Audit 389043

Finding No. 2024-002: Internal Control over Payroll – Material Weakness Assistance Listing Program Title and Number: Coronavirus State and Local Fiscal Recovery Funds 21.027 Federal Agency: U.S. Department of Treasury Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs. Connecticut Veterans Legal Center, Inc. should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, it was noted that Connecticut Veterans Legal Center, Inc. does not have a standard policy requiring the preparation of time sheets for all employees. Questioned Costs: Unknown Cause: Management believed that they should charge the award based on quarterly value of the contact. Effect: The effect is that salaries charged may not represent the award's allocable share. Questioned Costs: Unknown Context: Connecticut Veterans Legal Center, Inc. is charging to the award based on the quarterly value of the contract which does not correspond with the actual salary expense that should have been allocated to the award. While costs charged to the award for salaries and benefits did not exceed the established budget, without supporting time sheets, it is unknown if the employees charged to the award should have been. Repeat Finding: No Recommendation: Connecticut Veterans Legal Center, Inc. should formalize a process of employee documentation of time and effort for the award as well as supervisor review over allocations to the award to ensure that allocations are based on actual time and effort. Management’s Response/Views of Responsible Officials: Management concurs with the finding. See separate corrective action plan.

Finding No. 2024-003: – Single Audit Report Filing – Other Matter Assistance Listing Program Title and Number: All Federal Agency: All Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Connecticut Veterans Legal Center, Inc. must file a federal single audit the earlier of thirty calendar days after receiving the auditors’ report or nine months after the end of the audit period. Condition: Connecticut Veterans Legal Center, Inc. did not file its federal single audit for the year ended June 30, 2024, by the due date of March 31, 2025. Cause: Significant delays in the audit process resulting in the late filing. Effect: Connecticut Veterans Legal Center, Inc. is not in compliance with the reporting requirement. Questioned Costs: None Context: The financial statements and federal single audit were not able to be completed by the due date. Recommendation: Connecticut Veterans Legal Center, Inc. should implement a process to ensure the single audit is filed timely. Reporting Views of Responsible Officials: Management agrees with the finding, see the Corrective Action Plan.

Type of Finding: • Material Weakness in Internal Control over Financial Reporting • Significant Deficiency in Major Federal Program and Internal Control over Compliance Criteria: An accounting system and effective internal control environment should support the preparation of the financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”) and grant reports in accordance with compliance requirements, including a robust financial close process at year end. Condition: In fiscal year 2024, Connecticut Veterans Legal Center, Inc.’s accounting processes and internal controls over financial reporting were not functioning timely to generate complete and accurate financial information. Numerous adjustments to the trial balances were made, necessitating repeated revisions to significant account reconciliations, and grant schedules. In addition, several accounting adjustments were needed throughout the audit process. Context: Connecticut Veterans Legal Center, Inc’s accounting processes and internal controls over financial reporting were not functioning properly. Effect: The books and records required various adjustments to properly reflect materially correct financial statements. Cause: Connecticut Veterans Legal Center, Inc. did not have the necessary assistance in the accounting department. Repeat Finding: No Recommendation: We recommend that Connecticut Veterans Legal Center, Inc. maintain an adequate level of monitoring and financial statement review monthly. This will help ensure that the accounting processes and internal controls over financial reporting will function properly, and that the financial close process will be complete, accurate, and timely. Management’s Response/View of Responsible Officials: Management concurs with the finding. See separate corrective action plan.