Finding Text
Federal Agency: U.S. Department of Treasury
Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
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: Yes. Finding 2023-003. Recommendation: We recommend the Town design controls to ensure a 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
brought 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.