Finding Text
Federal Agency: U.S. Department of the Treasury
Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery
Assistance Listing Number: 21.027
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, 2024
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria
The Town must have proper controls in place to ensure an independent review is completed by
someone other than the report preparer and that this review is formally documented prior to submission
to the U.S. Department of the Treasury.
Condition
The Town does not have a control in place to ensure an independent review of financial reports is
completed by someone separate from the report preparation process prior to submission to the U.S.
Department of the Treasury.
Questioned Costs None noted.
Context
There is no review of the financial reports being performed by an individual independent of the report
preparation process.
Effect
With the absence of this control, the financial reports submitted to the U.S. Department of the Treasury
could potentially include incorrect or incomplete data.
Cause
The Town does not have a policy in place for a review of the annual project and expenditure report by
an individual other than the preparer before it is submitted.
Recommendation
We recommend that the Town implement a control to ensure an independent review of the financial
reports is performed by an individual other than the preparer to verify accuracy and completeness prior
to submission to the U.S. Department of the Treasury.
Views of Responsible Officials and Planned Corrective Actions
Management agrees with the auditors’ recommendations. Corrective action has been taken to
implement a control to ensure an independent review of the financial reports takes place prior to
submission to the U.S. Department of the Treasury.