Audit 23345

Finding No. 2022-001 Suspension and Debarment Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Award Period: June 7, 2021 through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: The Town must verify that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Condition: The Town does not have formal policies or procedures in place for verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Questioned Costs: None noted. Context: Although the Town did not have formal policies or procedures in place in conformity with the federal Uniform Guidance criteria, the entities for which the Town made purchases from were not debarred, suspended, or otherwise excluded. Effect: With the absence of compliant policies and procedures, the Town is at risk of noncompliance as it relates to federal suspension and debarment requirements. Cause: The Town was not aware of the details surrounding suspension and debarment requirements, and therefore formal policies and procedures were not in place. Recommendation: We recommend that the Town review its formal procurement policies and make necessary revisions to formally include policies and procedures to meet the requirements for verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditors? recommendations. Corrective action will be taken to ensure the policy is updated and the correct procurement procedures are followed.

Finding No. 2022-002 Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Award Period: June 7, 2021 through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: The Town must have proper controls in place to ensure an independent review is completed by someone other than the report preparer and that this review is formally documented prior to submission to the U.S. Department of the Treasury. Condition: The Town does not have a control in place to ensure an independent review of financial reports is completed by someone separate from the report preparation process prior to submission to the U.S. Department of the Treasury. Questioned Costs: None noted. Context: There is no review of the financial reports being performed by an individual independent of the report preparation process. Effect: With the absence of this control, the financial reports submitted to the U.S. Department of the Treasury could potentially include incorrect or incomplete data. Cause The Town?s Grants Manager was preparing the financial reports and submitting them to the U.S. Department of the Treasury without an independent review being performed by another individual. Recommendation: We recommend that the Town implement a control to ensure an independent review of the financial reports is performed by an individual other than the preparer to verify accuracy and completeness prior to submission to the U.S. Department of the Treasury. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditors? recommendations. Corrective action has been taken to implement a control to ensure an independent review of the financial reports takes place prior to submission to the U.S. Department of the Treasury.

Finding No. 2022-001 Suspension and Debarment Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Award Period: June 7, 2021 through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: The Town must verify that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Condition: The Town does not have formal policies or procedures in place for verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Questioned Costs: None noted. Context: Although the Town did not have formal policies or procedures in place in conformity with the federal Uniform Guidance criteria, the entities for which the Town made purchases from were not debarred, suspended, or otherwise excluded. Effect: With the absence of compliant policies and procedures, the Town is at risk of noncompliance as it relates to federal suspension and debarment requirements. Cause: The Town was not aware of the details surrounding suspension and debarment requirements, and therefore formal policies and procedures were not in place. Recommendation: We recommend that the Town review its formal procurement policies and make necessary revisions to formally include policies and procedures to meet the requirements for verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditors? recommendations. Corrective action will be taken to ensure the policy is updated and the correct procurement procedures are followed.

Finding No. 2022-002 Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Award Period: June 7, 2021 through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: The Town must have proper controls in place to ensure an independent review is completed by someone other than the report preparer and that this review is formally documented prior to submission to the U.S. Department of the Treasury. Condition: The Town does not have a control in place to ensure an independent review of financial reports is completed by someone separate from the report preparation process prior to submission to the U.S. Department of the Treasury. Questioned Costs: None noted. Context: There is no review of the financial reports being performed by an individual independent of the report preparation process. Effect: With the absence of this control, the financial reports submitted to the U.S. Department of the Treasury could potentially include incorrect or incomplete data. Cause The Town?s Grants Manager was preparing the financial reports and submitting them to the U.S. Department of the Treasury without an independent review being performed by another individual. Recommendation: We recommend that the Town implement a control to ensure an independent review of the financial reports is performed by an individual other than the preparer to verify accuracy and completeness prior to submission to the U.S. Department of the Treasury. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditors? recommendations. Corrective action has been taken to implement a control to ensure an independent review of the financial reports takes place prior to submission to the U.S. Department of the Treasury.