TOWN OF ROCHESTER, VERMONTLocal Government

Federal program: Highway Planning and Construction Cluster CFDA number: 20.205 Federal agency: U.S. Department of Transportation Pass-through entity: State of Vermont Agency of Transportation Pass-through entity identification number: ER0128 and BR0581 Type of Finding: Nonmaterial compliance and significant deficiency in internal control over compliance Criteria: Per 2 CFR Section 200.302(b)(6), and 200.302(b)(7), a non-federal agency must establish written procedures related to the following: receipt of payment of federal fund and determination of allowability of costs in accordance with Subpart E ? Cost Principles, respectively. Condition: The Town has not formally adopted certain required written financial management policies as outlined in the Code of Federal Regulations. Cause: Town personnel were unaware of this requirement Effect: Transactions could occur that did not comply with federal regulations. Questioned costs: None Repeat finding: The Town of Rochester, Vermont was not required to have a Single audit for its prior fiscal year. Accordingly, this is not a repeat finding from the prior year. Perspective information: The finding was based on the Town?s written financial policies and therefore was not the result of a statistically valid sample. Recommendation: The auditor recommends that the Town obtain an understanding of the required written policies in the Code of Federal Regulations as applicable to its federal programs, create and formally adopt those required policies. Views of responsible officials: The Town has created a binder for reference to the written policies required in the Code of Federal Regulations. The Town will create written policies and have them reviewed by the Auditor for formal adoption.

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