Audit 299077

FY End
2023-06-30
Total Expended
$1.62M
Findings
18
Programs
25
Organization: Town of Yarmouth (ME)
Year: 2023 Accepted: 2024-03-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
386795 2023-001 Significant Deficiency - B
386796 2023-002 Significant Deficiency - I
386797 2023-003 Significant Deficiency - I
386798 2023-001 Significant Deficiency - B
386799 2023-002 Significant Deficiency - I
386800 2023-003 Significant Deficiency - I
386801 2023-001 Significant Deficiency - B
386802 2023-002 Significant Deficiency - I
386803 2023-003 Significant Deficiency - I
963237 2023-001 Significant Deficiency - B
963238 2023-002 Significant Deficiency - I
963239 2023-003 Significant Deficiency - I
963240 2023-001 Significant Deficiency - B
963241 2023-002 Significant Deficiency - I
963242 2023-003 Significant Deficiency - I
963243 2023-001 Significant Deficiency - B
963244 2023-002 Significant Deficiency - I
963245 2023-003 Significant Deficiency - I

Contacts

Name Title Type
KCVVGJ8NFYV8 Dawn Madden Auditee
2078469036 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 of Yarmouth, Maine for the fiscal year ended June 30, 2023. The reporting entity is defined in notes to basic financial statements of the Town of Yarmouth, 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 awards are 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 levels of expenditures or expenses to be used in defining major federal financial award programs. Major programs for the Town of Yarmouth, Maine 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 the modified accrual basis of accounting, which is consistent with the reporting in the Town of Yarmouth, Maine’s fund financial statements. De Minimis Rate Used: N Rate Explanation: The Town of Yarmouth, Maine has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

2023-001 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: To be considered allowable costs and activities, costs charged to grant funds should be covered under the scope of the grant agreement, and for activities related to such agreement. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department received reimbursement for CSLRF expenditures related to contracted custodial costs not covered by the grant. Cause: Invoices for cleaning costs were coded 100% to grants funds, and were not identified during review procedures. As a result, reimbursement was requested, and received for costs outside the grant scope. Effect: Non-compliance with general provisions of the Uniform Guidance may affect grants received by the School Department in the future. Recommendation: We recommend that management ensure all items charged to federal grants are for costs directly associated with the grant purpose, and allowable under the grant.
2023-002 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Under the Uniform Guidance §200.320 – Methods of procurement to be followed, the School Department is required to perform procurement processes when selecting vendors. These processes can include quotes, and/or formal sealed bids. Statement of Condition: The School Department contracted with several vendors over the micro-purchase threshold but did not retain documentation of quotes received. Cause: An existing contract was expanded to include coverage for programs under the CSLFRF grant, but no additional quotes were received, in addition one purchase was improperly classified as sole source during the initial procurement phase. Effect: Non-compliance with general provisions of the Uniform Guidance may affect future grants received by the School Department. Recommendation: We recommend that management ensure procurement standards are followed for all purchases.
2023-003 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department contracted with several companies to do work under a grant-funded project and did not document that the contractor was not suspended or debarred. Cause: Although the vendors used by the School Department are not currently suspended or debarred, no formal documentation was maintained confirming the companies in question were not suspended or debarred. Effect: The School Department runs the risk of performing projects with parties who have been suspended or debarred, which could result in the loss of federal funding. Recommendations: We recommend that the School Department implement procedures to annually check active vendors and contractors and document that they are not suspended, debarred, or in some way prohibited from working on School Department projects, especially those working on federally-funded projects.
2023-001 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: To be considered allowable costs and activities, costs charged to grant funds should be covered under the scope of the grant agreement, and for activities related to such agreement. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department received reimbursement for CSLRF expenditures related to contracted custodial costs not covered by the grant. Cause: Invoices for cleaning costs were coded 100% to grants funds, and were not identified during review procedures. As a result, reimbursement was requested, and received for costs outside the grant scope. Effect: Non-compliance with general provisions of the Uniform Guidance may affect grants received by the School Department in the future. Recommendation: We recommend that management ensure all items charged to federal grants are for costs directly associated with the grant purpose, and allowable under the grant.
2023-002 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Under the Uniform Guidance §200.320 – Methods of procurement to be followed, the School Department is required to perform procurement processes when selecting vendors. These processes can include quotes, and/or formal sealed bids. Statement of Condition: The School Department contracted with several vendors over the micro-purchase threshold but did not retain documentation of quotes received. Cause: An existing contract was expanded to include coverage for programs under the CSLFRF grant, but no additional quotes were received, in addition one purchase was improperly classified as sole source during the initial procurement phase. Effect: Non-compliance with general provisions of the Uniform Guidance may affect future grants received by the School Department. Recommendation: We recommend that management ensure procurement standards are followed for all purchases.
2023-003 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department contracted with several companies to do work under a grant-funded project and did not document that the contractor was not suspended or debarred. Cause: Although the vendors used by the School Department are not currently suspended or debarred, no formal documentation was maintained confirming the companies in question were not suspended or debarred. Effect: The School Department runs the risk of performing projects with parties who have been suspended or debarred, which could result in the loss of federal funding. Recommendations: We recommend that the School Department implement procedures to annually check active vendors and contractors and document that they are not suspended, debarred, or in some way prohibited from working on School Department projects, especially those working on federally-funded projects.
2023-001 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: To be considered allowable costs and activities, costs charged to grant funds should be covered under the scope of the grant agreement, and for activities related to such agreement. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department received reimbursement for CSLRF expenditures related to contracted custodial costs not covered by the grant. Cause: Invoices for cleaning costs were coded 100% to grants funds, and were not identified during review procedures. As a result, reimbursement was requested, and received for costs outside the grant scope. Effect: Non-compliance with general provisions of the Uniform Guidance may affect grants received by the School Department in the future. Recommendation: We recommend that management ensure all items charged to federal grants are for costs directly associated with the grant purpose, and allowable under the grant.
2023-002 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Under the Uniform Guidance §200.320 – Methods of procurement to be followed, the School Department is required to perform procurement processes when selecting vendors. These processes can include quotes, and/or formal sealed bids. Statement of Condition: The School Department contracted with several vendors over the micro-purchase threshold but did not retain documentation of quotes received. Cause: An existing contract was expanded to include coverage for programs under the CSLFRF grant, but no additional quotes were received, in addition one purchase was improperly classified as sole source during the initial procurement phase. Effect: Non-compliance with general provisions of the Uniform Guidance may affect future grants received by the School Department. Recommendation: We recommend that management ensure procurement standards are followed for all purchases.
2023-003 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department contracted with several companies to do work under a grant-funded project and did not document that the contractor was not suspended or debarred. Cause: Although the vendors used by the School Department are not currently suspended or debarred, no formal documentation was maintained confirming the companies in question were not suspended or debarred. Effect: The School Department runs the risk of performing projects with parties who have been suspended or debarred, which could result in the loss of federal funding. Recommendations: We recommend that the School Department implement procedures to annually check active vendors and contractors and document that they are not suspended, debarred, or in some way prohibited from working on School Department projects, especially those working on federally-funded projects.
2023-001 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: To be considered allowable costs and activities, costs charged to grant funds should be covered under the scope of the grant agreement, and for activities related to such agreement. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department received reimbursement for CSLRF expenditures related to contracted custodial costs not covered by the grant. Cause: Invoices for cleaning costs were coded 100% to grants funds, and were not identified during review procedures. As a result, reimbursement was requested, and received for costs outside the grant scope. Effect: Non-compliance with general provisions of the Uniform Guidance may affect grants received by the School Department in the future. Recommendation: We recommend that management ensure all items charged to federal grants are for costs directly associated with the grant purpose, and allowable under the grant.
2023-002 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Under the Uniform Guidance §200.320 – Methods of procurement to be followed, the School Department is required to perform procurement processes when selecting vendors. These processes can include quotes, and/or formal sealed bids. Statement of Condition: The School Department contracted with several vendors over the micro-purchase threshold but did not retain documentation of quotes received. Cause: An existing contract was expanded to include coverage for programs under the CSLFRF grant, but no additional quotes were received, in addition one purchase was improperly classified as sole source during the initial procurement phase. Effect: Non-compliance with general provisions of the Uniform Guidance may affect future grants received by the School Department. Recommendation: We recommend that management ensure procurement standards are followed for all purchases.
2023-003 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department contracted with several companies to do work under a grant-funded project and did not document that the contractor was not suspended or debarred. Cause: Although the vendors used by the School Department are not currently suspended or debarred, no formal documentation was maintained confirming the companies in question were not suspended or debarred. Effect: The School Department runs the risk of performing projects with parties who have been suspended or debarred, which could result in the loss of federal funding. Recommendations: We recommend that the School Department implement procedures to annually check active vendors and contractors and document that they are not suspended, debarred, or in some way prohibited from working on School Department projects, especially those working on federally-funded projects.
2023-001 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: To be considered allowable costs and activities, costs charged to grant funds should be covered under the scope of the grant agreement, and for activities related to such agreement. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department received reimbursement for CSLRF expenditures related to contracted custodial costs not covered by the grant. Cause: Invoices for cleaning costs were coded 100% to grants funds, and were not identified during review procedures. As a result, reimbursement was requested, and received for costs outside the grant scope. Effect: Non-compliance with general provisions of the Uniform Guidance may affect grants received by the School Department in the future. Recommendation: We recommend that management ensure all items charged to federal grants are for costs directly associated with the grant purpose, and allowable under the grant.
2023-002 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Under the Uniform Guidance §200.320 – Methods of procurement to be followed, the School Department is required to perform procurement processes when selecting vendors. These processes can include quotes, and/or formal sealed bids. Statement of Condition: The School Department contracted with several vendors over the micro-purchase threshold but did not retain documentation of quotes received. Cause: An existing contract was expanded to include coverage for programs under the CSLFRF grant, but no additional quotes were received, in addition one purchase was improperly classified as sole source during the initial procurement phase. Effect: Non-compliance with general provisions of the Uniform Guidance may affect future grants received by the School Department. Recommendation: We recommend that management ensure procurement standards are followed for all purchases.
2023-003 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department contracted with several companies to do work under a grant-funded project and did not document that the contractor was not suspended or debarred. Cause: Although the vendors used by the School Department are not currently suspended or debarred, no formal documentation was maintained confirming the companies in question were not suspended or debarred. Effect: The School Department runs the risk of performing projects with parties who have been suspended or debarred, which could result in the loss of federal funding. Recommendations: We recommend that the School Department implement procedures to annually check active vendors and contractors and document that they are not suspended, debarred, or in some way prohibited from working on School Department projects, especially those working on federally-funded projects.
2023-001 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: To be considered allowable costs and activities, costs charged to grant funds should be covered under the scope of the grant agreement, and for activities related to such agreement. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department received reimbursement for CSLRF expenditures related to contracted custodial costs not covered by the grant. Cause: Invoices for cleaning costs were coded 100% to grants funds, and were not identified during review procedures. As a result, reimbursement was requested, and received for costs outside the grant scope. Effect: Non-compliance with general provisions of the Uniform Guidance may affect grants received by the School Department in the future. Recommendation: We recommend that management ensure all items charged to federal grants are for costs directly associated with the grant purpose, and allowable under the grant.
2023-002 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Under the Uniform Guidance §200.320 – Methods of procurement to be followed, the School Department is required to perform procurement processes when selecting vendors. These processes can include quotes, and/or formal sealed bids. Statement of Condition: The School Department contracted with several vendors over the micro-purchase threshold but did not retain documentation of quotes received. Cause: An existing contract was expanded to include coverage for programs under the CSLFRF grant, but no additional quotes were received, in addition one purchase was improperly classified as sole source during the initial procurement phase. Effect: Non-compliance with general provisions of the Uniform Guidance may affect future grants received by the School Department. Recommendation: We recommend that management ensure procurement standards are followed for all purchases.
2023-003 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Department contracted with several companies to do work under a grant-funded project and did not document that the contractor was not suspended or debarred. Cause: Although the vendors used by the School Department are not currently suspended or debarred, no formal documentation was maintained confirming the companies in question were not suspended or debarred. Effect: The School Department runs the risk of performing projects with parties who have been suspended or debarred, which could result in the loss of federal funding. Recommendations: We recommend that the School Department implement procedures to annually check active vendors and contractors and document that they are not suspended, debarred, or in some way prohibited from working on School Department projects, especially those working on federally-funded projects.