2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared.
• TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds.
• Head Start expenditures were overstated by $70,718 as they included in-kind.
Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents.
Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders.
Questioned Costs – None
Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement.
Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.