FAC Explorer

Audit 299012

FY End
2023-06-30
Total Expended
$12.81M
Findings
2
Programs
10
Organization: Maine Maritime Academy (ME)
Year: 2023 Accepted: 2024-03-28
Auditor: Baker Newman & Noyes LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
386721 2023-001 Significant Deficiency - E
963163 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.26M Yes 1
20.806 State Maritime Schools $2.85M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.71M Yes 0
84.063 Federal Pell Grant Program $1.09M Yes 0
84.038 Federal Perkins Loan Program $688,509 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $103,201 Yes 0
84.033 Federal Work-Study Program $74,846 Yes 0
99.RD Uas Survey Methods Grant $22,514 - 0
47.RD Microbial Diversity Across Belfast Bay $6,891 - 0
47.RD Bio Surveillance of Alewives, Penobscot Bay $1,445 - 0

Contacts

Name Title Type
RNDNN4KZ3NH7 Alice Herrick Auditee
2073262241 Jason T. Emery 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. 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: See Indirect Cost Rates 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, 2023. 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.
Title: Summary of Significant Accounting Policies Accounting Policies: 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: See Indirect Cost Rates 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.
Title: Indirect Cost Rates Accounting Policies: 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: See Indirect Cost Rates 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, 2023.
Title: Loan Advances and Balances Accounting Policies: 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: See Indirect Cost Rates See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-001
2023-001: Student Financial Assitance Cluster – Eligibility – Award Limits Federal Program: Student Financial Assistance Cluster; Federal Direct Student Loans Assistance Listing Number: 84.268 Federal Agency: U.S. Department of Education Pass-Through Entity: None Federal Awards Identification Number: P268K161537 Repeat Finding: This is not a repeat finding Criteria - In accordance with limits set by the Department of Education, students can receive Unsubsidized and Subsidized loans, with the loan amounts based on the student’s year in school and their status as an independent or a dependent. Condition and context – During our test work over Unsubsidized and Subsidized loans, we noted two students in our sample selected who were each awarded $1,000 less than they were eligible for based on their year in school. We noted one student who was awarded $1,000 more than they were eligible for based on their year in school. The sample selected was a statistically valid sample. Cause – Insufficient review of student data prior to loan approval. Effect or Potential Effect – The Academy did not award Unsubsidized and Subsidized loans in accordance with Department of Education criteria. Questioned Costs - $1,000. Questioned costs were determined based on the loan more than the allowable amount. Questioned costs related to assistance listing number 84.248. Recommendations – We recommend that management enhance control procedures to ensure that student data is sufficiently reviewed prior to loan disbursements being made. 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.Criteria - In accordance with limits set by the Department of Education, students can receive Unsubsidized and Subsidized loans, with the loan amounts based on the student’s year in school and their status as an independent or a dependent. Condition and context – During our test work over Unsubsidized and Subsidized loans, we noted two students in our sample selected who were each awarded $1,000 less than they were eligible for based on their year in school. We noted one student who was awarded $1,000 more than they were eligible for based on their year in school. The sample selected was a statistically valid sample. Cause – Insufficient review of student data prior to loan approval. Effect or Potential Effect – The Academy did not award Unsubsidized and Subsidized loans in accordance with Department of Education criteria. Questioned Costs - $1,000. Questioned costs were determined based on the loan more than the allowable amount. Questioned costs related to assistance listing number 84.248. Recommendations – We recommend that management enhance control procedures to ensure that student data is sufficiently reviewed prior to loan disbursements being made. 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 2023-001
2023-001: Student Financial Assitance Cluster – Eligibility – Award Limits Federal Program: Student Financial Assistance Cluster; Federal Direct Student Loans Assistance Listing Number: 84.268 Federal Agency: U.S. Department of Education Pass-Through Entity: None Federal Awards Identification Number: P268K161537 Repeat Finding: This is not a repeat finding Criteria - In accordance with limits set by the Department of Education, students can receive Unsubsidized and Subsidized loans, with the loan amounts based on the student’s year in school and their status as an independent or a dependent. Condition and context – During our test work over Unsubsidized and Subsidized loans, we noted two students in our sample selected who were each awarded $1,000 less than they were eligible for based on their year in school. We noted one student who was awarded $1,000 more than they were eligible for based on their year in school. The sample selected was a statistically valid sample. Cause – Insufficient review of student data prior to loan approval. Effect or Potential Effect – The Academy did not award Unsubsidized and Subsidized loans in accordance with Department of Education criteria. Questioned Costs - $1,000. Questioned costs were determined based on the loan more than the allowable amount. Questioned costs related to assistance listing number 84.248. Recommendations – We recommend that management enhance control procedures to ensure that student data is sufficiently reviewed prior to loan disbursements being made. 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.Criteria - In accordance with limits set by the Department of Education, students can receive Unsubsidized and Subsidized loans, with the loan amounts based on the student’s year in school and their status as an independent or a dependent. Condition and context – During our test work over Unsubsidized and Subsidized loans, we noted two students in our sample selected who were each awarded $1,000 less than they were eligible for based on their year in school. We noted one student who was awarded $1,000 more than they were eligible for based on their year in school. The sample selected was a statistically valid sample. Cause – Insufficient review of student data prior to loan approval. Effect or Potential Effect – The Academy did not award Unsubsidized and Subsidized loans in accordance with Department of Education criteria. Questioned Costs - $1,000. Questioned costs were determined based on the loan more than the allowable amount. Questioned costs related to assistance listing number 84.248. Recommendations – We recommend that management enhance control procedures to ensure that student data is sufficiently reviewed prior to loan disbursements being made. 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.