Agency: U.S. Department of Education and U.S. Department of the Treasury Federal Assistance Listing Number: 84.215N Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects; 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: 2025 Pass-Through Entity: State of Connecticut Judicial Branch Office, City of Hartford, State of Connecticut Department of Public Health, State of Connecticut Department of Social Services, State of Connecticut Department of Mental Health and Addiction Services, State of Connecticut Department of Children and Families, State of Connecticut Department of Housing Repeat finding and prior year finding number: 2024-002 Criteria: In accordance with 2 CFR §200.430(i) of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), compensation for personal services charged to federal awards must be based on records that accurately reflect the work performed. When budget estimates are used for interim accounting purposes, they must: produce reasonable approximations of the activity actually performed, be reconciled to actual effort on a regular basis, and be adjusted in a timely manner to reflect significant changes in work activity. Documentation may include timesheets, effort certifications, payroll distribution reports, and other personnel activity records, and must be reviewed and approved by authorized personnel. Condition and Context: During our testing of payroll costs charged to the major federal programs, we selected 51 payroll transactions and noted that a documented hindsight review comparing actual employee effort to budgeted payroll allocations was not completed for any of the 51 selections tested. While the required hindsight review was not completed for the selections tested, there was evidence that the employees performed work on the applicable federal awards, and the amounts allocated were generally consistent with budgeted allocations. The sample was statistically valid. Questioned Costs: We were unable to quantify an amount of questioned costs. While a time and effort reporting was lacking for the items included in our sample, there was evidence of work performed on the grants and the amounts allocated aligned closely to the budget. Therefore, we were unable to quantify the amount of questioned costs. Cause: The Medical Center changed its procedures for documenting employee time allocations; however, formal processes were not established to document and regularly reconcile actual hours worked to budgeted allocations. As a result, hindsight reviews were not formally maintained to verify that payroll allocations were supported by employees' actual work performed. Effect: The lack of documentation of hindsight review increases the risk of inaccurate payroll cost allocations and potential noncompliance with federal grant requirements. Recommendation: The Medical Center should update its policies and procedures to require and document a formal hindsight review of employee working hours. This review should verify that actual hours worked align with budgeted hours, particularly in cases where payroll costs are allocated across multiple grants. The updated procedures should include clear guidelines for conducting and retaining evidence of such reviews to support accurate cost allocations and ensure compliance with federal grant requirements.
Agency: U.S. Department of Education and U.S. Department of the Treasury Federal Assistance Listing Number: 84.215N Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects; 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: 2025 Pass-Through Entity: State of Connecticut Judicial Branch Office, City of Hartford, State of Connecticut Department of Public Health, State of Connecticut Department of Social Services, State of Connecticut Department of Mental Health and Addiction Services, State of Connecticut Department of Children and Families, State of Connecticut Department of Housing Criteria: In accordance with 2 CFR § 200.332, pass-through entities are required to monitor the activities of their subrecipients as necessary to ensure that subawards are used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward, and that subaward performance goals are achieved. For subrecipients subject to the Single Audit requirements, the pass-through entity is also responsible for verifying that the subrecipient is audited as required by 2 CFR Part 200, reviewing applicable audit results, and taking appropriate follow-up action on audit findings related to the federal awards provided by the pass-through entity. Condition and Context: During our testing of the Medical Center's subrecipient monitoring activities, we tested 20 subrecipients and noted that the Medical Center did not timely obtain and review the applicable Single Audit reports of the 20 subrecipients. In addition, the Medical Center did not have a process in place to determine whether the subrecipients' Single Audit reports contained audit findings related to the Federal awards provided by the Medical Center and, if applicable, to document appropriate follow-up on such findings and related corrective actions. The sample was not statistically valid. Questioned Costs: None reported. Cause: The Medical Center not having formal policies and procedures in place for monitoring subrecipient compliance with applicable Single Audit requirements, including procedures for obtaining and reviewing Single Audit reports, identifying findings applicable to federal awards passed through by the Medical Center, and documenting the resolution and follow-up of applicable findings. Effect: The lack of timely review and follow-up of subrecipient Single Audit reports increases the risk that noncompliance or audit findings related to federal awards passed through by the Medical Center may not be identified and addressed timely. Recommendation: We recommend that management establish and implement procedures to timely obtain and review subrecipient Single Audit reports, identify findings related to Federal awards passed through by the Medical Center, and document appropriate follow-up and corrective actions, as applicable.
Agency: U.S. Department of Education and U.S. Department of the Treasury Federal Assistance Listing Number: 84.215N Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects; 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: 2025 Pass-Through Entity: State of Connecticut Judicial Branch Office, City of Hartford, State of Connecticut Department of Public Health, State of Connecticut Department of Social Services, State of Connecticut Department of Mental Health and Addiction Services, State of Connecticut Department of Children and Families, State of Connecticut Department of Housing Criteria: Pursuant to 2 CFR § 200.512(a), an auditee is required to submit the Single Audit reporting package and Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Accordingly, the Medical Center's federal Single Audit reporting packages for the years ended September 30, 2025 and 2024 were required to be submitted no later than June 30, 2026 and 2025, respectively. Condition and Context: The Medical Center did not complete and submit its federal Single Audit reporting packages within the required filing periods. The reporting package for the year ended September 30, 2024, which was due June 30, 2025, was submitted in May 2026. Additionally, the reporting package for the year ended September 30, 2025 was not completed by its June 30, 2026 filing deadline. Questioned Costs: None reported. Cause: The Medical Center needed to complete certain internal compliance and administrative procedures before the federal Single Audits could be finalized. As a result, the audits were not completed and the related reporting packages were not submitted within the required filing period. Effect: The Medical Center did not comply with the federal Single Audit reporting requirements of 2 CFR § 200.512(a) for the year ended September 30, 2025 or 2024. The delayed submissions also resulted in the federal Single Audit reporting packages not being available to federal awarding agencies, pass-through entities, and other users within the timeframe prescribed by the Uniform Guidance. Recommendation: We recommend that the Medical Center establish and maintain a formal process to monitor federal Single Audit reporting deadlines and coordinate the timely completion of internal compliance and administrative procedures necessary to complete the Single Audit. The process should establish responsibilities and interim completion dates sufficiently in advance of the required filing deadline and include management monitoring of progress toward timely completion and submission of the reporting package.