Audit 22065

FY End
2022-06-30
Total Expended
$2.49M
Findings
8
Programs
4
Year: 2022 Accepted: 2023-05-09
Auditor: Wipfli LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
21019 2022-002 Significant Deficiency - AB
21020 2022-003 Significant Deficiency - L
21021 2022-002 Significant Deficiency - AB
21022 2022-003 Significant Deficiency - L
597461 2022-002 Significant Deficiency - AB
597462 2022-003 Significant Deficiency - L
597463 2022-002 Significant Deficiency - AB
597464 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
47.076 Education and Human Resources $1.98M Yes 2
47.070 Computer and Information Science and Engineering $293,206 Yes 2
84.425 Education Stabilization Fund $113,549 - 0
84.027 Special Education_grants to States $100,000 - 0

Contacts

Name Title Type
V2LAZJTM2JM3 Ruth Kermish-Allen Auditee
2076263230 Mike Webb 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, with the exception of payments made to subrecipients, which are reported based on when funds are actually disbursed. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant award activity of Maine Mathematics and Science Alliance 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Maine Mathematics and Science Alliance, it is not intended to and does not present the financial position, changes in net assets or cash flows of Maine Mathematics and Science Alliance.

Finding Details

Finding Number: 2022-002 - Represents a significant deficiency in internal control over compliance with Maine Mathematics and Science Alliance?s major federal program. Repeat Finding: No Type of Finding: Significant Deficiency Description: Internal Control over Payroll Condition: The internal controls over compliance for allowable activities and allowable costs are substantially the same for AL #47.076 and #47.070. During our audit, we noted several instances in which payroll expenditures were incorrectly allocated to the programs. The allocations were not based on time and effort records. Criteria: 2 CFR 200.430(i) states that ?Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;?. Cause: During fiscal year 2022, there was turnover in the personnel handling payroll. The database that was used from July 1, 2021 through October 15, 2021 to allocate payroll expenditures to the appropriate programs was not properly calculating based on the approved time and effort records. Effect: Without ensuring the payroll allocation is supported by time and effort records, it is possible that grants could be overcharged, resulting in misstated financial statements and unallowable costs. Context: The situation noted in the audit did not result in reportable questioned costs. We noted the exception applied to payroll periods from July 1, 2021 through October 15, 2021. The sample was not intended, and was not, a statistically valid sample. Recommendation: We recommend that the database used in the allocation of payroll to the grants be compared to the time and effort records prior to posting into the general ledger and sending to Bangor Payroll for processing. This should be completed and documented by an appropriate individual. View of responsible officials: Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2022-003 Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Description: Data Collection Form Late Filing Major Program: NATIONAL SCIENCE FOUNDATION Research Development Cluster (Direct) AL# 47.076 ? Education and Human Resources AL# 47.070 ? Computer and Information Science and Engineering Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Reporting Requirement Condition: The Organization did not submit the fiscal year ended June 30, 2022 data collection form and reporting package to the Federal Audit Clearinghouse in a timely manner. Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor?s report or nine months after the end of the audit period. Cause: Due to staff illness and the sudden death of the lead finance staff, the Alliance?s June 30, 2022 audit was not completed prior to the due date. Effect: The Alliance was not in compliance with audit submission requirements, resulting in a non-material noncompliance and significant deficiency in internal controls over compliance. Recommendation: We recommend the Alliance implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2022-002 - Represents a significant deficiency in internal control over compliance with Maine Mathematics and Science Alliance?s major federal program. Repeat Finding: No Type of Finding: Significant Deficiency Description: Internal Control over Payroll Condition: The internal controls over compliance for allowable activities and allowable costs are substantially the same for AL #47.076 and #47.070. During our audit, we noted several instances in which payroll expenditures were incorrectly allocated to the programs. The allocations were not based on time and effort records. Criteria: 2 CFR 200.430(i) states that ?Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;?. Cause: During fiscal year 2022, there was turnover in the personnel handling payroll. The database that was used from July 1, 2021 through October 15, 2021 to allocate payroll expenditures to the appropriate programs was not properly calculating based on the approved time and effort records. Effect: Without ensuring the payroll allocation is supported by time and effort records, it is possible that grants could be overcharged, resulting in misstated financial statements and unallowable costs. Context: The situation noted in the audit did not result in reportable questioned costs. We noted the exception applied to payroll periods from July 1, 2021 through October 15, 2021. The sample was not intended, and was not, a statistically valid sample. Recommendation: We recommend that the database used in the allocation of payroll to the grants be compared to the time and effort records prior to posting into the general ledger and sending to Bangor Payroll for processing. This should be completed and documented by an appropriate individual. View of responsible officials: Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2022-003 Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Description: Data Collection Form Late Filing Major Program: NATIONAL SCIENCE FOUNDATION Research Development Cluster (Direct) AL# 47.076 ? Education and Human Resources AL# 47.070 ? Computer and Information Science and Engineering Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Reporting Requirement Condition: The Organization did not submit the fiscal year ended June 30, 2022 data collection form and reporting package to the Federal Audit Clearinghouse in a timely manner. Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor?s report or nine months after the end of the audit period. Cause: Due to staff illness and the sudden death of the lead finance staff, the Alliance?s June 30, 2022 audit was not completed prior to the due date. Effect: The Alliance was not in compliance with audit submission requirements, resulting in a non-material noncompliance and significant deficiency in internal controls over compliance. Recommendation: We recommend the Alliance implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2022-002 - Represents a significant deficiency in internal control over compliance with Maine Mathematics and Science Alliance?s major federal program. Repeat Finding: No Type of Finding: Significant Deficiency Description: Internal Control over Payroll Condition: The internal controls over compliance for allowable activities and allowable costs are substantially the same for AL #47.076 and #47.070. During our audit, we noted several instances in which payroll expenditures were incorrectly allocated to the programs. The allocations were not based on time and effort records. Criteria: 2 CFR 200.430(i) states that ?Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;?. Cause: During fiscal year 2022, there was turnover in the personnel handling payroll. The database that was used from July 1, 2021 through October 15, 2021 to allocate payroll expenditures to the appropriate programs was not properly calculating based on the approved time and effort records. Effect: Without ensuring the payroll allocation is supported by time and effort records, it is possible that grants could be overcharged, resulting in misstated financial statements and unallowable costs. Context: The situation noted in the audit did not result in reportable questioned costs. We noted the exception applied to payroll periods from July 1, 2021 through October 15, 2021. The sample was not intended, and was not, a statistically valid sample. Recommendation: We recommend that the database used in the allocation of payroll to the grants be compared to the time and effort records prior to posting into the general ledger and sending to Bangor Payroll for processing. This should be completed and documented by an appropriate individual. View of responsible officials: Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2022-003 Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Description: Data Collection Form Late Filing Major Program: NATIONAL SCIENCE FOUNDATION Research Development Cluster (Direct) AL# 47.076 ? Education and Human Resources AL# 47.070 ? Computer and Information Science and Engineering Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Reporting Requirement Condition: The Organization did not submit the fiscal year ended June 30, 2022 data collection form and reporting package to the Federal Audit Clearinghouse in a timely manner. Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor?s report or nine months after the end of the audit period. Cause: Due to staff illness and the sudden death of the lead finance staff, the Alliance?s June 30, 2022 audit was not completed prior to the due date. Effect: The Alliance was not in compliance with audit submission requirements, resulting in a non-material noncompliance and significant deficiency in internal controls over compliance. Recommendation: We recommend the Alliance implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2022-002 - Represents a significant deficiency in internal control over compliance with Maine Mathematics and Science Alliance?s major federal program. Repeat Finding: No Type of Finding: Significant Deficiency Description: Internal Control over Payroll Condition: The internal controls over compliance for allowable activities and allowable costs are substantially the same for AL #47.076 and #47.070. During our audit, we noted several instances in which payroll expenditures were incorrectly allocated to the programs. The allocations were not based on time and effort records. Criteria: 2 CFR 200.430(i) states that ?Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;?. Cause: During fiscal year 2022, there was turnover in the personnel handling payroll. The database that was used from July 1, 2021 through October 15, 2021 to allocate payroll expenditures to the appropriate programs was not properly calculating based on the approved time and effort records. Effect: Without ensuring the payroll allocation is supported by time and effort records, it is possible that grants could be overcharged, resulting in misstated financial statements and unallowable costs. Context: The situation noted in the audit did not result in reportable questioned costs. We noted the exception applied to payroll periods from July 1, 2021 through October 15, 2021. The sample was not intended, and was not, a statistically valid sample. Recommendation: We recommend that the database used in the allocation of payroll to the grants be compared to the time and effort records prior to posting into the general ledger and sending to Bangor Payroll for processing. This should be completed and documented by an appropriate individual. View of responsible officials: Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2022-003 Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Description: Data Collection Form Late Filing Major Program: NATIONAL SCIENCE FOUNDATION Research Development Cluster (Direct) AL# 47.076 ? Education and Human Resources AL# 47.070 ? Computer and Information Science and Engineering Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Reporting Requirement Condition: The Organization did not submit the fiscal year ended June 30, 2022 data collection form and reporting package to the Federal Audit Clearinghouse in a timely manner. Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor?s report or nine months after the end of the audit period. Cause: Due to staff illness and the sudden death of the lead finance staff, the Alliance?s June 30, 2022 audit was not completed prior to the due date. Effect: The Alliance was not in compliance with audit submission requirements, resulting in a non-material noncompliance and significant deficiency in internal controls over compliance. Recommendation: We recommend the Alliance implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.