Finding 1222930 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-07-06
Audit: 406441
Organization: Town of Coventry, Connecticut (CT)

AI Summary

  • Core Issue: Lack of documentation for reviewing suspension and debarment during procurement processes.
  • Impacted Requirements: Compliance with 2 CFR Part 200 regarding procurement, suspension, and debarment.
  • Recommended Follow-Up: Strengthen procurement policies to ensure compliance with federal requirements moving forward.

Finding Text

Procurement and Suspension and Debarment Federal Agencies: United States Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Not Available Pass-Through Agency: State of Connecticut Department of Transportation Pass-Through Number: 12062-DOT57151-22108 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters 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: There was no documentation of controls in place to review for suspension and debarment on related procurement activities at the time the contracts were executed. Questioned Costs: None Context: Although testing did not reveal vendors providing services that were suspended and debarred, no documentation existed to verify compliance with this requirement when the contracts were executed. Cause: The Town did not properly document the requirement at the time the contracts were executed. Effect: No effect can be determined. Repeat Finding: Yes, 2024-001 Recommendations: We recommend that the Town continue its formal procurement policies with the criteria in 2 CFR sections 200.318 and 200.326 moving forward. Views of Responsible Officials: Management agrees with this finding.

Corrective Action Plan

Recommendation: We recommend that the Town continue to strengthen its formal procurement policies with the criteria in 2 CFR sections 200.318 and 200.326. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: While to finance department has a procedure in place to review the Excluded Parties List system to ensure that the vendor is not debarred or suspended and to document such confirmation, we will further strengthen our procurement policies as follows: As part of the bid and vendor review, the Town Engineer will print off the Excluded Parties List at that time, initial and date it, and keep it with all bid documents. This will ensure that the list has been checked prior to any contract being executed. The finance office will continue their review when the vendor is set up in the financial management system. Name(s) of the contact person(s) responsible for corrective action: Cherie Trahan Planned completion date for corrective action plan: 06/30/2026

Categories

Procurement, Suspension & Debarment

Programs in Audit

ALN Program Name Expenditures
20.205 HIGHWAY PLANNING AND CONSTRUCTION $1.36M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $275,064
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $86,882
10.553 SCHOOL BREAKFAST PROGRAM $74,155
84.425 EDUCATION STABILIZATION FUND $61,028
84.027 SPECIAL EDUCATION GRANTS TO STATES $45,690
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $31,647
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $15,928
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $14,772
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $6,225
10.185 LOCAL FOOD FOR SCHOOLS COOPERATIVE AGREEMENT PROGRAM $914
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $32