior year expenditures. Questioned costs None noted. Context Not applicable. Effect The Town was not in compliance with the reporting requirements. Cause The Town did not follow the established procedures and internal controls for grant reporting. Recommendation We recommend the Town implement procedures to ensure amounts reported in the project and expenditures reports agree to the general ledger expenditures in accordance with the grant requirements. Views of responsible official and planned corrective actions Management agrees with this finding. The Town has reviewed the reporting procedures and how to maintain accurate expenditures, in accordance with U.S. Treasury guidelines. This corrective action has been sustained for the March 2025 filing, and will be adhered to for any subsequent reporting by the Director of Finance and the First Selectman.