Audit 366336

FY End
2023-09-30
Total Expended
$5.54M
Findings
12
Programs
9
Year: 2023 Accepted: 2025-09-15

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1153103 2023-001 Material Weakness Yes L
1153104 2023-001 Material Weakness Yes L
1153105 2023-001 Material Weakness Yes L
1153106 2023-002 Material Weakness Yes L
1153107 2023-002 Material Weakness Yes L
1153108 2023-002 Material Weakness Yes L
1153109 2023-003 Material Weakness Yes M
1153110 2023-003 Material Weakness Yes M
1153111 2023-003 Material Weakness Yes M
1153112 2023-004 Material Weakness Yes L
1153113 2023-004 Material Weakness Yes L
1153114 2023-004 Material Weakness Yes L

Contacts

Name Title Type
VLXJM5QK7SQ5 Maureen McIntyre Auditee
8607246443 Amber Tucker Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of North Central Area Agency on Aging under programs of the federal government for the year ended September 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of North Central Area Agency on Aging, it is not intended to and does not present the financial position, changes in net assets or cash flows of North Central Area Agency on Aging
Expenditures reported on the Schedule are reported on the accrual basis of accounting. For cost- reimbursement awards, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
North Central Area Agency on Aging has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Federal Agency: Department of Health and Human Services Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Financial Reporting Condition: Due to the organization not fully utilizing the capacity of their accounting system, the audit was significantly delayed. In addition, there was turnover within the accounting department which resulted in additional time to gain comfort over beginning balances and reconcile the activity for the year under audit. Criteria or Specific Requirement: Internal controls over financial reporting are required to be designed to provide reasonable assurance that financial statement misstatements are prevented or detected and corrected. Our audit procedures revealed a continued need for improvement of a timely and complete monthly or periodic reconciliation and closing process. Lack of a complete monthly or periodic close led to a continuing and growing backlog of transactions and journal entries that were not posted into the accounting system, which rendered the accounting information inadequate. Effect: Material adjustments were required to be made by management prior to providing a trial balance for audit. Because financial information was not being tracked within the accounting system, it took management a significant amount of time to reconcile and record activity and therefore, the audit was delayed. Cause: The prior Director of Finance had been with the organization for a long period of time and did not utilize the accounting system as intended. Many reconciliations were performed manually, and the current finance team was unable to reproduce the work of the previous Director of Finance. Repeat Finding: Yes Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Federal Agency: Department of Health and Human Services Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Financial Reporting Condition: Due to the organization not fully utilizing the capacity of their accounting system, the audit was significantly delayed. In addition, there was turnover within the accounting department which resulted in additional time to gain comfort over beginning balances and reconcile the activity for the year under audit. Criteria or Specific Requirement: Internal controls over financial reporting are required to be designed to provide reasonable assurance that financial statement misstatements are prevented or detected and corrected. Our audit procedures revealed a continued need for improvement of a timely and complete monthly or periodic reconciliation and closing process. Lack of a complete monthly or periodic close led to a continuing and growing backlog of transactions and journal entries that were not posted into the accounting system, which rendered the accounting information inadequate. Effect: Material adjustments were required to be made by management prior to providing a trial balance for audit. Because financial information was not being tracked within the accounting system, it took management a significant amount of time to reconcile and record activity and therefore, the audit was delayed. Cause: The prior Director of Finance had been with the organization for a long period of time and did not utilize the accounting system as intended. Many reconciliations were performed manually, and the current finance team was unable to reproduce the work of the previous Director of Finance. Repeat Finding: Yes Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Federal Agency: Department of Health and Human Services Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Financial Reporting Condition: Due to the organization not fully utilizing the capacity of their accounting system, the audit was significantly delayed. In addition, there was turnover within the accounting department which resulted in additional time to gain comfort over beginning balances and reconcile the activity for the year under audit. Criteria or Specific Requirement: Internal controls over financial reporting are required to be designed to provide reasonable assurance that financial statement misstatements are prevented or detected and corrected. Our audit procedures revealed a continued need for improvement of a timely and complete monthly or periodic reconciliation and closing process. Lack of a complete monthly or periodic close led to a continuing and growing backlog of transactions and journal entries that were not posted into the accounting system, which rendered the accounting information inadequate. Effect: Material adjustments were required to be made by management prior to providing a trial balance for audit. Because financial information was not being tracked within the accounting system, it took management a significant amount of time to reconcile and record activity and therefore, the audit was delayed. Cause: The prior Director of Finance had been with the organization for a long period of time and did not utilize the accounting system as intended. Many reconciliations were performed manually, and the current finance team was unable to reproduce the work of the previous Director of Finance. Repeat Finding: Yes Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Condition: Due to the organization not fully utilizing the capacity of their accounting system, the audit was significantly delayed. In addition, there was turnover within the accounting department which resulted in additional time to gain comfort over beginning balances and reconcile the activity for the year under audit. Questioned costs: None Criteria or Specific Requirement: Internal controls over financial reporting are required to be designed to provide reasonable assurance that financial statement misstatements are prevented or detected and corrected. Our audit procedures revealed a continued need for improvement of a timely and complete monthly or periodic reconciliation and closing process. Lack of a complete monthly or periodic close led to a continuing and growing backlog of transactions and journal entries that were not posted into the accounting system, which rendered the accounting information inadequate and unable to complete the Federal Single Audit timely and accurate quarterly reporting. Effect: Material adjustments were required to be made by management prior to providing a trial balance for audit. Because financial information was not being tracked within the accounting system, it took management a significant amount of time to reconcile and record activity and therefore, the audit was delayed. Cause: The prior Director of Finance had been with the organization for a long period of time and did not utilize the accounting system as intended. Many reconciliations were performed manually, and the current finance team was unable to reproduce the work of the previous Director of Finance. Repeat Finding: Yes, 2022-002 Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Condition: Due to the organization not fully utilizing the capacity of their accounting system, the audit was significantly delayed. In addition, there was turnover within the accounting department which resulted in additional time to gain comfort over beginning balances and reconcile the activity for the year under audit. Questioned costs: None Criteria or Specific Requirement: Internal controls over financial reporting are required to be designed to provide reasonable assurance that financial statement misstatements are prevented or detected and corrected. Our audit procedures revealed a continued need for improvement of a timely and complete monthly or periodic reconciliation and closing process. Lack of a complete monthly or periodic close led to a continuing and growing backlog of transactions and journal entries that were not posted into the accounting system, which rendered the accounting information inadequate and unable to complete the Federal Single Audit timely and accurate quarterly reporting. Effect: Material adjustments were required to be made by management prior to providing a trial balance for audit. Because financial information was not being tracked within the accounting system, it took management a significant amount of time to reconcile and record activity and therefore, the audit was delayed. Cause: The prior Director of Finance had been with the organization for a long period of time and did not utilize the accounting system as intended. Many reconciliations were performed manually, and the current finance team was unable to reproduce the work of the previous Director of Finance. Repeat Finding: Yes, 2022-002 Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Condition: Due to the organization not fully utilizing the capacity of their accounting system, the audit was significantly delayed. In addition, there was turnover within the accounting department which resulted in additional time to gain comfort over beginning balances and reconcile the activity for the year under audit. Questioned costs: None Criteria or Specific Requirement: Internal controls over financial reporting are required to be designed to provide reasonable assurance that financial statement misstatements are prevented or detected and corrected. Our audit procedures revealed a continued need for improvement of a timely and complete monthly or periodic reconciliation and closing process. Lack of a complete monthly or periodic close led to a continuing and growing backlog of transactions and journal entries that were not posted into the accounting system, which rendered the accounting information inadequate and unable to complete the Federal Single Audit timely and accurate quarterly reporting. Effect: Material adjustments were required to be made by management prior to providing a trial balance for audit. Because financial information was not being tracked within the accounting system, it took management a significant amount of time to reconcile and record activity and therefore, the audit was delayed. Cause: The prior Director of Finance had been with the organization for a long period of time and did not utilize the accounting system as intended. Many reconciliations were performed manually, and the current finance team was unable to reproduce the work of the previous Director of Finance. Repeat Finding: Yes, 2022-002 Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Per Uniform Guidance, when an Organization is making a subaward, they are required to provide the recipient with all identifying award information, including the Assistance Listing number, award name, whether the award is research and development; and name of Federal awarding agency. If a subaward is funded by both state and federal funds, the Organization is required to provide the recipient with sufficient information to determine the breakout of the state and federal funds. Condition: A sample of five subrecipient agreements were selected for testing. Upon review, the agreements did not fully disclose the assistance listing number, award name, whether the award is research and development, name of Federal awarding agency and the allocation of the award between state and federal funding, if applicable. Questioned costs: None Context: The Organization passes through approximately 80% of all governmental grants received to subrecipients. Cause: Management was not aware of the detailed requirements surrounding subrecipient monitoring. Effect: The effect is that subrecipients may not be in compliance with federal or state single audit requirements due to their agreements not containing accurate award information. Repeat Finding: Yes 2022-003 Recommendation: We recommend that management amend each subaward agreement to include all required identifying award information, including the allocation of state and federal funds to the award. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Per Uniform Guidance, when an Organization is making a subaward, they are required to provide the recipient with all identifying award information, including the Assistance Listing number, award name, whether the award is research and development; and name of Federal awarding agency. If a subaward is funded by both state and federal funds, the Organization is required to provide the recipient with sufficient information to determine the breakout of the state and federal funds. Condition: A sample of five subrecipient agreements were selected for testing. Upon review, the agreements did not fully disclose the assistance listing number, award name, whether the award is research and development, name of Federal awarding agency and the allocation of the award between state and federal funding, if applicable. Questioned costs: None Context: The Organization passes through approximately 80% of all governmental grants received to subrecipients. Cause: Management was not aware of the detailed requirements surrounding subrecipient monitoring. Effect: The effect is that subrecipients may not be in compliance with federal or state single audit requirements due to their agreements not containing accurate award information. Repeat Finding: Yes 2022-003 Recommendation: We recommend that management amend each subaward agreement to include all required identifying award information, including the allocation of state and federal funds to the award. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Per Uniform Guidance, when an Organization is making a subaward, they are required to provide the recipient with all identifying award information, including the Assistance Listing number, award name, whether the award is research and development; and name of Federal awarding agency. If a subaward is funded by both state and federal funds, the Organization is required to provide the recipient with sufficient information to determine the breakout of the state and federal funds. Condition: A sample of five subrecipient agreements were selected for testing. Upon review, the agreements did not fully disclose the assistance listing number, award name, whether the award is research and development, name of Federal awarding agency and the allocation of the award between state and federal funding, if applicable. Questioned costs: None Context: The Organization passes through approximately 80% of all governmental grants received to subrecipients. Cause: Management was not aware of the detailed requirements surrounding subrecipient monitoring. Effect: The effect is that subrecipients may not be in compliance with federal or state single audit requirements due to their agreements not containing accurate award information. Repeat Finding: Yes 2022-003 Recommendation: We recommend that management amend each subaward agreement to include all required identifying award information, including the allocation of state and federal funds to the award. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Condition: Due to the organization not fully utilizing the capacity of their accounting system, the audit was significantly delayed. In addition, there was turnover within the accounting department which resulted in additional time to reconcile the activity for the year under audit. Questioned costs: None Criteria or Specific Requirement: Internal controls over financial reporting are required to be designed to provide reasonable assurance that financial statement misstatements are prevented or detected and corrected. Our audit procedures revealed a continued need for improvement of a timely and complete monthly or periodic reconciliation and closing process. Lack of a complete monthly or periodic close led to a continuing and growing backlog of transactions and journal entries that were not posted into the accounting system, which rendered the accounting information inadequate and unable to complete the Federal Single Audit timely and accurate quarterly reporting. Effect: Material adjustments were required to be made by management prior to providing a trial balance for audit. Because financial information was not being tracked within the accounting system, it took management a significant amount of time to reconcile and record activity and therefore, the audit was delayed. Cause: The prior Director of Finance had been with the organization for a long period of time and did not utilize the accounting system as intended. Many reconciliations were performed manually, and the current finance team was unable to reproduce the work of the previous Director of Finance. Repeat Finding: Yes , 2022-002 Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Condition: Due to the organization not fully utilizing the capacity of their accounting system, the audit was significantly delayed. In addition, there was turnover within the accounting department which resulted in additional time to reconcile the activity for the year under audit. Questioned costs: None Criteria or Specific Requirement: Internal controls over financial reporting are required to be designed to provide reasonable assurance that financial statement misstatements are prevented or detected and corrected. Our audit procedures revealed a continued need for improvement of a timely and complete monthly or periodic reconciliation and closing process. Lack of a complete monthly or periodic close led to a continuing and growing backlog of transactions and journal entries that were not posted into the accounting system, which rendered the accounting information inadequate and unable to complete the Federal Single Audit timely and accurate quarterly reporting. Effect: Material adjustments were required to be made by management prior to providing a trial balance for audit. Because financial information was not being tracked within the accounting system, it took management a significant amount of time to reconcile and record activity and therefore, the audit was delayed. Cause: The prior Director of Finance had been with the organization for a long period of time and did not utilize the accounting system as intended. Many reconciliations were performed manually, and the current finance team was unable to reproduce the work of the previous Director of Finance. Repeat Finding: Yes , 2022-002 Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period.
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2022 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Condition: Due to the organization not fully utilizing the capacity of their accounting system, the audit was significantly delayed. In addition, there was turnover within the accounting department which resulted in additional time to reconcile the activity for the year under audit. Questioned costs: None Criteria or Specific Requirement: Internal controls over financial reporting are required to be designed to provide reasonable assurance that financial statement misstatements are prevented or detected and corrected. Our audit procedures revealed a continued need for improvement of a timely and complete monthly or periodic reconciliation and closing process. Lack of a complete monthly or periodic close led to a continuing and growing backlog of transactions and journal entries that were not posted into the accounting system, which rendered the accounting information inadequate and unable to complete the Federal Single Audit timely and accurate quarterly reporting. Effect: Material adjustments were required to be made by management prior to providing a trial balance for audit. Because financial information was not being tracked within the accounting system, it took management a significant amount of time to reconcile and record activity and therefore, the audit was delayed. Cause: The prior Director of Finance had been with the organization for a long period of time and did not utilize the accounting system as intended. Many reconciliations were performed manually, and the current finance team was unable to reproduce the work of the previous Director of Finance. Repeat Finding: Yes , 2022-002 Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period.