Brooklyn audit flags ARPA compliance gaps over vendor checks and late reporting

An independent audit of the Town of Brooklyn, Connecticut, found procedural failures in the town administration of ARPA Coronavirus State and Local Fiscal Recovery Funds that auditors say could risk ineligible payments and noncompliance with federal requirements.

King, King & Associates, CPAs, which audited the town for the year ended June 30, 2025, reported an unmodified opinion on the town financial statements and on compliance for major federal programs. The audit also identified two significant deficiencies involving the ARPA program (Assistance Listing 21.027).

The first finding (2025-001) concerns procurement and suspension and debarment checks. Auditors found "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)." The report states there was no verification process at the time of award or periodically afterward; auditors warned this "may result in awards to ineligible parties." King, King & Associates recommended that "the Town establish and implement policies and procedures to ensure compliance with suspension and debarment requirements" and to document verification steps.

The second finding (2025-002) concerns federal reporting. Auditors determined the town did not have adequate proof that it filed the Project and Expenditure Report for the reporting period ended March 31, 2025, within the 30-day window required by the Uniform Guidance; instead, the file available to auditors was a dated amended filing submitted after the deadline. The auditors recommended that the town establish procedures for preparation, accurate completion, and recordkeeping to ensure timely filings.

The schedule of expenditures of federal awards included in the audit shows total federal awards of $1,593,596 for the year ended June 30, 2025, including $609,058 from U.S. Department of Education programs and $984,538 from U.S. Department of the Treasury programs. The audit identifies Assistance Listing 21.027 (ARPA - Coronavirus State and Local Fiscal Recovery Funds) as a major program; the Town did not qualify as a low-risk auditee.

In response to both findings, the report records the town management statement: "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" and that it "will make sure to keep adequate records of filings." Those commitments are recorded in the audit as the town's planned corrective actions.

The auditors also noted the procurement/SAM finding repeats a prior-year significant deficiency (2024-001), signaling the town must take documented corrective steps to avoid recurrence. The audit includes specific recommendations: implement pre-award SAM checks, periodic re-checks of current vendors, retain verification evidence, and institute documented procedures and recordkeeping for ARPA Project and Expenditure Reports.

Next steps recorded in the audit are administrative: the auditors require the town to adopt the recommended procedures and maintain documentation showing verification and timely filings. The audit does not propose any financial adjustments, and the Town received an unmodified opinion on its financial statements and its schedule of expenditures of federal awards.

The full audit report, including the schedule of expenditures and detailed recommendations (items 2025-001 and 2025-002), is dated May 7, 2026.