Finding 403648 (2023-002)

2023-002 Grantor: Department of Commerce Federal Program Name: Highway Planning and Construction (FHWA) Pass-through Entity: N/A Federal Grant Program AL Number: 20.205 Type of Finding: Significant Deficiency in Compliance Criteria or specific requirement: The COG is required to submit quarterly reports for this program. These are due ten days after the quarter ends. Condition: All quarterly reports were filed well beyond the required submission timeline noted above. An example is the final two quarters of the fiscal year were reported on one report five months after year end. This caused overspending of $4,979. Effect: Noncompliance with State of Connecticut Department of Transportation reporting requirements. Cause: full staff turnover in the prior year. Repeat Finding: No Recommendation: We recommend that the client implement controls to ensure grant funds are reported per the requirements of the grant agreement. Management’s Response/Views of Responsible Officials: Quarterly reporting and financial reporting are not joined under the same reporting deadlines. All Quarterly reports were submitted within the required timeframe; that is, 10 days after the quarter ends. There is no deadline for submitting invoices to DOT for reimbursement. In summary, NHCOG is of the opinion that the Finding does not accurately reflect the material detail and reporting of our programs, funding streams and administrative difficulties between the state and our providers.