FAC Explorer

Audit 318259

FY End
2023-12-31
Total Expended
$3.11M
Findings
18
Programs
2
Organization: Our Katahdin and Subsidiary (ME)
Year: 2023 Accepted: 2024-08-30
Auditor: Berry Dunn McNeil & Parker LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485488 2023-009 Material Weakness Yes I
485489 2023-010 Material Weakness Yes B
485490 2023-011 Material Weakness - P
485491 2023-009 Material Weakness Yes I
485492 2023-010 Material Weakness Yes B
485493 2023-011 Material Weakness - P
485494 2023-009 Material Weakness Yes I
485495 2023-010 Material Weakness Yes B
485496 2023-011 Material Weakness - P
1061930 2023-009 Material Weakness Yes I
1061931 2023-010 Material Weakness Yes B
1061932 2023-011 Material Weakness - P
1061933 2023-009 Material Weakness Yes I
1061934 2023-010 Material Weakness Yes B
1061935 2023-011 Material Weakness - P
1061936 2023-009 Material Weakness Yes I
1061937 2023-010 Material Weakness Yes B
1061938 2023-011 Material Weakness - P

Programs

ALN Program Spent Major Findings
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $944,913 Yes 3
90.601 Northern Border Regional Development $10,841 - 0

Contacts

Name Title Type
EJGLECK1GW79 Stephanie Walsh Auditee
2072498578 Emily Parker Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is a basis of accounting other than U.S. generally accepted accounting principles. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards – modified cash basis (the Schedule) includes the federal grant activity of Our Katahdin and Subsidiary (the Organization) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the Organization.
Title: Lending Programs Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is a basis of accounting other than U.S. generally accepted accounting principles. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate. The balance of loans with continuing compliance requirements are as follows at December 31, 2023: See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-009
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria 2 CFR §180.300 mandates that when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Condition and Context The Organization did not perform a verification that its vendors were not included on the Excluded Parties List System maintained by the General Services Administration. During our nonstatistical sampling of vendors, we noted 2 of 2 vendors tested were not verified against the Excluded Parties List System. Cause and Effect The Organization does not have internal processes to properly identify excluded parties ineligible to receive federal funds. However, our sample did not identify unallowable costs charged to the grant related to excluded parties. Questioned Costs N/A Identification of Repeat Findings 2022-012 Recommendation We recommend the Organization update its policies and procedures to require confirmation that all vendors are eligible to receive federal funds. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-010
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria The federal compliance supplement allows a de minimis indirect cost rate of 10% which may be applied by organizations which do not have a negotiated indirect cost rate. However, the contract for the major federal program specifies that the Organization may only use "5% of the amount of federal funding for this cooperative agreement for administrative costs, including indirect costs." Condition and Context During the test of the allowable costs, indirect costs were compared to the amount allowed under the contracts. The Organization did not apply either the indirect cost rate allowed under the contract, nor did it apply the indirect cost rate to the appropriate cost basis when calculating indirect costs to charge to the federal program. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings 2022-011 Recommendation We recommend the Organization update its policies to calculate indirect costs based on the contractually allowed basis and using rates as specified in its federal contracts. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-011
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria According to 2 CFR §200.303, the Organization must "establish and maintain effective internal control over the Federal award . . ." Condition and Context During tests of financial statement balances, it was determined that multiple internal controls over financial reporting were not effective which would impact federal awards. See Findings 2023-001 through 2023-008 for additional information. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings N/A Recommendation We recommend the Organization update its policies to implement sufficient internal controls over financial reporting to be able to properly identify costs related to the program. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-009
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria 2 CFR §180.300 mandates that when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Condition and Context The Organization did not perform a verification that its vendors were not included on the Excluded Parties List System maintained by the General Services Administration. During our nonstatistical sampling of vendors, we noted 2 of 2 vendors tested were not verified against the Excluded Parties List System. Cause and Effect The Organization does not have internal processes to properly identify excluded parties ineligible to receive federal funds. However, our sample did not identify unallowable costs charged to the grant related to excluded parties. Questioned Costs N/A Identification of Repeat Findings 2022-012 Recommendation We recommend the Organization update its policies and procedures to require confirmation that all vendors are eligible to receive federal funds. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-010
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria The federal compliance supplement allows a de minimis indirect cost rate of 10% which may be applied by organizations which do not have a negotiated indirect cost rate. However, the contract for the major federal program specifies that the Organization may only use "5% of the amount of federal funding for this cooperative agreement for administrative costs, including indirect costs." Condition and Context During the test of the allowable costs, indirect costs were compared to the amount allowed under the contracts. The Organization did not apply either the indirect cost rate allowed under the contract, nor did it apply the indirect cost rate to the appropriate cost basis when calculating indirect costs to charge to the federal program. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings 2022-011 Recommendation We recommend the Organization update its policies to calculate indirect costs based on the contractually allowed basis and using rates as specified in its federal contracts. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-011
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria According to 2 CFR §200.303, the Organization must "establish and maintain effective internal control over the Federal award . . ." Condition and Context During tests of financial statement balances, it was determined that multiple internal controls over financial reporting were not effective which would impact federal awards. See Findings 2023-001 through 2023-008 for additional information. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings N/A Recommendation We recommend the Organization update its policies to implement sufficient internal controls over financial reporting to be able to properly identify costs related to the program. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-009
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria 2 CFR §180.300 mandates that when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Condition and Context The Organization did not perform a verification that its vendors were not included on the Excluded Parties List System maintained by the General Services Administration. During our nonstatistical sampling of vendors, we noted 2 of 2 vendors tested were not verified against the Excluded Parties List System. Cause and Effect The Organization does not have internal processes to properly identify excluded parties ineligible to receive federal funds. However, our sample did not identify unallowable costs charged to the grant related to excluded parties. Questioned Costs N/A Identification of Repeat Findings 2022-012 Recommendation We recommend the Organization update its policies and procedures to require confirmation that all vendors are eligible to receive federal funds. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-010
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria The federal compliance supplement allows a de minimis indirect cost rate of 10% which may be applied by organizations which do not have a negotiated indirect cost rate. However, the contract for the major federal program specifies that the Organization may only use "5% of the amount of federal funding for this cooperative agreement for administrative costs, including indirect costs." Condition and Context During the test of the allowable costs, indirect costs were compared to the amount allowed under the contracts. The Organization did not apply either the indirect cost rate allowed under the contract, nor did it apply the indirect cost rate to the appropriate cost basis when calculating indirect costs to charge to the federal program. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings 2022-011 Recommendation We recommend the Organization update its policies to calculate indirect costs based on the contractually allowed basis and using rates as specified in its federal contracts. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-011
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria According to 2 CFR §200.303, the Organization must "establish and maintain effective internal control over the Federal award . . ." Condition and Context During tests of financial statement balances, it was determined that multiple internal controls over financial reporting were not effective which would impact federal awards. See Findings 2023-001 through 2023-008 for additional information. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings N/A Recommendation We recommend the Organization update its policies to implement sufficient internal controls over financial reporting to be able to properly identify costs related to the program. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-009
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria 2 CFR §180.300 mandates that when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Condition and Context The Organization did not perform a verification that its vendors were not included on the Excluded Parties List System maintained by the General Services Administration. During our nonstatistical sampling of vendors, we noted 2 of 2 vendors tested were not verified against the Excluded Parties List System. Cause and Effect The Organization does not have internal processes to properly identify excluded parties ineligible to receive federal funds. However, our sample did not identify unallowable costs charged to the grant related to excluded parties. Questioned Costs N/A Identification of Repeat Findings 2022-012 Recommendation We recommend the Organization update its policies and procedures to require confirmation that all vendors are eligible to receive federal funds. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-010
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria The federal compliance supplement allows a de minimis indirect cost rate of 10% which may be applied by organizations which do not have a negotiated indirect cost rate. However, the contract for the major federal program specifies that the Organization may only use "5% of the amount of federal funding for this cooperative agreement for administrative costs, including indirect costs." Condition and Context During the test of the allowable costs, indirect costs were compared to the amount allowed under the contracts. The Organization did not apply either the indirect cost rate allowed under the contract, nor did it apply the indirect cost rate to the appropriate cost basis when calculating indirect costs to charge to the federal program. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings 2022-011 Recommendation We recommend the Organization update its policies to calculate indirect costs based on the contractually allowed basis and using rates as specified in its federal contracts. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-011
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria According to 2 CFR §200.303, the Organization must "establish and maintain effective internal control over the Federal award . . ." Condition and Context During tests of financial statement balances, it was determined that multiple internal controls over financial reporting were not effective which would impact federal awards. See Findings 2023-001 through 2023-008 for additional information. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings N/A Recommendation We recommend the Organization update its policies to implement sufficient internal controls over financial reporting to be able to properly identify costs related to the program. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-009
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria 2 CFR §180.300 mandates that when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Condition and Context The Organization did not perform a verification that its vendors were not included on the Excluded Parties List System maintained by the General Services Administration. During our nonstatistical sampling of vendors, we noted 2 of 2 vendors tested were not verified against the Excluded Parties List System. Cause and Effect The Organization does not have internal processes to properly identify excluded parties ineligible to receive federal funds. However, our sample did not identify unallowable costs charged to the grant related to excluded parties. Questioned Costs N/A Identification of Repeat Findings 2022-012 Recommendation We recommend the Organization update its policies and procedures to require confirmation that all vendors are eligible to receive federal funds. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-010
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria The federal compliance supplement allows a de minimis indirect cost rate of 10% which may be applied by organizations which do not have a negotiated indirect cost rate. However, the contract for the major federal program specifies that the Organization may only use "5% of the amount of federal funding for this cooperative agreement for administrative costs, including indirect costs." Condition and Context During the test of the allowable costs, indirect costs were compared to the amount allowed under the contracts. The Organization did not apply either the indirect cost rate allowed under the contract, nor did it apply the indirect cost rate to the appropriate cost basis when calculating indirect costs to charge to the federal program. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings 2022-011 Recommendation We recommend the Organization update its policies to calculate indirect costs based on the contractually allowed basis and using rates as specified in its federal contracts. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-011
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria According to 2 CFR §200.303, the Organization must "establish and maintain effective internal control over the Federal award . . ." Condition and Context During tests of financial statement balances, it was determined that multiple internal controls over financial reporting were not effective which would impact federal awards. See Findings 2023-001 through 2023-008 for additional information. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings N/A Recommendation We recommend the Organization update its policies to implement sufficient internal controls over financial reporting to be able to properly identify costs related to the program. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-009
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria 2 CFR §180.300 mandates that when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Condition and Context The Organization did not perform a verification that its vendors were not included on the Excluded Parties List System maintained by the General Services Administration. During our nonstatistical sampling of vendors, we noted 2 of 2 vendors tested were not verified against the Excluded Parties List System. Cause and Effect The Organization does not have internal processes to properly identify excluded parties ineligible to receive federal funds. However, our sample did not identify unallowable costs charged to the grant related to excluded parties. Questioned Costs N/A Identification of Repeat Findings 2022-012 Recommendation We recommend the Organization update its policies and procedures to require confirmation that all vendors are eligible to receive federal funds. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-010
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria The federal compliance supplement allows a de minimis indirect cost rate of 10% which may be applied by organizations which do not have a negotiated indirect cost rate. However, the contract for the major federal program specifies that the Organization may only use "5% of the amount of federal funding for this cooperative agreement for administrative costs, including indirect costs." Condition and Context During the test of the allowable costs, indirect costs were compared to the amount allowed under the contracts. The Organization did not apply either the indirect cost rate allowed under the contract, nor did it apply the indirect cost rate to the appropriate cost basis when calculating indirect costs to charge to the federal program. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings 2022-011 Recommendation We recommend the Organization update its policies to calculate indirect costs based on the contractually allowed basis and using rates as specified in its federal contracts. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.
Finding 2023-011
Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria According to 2 CFR §200.303, the Organization must "establish and maintain effective internal control over the Federal award . . ." Condition and Context During tests of financial statement balances, it was determined that multiple internal controls over financial reporting were not effective which would impact federal awards. See Findings 2023-001 through 2023-008 for additional information. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings N/A Recommendation We recommend the Organization update its policies to implement sufficient internal controls over financial reporting to be able to properly identify costs related to the program. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.