EIN: 026000828
UEI: XWWMSPJ2Y8S9
Audited by: VACHON CLUKAY & COMPANY PC
Oversight agency: 10 [Department of Agriculture]
View federal awards & risk assessment →
Showing data from August 28, 2026 — the Federal Audit Clearinghouse is under high demand right now, so this couldn't be refreshed. This is the most recent data on record, not necessarily today's.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 16, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 16, 2026 (76 days ago).
What is a management decision? →The Town passed through approximately $1,650,000 in Rural eConnectivity (ReConnect) funds to a local electric Co-op for broadband infrastructure installation. However, the Town did not perform subrecipient monitoring by identifying applicable requirements for the award during or after the disbursement of these funds. The requirements imposed by the Town to the Co-op so the federal award was in accordance with federal statutes, regulations, and terms and conditions as well as any additional requirements in order for the Town to meet its own responsibilities for the federal award were not clearly communicated or imposed. Cause: Town officials stated that they believed subrecipient monitoring was not necessary because the funds had already been expended and the project was completed. Additionally, there was limited communication between the Town and the federal awarding agency, which contributed to a misunderstanding of the Town’s responsibilities as a pass-through entity. Effect: The lack of subrecipient monitoring represents noncompliance with federal requirements and creates a risk that funds may not have been used for their intended purpose. Without adequate oversight, the Town cannot demonstrate that the subrecipient complied with the terms and conditions of the federal award. Questioned Costs: None. Recommendation: We recommend that the Town establish and implement a formal subrecipient monitoring process for all federal funds passed through to other entities. This should include risk assessments, written agreements with compliance terms, ongoing monitoring (e.g., review of performance and financial reports), and follow-up procedures. The Town should also seek guidance from the awarding agency if responsibilities are unclear. Views of Responsible Officials: The Town concurs that applicable requirements for the award were not identified for the subrecipient, however the Town did monitor activities of the subrecipient. The Town monitored activities to ensure funds were used for allowable activities.
Show full finding ▾Hide full finding ▴Finding #2024-002 Lack of Subrecipient Monitoring – Rural eConnectivity Pilot Program (ALN 10.752) Federal Agency: U.S. Department of Agriculture Assistance Listing Number (ALN): 10.752 – Rural eConnectivity Pilot Program (Reconnect) Award Year: 2024 Compliance Requirement: Subrecipient Monitoring Criteria: In accordance with 2 CFR §200.331 through §200.333, pass-through entities must monitor the activities of subrecipients to ensure that federal awards are used for authorized purposes and in compliance with laws, regulations, and the provisions of contracts or grant agreements. Required monitoring activities include reviewing financial and programmatic reports, following up on deficiencies, and ensuring corrective actions are taken. Condition: The Town passed through approximately $1,650,000 in Rural eConnectivity (ReConnect) funds to a local electric Co-op for broadband infrastructure installation. However, the Town did not perform subrecipient monitoring by identifying applicable requirements for the award during or after the disbursement of these funds. The requirements imposed by the Town to the Co-op so the federal award was in accordance with federal statutes, regulations, and terms and conditions as well as any additional requirements in order for the Town to meet its own responsibilities for the federal award were not clearly communicated or imposed. Cause: Town officials stated that they believed subrecipient monitoring was not necessary because the funds had already been expended and the project was completed. Additionally, there was limited communication between the Town and the federal awarding agency, which contributed to a misunderstanding of the Town’s responsibilities as a pass-through entity. Effect: The lack of subrecipient monitoring represents noncompliance with federal requirements and creates a risk that funds may not have been used for their intended purpose. Without adequate oversight, the Town cannot demonstrate that the subrecipient complied with the terms and conditions of the federal award. Questioned Costs: None. Recommendation: We recommend that the Town establish and implement a formal subrecipient monitoring process for all federal funds passed through to other entities. This should include risk assessments, written agreements with compliance terms, ongoing monitoring (e.g., review of performance and financial reports), and follow-up procedures. The Town should also seek guidance from the awarding agency if responsibilities are unclear. Views of Responsible Officials: The Town concurs that applicable requirements for the award were not identified for the subrecipient, however the Town did monitor activities of the subrecipient. The Town monitored activities to ensure funds were used for allowable activities.
Finding #2024-002 – Lack of Subrecipient Monitoring Description of Finding: The Town passed through approximately $1,650,000 in federal funds to a local electric Co-op for broadband infrastructure installation. The Town did not perform subrecipient monitoring specific to this award by identifying applicable requirements for the award after the disbursement of these funds. Statement of Concurrence of Nonconcurrence: The Town concurs that applicable requirements for the award were not identified for the subrecipient, however the Town did monitor activities of the subrecipient. The Town monitored activities to ensure funds were used for allowable activities. Contact Person: Courtney Delaney, Town Administrator Planned Corrective Action: Establish and implement a formal subrecipient monitoring process for all federal funds passed through to other entities. Seek guidance from the awarding agency if responsibilities are unclear. Anticipated Completion Date: The Town has been in regular communication with the awarding agency and established clarity as to applicable terms and conditions as of this date. The Town is working to establish and implement a formal monitoring process and anticipates completion no later than December 31, 2025.
The Town did not submit required performance reports for the Rural eConnectivity Pilot Program during the 2024 audit. The Town was unaware of the specific reporting requirements required by the USDA and did not have effective communication with the awarding agency to clarify these expectations. Cause: The noncompliance occurred due to a lack of awareness of the reporting requirements and inadequate communication between the Town and the USDA. The Town did not have adequate internal procedures in place to ensure compliance with federal grant reporting requirements. Effect: Failure to submit required reports limits the awarding agency’s ability to monitor the progress and financial integrity of the federal award. Continued noncompliance could result in the withholding of future federal funds or other enforcement actions. Questioned Costs: None. Recommendation: We recommend that the Town develop and implement written procedures to track federal reporting requirements and deadlines. The Town should ensure that all required reports are submitted accurately and on time. Additionally, the Town should establish regular communication with awarding agencies to clarify expectations and maintain compliance throughout the life of the grant. Views of Responsible Officials: Town of Sandwich, New Hampshire’s management concurs with this audit finding.
Show full finding ▾Hide full finding ▴Finding #2024-003 Lack of Reporting – Rural eConnectivity Pilot Program (ALN 10.752) Federal Agency: U.S. Department of Agriculture Assistance Listing Number (ALN): 10.752 – Rural eConnectivity Pilot Program (Reconnect) Award Year: 2024 Compliance Requirement: Reporting Criteria: In accordance with 2 CFR §200.328, non-federal entities must submit performance and financial reports as required by the terms and conditions of the federal award. These reports must be accurate, complete, and submitted timely to allow the awarding agency to report the project’s progress and financial status. Condition: The Town did not submit required performance reports for the Rural eConnectivity Pilot Program during the 2024 audit. The Town was unaware of the specific reporting requirements required by the USDA and did not have effective communication with the awarding agency to clarify these expectations. Cause: The noncompliance occurred due to a lack of awareness of the reporting requirements and inadequate communication between the Town and the USDA. The Town did not have adequate internal procedures in place to ensure compliance with federal grant reporting requirements. Effect: Failure to submit required reports limits the awarding agency’s ability to monitor the progress and financial integrity of the federal award. Continued noncompliance could result in the withholding of future federal funds or other enforcement actions. Questioned Costs: None. Recommendation: We recommend that the Town develop and implement written procedures to track federal reporting requirements and deadlines. The Town should ensure that all required reports are submitted accurately and on time. Additionally, the Town should establish regular communication with awarding agencies to clarify expectations and maintain compliance throughout the life of the grant. Views of Responsible Officials: Town of Sandwich, New Hampshire’s management concurs with this audit finding.
Finding #2024-003 – Lack of Reporting Description of Finding: The Town did not submit required performance reports for the Rural eConnectivity Pilot Program during the 2024 audit. The Town was unaware of the specific reporting requirements required by the USDA and had challenges in communicating with the awarding agency to clarify these expectations. Statement of Concurrence of Nonconcurrence: Concurrence. Contact Person: Courtney Delaney, Town Administrator Planned Corrective Action: Establish clarification as to applicable performance reports for the ReConnect program and submit required performance reports. Anticipated Completion Date: The Town has submitted several outstanding reports to the awarding agency as of this date and addressed challenges in communication and access to reporting portals. Two performance reports were not available until the initial report was filed. The Town is finalizing the outstanding performance reports currently and awaits technical information from the ISP and subrecipient for completion. Anticipated completion no later than September 30, 2025.
FAC accepted this audit on August 7, 2023 — management decision was due February 7, 2024.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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