Audit 15300

FY End
2023-06-30
Total Expended
$7.75M
Findings
4
Programs
1
Organization: Efficiency Maine Trust (ME)
Year: 2023 Accepted: 2024-02-02

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
11379 2023-001 Significant Deficiency - P
11380 2023-001 Significant Deficiency - P
587821 2023-001 Significant Deficiency - P
587822 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds - Arpa $92,096 Yes 1

Contacts

Name Title Type
LK5KQ9NBPRA6 Greg Leclair Auditee
2072134144 Jennifer Conners Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of Efficiency Maine Trust for the fiscal year ended June 30, 2023. The reporting entity is defined in Notes to Basic Financial Statements of Efficiency Maine Trust. B. Basis of Presentation - The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. 2. Major Programs - the Uniform Guidance establishes the level of expenditures to be used in defining major federal financial award programs. Major programs for the Trust have been identified in the attached Schedule of Findings and Questioned Costs – Summary of Auditor’s Results. C. Basis of Accounting - The information presented in the Schedule of Expenditures of Federal Awards is presented on a modified accrual basis of accounting, which is a basis consistent with the Trust’s fund financial statements. The grants included are all accounted for on a modified accrual basis of accounting as described in the notes to the basic financial statements. De Minimis Rate Used: N Rate Explanation: Efficiency Maine Trust has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. A.       The accompanying schedule includes all federal award programs of Efficiency Maine Trust for the fiscal year ended June 30, 2023. The reporting entity is defined in Notes to Basic Financial Statements of Efficiency Maine Trust.
Title: Basis of Presentation Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of Efficiency Maine Trust for the fiscal year ended June 30, 2023. The reporting entity is defined in Notes to Basic Financial Statements of Efficiency Maine Trust. B. Basis of Presentation - The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. 2. Major Programs - the Uniform Guidance establishes the level of expenditures to be used in defining major federal financial award programs. Major programs for the Trust have been identified in the attached Schedule of Findings and Questioned Costs – Summary of Auditor’s Results. C. Basis of Accounting - The information presented in the Schedule of Expenditures of Federal Awards is presented on a modified accrual basis of accounting, which is a basis consistent with the Trust’s fund financial statements. The grants included are all accounted for on a modified accrual basis of accounting as described in the notes to the basic financial statements. De Minimis Rate Used: N Rate Explanation: Efficiency Maine Trust has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. 2. Major Programs - the Uniform Guidance establishes the level of expenditures to be used in defining major federal financial award programs. Major programs for the Trust have been identified in the attached Schedule of Findings and Questioned Costs – Summary of Auditor’s Results.
Title: Basis of Accounting Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of Efficiency Maine Trust for the fiscal year ended June 30, 2023. The reporting entity is defined in Notes to Basic Financial Statements of Efficiency Maine Trust. B. Basis of Presentation - The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. 2. Major Programs - the Uniform Guidance establishes the level of expenditures to be used in defining major federal financial award programs. Major programs for the Trust have been identified in the attached Schedule of Findings and Questioned Costs – Summary of Auditor’s Results. C. Basis of Accounting - The information presented in the Schedule of Expenditures of Federal Awards is presented on a modified accrual basis of accounting, which is a basis consistent with the Trust’s fund financial statements. The grants included are all accounted for on a modified accrual basis of accounting as described in the notes to the basic financial statements. De Minimis Rate Used: N Rate Explanation: Efficiency Maine Trust has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The information presented in the Schedule of Expenditures of Federal Awards is presented on a modified accrual basis of accounting, which is a basis consistent with the Trust’s fund financial statements. The grants included are all accounted for on a modified accrual basis of accounting as described in the notes to the basic financial statements.

Finding Details

2023-001 State and Local Fiscal Recovery Funds – Compliance & Internal Control Criteria: In accordance with 2CFR 200.430(i), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award. Budget estimates alone to do not qualify as support for charges to Federal awards. Condition: The Trust allocates employee payroll to Federal awards using a budgeted allocation percentage that may not be reflective of the actual time worked by the employee on Federal and non-Federal activities. Budgeted estimates are not adjusted to actual time worked on Federal programs during the year. Cause: The Trust currently does not have a system to track the number of hours personnel work on various Federal or non-Federal programs. Effect: Payroll expenditures may not be reflective of actual time worked on Federal grants. Federal expenditures may be overstated or understated. Known Questioned Costs: unknown Likely Questioned Costs: unknown Recommendations: We recommend the Trust implement a time tracking system that requires employees to provide detail on the number of hours worked on Federal and non-Federal programs on their timesheets. The time tracking data should be utilized to charge payroll to Federal awards.
2023-001 State and Local Fiscal Recovery Funds – Compliance & Internal Control Criteria: In accordance with 2CFR 200.430(i), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award. Budget estimates alone to do not qualify as support for charges to Federal awards. Condition: The Trust allocates employee payroll to Federal awards using a budgeted allocation percentage that may not be reflective of the actual time worked by the employee on Federal and non-Federal activities. Budgeted estimates are not adjusted to actual time worked on Federal programs during the year. Cause: The Trust currently does not have a system to track the number of hours personnel work on various Federal or non-Federal programs. Effect: Payroll expenditures may not be reflective of actual time worked on Federal grants. Federal expenditures may be overstated or understated. Known Questioned Costs: unknown Likely Questioned Costs: unknown Recommendations: We recommend the Trust implement a time tracking system that requires employees to provide detail on the number of hours worked on Federal and non-Federal programs on their timesheets. The time tracking data should be utilized to charge payroll to Federal awards.
2023-001 State and Local Fiscal Recovery Funds – Compliance & Internal Control Criteria: In accordance with 2CFR 200.430(i), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award. Budget estimates alone to do not qualify as support for charges to Federal awards. Condition: The Trust allocates employee payroll to Federal awards using a budgeted allocation percentage that may not be reflective of the actual time worked by the employee on Federal and non-Federal activities. Budgeted estimates are not adjusted to actual time worked on Federal programs during the year. Cause: The Trust currently does not have a system to track the number of hours personnel work on various Federal or non-Federal programs. Effect: Payroll expenditures may not be reflective of actual time worked on Federal grants. Federal expenditures may be overstated or understated. Known Questioned Costs: unknown Likely Questioned Costs: unknown Recommendations: We recommend the Trust implement a time tracking system that requires employees to provide detail on the number of hours worked on Federal and non-Federal programs on their timesheets. The time tracking data should be utilized to charge payroll to Federal awards.
2023-001 State and Local Fiscal Recovery Funds – Compliance & Internal Control Criteria: In accordance with 2CFR 200.430(i), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award. Budget estimates alone to do not qualify as support for charges to Federal awards. Condition: The Trust allocates employee payroll to Federal awards using a budgeted allocation percentage that may not be reflective of the actual time worked by the employee on Federal and non-Federal activities. Budgeted estimates are not adjusted to actual time worked on Federal programs during the year. Cause: The Trust currently does not have a system to track the number of hours personnel work on various Federal or non-Federal programs. Effect: Payroll expenditures may not be reflective of actual time worked on Federal grants. Federal expenditures may be overstated or understated. Known Questioned Costs: unknown Likely Questioned Costs: unknown Recommendations: We recommend the Trust implement a time tracking system that requires employees to provide detail on the number of hours worked on Federal and non-Federal programs on their timesheets. The time tracking data should be utilized to charge payroll to Federal awards.