FAC Explorer

Audit 1411

FY End
2022-06-30
Total Expended
$4.62M
Findings
10
Programs
5
Organization: Downeast Transportation, Inc. (ME)
Year: 2022 Accepted: 2023-10-26
Auditor: Edwards Faust & Smith

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
747 2022-001 Significant Deficiency - AB
748 2022-002 Significant Deficiency - L
749 2022-003 Significant Deficiency - AB
750 2022-004 Significant Deficiency - I
751 2022-005 Significant Deficiency - L
577189 2022-001 Significant Deficiency - AB
577190 2022-002 Significant Deficiency - L
577191 2022-003 Significant Deficiency - AB
577192 2022-004 Significant Deficiency - I
577193 2022-005 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
15.954 National Park Service Conservation, Protection, Outreach, and Education $1.60M - 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $1.50M Yes 1
20.500 Federal Transit_capital Investment Grants $46,573 Yes 0
20.520 Paul S. Sarbanes Transit in the Parks $6,431 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $2,204 Yes 0

Contacts

Name Title Type
GTN5R5KTEKN3 Paul Murphy Auditee
2076675796 Nicholas Schiller Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance wherein certain types expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Downeast Transportation, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. he accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Downeast Transportation, Inc. under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title2 U.S Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Downeast Transportation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Downeast Transportation.
Title: DONATED PERSONAL PROTECTIVE EQUIPMENT Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance wherein certain types expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Downeast Transportation, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. owneast Transportation, Inc. did not receive any donated Personal Protective Equipment purchased with federal funding during the year ended June 30, 2022.
Title: RECONCILIATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE BASIC FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance wherein certain types expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Downeast Transportation, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. Garnt Revenies per schedule recocniled to the basic financial statements

Finding Details

Finding 2022-001
Downeast Transportation has written policy stating that all checks over $10,000 must have two authorized signatures as a measure of internal control over cash disbursements. A check writtem over $10,000 did not have two authorized signatures. Internal control policy over cash disbursements was not followed.
Finding 2022-002
Downeast Transportation is responsible for the preparation of the basic financial statements and all accompanying information and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires them to perform a year-end closing process to accumulate, reconcile and summarize information for inclusion in the annual financial statements. We identified that four (4) buses acquired from a federal grant were not properly recorded on the fixed asset list and related grant revenue. Therefore not included in the annual financial statements.
Finding 2022-003
Downeast Transportation is responsible for designing, implementing, and maintaining effective internal controls over expenditures that include timesheets and payroll authorization forms. During our payroll testing, we tested 18 employees and found that two employees' pay rates on the payroll register did not match the authorized pay rates on file.
Finding 2022-004
2 CFR section 200.320(2i) for the acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition price or rate quotations requires that competitive quotes must be obtained from an adequate number of qualified sources. Competitve price quotes for several goods and services that were above the micro-purchase thershold were not obtained.
Finding 2022-005
2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditor or nine months after the end of the audit period. The June 30, 2022 Single Audit reporting package and data collection form was filed thirteen (13) months after the fiscal year-end. Four months late.
Finding 2022-001
Downeast Transportation has written policy stating that all checks over $10,000 must have two authorized signatures as a measure of internal control over cash disbursements. A check writtem over $10,000 did not have two authorized signatures. Internal control policy over cash disbursements was not followed.
Finding 2022-002
Downeast Transportation is responsible for the preparation of the basic financial statements and all accompanying information and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires them to perform a year-end closing process to accumulate, reconcile and summarize information for inclusion in the annual financial statements. We identified that four (4) buses acquired from a federal grant were not properly recorded on the fixed asset list and related grant revenue. Therefore not included in the annual financial statements.
Finding 2022-003
Downeast Transportation is responsible for designing, implementing, and maintaining effective internal controls over expenditures that include timesheets and payroll authorization forms. During our payroll testing, we tested 18 employees and found that two employees' pay rates on the payroll register did not match the authorized pay rates on file.
Finding 2022-004
2 CFR section 200.320(2i) for the acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition price or rate quotations requires that competitive quotes must be obtained from an adequate number of qualified sources. Competitve price quotes for several goods and services that were above the micro-purchase thershold were not obtained.
Finding 2022-005
2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditor or nine months after the end of the audit period. The June 30, 2022 Single Audit reporting package and data collection form was filed thirteen (13) months after the fiscal year-end. Four months late.