Town of PrestonLocal Government

FINDING 2025-002 – SIGNIFICANT DEFICIENCY- PROCUREMENT AND SUSPENSION AND DEBARMENT- INTERNAL CONTROL OVER VERIFICATION AGAINST THE SYSTEM FOR AWARD MANAGEMENT (“SAM”) 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: Procurement and Suspension and Debarment Criteria 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are required to ensure that they do not award contracts or make subawards to any parties that are suspended or debarred from receiving federal funds. This verification may be accomplished by checking the System for Award Management (SAM). Condition The Town did not have a process in place to check that vendors were not suspended or debarred by checking the System for Award Management (SAM) prior to entering into contracts. Context There was no process in place to verify that vendors were not suspended or debarred, however, none of the vendors selected for testing were suspended or debarred. Cause The Towns procurement policies and procedures did not include a process for checking and verifying suspension and debarment status of vendors at the time of award or at periodic intervals afterwards. Effect Failure to verify suspension and debarment status of parties engaged in federal transactions may result in noncompliance with federal regulations, leading to the risk of making awards to ineligible parties. Recommendation We recommend that the Town establish and implement policies and procedures to ensure compliance with suspension and debarment requirements. The Town should establish procedures to verify, prior to awarding any federal contract or subaward, that the vendor, contractor, or subrecipient is not listed on the SAM exclusions list or any other relevant suspension and debarment lists. Implement a periodic review process to ensure that current vendors, contractors, and subrecipients remain eligible and are not suspended or debarred. Document that the verification process was performed and maintain supporting documentation. Views of Responsible Officials and Planned Corrective Actions The Town will establish policies and procedures to ensure vendors are not suspended or debarred by checking the System for Award Management (SAM) and maintain documentation showing that verification.

FINDING 2024-001 – SIGNIFICANT DEFICIENCY- PROCUREMENT AND SUSPENSION AND DEBARMENT- INTERNAL CONTROL OVER VERIFICATION AGAINST THE SYSTEM FOR AWARD MANAGEMENT (“SAM”) 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: Procurement and Suspension and Debarment Criteria 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are required to ensure that they do not award contracts or make subawards to any parties that are suspended or debarred from receiving federal funds. This verification may be accomplished by checking the System for Award Management (SAM). Condition The Town does not have a process in place to check that vendors are not suspended or debarred by checking the System for Award Management (SAM). Context There was no process in place to verify that vendors are not suspended for debarred, however, none of the vendors selected for testing were suspended or debarred. Cause The Towns procurement and compliance procedures did not include a process for checking and verifying suspension and debarment status of vendors at the time of award or at periodic intervals afterwards. Effect Failure to verify suspension and debarment status of parties engaged in federal transactions may result in noncompliance with federal regulations, leading to the risk of making awards to ineligible parties. Recommendation We recommend that the Town establish and implement policies and procedures to ensure compliance with suspension and debarment requirements. The Town should establish procedures to verify, prior to awarding any federal contract or subaward, that the vendor, contractor, or subrecipient is not listed on the SAM exclusions list or any other relevant suspension and debarment lists. Implement a periodic review process to ensure that current vendors, contractors, and subrecipients remain eligible and are not suspended or debarred. Document that the verification process was performed and maintain supporting documentation. Views of Responsible Officials and Planned Corrective Actions The Town will establish policies and procedures to ensure vendors are not suspended or debarred by checking the System for Award Management (SAM) and maintain documentation showing that verification.

Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20508 and 12060-SDE64370-20560 Compliance Requirement: Reporting Criteria Controls should be in place to ensure the accuracy of reporting submitted for federal awards programs with proper supporting documentation to agree to the reports being submitted to the Department of Education. As part of the recordkeeping process, each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Condition Of the eleven monthly claims reports reviewed during the audit, the supporting documentation for one of the claims (April 2023) could not be located. Cause Deficiency in internal controls regarding recordkeeping for grant reporting. Effect Potential for misstatements to be made during grant reporting and a failure to maintain such records may be grounds for denial of reimbursement for meals reimbursements claimed during that reporting period. Recommendation We recommend that the Town ensures proper internal controls are in place for maintenance of records used to support monthly reimbursement claims. Views of Responsible Officials and Planned Corrective Actions The Town agrees with the finding and has implemented internal controls to ensure the supporting documentation for each monthly claim are filed and maintained. Each month the monthly claims reports and supporting documentation will be filed away in a designated secure location with a checklist by month to confirm processing.

FINDING 2022-01 ? Significant Deficiency in Internal Control over ComplianceProgramUSDA ? School Nutrition ClusterCFDA ? 10.553.10.555CriteriaThe Town should have internal controls over compliance in place to ensure accurate andtimely claim reimbursement submissions.ConditionThe October 2021 school breakfast reimbursement was never claimed.Questioned CostsNone noted.EffectMissing school breakfast reimbursements.CauseThere was turnover at the Finance Director position and there was a lapse in internal controlsduring that time period.RecommendationWe recommend that the Town ensures proper controls are in place for accurate and timelyreporting of claim reimbursements.Views of Responsible Officials and Planned Corrective ActionsThe Town agrees with the finding and will implement internal controls to ensure accurate andtimely reporting.