Finding Text
Agency: Department of Treasury
Program & ALN: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (21.027)
ComplianceRequirement: Reporting
Finding Type: Finding reported in accordance with 2 CFR section 200.516(a)
Criteria: Per grant requirements, recipients are required to submit annual Project and Expenditure Reports detailing cumulative and current period expenditures andobligations.
Condition: The Town filed reports with expenditures based on estimates that did not have underlying supporting documentation.
Cause: The Town did not have a proper reporting and review process of federal grants.
Effect: The expenditures reported by the Town on the report for the year ended March 31, 2023 were overstated.
Context: The Town reported expenditures totaling $4,988,468 for the two years ended March 31, 2023 but only had supporting expenditures totaling $4,208,385.
Recommendation: Management should establish a reconciliation process and reports should be reviewed
by someone other than the preparer prior to submission to ensure accuracy of reporting.
Views of Responsible Officials and Planned Corrective Action: The Town concurs with the finding; however, it will be corrected as the Town willhave fully spent the funds by the next filing due March 31, 2024.