Audit 408971

2024-002 – Material Weakness, Reporting U.S. Department of Treasury Passed through the State of Connecticut Office of Policy and Management Assistance Listing Number: 21.027 Program Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Passed through the State of Connecticut Department of Education Assistance Listing Number: 21.027 Program Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Year: 2024 Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ‘Standards for Internal Control in the Federal Government’ issued by the Comptroller General of the United States or the ‘Internal Control Integrated Framework’, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)…" Condition: There was a lack of segregation of duties in preparing and reviewing the quarterly Project and Expenditure Reports. Cause: The design of the control over the reporting compliance requirement did not allow for segregation of duties. Effect: Quarterly reporting could be incorrect and require resubmission. Questioned costs: None. Context: See condition above. Nonstatistical sampling utilized to test one out of four quarterly reports. Identification as a repeat finding if applicable: N/A Recommendation: We recommend the preparation and review of the Project and Expenditure Quarterly Reports be performed by separate individuals to allow for segregation of duties. View of Responsible Official: Management agrees with the finding.