Audit 414323

Finding No. 2025-001 - Reporting- Significant Deficiency Name of Federal Agency: U.S. Department of Health and Human Services Federal Program Name and Assistance Listing Number: Low-Income Home Energy Assistance 93.568 Federal Award Identification Number and Years: 23DSS4301EW 9/25 and 9/26 Name of Passthrough Entity: Connecticut Department of Social Services Criteria - In accordance with 200.328 Financial Reporting and 200.329, Monitoring and Reporting Program Performance, recipients and subrecipients must submit financial and perofmance reports as required by the award. Condition - For the year ended December 31, 2025, certain reports for the above mentioned grants were not filed within the required timeline as required by the contract with the pass-through entity. Cause - Due to competing priorities and one vacant position, two quarterly reports were not submitted timely as set forth in the award contract. One report was due on April 15, 2025 and submitted on April 28, 2025 and the other report was due on July 15, 2025 and submitted on July 23, 2025. Effect or Potential Effect - Reports were not submitted in accordance with the timeframe set forth in the award contract. Questioned Costs - None Context - The two reports tested were filed late. Identification as a Repeat Finding - This is not a repeat finding. Recommendation - We recommend that management review their control process over reporting criteria to ensure that all reports are submitted within a timely manner as required by the federal award agreements. Views of Responsible Officials - Management is actively recruiting to fill this vacant position at this time.

Finding No. 2025-002 - Cash Management - Significant Deficiency Name of Federal Agency: U.S. Department of Health and Human Services Federal Program Name and Assistance Listing Number: Low-Income Home Energy Assistance 93.568 Federal Award Identification Number and Years: 23DSS4301EW 9/25 and 9/26 Name of Passthrough Entity: Connecticut Department of Social Services Criteria - In accordance with 2 CFR 200.305, payment methods must minimize the time elapsing between the transfer of funds from the Federal awarding agency or the pass-through entity and the disbursement of funds by the recipient . Additionally the grant agreement requires vendor invoices to be processed and paid within the specified timeframe established by the awarding agency. Condition - For the year ended December 31, 2025, 2 invoices were not paid within the required distribution requirements as defined by the grant agreement. In addition, supporting documentation for one invoice selected for testing could not be located. Cause - The Organization experiences a high volume of invoices requiring processing during the energy assistance season, which resulted in the delay of processing for the two invoices, in excess of the established 10-day payment standard from date of invoice. Additionally, documentation for one invoice could not be located due to a filing error. Effect or Potential Effect - Payments were not made within the required time as noted in the grant agreement. The inability to locate supporting documetation prevented verification that one payment was made in accordance with applicable program and grant requirements. Questioned Costs - None. Context - Of 40 disbursements selected for testing, two invoices were not paid within the required timeframe and supporting documentation for one invoice could not be located. Identification as a Repeat Finding - This is not a repeat finding. Recommendation - We recommend that management strengthen procedures over invoice processing and document retention to ensure vendor invoices are reviewed and paid within the timeframes required by the grant agreement; and supporting documentation is retained and remains accessible in accordance with record retention requirements, including during system conversions or transitions from legacy systems. Views of Responsible Officials - Management continues to identify opportunities to streamline invoice processing and maximize recruitment efforts to fill vacant staffing positions.