Finding Text
Finding 2024-010: Material Weakness in Internal Control and Noncompliance, Late Issuance of the 2024 Single Audit Reporting Package to the Federal Audit Clearinghouse Assistance Listing Program Title and Number: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (ALN# 21.027), Airport Improvement Program, Infrastructure Investment and Job Act Programs, and COVID-19 Airports Programs (20.106), Title I Grants to Local Educational Agencies (84.010A), Special Education Cluster (IDEA) (84.027, 84.173), Child Nutrition Cluster (10.553, 10.555, 10.559), COVID-19 – Educational Stabilization Funds (84.425D, 84.425U), CDBG Entitlement/Special Purpose Grants Cluster (14.218) Federal Agency: U.S. Department of Treasury, U.S. Department of Transportation, U.S. Department of Education, U.S. Department of Agriculture, U.S. Department of Housing and Urban Development Pass-through Entity: State of Connecticut Department of Education (COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Child Nutrition Cluster, Title I Grants to Local Educational Agencies, Special Education Cluster (IDEA), and Education Stabilization Funds) Award year: 2022-2023 and 2023-2024 Criteria or specific requirement: Uniform Guidance 2 CFR 200.512(a) requires that each organization’s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The Single Audit packages for the City’s fiscal years ended June 30, 2024, June 30, 2023 and June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2025, March 31, 2024 and March 31, 2023, respectively. The City missed the filing deadlines, making the filings for 2024, 2023 and 2022, late. Cause: The cause is the lack of effective controls over financial reporting resulting in delays in both the Financial Statement Audit and Single Audit. Effect: This can result in disallowance of expenditures / future awards by the grantor due to lack of proper reporting. In addition, late filings result in noncompliance with the requirements of the Uniform Guidance and makes the City ineligible for consideration as a low risk auditee under Uniform Guidance, expanding the scope and cost of the single audit. Context: The June 30, 2024, 2023 and 2022 Single Audit packages. Questioned Costs: None Repeat Finding: 2023-002 Recommendation: We recommend the City evaluate the process and design of internal controls over financial reporting, including the SEFA and SESA, in order to ensure readiness for the audit and to avoid late filing of the data collection form. Views of Responsible Officials: Management agrees with the finding.