Eastern Connecticut Regional Educational Service CenterLocal Government

2022-003 Procurement, Suspension and Debarment Federal Agency: United States Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 / 10.555 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20560 / 12060-SDE64370-20508 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters 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. EASTCONN should have internal controls designed to ensure compliance with those provisions. Condition: EASTCONN?s procurement standards do not include the required elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None Context: Although EASTCONN did not have a policy in place in conformity with the Federal Uniform Guidance criteria, EASTCONN did follow its own procedures as it relates to the contracts under the procurements applicable to EASTCONN?s major programs. Cause: EASTCONN did not formally update their procurement policy as any federal grants they receive in which procurement is required, the appropriate language is included in the grant requirements and documents. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend that EASTCON review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with this finding.

2022-004 Activities Allowed or Unallowed & Allowable Costs/Cost Principles Federal Agency: United States Department of Education Federal Program Name: Education Stabilization Cluster Assistance Listing Number: 84.425D / 84.425U Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-29571 / 12060-SDE64370-29636-2021 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Other Compliance Finding Criteria or Specific Requirement: Management is responsible for the design, implementation and maintenance of internal controls relevant to allowability over grants expenditures. Condition: EASTCONN did not provide supporting documentation for the $3,097 payment to an employee. Per review of the employee personnel file wage agreements, CLA noted that the employee was eligible to receive a payment at the end of the year of $9,303, however $12,400 was paid. EASTCONN did not have proper controls to prevent unallowable expenditures to be reported. Questioned Costs: $3,097 Context: Out of a population of over 100 transactions and sample size of 12, one transaction was not allowed for reimbursement as the expense was not in the approved employee agreement. Cause: Controls not followed to ensure that expenditures are not charged without being included in the approved agreement. Effect: Expenditures were charged to the grant that were not allowed. Repeat Finding: No Recommendation: We recommend that EASTCONN follow controls that are in place to ensure that expenditures charged are in accordance with approved agreements. Views of Responsible Officials: Management agrees with this finding.

2021-003 Federal Funding Accountability and Transparency Act of 2006 (FFATA) Reporting Federal Agency Department of Health and Human Services Federal Program Head Start Cluster Federal Assistance Listing Number 93.600 Head Start Transactions Subaward not Report not Subaward amount Subaward missing Tested reported timely incorrect key elements 2 - 2 - - Dollar Amount of Tested Subaward not Report not Subaward amount Subaward missing Transactions reported timely incorrect key elements $ 1,920,003 $ - $ 1,920,003 - - Award Period July 1, 2020 to June 30, 2021 Type of Finding Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement The Code of Federal Regulations, 2 CFR Part 170, as required by the Federal Funding Accountability and Transparency Act of 2006, states organizations which make subawards of federal funding with obligations of $30,000 or greater must complete FFATA reporting to the federal agency no later than the end of the month following the month in which the subaward obligation was made. Condition For two out of two subrecipients tested, the FFATA reporting was not submitted timely. Questioned Costs Note noted. Context Although the FFATA report was not submitted timely, it was determined to be submitted accurately. Effect The federal government will not have complete information on subawards. Cause The client was unaware of the additional reporting required. Repeat Finding No Recommendation We recommend EASTCONN puts a process in place to ensure the required reporting is completed in the timeline allowed by the granting agency and to complete any missed or late reporting as required. Views of Responsible Officials Procedures will be put in place to ensure proper reporting going forward.

2021-004 Activities Allowed or Unallowed and Allowable Cost/Cost Principles Federal Agency United States Department of Treasury Federal Program Title COVID-19 Coronavirus Relief Fund Assistance Listing Number 21.019 Pass-Though Agency State of Connecticut Department of Education; Eastern Connecticut Workforce Investment Pass-Through Number(s) 12060-SDE64370-29561; N/A Award Period July 1, 2020 through December 30, 2020 Type of Finding Material Weakness in Internal Control over Compliance and Other Compliance Finding Criteria Management is responsible for the design, implementation and maintenance of internal controls relevant to allowability over grants expenditures. Condition We noted the following: EASTCONN purchased Chromebooks, configurations, cases accessories that were needed for virtual learning. Per review of the approved grant award, CRF nonpersonnel costs excluded costs for devices, software and connectivity for distance learning that is covered by state level purchasing or through the ESSER grant. In addition, EASTCONN purchased adjustable stand-up desks to comply with public health measures as these supplies were required to create office space with remote meeting capabilities. Per review of the approved budget for the CARES Health Pipeline Youth budget from Eastern Connecticut Workforce Investment, the budget did not include such expenditures. Questioned Costs $20,756 Context Out of a population of over 250 transactions and sample size of 40, three transactions are not allowed for reimbursement per grant agreement as they were not in the approved grant expenditures. Effect Expenditures were charged to the grant that were not allowed. Cause Controls not followed to ensure that expenditure are not charged without being included in the approved expenditure budget. Recommendation We recommend that EASTCONN follow controls that are in place to ensure that expenditures charged are in accordance with grant budget. Views of Responsible Officials Management agrees with this finding.