Finding Text
2023-003
Federal Agency: U.S. Department of Treasury
Federal Program Name: COVID-19 America Rescue Plan Act Assistance Listing Number: 21.027
Federal Award Identification Number and Year: 06-6002031-2021
- Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669
Award Period: March 3, 2021, through December 31, 2026
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 Award requires compliance with the provisions of procurement, suspension, and debarment. The Town of Lebanon, Connecticut (the Town) should have internal controls designed to ensure compliance with those provisions.
Condition: During our testing, we noted the Town did not have adequate internal controls designed to ensure vendors were not suspended or debarred.
Questioned costs: None
Context: During our testing, it was noted that the Town does not have a policy for verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded.
Cause: The Town was unaware the contractors were not being reviewed to ensure they were not suspended or debarred.
Effect: The auditor noted no instances of noncompliance with the provisions of 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.
Views of responsible officials: There is no disagreement with the audit finding. When the auditors brough this to the town’s attention we had the town attorney review the recommendation. The town’s attorney provided language that the town will include in vendor contracts going forward.