Finding 1162257 (2024-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-11-12
Audit: 372061
Organization: Town of Marlborough (CT)

AI Summary

  • Core Issue: The Town of Marlborough lacks adequate internal controls to verify that vendors are not suspended or debarred before entering contracts.
  • Impacted Requirements: Compliance with 2 CFR Part 200 is necessary to ensure federal awards are not misused.
  • Recommended Follow-Up: Implement a review process to check contractor eligibility against suspension and debarment lists.

Finding Text

2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds 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: March 3, 2021, through December 31, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of suspension, and debarment. The Town of Marlborough, Connecticut (the Town) should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Town did not have adequate internal controls designed to ensure vendors were not suspended or debarred. Questioned Costs: None Context: During our testing, it was noted that the Town does not have a policy for verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause: The Town was unaware the contractors were not being reviewed to ensure they were not suspended or debarred. Effect: There were no instances found that a suspended or debarred entity was paid with federal awards; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: Yes Recommendation: We recommend the Town design controls to ensure an adequate review process is in place to review potential contractors to determine whether they are not suspended or debarred. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

FINDING — Major Federal Program 2024-002 Suspension and Debarment over COVID-19 America Rescue Plan Act Recommendation: We recommend that the Town design controls to ensure an adequate review process in place to review potential contractors to determine they are not suspended or debarred. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Town has a system in place to review contractors. A written process will be prepared to record and maintain appropriate documentation. Name of the contact person responsible for corrective action: Town Manager, Finance Director and Town Planner Planned completion date for corrective action plan: Since this report is overdue, the estimated date is before the start of the FY 25 audit.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 1162249 2024-002
    Material Weakness Repeat
  • 1162250 2024-003
    Material Weakness Repeat
  • 1162251 2024-002
    Material Weakness Repeat
  • 1162252 2024-003
    Material Weakness Repeat
  • 1162253 2024-002
    Material Weakness Repeat
  • 1162254 2024-003
    Material Weakness Repeat
  • 1162255 2024-002
    Material Weakness Repeat
  • 1162256 2024-003
    Material Weakness Repeat
  • 1162258 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $245,871
10.555 NATIONAL SCHOOL LUNCH PROGRAM $54,876
84.358 RURAL EDUCATION $40,091
84.027 SPECIAL EDUCATION GRANTS TO STATES $39,625
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $14,755
10.553 SCHOOL BREAKFAST PROGRAM $12,885
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $7,718
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $5,072
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $4,754
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $3,991
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $2,740
84.425 EDUCATION STABILIZATION FUND $1,897
10.649 PANDEMIC EBT ADMINISTRATIVE COSTS $653