Federal Agency: United States Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Connecticut Department of Transportation, Department of Social Services, Department of Mental Health and Addiction Services, and Department of Developmental Services Pass-Through Numbers: 21DOT0015AA; 25SDRARG01TKC; 24ECD0504CAT; 24DDS0088RD Award Period: 07/01/2024-06/30/2025 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or specific requirement: Federal regulations require that expenditures charged to federal awards be supported by adequate documentation and that such costs be allowable, reasonable, allocable to the program and within the period of performance. Condition: During testing of expenditures charged to the program, the auditor selected invoices for testing to determine compliance with Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance. Management was unable to provide support 7 of the 103 items selected for testing. As a result, the auditor was unable to verify that the expenditure was allowable, properly supported, incurred for an eligible program activity, and within the period of performance. Questioned costs: Known - $3,265 Context: Through testing performed, it was identified that 7 cash disbursements of the 103 selected for testing between Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance did not have proper invoice or internal support for the cost incurred. Cause: The entity did not have adequate controls in place to ensure that all invoices and supporting documentation for expenditures are retained and readily available for audit and compliance purposes. Effect: As the invoice and supporting documentation were not provided, the auditor was unable to conclude that the expenditure complied with Activities Allowed or Unallowed, Allowable Costs/Cost Principles or Period of Performance. This condition increases the risk that unsupported, unallowable, or ineligible costs could be charged to the program and that noncompliance may occur without timely detection. Repeat Finding: None. Recommendation: We recommend that management strengthen internal controls over compliance by implementing procedures to ensure that all expenditures are supported by complete and accurate documentation that is retained in accordance with federal record retention requirements. Management should also periodically review documentation for completeness to ensure that expenditures charged can be substantiated and verified as allowable, related to eligible activities, and within the period of performance. Views of responsible officials: Management agrees with the finding and will enhance documentation retention procedures for expenditures. Management plans to review existing records, reinforce documentation requirements with responsible staff, and implement controls to ensure that all future expenditures are supported by complete and readily accessible documentation.
Federal Agency: United States Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Connecticut Department of Transportation, Department of Social Services, Department of Mental Health and Addiction Services, and Department of Developmental Services Pass-Through Number(s): 21DOT0015AA; 25SDRARG01TKC; 24ECD0504CAT; 24DDS0088RD Award Period: 07/01/2024-06/30/2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Federal regulations require that costs charged to federal awards be allowable, reasonable, and allocable to the program, within the period of performance, and that expenditures be incurred only for activities permitted under the program. Effective internal control over compliance requires that management perform and document a review of invoices prior to payment to ensure compliance with Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance. Condition: During testing of internal controls over compliance for expenditures charged to the program, the auditor noted that 6 selected invoices out of a population of 103 were not properly reviewed in accordance with the entitys established key control procedures. Specifically, required evidence of review and approval to ensure the expenditure was for an allowable program activity, met allowable cost requirements, and was within the period of performance was not documented prior to payment. Questioned costs: Known - $2,324 Cause: The 6 invoices that did not contain evidence of review and approval pertain to utilities which are set up for direct withdrawal on a monthly basis. Management does not consistently perform or document the required review to verify allowability, eligibility, and period of performance of costs prior to payment based upon the nature of the invoice. Effect: As the invoices were not properly reviewed in accordance with key control procedures, there is an increased risk that unallowable, unsupported, ineligible costs or costs not within the period of performance could be charged to the program without timely detection. This condition reduces assurance that internal control over compliance is operating effectively for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. Repeat Finding: None. Recommendation: We recommend that management reinforce and consistently apply key control procedures requiring documented review and approval of all program invoices prior to payment. Management should ensure that reviews explicitly address allowability, eligibility and within the period of performance under the program and that evidence of such review is retained in accordance with record retention requirements. Views of responsible officials: Management agrees with the finding and will strengthen oversight of invoice review procedures for program expenditures. Management plans to provide additional training to responsible personnel and implement monitoring procedures to ensure that all invoices are properly reviewed, approved, and documented prior to payment.
Federal Agency: United States Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Connecticut Department of Transportation, Department of Social Services, Department of Mental Health and Addiction Services, and Department of Developmental Services Pass-Through Numbers: 21DOT0015AA; 25SDRARG01TKC; 24ECD0504CAT; 24DDS0088RD Award Period: 07/01/2024-06/30/2025 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or specific requirement: Federal regulations require that the entity must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition: During testing of procurement standards, the auditor noted there is no procurement policy during the award period and in line with that, we noted that the conflict of interest policy of the entity does not include the essential elements as outlined in 2 CFR section 200.318. Questioned costs: None. Context: Through testing performed, it was identified that the entity does not have a procurement policy in place during the award period and that the conflict of interest policy policies do not include the essential elements as outlined in 2 CFR section 200.318. Cause: Management was unaware of the restrictive requirements of the procurement standards and was unaware that the conflict of interest policies did not contain required guidance. Effect: With the absence of a compliant policy, the entity is at risk for noncompliance as it relates to federal procurement. Repeat Finding: None. Recommendation: We recommend that management compose a procurement policy with the criteria as set out in 2 CFR sections 200.318 and 200.326. and review the conflict of interest policy and make necessary changes to comply with the criteria as set out in 2 CFR section 200.318. Views of responsible officials: Management agrees with the finding and will compose a procurement policy in line with compliance requirements and review and edit the conflict of interest policy to be in compliance.