Finding 405956 (2023-002)

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 – Coronavirus State & Local Fiscal Recovery Fund 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 and Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, 2 CFR 200.303 requires compliance with the provisions of procurement, suspension, and debarment. The Town should have internal controls designed to ensure compliance with those provisions. In addition, the Town must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 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 Town did not review the vendors for compliance with the suspension and debarment requirements. We did not note that any sampled vendors were suspended or debarred, 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: Management agrees with the finding.