FAC Explorer

Audit 291118

FY End
2023-06-30
Total Expended
$1.36M
Findings
2
Programs
2
Organization: Town of Kennebunkport (ME)
Year: 2023 Accepted: 2024-02-20
Auditor: Runyon Kersteen Ouellette

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369690 2023-001 - Yes P
946132 2023-001 - Yes P

Programs

ALN Program Spent Major Findings
66.458 Clean Water State Revolving Fund $1.22M Yes 1
21.027 American Rescue Plan Act ‐ Covid $145,000 - 0

Contacts

Name Title Type
XW5RKXYZG6J3 Nicole Evangelista Auditee
2079671608 Casey Leonard Auditor
No contacts on file

Notes to SEFA

Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the Town for the fiscal year ended June 30, 2023. The reporting entity is defined in Notes to Basic Financial Statements of the Town of Kennebunkport, Maine. 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 Town 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 Town’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: Indirect Cost Rate - The Town of Kennebunkport, Maine has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
2023-001 – Uniform Guidance Procurement Standards Criteria: One of the more significant provisions of the Uniform Guidance that affects the Town is the procurement standards under 2 CFR sections 200.318 through 200.326. Under the procurement standards, the Town is required to have a documented purchasing policy, which at a minimum, incorporates the provisions of the Uniform Guidance. Statement of Condition: The Office of Management and Budget (OMB) revised regulations applicable to federally funded programs. The regulations are 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). The Uniform Guidance replaced OMB Circulars A-133, A-87, and A-110 and incorporates requirements for grant recipients. The Uniform Guidance includes not only protocols for program management and administration, but also updates compliance regulations for federal awards. Cause: The Town had not adopted a procurement policy that covered all aspects required by the Uniform Guidance. However, during our testing of procurement over federal expenditures, we did not notate any violations of the Uniform Guidance procurement standards. Effect: Items required by the Uniform Guidance procurement standards were not addressed in the policy followed by the Town during the fiscal year. Recommendation: We recommend that management review the applicable provisions of the Uniform Guidance procurement standards and update the Town’s procurement policy appropriately. This would include adding any missing components to the Town’s current procurement policy and updating definitions of types of procurement, i.e. micro-purchases, small purchases, and small acquisition threshold, to match the language used in the Uniform Guidance procurement standards.
Finding 2023-001
2023-001 – Uniform Guidance Procurement Standards Criteria: One of the more significant provisions of the Uniform Guidance that affects the Town is the procurement standards under 2 CFR sections 200.318 through 200.326. Under the procurement standards, the Town is required to have a documented purchasing policy, which at a minimum, incorporates the provisions of the Uniform Guidance. Statement of Condition: The Office of Management and Budget (OMB) revised regulations applicable to federally funded programs. The regulations are 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). The Uniform Guidance replaced OMB Circulars A-133, A-87, and A-110 and incorporates requirements for grant recipients. The Uniform Guidance includes not only protocols for program management and administration, but also updates compliance regulations for federal awards. Cause: The Town had not adopted a procurement policy that covered all aspects required by the Uniform Guidance. However, during our testing of procurement over federal expenditures, we did not notate any violations of the Uniform Guidance procurement standards. Effect: Items required by the Uniform Guidance procurement standards were not addressed in the policy followed by the Town during the fiscal year. Recommendation: We recommend that management review the applicable provisions of the Uniform Guidance procurement standards and update the Town’s procurement policy appropriately. This would include adding any missing components to the Town’s current procurement policy and updating definitions of types of procurement, i.e. micro-purchases, small purchases, and small acquisition threshold, to match the language used in the Uniform Guidance procurement standards.