FAC Explorer

Audit 23362

FY End
2022-06-30
Total Expended
$13.26M
Findings
2
Programs
12
Organization: Maine Maritime Academy (ME)
Year: 2022 Accepted: 2023-03-27
Auditor: Baker Newman & Noyes LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
21196 2022-002 Significant Deficiency - G
597638 2022-002 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.85M Yes 0
20.806 State Maritime Schools $1.72M Yes 0
84.425 Education Stabilization Fund $1.13M Yes 1
84.063 Federal Pell Grant Program $1.10M Yes 0
84.038 Federal Perkins Loan Program $933,084 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $102,241 Yes 0
20.817 Air Emissons and Energy Initiative $100,662 - 0
99.RD Uas Survey Methods Grant $71,392 - 0
84.033 Federal Work-Study Program $67,818 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $55,705 - 0
47.RD Bio Surveillance of Alewives, Penobscot Bay $7,082 - 0
47.RD Microbial Diversity Across Belfast Bay $6,254 - 0

Contacts

Name Title Type
RNDNN4KZ3NH7 Alice Herrick Auditee
2073262241 Jason Emery Auditor
No contacts on file

Notes to SEFA

Title: Loan Advances and Balances Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Maine Maritime Academy (the Academy) 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Academy, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the Academy. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The Academy has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Academy has predetermined indirect cost rates of 45.5% for on-campus grant activities and 23.0% for off-campus grant activities. The rates are predetermined rates for the fiscal year ended June 30, 2022. See notes to SEFA for chart/table.

Finding Details

Finding 2022-002
2022-002: Higher Education Emergency Relief Fund ? Institutional Portion ? Earmarking Federal Program: Education Stabilization Fund; COVID-19 ? Higher Education Emergency Relief Fund ? Institutional Portion Assistance Listing Number: 84.425F Federal Agency: U.S. Department of Education Pass-Through Entity: None Federal Award Identification Number: P425F204862 Repeat Finding: This is not a repeat finding Criteria ?The Higher Education Emergency Relief Fund (HEERF) III Frequently Asked Questions (FAQs) outlined that the American Rescue Plan (ARP) added two new required uses of HEERF III institutional portion grant funds for public and private nonprofit institutions. Namely, a portion of their institutional funds must: (a) Implement evidence-based practices to monitor and suppress coronavirus in accordance with public health guidelines; and (b) Conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member or independent student, or other circumstances, described in section 479A of the Higher Education Act. Condition and context ? The Academy used the institutional portion of HEERF III funds to offset lost revenue, which is allowed, but did not document amounts to be earmarked or used, if any, for the criteria outlined above. FAQ 28, as per below, prescribes that the amount to be earmarked or used for such activities is discretionary: Congress did not prescribe any specific practices, strategies, or methods that institutions must use to implement this required activity, and institutions have flexibility to carry out activities tailored to their unique needs and circumstances that are evidence-based and in accordance with public health guidelines. Congress also did not set a specific threshold or amount of an institution?s ARP (a)(1) Institutional Portion funds that must be used to implement this provision. Cause ? Management was not aware of the additional criteria, as it was only part of an FAQ release. Possible Asserted Effect ? The Academy may need to reallocate a portion of the grant funds used to demonstrate that they were used in accordance with the criteria above. Questioned Costs - None. Recommendations ? We recommend that management document how they addressed the aforementioned required criteria and follow-up with the Department of Education to ascertain whether their documentation is satisfactory and if any grant money will require reallocation. Management?s Views and Corrective Action Plan ? Management?s response is included in ?Management?s Views and Corrective Action Plan? included at the end of this report after the Summary Schedule of Prior Audit Findings.
Finding 2022-002
2022-002: Higher Education Emergency Relief Fund ? Institutional Portion ? Earmarking Federal Program: Education Stabilization Fund; COVID-19 ? Higher Education Emergency Relief Fund ? Institutional Portion Assistance Listing Number: 84.425F Federal Agency: U.S. Department of Education Pass-Through Entity: None Federal Award Identification Number: P425F204862 Repeat Finding: This is not a repeat finding Criteria ?The Higher Education Emergency Relief Fund (HEERF) III Frequently Asked Questions (FAQs) outlined that the American Rescue Plan (ARP) added two new required uses of HEERF III institutional portion grant funds for public and private nonprofit institutions. Namely, a portion of their institutional funds must: (a) Implement evidence-based practices to monitor and suppress coronavirus in accordance with public health guidelines; and (b) Conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member or independent student, or other circumstances, described in section 479A of the Higher Education Act. Condition and context ? The Academy used the institutional portion of HEERF III funds to offset lost revenue, which is allowed, but did not document amounts to be earmarked or used, if any, for the criteria outlined above. FAQ 28, as per below, prescribes that the amount to be earmarked or used for such activities is discretionary: Congress did not prescribe any specific practices, strategies, or methods that institutions must use to implement this required activity, and institutions have flexibility to carry out activities tailored to their unique needs and circumstances that are evidence-based and in accordance with public health guidelines. Congress also did not set a specific threshold or amount of an institution?s ARP (a)(1) Institutional Portion funds that must be used to implement this provision. Cause ? Management was not aware of the additional criteria, as it was only part of an FAQ release. Possible Asserted Effect ? The Academy may need to reallocate a portion of the grant funds used to demonstrate that they were used in accordance with the criteria above. Questioned Costs - None. Recommendations ? We recommend that management document how they addressed the aforementioned required criteria and follow-up with the Department of Education to ascertain whether their documentation is satisfactory and if any grant money will require reallocation. Management?s Views and Corrective Action Plan ? Management?s response is included in ?Management?s Views and Corrective Action Plan? included at the end of this report after the Summary Schedule of Prior Audit Findings.