Audit 390542

Finding No. 2025-001 Federal Agency: U.S. Department of Health and Human Services and U.S. Department of Treasury Federal Program Name: Temporary Assistance for Needy Families, Substance Abuse and Mental Health Services Projects of Regional and National Significance, and COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 93.558, 93.243, and 21.027 Pass-Through Agency: Various. Refer to Schedule of Expenditures of Federal Awards Pass-Through Agency Identifying Numbers: Various. Refer to Schedule of Expenditures of Federal Awards Award Period: 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Audit finding required to be reported in accordance with 2 CFR 200.516(a) Criteria: Proper documentation to ensure salaried employee time allocation is reviewed and approved must be obtained. Condition: The Organization’s internal control procedures around maintenance of documentation is not sufficient to ensure that costs submitted for reimbursement were properly approved. Questioned Costs: None. Context: A sample of 40 employees was selected for testing for each major program for a total of 120 selections. The Organization was unable to provide evidence of approval for 57 selections. Cause: Controls were not in place to ensure underlying support as required by the Federal Uniform Guidance was properly maintained. Effect: Without proper document retention of the approved salary employee time allocations, the Organization could submit unallowable costs for reimbursement. Repeat Finding: Finding does not represent a repeat finding. Recommendation: We recommend management enhance internal control policies and procedures to ensure underlying supporting documentation of approvals is fully retained going forward. Views of Responsible Officials: Management concurs with the finding. Management will implement a document retention policy to ensure timecard approvals are maintained.

Finding No. 2025-002 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 Judicial Branch Pass-Through Agency Identifying Number: 02-2202-11 Award Period: 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Audit finding required to be reported in accordance with 2 CFR 200.516(a) Criteria: The Organization shall complete and submit its quarterly financial report for quarters two and four by January 10, 2025 and July 10, 2025 per the contract. Condition: The Organization was not in compliance with these reporting requirements as the reports were not submitted timely. Questioned Costs: None Context: The required quarterly financial report for quarters two and four were not submitted timely to the State of Connecticut Judicial Branch. Cause: Controls were not in place to ensure reporting was submitted by the required deadline. Effect: Without the timely submission, the Organization's reimbursements under the contract agreement can be delayed and administration of the program hindered. Repeat Finding: Finding does not represent a repeat finding. Recommendation: We recommend management enhance internal control processes related to grants to include controls for proper lines of communication with granting agencies to ensure all required reporting requirements are identified and adhered to. Views of Responsible Officials: Management concurs with the finding. Management will enhance internal control processes related to grants to include controls for proper lines of communication with granting agencies to ensure all required reporting requirements are identified and adhered to.

Finding No. 2025-003 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: Department of Children and Families Pass-Through Agency Identifying Number: 24DCF0053 Award Period: 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Audit finding required to be reported in accordance with 2 CFR 200.516(a) Criteria: The Organization shall complete and submit its annual report by September 30 per the contract. Condition: The Organization was not in compliance with this reporting requirement as the report was not submitted timely. Questioned Costs: None Context: The required annual report for the period July 1, 2024 to June 30, 2025 was not submitted timely to the State of Connecticut Department of Children and Families. Cause: Controls were not in place to ensure reporting was submitted by the required deadlines. Effect: Without the timely submission, the Organization's reimbursements under the contract agreement can be delayed and administration of the program hindered. Repeat Finding: Finding does not represent a repeat finding. Recommendation: We recommend management enhance internal control processes related to grants to include controls for proper lines of communication with granting agencies to ensure all required reporting requirements are identified and adhered to. Views of Responsible Officials: Management concurs with the finding. Management will enhance internal control processes related to grants to include controls for proper lines of communication with granting agencies to ensure all required reporting requirements are identified and adhered to.