Finding Text
Federal Agency: United States Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Connecticut Department of Transportation, Department of Social Services, Department of Mental Health and Addiction Services, and Department of Developmental Services Pass-Through Numbers: 21DOT0015AA; 25SDRARG01TKC; 24ECD0504CAT; 24DDS0088RD Award Period: 07/01/2024-06/30/2025 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or specific requirement: Federal regulations require that the entity must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition: During testing of procurement standards, the auditor noted there is no procurement policy during the award period and in line with that, we noted that the conflict of interest policy of the entity does not include the essential elements as outlined in 2 CFR section 200.318. Questioned costs: None. Context: Through testing performed, it was identified that the entity does not have a procurement policy in place during the award period and that the conflict of interest policy policies do not include the essential elements as outlined in 2 CFR section 200.318. Cause: Management was unaware of the restrictive requirements of the procurement standards and was unaware that the conflict of interest policies did not contain required guidance. Effect: With the absence of a compliant policy, the entity is at risk for noncompliance as it relates to federal procurement. Repeat Finding: None. Recommendation: We recommend that management compose a procurement policy with the criteria as set out in 2 CFR sections 200.318 and 200.326. and review the conflict of interest policy and make necessary changes to comply with the criteria as set out in 2 CFR section 200.318. Views of responsible officials: Management agrees with the finding and will compose a procurement policy in line with compliance requirements and review and edit the conflict of interest policy to be in compliance.