Finding 1168904 (2024-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2026-01-13
Audit: 381301
Organization: Town of Montville, Connecticut (CT)

AI Summary

  • Core Issue: The Town lacks adequate internal controls to verify that vendors are not suspended or debarred before contracting.
  • Impacted Requirements: This finding relates to compliance with 2 CFR Part 200, which mandates proper procurement practices.
  • Recommended Follow-Up: Implement a review process to ensure all potential contractors are checked against the suspended or debarred list as required.

Finding Text

2024 – 004 Federal Agency: U.S. Environmental Protection Agency Federal Program Name: Capitalization Grants for Clean Water State Revolving Funds Assistance Listing Number: 66.468 Federal Award Identification Number and Year: 2024-7125 Pass-Through Agency: State of Connecticut Department of Public Health Pass-Through Number(s): 12060-DPH48770-23155, 21018-DPH48770-43805 Award Period: August 29, 2023-April 30, 2025 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID 19 ARPA Local Fiscal Recovery EXP Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Various Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-OPM20600-29669 Award Period: March 3, 2021-December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: During our testing, we noted the Town did not have adequate internal controls designed to ensure vendors were not suspended or debarred for seven out of seven tested. Questioned costs: None Context: During our testing, it was noted that the Town was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: The Town did not retain documentation of their review that the vendors were not suspended or debarred. Effect: We noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend the Town design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred in accordance with 2 CFR section 200.213. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Capitalization Grants for Clean Water State Revolving Funds – Assistance Listing No. 66.468 COVID 19 ARPA Local Fiscal Recovery EXP – Assistance Listing No. 21.027 Recommendation: We recommend the Town design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred in accordance with 2 CFR section 200.213. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will implement a process to review vendors prior to entering into a contract to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Name(s) of the contact person(s) responsible for corrective action: Julie Chapman, Director of Finance Planned completion date for corrective action plan: December 2025 Any questions regarding this plan, please call Julie Chapman at (860) 848-6714.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1168901 2024-003
    Material Weakness Repeat
  • 1168902 2024-004
    Material Weakness Repeat
  • 1168903 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $486,933
84.027 SPECIAL EDUCATION GRANTS TO STATES $318,314
21.027 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $242,963
10.553 SCHOOL BREAKFAST PROGRAM $163,844
66.468 DRINKING WATER STATE REVOLVING FUND $117,177
20.607 ALCOHOL OPEN CONTAINER REQUIREMENTS $61,332
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $57,476
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $31,370
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $19,034
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $13,156
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $6,552
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $5,426
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $5,000
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $4,970
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $4,574
10.649 PANDEMIC EBT ADMINISTRATIVE COSTS $3,265
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $2,926
20.205 HIGHWAY PLANNING AND CONSTRUCTION $2,602
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $2,130
84.425 EDUCATION STABILIZATION FUND $740