Connecticut Audit Finds $13.65 Million in Vendor Payments Missing From Public Database

Connecticut’s public spending database understated payments to vendors by more than $13.6 million over two fiscal years because a quasi-public education agency submitted incomplete figures, according to a state audit released November 5.

The Auditors of Public Accounts found that the State Education Resource Center, known as SERC, underreported $13,653,522 in vendor payments to the Office of the State Comptroller for fiscal years 2023 and 2024. The comptroller’s Open Checkbook database allows the public to see how government entities spend money.

The gap widened in the second year

For fiscal year 2023, the database showed $8.4 million in spending, compared with $12.4 million in vendor payments recorded by SERC. For fiscal year 2024, the database showed $7.9 million, compared with $17.6 million in the agency’s records.

Auditors attributed the discrepancy to inadequate review of the data SERC submitted to the comptroller. They flagged the same reporting problem in their previous audit, which covered fiscal years 2021 and 2022.

Auditors also flagged weak bank controls

In a separate finding, auditors said SERC failed to review and approve 69 of 72 bank reconciliations for its operating, reserve and payroll accounts. Those reviews are meant to catch differences between the agency’s books and its bank records. Auditors said the lack of review increased the risk that errors, irregularities or potential fraud could go undetected.

The agency says it has changed its procedures

SERC agreed with the spending disclosure finding. In its written response, the agency said staff turnover and a vacancy in the chief financial officer position followed the submission of reports that contained errors. SERC said it now checks spending data against its accounting records and requires a documented second review before sending the figures to the comptroller.

The response describes how SERC says it checks new submissions. Whether the public database now reflects the full vendor payments for 2023 and 2024 remains an open question.