Finding 29082 (2022-003)

Finding No. 2022-003 Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Federal Award Identification Number: SLFRP0128 Grant Year: 2021 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: June 7, 2021, through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or Specific Requirement: The American Rescue Plan Act Local Fiscal Recovery requires that a Tier 2, NEU submit a Project and Expenditure Report on April 30, 2022, and quarterly thereafter. Condition: Controls over Project and Expenditure Reports did not exist to ensure accuracy of submitted data. Questioned Costs: None Context: The City submitted two Project and Expenditure Reports with no independent review of this report. Effect: Errors could be present and not detected by the City. Cause: Due to staff shortages and timeliness of reporting, the City did not obtain and document an independent review of the Project and Expenditure Reports prior to submission. Recommendation: We recommend that the City establish controls to ensure compliance with reporting requirements. Views of Responsible Officials: Management agrees with the auditors? recommendations