Audit 384341

Federal Agency: U.S. Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agencies: Connecticut Judicial Branch Pass-Through Numbers: SLFRPO128 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Other Matters Criteria or specific requirement: FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 5, Recognition and Derecognition requires expenses to be recognized in the period incurred regardless of the date the invoice was received or paid. Klingberg Family Centers, Inc. and Affiliates should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, it was noted Klingberg Family Centers, Inc. and Affiliates did not properly record expenses in the period they were incurred for three invoices. Questioned Costs: $471 Context: During our testing, it was noted that Klingberg Family Centers, Inc. and Affiliates was not sufficiently reviewing invoices to ensure that the expense was being appropriately recorded in the correct period, based on expense recognition of accrual accounting. Cause: Manual review and quantity of invoices results in opportunities to not review the invoice thoroughly enough to note the correct period for recognition. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend Klingberg Family Centers, Inc. and Affiliates design controls to ensure an adequate review process is in place to review invoices and recording of expenses to ensure they are posted in the correct period. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agencies: Connecticut Judicial Branch Pass-Through Numbers: SLFRPO128 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Other Matters Criteria or specific requirement: As part of designed business practices (internal controls), grant purchasing or expenditures are initiated by the department heads. The purchases are authorized by the manager of the department through approval by Controller/VPF. Once the invoices are received, Accounts Payable posts the information to the system using the approved invoices as backup. If the invoice is not approved, they will not post the information. Condition: During our testing, it was noted Klingberg Family Centers, Inc. and Affiliates did not properly have department approval for certain costs. Questioned Costs: None Context: During our testing, it was noted that Klingberg Family Centers, Inc. and Affiliates occasionally does not review invoices for recurring payments. This is in contradiction to the controls as outlined. Cause: The control in place for reviewing invoices and obtaining approval differs between some departments, where approval is more explicitly documented than others. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend Klingberg Family Centers, Inc. and Affiliates design controls to ensure an adequate review process is in place to review invoices and payments prior to payment. Views of responsible officials: There is no disagreement with the audit finding.