Audit 372061

2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds 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: March 3, 2021, through December 31, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of suspension, and debarment. The Town of Marlborough, Connecticut (the Town) should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Town did not have adequate internal controls designed to ensure vendors were not suspended or debarred. Questioned Costs: None Context: During our testing, it was noted that the Town does not have a policy for verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause: The Town was unaware the contractors were not being reviewed to ensure they were not suspended or debarred. Effect: There were no instances found that a suspended or debarred entity was paid with federal awards; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: Yes Recommendation: We recommend the Town design controls to ensure an adequate review process is in place to review potential contractors to determine whether they are not suspended or debarred. Views of Responsible Officials: There is no disagreement with the audit finding.

2024-003 Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds 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: March 3, 2021, through December 31, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 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 Context: There is no review of the financial reports being performed by an individual independent of the report preparation process. Cause: The Town does not have a policy in place for a review of the annual project and expenditure report by an individual other than the preparer before it is submitted. 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. Repeat Finding: No 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: There is no disagreement with the audit finding