FAC Explorer

Audit 289857

FY End
2022-06-30
Total Expended
$1.59M
Findings
2
Programs
2
Organization: Northern Maine General (ME)
Year: 2022 Accepted: 2024-02-12
Auditor: Berry Dunn McNeil & Parker LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
366811 2022-001 Material Weakness - L
943253 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $1.36M Yes 1
93.498 Provider Relief Fund $227,375 - 0

Contacts

Name Title Type
ETBJHAQLQFT7 Missy Boutot Auditee
2074445152 Andrea Colfer Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amount reported on the Schedule for the Provider Relief Fund (PRF) is based on Period 3 (July 1, 2021 to December 31, 2021) PRF report that is required to be submitted to the Health Resources and Services Administration reporting portal. The following is a summary of PRF received by the recipient on the Schedule: See the Notes to the SEFA for chart/table. De Minimis Rate Used: N Rate Explanation: Northern Maine General (the Organization) has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule includes the federal grant activity of the Organization. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Loan Programs Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amount reported on the Schedule for the Provider Relief Fund (PRF) is based on Period 3 (July 1, 2021 to December 31, 2021) PRF report that is required to be submitted to the Health Resources and Services Administration reporting portal. The following is a summary of PRF received by the recipient on the Schedule: See the Notes to the SEFA for chart/table. De Minimis Rate Used: N Rate Explanation: Northern Maine General (the Organization) has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has promissory notes outstanding through the U.S. Department of Agriculture (USDA). As required, the Schedule reflects the outstanding balances as of July 1, 2021 of $1,359,056. The balances outstanding at June 30, 2022 were $1,174,579.

Finding Details

Finding 2022-001
Finding 2022-001 Program Affected AL #10.766, United States Department of Agriculture (USDA) Community Facilities Loans and Grants Cluster Criteria Per the U.S. Office of Management and Budget (OMB) 2022 OMB Compliance Supplement (Compliance Supplement), Part 2 - Matrix of Compliance Requirements, AL #10.766 is required to have a compliance audit for loans with a balance greater than $750,000. Condition and Context A late change with the Compliance Supplement, resulted in a lack of knowledge that the Single Audit was required. Northern Maine General (The Organization) was not notified by the USDA of the new requirement to have a Uniform Guidance audit of the Community Facilities Loans and Grants Cluster with balances greater than $750,000. Additionally, the Organization was not familiar with the Compliance Supplement or aware they should check for changes annually. As a result, a Uniform Guidance audit was not performed timely, reporting requirements were missed, and the filing of the Data Collection Form was missed. Question Costs N/A Cause and Effect A lack of policies and procedures led to failure of identifying compliance requirements; as such, a Uniform Guidance audit and timely filing of reports was not completed. Further, noncompliance with this contract criteria subjects the Organization to risk of reduced or revoked funding. Repeat Finding? No Recommendation We recommend the Organization institute policies and procedures to identify federal funding and reporting requirements, as well as researching of funding received, to help ensure noncompliance does not occur. The Compliance Supplement is updated annually and should be downloaded and reviewed by the Organization. Views of Responsible Officials and Planned Corrective Actions The Organization has created a policy to annually review the federal compliance supplement to ensure compliance and reporting requirements with federal programs. As additional federal funding is received the Organization will conduct a thorough review to maintain compliance with all programs.
Finding 2022-001
Finding 2022-001 Program Affected AL #10.766, United States Department of Agriculture (USDA) Community Facilities Loans and Grants Cluster Criteria Per the U.S. Office of Management and Budget (OMB) 2022 OMB Compliance Supplement (Compliance Supplement), Part 2 - Matrix of Compliance Requirements, AL #10.766 is required to have a compliance audit for loans with a balance greater than $750,000. Condition and Context A late change with the Compliance Supplement, resulted in a lack of knowledge that the Single Audit was required. Northern Maine General (The Organization) was not notified by the USDA of the new requirement to have a Uniform Guidance audit of the Community Facilities Loans and Grants Cluster with balances greater than $750,000. Additionally, the Organization was not familiar with the Compliance Supplement or aware they should check for changes annually. As a result, a Uniform Guidance audit was not performed timely, reporting requirements were missed, and the filing of the Data Collection Form was missed. Question Costs N/A Cause and Effect A lack of policies and procedures led to failure of identifying compliance requirements; as such, a Uniform Guidance audit and timely filing of reports was not completed. Further, noncompliance with this contract criteria subjects the Organization to risk of reduced or revoked funding. Repeat Finding? No Recommendation We recommend the Organization institute policies and procedures to identify federal funding and reporting requirements, as well as researching of funding received, to help ensure noncompliance does not occur. The Compliance Supplement is updated annually and should be downloaded and reviewed by the Organization. Views of Responsible Officials and Planned Corrective Actions The Organization has created a policy to annually review the federal compliance supplement to ensure compliance and reporting requirements with federal programs. As additional federal funding is received the Organization will conduct a thorough review to maintain compliance with all programs.