Finding 522211 (2024-001)

FINDING 2024-001 – SIGNIFICANT DEFICIENCY- REPORTING - INTERNAL CONTROL OVER COMPLIANCE Federal Agency: Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Compliance Requirement: Reporting Criteria The Town is required to submit an annual Project and Expenditure report within 30 days of after the close of the reporting period. Condition The Town did not have adequate controls in place to submit the annual Project and Expenditure Report for the reporting period ended March 31, 2024, within 30 days of the close of the reporting period. Context There was no procedure in place for the Town to submit the Project and Expenditure Report on time. There was also turnover at positions within the Finance Department. Since that time, the Town has implemented new procedures to ensure timely filling. Cause Turnover in the Finance Department and lack of awareness of the deadline. No formal procedures were in place to ensure timely submissions of the Project and Expenditure Report. Effect The Town did not submit the annual Project and Expenditure Report timely. Recommendation We recommend that the Town establish procedures for the preparation and completion of the annual Project and Expenditure Report to ensure timely filing. Views of Responsible Officials and Planned Corrective Actions The Town is now aware of the reporting deadlines and has established policies and procedures to ensure that the report gets filed timely and accurately.