FAC Explorer

Audit 52978

FY End
2022-06-30
Total Expended
$1.71M
Findings
4
Programs
7
Organization: Town of Middlebury, Connecticut (CT)
Year: 2022 Accepted: 2022-12-01
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
52071 2022-002 Material Weakness - I
52072 2022-003 Significant Deficiency - I
628513 2022-002 Material Weakness - I
628514 2022-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.66M Yes 2
21.019 Coronavirus Relief Fund $24,555 - 0
97.042 Emergency Management Performance Grants $17,441 - 0
20.205 Highway Planning and Construction $7,395 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $4,608 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4,297 - 0
45.310 Grants to States $960 - 0

Contacts

Name Title Type
RECEK6NJ6F51 Seth Bernstein Auditee
2035774163 Vanessa Rossitto Auditor
No contacts on file

Notes to SEFA

Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Middlebury, Connecticut, under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Middlebury, Connecticut, it is not intended to, and does not, present the financial position, changes in fund balance, changes in net position or cash flows of the Town of Middlebury, Connecticut. Basis of Accounting Expenditures reported on the Schedule are reported using the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with exception of Assistance Listing Number 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
Finding No. 2022-002 Procurement Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Award Period: June 7, 2021 through December 31, 2026 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria The Town must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition The Town?s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326 and purchases were made that did not follow these requirements. Questioned Costs None noted. Context The Town did not have a policy in place in conformity with the federal Uniform Guidance criteria and purchases were made that did not follow these requirements. Effect With the absence of a compliant policy, the Town made purchases that did not follow federal Uniform Guidance procurement standards. Cause The Town was not aware of the details surrounding the Uniform Guidance procurement standards and its policy was not updated. Recommendation We recommend that the Town review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials and Planned Corrective Actions Management agrees with the auditors? recommendations. Corrective action will be taken to ensure the policy is updated and the correct procurement procedures are followed.
Finding 2022-003
Finding No. 2022-003 Suspension and Debarment Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Award Period: June 7, 2021 through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria The Town must verify that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Condition The Town does not have a policy for which verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Questioned Costs None noted. Context Although the Town did not have a policy in place in conformity with the federal Uniform Guidance criteria, the entities for which the Town made purchases from were not debarred, suspended, or otherwise excluded. Effect With the absence of a compliant policy, the Town is at risk for noncompliance as it relates to federal suspension and debarment requirements. Cause The Town was aware of the details surrounding suspension and debarment requirements, but their policy was not updated. Recommendation We recommend that the Town review its formal procurement policies and make necessary to include the requirements that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded Views of Responsible Officials and Planned Corrective Actions Management agrees with the auditors? recommendations. Corrective action will be taken to ensure the policy is updated and the correct procurement procedures are followed.
Finding 2022-002
Finding No. 2022-002 Procurement Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Award Period: June 7, 2021 through December 31, 2026 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria The Town must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition The Town?s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326 and purchases were made that did not follow these requirements. Questioned Costs None noted. Context The Town did not have a policy in place in conformity with the federal Uniform Guidance criteria and purchases were made that did not follow these requirements. Effect With the absence of a compliant policy, the Town made purchases that did not follow federal Uniform Guidance procurement standards. Cause The Town was not aware of the details surrounding the Uniform Guidance procurement standards and its policy was not updated. Recommendation We recommend that the Town review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials and Planned Corrective Actions Management agrees with the auditors? recommendations. Corrective action will be taken to ensure the policy is updated and the correct procurement procedures are followed.
Finding 2022-003
Finding No. 2022-003 Suspension and Debarment Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Award Period: June 7, 2021 through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria The Town must verify that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Condition The Town does not have a policy for which verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Questioned Costs None noted. Context Although the Town did not have a policy in place in conformity with the federal Uniform Guidance criteria, the entities for which the Town made purchases from were not debarred, suspended, or otherwise excluded. Effect With the absence of a compliant policy, the Town is at risk for noncompliance as it relates to federal suspension and debarment requirements. Cause The Town was aware of the details surrounding suspension and debarment requirements, but their policy was not updated. Recommendation We recommend that the Town review its formal procurement policies and make necessary to include the requirements that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded Views of Responsible Officials and Planned Corrective Actions Management agrees with the auditors? recommendations. Corrective action will be taken to ensure the policy is updated and the correct procurement procedures are followed.