Audit 321405

FY End
2023-12-31
Total Expended
$1.37M
Findings
30
Programs
3
Organization: Maine Afl-Cio (ME)
Year: 2023 Accepted: 2024-09-26
Auditor: Pgm LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
498705 2023-001 Material Weakness - HL
498706 2023-002 Material Weakness - AB
498707 2023-003 Material Weakness - HL
498708 2023-004 Significant Deficiency - M
498709 2023-005 Significant Deficiency - L
498710 2023-001 Material Weakness - HL
498711 2023-002 Material Weakness - AB
498712 2023-003 Material Weakness - HL
498713 2023-001 Material Weakness - HL
498714 2023-002 Material Weakness - AB
498715 2023-003 Material Weakness - HL
498716 2023-001 Material Weakness - HL
498717 2023-002 Material Weakness - AB
498718 2023-003 Material Weakness - HL
498719 2023-004 Significant Deficiency - M
1075147 2023-001 Material Weakness - HL
1075148 2023-002 Material Weakness - AB
1075149 2023-003 Material Weakness - HL
1075150 2023-004 Significant Deficiency - M
1075151 2023-005 Significant Deficiency - L
1075152 2023-001 Material Weakness - HL
1075153 2023-002 Material Weakness - AB
1075154 2023-003 Material Weakness - HL
1075155 2023-001 Material Weakness - HL
1075156 2023-002 Material Weakness - AB
1075157 2023-003 Material Weakness - HL
1075158 2023-001 Material Weakness - HL
1075159 2023-002 Material Weakness - AB
1075160 2023-003 Material Weakness - HL
1075161 2023-004 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
17.225 Unemployment Insurance $473,972 - 4
17.285 Registered Apprenticeship $397,294 Yes 3
21.027 Coronavirus State and Local Fiscal Recovery Funds $60,081 Yes 3

Contacts

Name Title Type
HRNVHFQQKQ69 Matt Schlobohm Auditee
2076229675 Peter G. Montano Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activities of Maine AFL-CIO is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Maine AFL-CIO, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: The Organization has elected not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures include costs that can be directly identified to a program plus allocations of applicable indirect costs. The indirect costs applied are negotiated percentages of direct expenses. Indirect costs applied to awards for the year ended December 31, 2023 were negotiated with the State of Maine Department of Labor, the pass-through entity for the Organization’s Department agreements. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activities of Maine AFL-CIO is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Maine AFL-CIO, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. The Organization’s federal awards are received either directly from the federal government or indirectly through “pass-through” organizations.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activities of Maine AFL-CIO is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Maine AFL-CIO, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: The Organization has elected not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures include costs that can be directly identified to a program plus allocations of applicable indirect costs. The indirect costs applied are negotiated percentages of direct expenses. Indirect costs applied to awards for the year ended December 31, 2023 were negotiated with the State of Maine Department of Labor, the pass-through entity for the Organization’s Department agreements. The accompanying schedule of expenditures of federal awards was prepared using the accrual method of accounting. Expenses are recognized as incurred using the cost accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenses are not allowable or are limited as to reimbursement. The Organization has elected not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures include costs that can be directly identified to a program plus allocations of applicable indirect costs. The indirect costs applied are negotiated percentages of direct expenses. Indirect costs applied to awards for the year ended December 31, 2023 were negotiated with the State of Maine Department of Labor, the pass-through entity for the Organization’s Department agreements.
Title: NOTE 3 – SUBRECIPIENT AGREEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activities of Maine AFL-CIO is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Maine AFL-CIO, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: The Organization has elected not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures include costs that can be directly identified to a program plus allocations of applicable indirect costs. The indirect costs applied are negotiated percentages of direct expenses. Indirect costs applied to awards for the year ended December 31, 2023 were negotiated with the State of Maine Department of Labor, the pass-through entity for the Organization’s Department agreements. The Organization provides grants to four subrecipients.

Finding Details

Criteria The Organization is responsible for ensuring they are following accrual accounting. Conditions and Context During the audit we identified significant adjustments for expense and revenue which were not properly recognized for the year ended December 31, 2023. These items included grant revenue and subsequent receipts that were not accrued, with a total impact of approximately $340,000 increase in revenue. Expenses were not recorded in the proper period. Expenses increased $143,000. We recommend recording transactions using the invoice and bill functions in Quick Books. Effect The Organization understated the change in net assets by $197,000 in the current year. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to monthly and year end cutoff procedures to ensure revenue is reported in the correct period.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring direct costs and payroll costs charged to the program are for allowable costs and activities, posted to correct period, proper documentation is retained and expenditures are properly approved. To effectively manage the grant the agency should utilize the compliance supplement. Conditions and Context • No timesheets kept or approved by employee supervisors or management. • One out of 20 disbursements were not allocated correctly all for expenses charged to Peer Navigator contract. • Two out of 20 disbursements were not allocated correctly all for expenses charged to Registered Apprenticeship contract. • Two out of 20 disbursements lacked adequate support for expenses charged to Peer Navigator contract. • Six out of 20 disbursements lacked adequate support for expenses charged to Registered Apprenticeship contract. • Management did not have CFDA numbers during the year to ensure compliance with requirements. Effect The Organization did not have proper documentation or processes in place to ensure funds were spent appropriately. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to expense allocations and payroll to comply with the activities allowed requirements contained in CFDA Compliance Supplement.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring the books and records agree to the SEFA. Conditions and Context The profit and loss report from Quickbooks did not agree to the revenue for individual grants during 2023. This report is used as supporting documentation for grant reporting and should agree to the SEFA. Effect The Organization did not have proper documentation or processes in place to ensure funds were recorded within the correct reporting period. Recommendation We recommend tracking grants by using the class or customer functions when recording revenue and expenses in QuickBooks. In addition, we recommend cumulatively reconciling invoices sent to Maine Department of Labor.
Department Program Name and Agreement Number Department of Treasury 21.027 Coronavirus state and local fiscal recovery funds Criteria The Organization is responsible for monitoring subrecipients. Conditions and Context The organization did not have proper documentation of annual site visits, debarment and review of subrecipient financial statements. Effect The Organization did not have proper documentation or processes in place to ensure subrecipients were monitored. Recommendation We recommend the organization formalize the process of subrecipients.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Criteria The Organization is responsible for submitting quarterly financial reports. Conditions and Context The organization did not submit quarterly reports. Effect The Organization did not comply with reporting requirements. Recommendation We recommend the organization formalize the quarterly reporting process.
Criteria The Organization is responsible for ensuring they are following accrual accounting. Conditions and Context During the audit we identified significant adjustments for expense and revenue which were not properly recognized for the year ended December 31, 2023. These items included grant revenue and subsequent receipts that were not accrued, with a total impact of approximately $340,000 increase in revenue. Expenses were not recorded in the proper period. Expenses increased $143,000. We recommend recording transactions using the invoice and bill functions in Quick Books. Effect The Organization understated the change in net assets by $197,000 in the current year. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to monthly and year end cutoff procedures to ensure revenue is reported in the correct period.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring direct costs and payroll costs charged to the program are for allowable costs and activities, posted to correct period, proper documentation is retained and expenditures are properly approved. To effectively manage the grant the agency should utilize the compliance supplement. Conditions and Context • No timesheets kept or approved by employee supervisors or management. • One out of 20 disbursements were not allocated correctly all for expenses charged to Peer Navigator contract. • Two out of 20 disbursements were not allocated correctly all for expenses charged to Registered Apprenticeship contract. • Two out of 20 disbursements lacked adequate support for expenses charged to Peer Navigator contract. • Six out of 20 disbursements lacked adequate support for expenses charged to Registered Apprenticeship contract. • Management did not have CFDA numbers during the year to ensure compliance with requirements. Effect The Organization did not have proper documentation or processes in place to ensure funds were spent appropriately. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to expense allocations and payroll to comply with the activities allowed requirements contained in CFDA Compliance Supplement.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring the books and records agree to the SEFA. Conditions and Context The profit and loss report from Quickbooks did not agree to the revenue for individual grants during 2023. This report is used as supporting documentation for grant reporting and should agree to the SEFA. Effect The Organization did not have proper documentation or processes in place to ensure funds were recorded within the correct reporting period. Recommendation We recommend tracking grants by using the class or customer functions when recording revenue and expenses in QuickBooks. In addition, we recommend cumulatively reconciling invoices sent to Maine Department of Labor.
Criteria The Organization is responsible for ensuring they are following accrual accounting. Conditions and Context During the audit we identified significant adjustments for expense and revenue which were not properly recognized for the year ended December 31, 2023. These items included grant revenue and subsequent receipts that were not accrued, with a total impact of approximately $340,000 increase in revenue. Expenses were not recorded in the proper period. Expenses increased $143,000. We recommend recording transactions using the invoice and bill functions in Quick Books. Effect The Organization understated the change in net assets by $197,000 in the current year. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to monthly and year end cutoff procedures to ensure revenue is reported in the correct period.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring direct costs and payroll costs charged to the program are for allowable costs and activities, posted to correct period, proper documentation is retained and expenditures are properly approved. To effectively manage the grant the agency should utilize the compliance supplement. Conditions and Context • No timesheets kept or approved by employee supervisors or management. • One out of 20 disbursements were not allocated correctly all for expenses charged to Peer Navigator contract. • Two out of 20 disbursements were not allocated correctly all for expenses charged to Registered Apprenticeship contract. • Two out of 20 disbursements lacked adequate support for expenses charged to Peer Navigator contract. • Six out of 20 disbursements lacked adequate support for expenses charged to Registered Apprenticeship contract. • Management did not have CFDA numbers during the year to ensure compliance with requirements. Effect The Organization did not have proper documentation or processes in place to ensure funds were spent appropriately. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to expense allocations and payroll to comply with the activities allowed requirements contained in CFDA Compliance Supplement.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring the books and records agree to the SEFA. Conditions and Context The profit and loss report from Quickbooks did not agree to the revenue for individual grants during 2023. This report is used as supporting documentation for grant reporting and should agree to the SEFA. Effect The Organization did not have proper documentation or processes in place to ensure funds were recorded within the correct reporting period. Recommendation We recommend tracking grants by using the class or customer functions when recording revenue and expenses in QuickBooks. In addition, we recommend cumulatively reconciling invoices sent to Maine Department of Labor.
Criteria The Organization is responsible for ensuring they are following accrual accounting. Conditions and Context During the audit we identified significant adjustments for expense and revenue which were not properly recognized for the year ended December 31, 2023. These items included grant revenue and subsequent receipts that were not accrued, with a total impact of approximately $340,000 increase in revenue. Expenses were not recorded in the proper period. Expenses increased $143,000. We recommend recording transactions using the invoice and bill functions in Quick Books. Effect The Organization understated the change in net assets by $197,000 in the current year. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to monthly and year end cutoff procedures to ensure revenue is reported in the correct period.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring direct costs and payroll costs charged to the program are for allowable costs and activities, posted to correct period, proper documentation is retained and expenditures are properly approved. To effectively manage the grant the agency should utilize the compliance supplement. Conditions and Context • No timesheets kept or approved by employee supervisors or management. • One out of 20 disbursements were not allocated correctly all for expenses charged to Peer Navigator contract. • Two out of 20 disbursements were not allocated correctly all for expenses charged to Registered Apprenticeship contract. • Two out of 20 disbursements lacked adequate support for expenses charged to Peer Navigator contract. • Six out of 20 disbursements lacked adequate support for expenses charged to Registered Apprenticeship contract. • Management did not have CFDA numbers during the year to ensure compliance with requirements. Effect The Organization did not have proper documentation or processes in place to ensure funds were spent appropriately. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to expense allocations and payroll to comply with the activities allowed requirements contained in CFDA Compliance Supplement.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring the books and records agree to the SEFA. Conditions and Context The profit and loss report from Quickbooks did not agree to the revenue for individual grants during 2023. This report is used as supporting documentation for grant reporting and should agree to the SEFA. Effect The Organization did not have proper documentation or processes in place to ensure funds were recorded within the correct reporting period. Recommendation We recommend tracking grants by using the class or customer functions when recording revenue and expenses in QuickBooks. In addition, we recommend cumulatively reconciling invoices sent to Maine Department of Labor.
Department Program Name and Agreement Number Department of Treasury 21.027 Coronavirus state and local fiscal recovery funds Criteria The Organization is responsible for monitoring subrecipients. Conditions and Context The organization did not have proper documentation of annual site visits, debarment and review of subrecipient financial statements. Effect The Organization did not have proper documentation or processes in place to ensure subrecipients were monitored. Recommendation We recommend the organization formalize the process of subrecipients.
Criteria The Organization is responsible for ensuring they are following accrual accounting. Conditions and Context During the audit we identified significant adjustments for expense and revenue which were not properly recognized for the year ended December 31, 2023. These items included grant revenue and subsequent receipts that were not accrued, with a total impact of approximately $340,000 increase in revenue. Expenses were not recorded in the proper period. Expenses increased $143,000. We recommend recording transactions using the invoice and bill functions in Quick Books. Effect The Organization understated the change in net assets by $197,000 in the current year. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to monthly and year end cutoff procedures to ensure revenue is reported in the correct period.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring direct costs and payroll costs charged to the program are for allowable costs and activities, posted to correct period, proper documentation is retained and expenditures are properly approved. To effectively manage the grant the agency should utilize the compliance supplement. Conditions and Context • No timesheets kept or approved by employee supervisors or management. • One out of 20 disbursements were not allocated correctly all for expenses charged to Peer Navigator contract. • Two out of 20 disbursements were not allocated correctly all for expenses charged to Registered Apprenticeship contract. • Two out of 20 disbursements lacked adequate support for expenses charged to Peer Navigator contract. • Six out of 20 disbursements lacked adequate support for expenses charged to Registered Apprenticeship contract. • Management did not have CFDA numbers during the year to ensure compliance with requirements. Effect The Organization did not have proper documentation or processes in place to ensure funds were spent appropriately. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to expense allocations and payroll to comply with the activities allowed requirements contained in CFDA Compliance Supplement.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring the books and records agree to the SEFA. Conditions and Context The profit and loss report from Quickbooks did not agree to the revenue for individual grants during 2023. This report is used as supporting documentation for grant reporting and should agree to the SEFA. Effect The Organization did not have proper documentation or processes in place to ensure funds were recorded within the correct reporting period. Recommendation We recommend tracking grants by using the class or customer functions when recording revenue and expenses in QuickBooks. In addition, we recommend cumulatively reconciling invoices sent to Maine Department of Labor.
Department Program Name and Agreement Number Department of Treasury 21.027 Coronavirus state and local fiscal recovery funds Criteria The Organization is responsible for monitoring subrecipients. Conditions and Context The organization did not have proper documentation of annual site visits, debarment and review of subrecipient financial statements. Effect The Organization did not have proper documentation or processes in place to ensure subrecipients were monitored. Recommendation We recommend the organization formalize the process of subrecipients.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Criteria The Organization is responsible for submitting quarterly financial reports. Conditions and Context The organization did not submit quarterly reports. Effect The Organization did not comply with reporting requirements. Recommendation We recommend the organization formalize the quarterly reporting process.
Criteria The Organization is responsible for ensuring they are following accrual accounting. Conditions and Context During the audit we identified significant adjustments for expense and revenue which were not properly recognized for the year ended December 31, 2023. These items included grant revenue and subsequent receipts that were not accrued, with a total impact of approximately $340,000 increase in revenue. Expenses were not recorded in the proper period. Expenses increased $143,000. We recommend recording transactions using the invoice and bill functions in Quick Books. Effect The Organization understated the change in net assets by $197,000 in the current year. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to monthly and year end cutoff procedures to ensure revenue is reported in the correct period.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring direct costs and payroll costs charged to the program are for allowable costs and activities, posted to correct period, proper documentation is retained and expenditures are properly approved. To effectively manage the grant the agency should utilize the compliance supplement. Conditions and Context • No timesheets kept or approved by employee supervisors or management. • One out of 20 disbursements were not allocated correctly all for expenses charged to Peer Navigator contract. • Two out of 20 disbursements were not allocated correctly all for expenses charged to Registered Apprenticeship contract. • Two out of 20 disbursements lacked adequate support for expenses charged to Peer Navigator contract. • Six out of 20 disbursements lacked adequate support for expenses charged to Registered Apprenticeship contract. • Management did not have CFDA numbers during the year to ensure compliance with requirements. Effect The Organization did not have proper documentation or processes in place to ensure funds were spent appropriately. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to expense allocations and payroll to comply with the activities allowed requirements contained in CFDA Compliance Supplement.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring the books and records agree to the SEFA. Conditions and Context The profit and loss report from Quickbooks did not agree to the revenue for individual grants during 2023. This report is used as supporting documentation for grant reporting and should agree to the SEFA. Effect The Organization did not have proper documentation or processes in place to ensure funds were recorded within the correct reporting period. Recommendation We recommend tracking grants by using the class or customer functions when recording revenue and expenses in QuickBooks. In addition, we recommend cumulatively reconciling invoices sent to Maine Department of Labor.
Criteria The Organization is responsible for ensuring they are following accrual accounting. Conditions and Context During the audit we identified significant adjustments for expense and revenue which were not properly recognized for the year ended December 31, 2023. These items included grant revenue and subsequent receipts that were not accrued, with a total impact of approximately $340,000 increase in revenue. Expenses were not recorded in the proper period. Expenses increased $143,000. We recommend recording transactions using the invoice and bill functions in Quick Books. Effect The Organization understated the change in net assets by $197,000 in the current year. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to monthly and year end cutoff procedures to ensure revenue is reported in the correct period.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring direct costs and payroll costs charged to the program are for allowable costs and activities, posted to correct period, proper documentation is retained and expenditures are properly approved. To effectively manage the grant the agency should utilize the compliance supplement. Conditions and Context • No timesheets kept or approved by employee supervisors or management. • One out of 20 disbursements were not allocated correctly all for expenses charged to Peer Navigator contract. • Two out of 20 disbursements were not allocated correctly all for expenses charged to Registered Apprenticeship contract. • Two out of 20 disbursements lacked adequate support for expenses charged to Peer Navigator contract. • Six out of 20 disbursements lacked adequate support for expenses charged to Registered Apprenticeship contract. • Management did not have CFDA numbers during the year to ensure compliance with requirements. Effect The Organization did not have proper documentation or processes in place to ensure funds were spent appropriately. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to expense allocations and payroll to comply with the activities allowed requirements contained in CFDA Compliance Supplement.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring the books and records agree to the SEFA. Conditions and Context The profit and loss report from Quickbooks did not agree to the revenue for individual grants during 2023. This report is used as supporting documentation for grant reporting and should agree to the SEFA. Effect The Organization did not have proper documentation or processes in place to ensure funds were recorded within the correct reporting period. Recommendation We recommend tracking grants by using the class or customer functions when recording revenue and expenses in QuickBooks. In addition, we recommend cumulatively reconciling invoices sent to Maine Department of Labor.
Criteria The Organization is responsible for ensuring they are following accrual accounting. Conditions and Context During the audit we identified significant adjustments for expense and revenue which were not properly recognized for the year ended December 31, 2023. These items included grant revenue and subsequent receipts that were not accrued, with a total impact of approximately $340,000 increase in revenue. Expenses were not recorded in the proper period. Expenses increased $143,000. We recommend recording transactions using the invoice and bill functions in Quick Books. Effect The Organization understated the change in net assets by $197,000 in the current year. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to monthly and year end cutoff procedures to ensure revenue is reported in the correct period.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring direct costs and payroll costs charged to the program are for allowable costs and activities, posted to correct period, proper documentation is retained and expenditures are properly approved. To effectively manage the grant the agency should utilize the compliance supplement. Conditions and Context • No timesheets kept or approved by employee supervisors or management. • One out of 20 disbursements were not allocated correctly all for expenses charged to Peer Navigator contract. • Two out of 20 disbursements were not allocated correctly all for expenses charged to Registered Apprenticeship contract. • Two out of 20 disbursements lacked adequate support for expenses charged to Peer Navigator contract. • Six out of 20 disbursements lacked adequate support for expenses charged to Registered Apprenticeship contract. • Management did not have CFDA numbers during the year to ensure compliance with requirements. Effect The Organization did not have proper documentation or processes in place to ensure funds were spent appropriately. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to expense allocations and payroll to comply with the activities allowed requirements contained in CFDA Compliance Supplement.
Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring the books and records agree to the SEFA. Conditions and Context The profit and loss report from Quickbooks did not agree to the revenue for individual grants during 2023. This report is used as supporting documentation for grant reporting and should agree to the SEFA. Effect The Organization did not have proper documentation or processes in place to ensure funds were recorded within the correct reporting period. Recommendation We recommend tracking grants by using the class or customer functions when recording revenue and expenses in QuickBooks. In addition, we recommend cumulatively reconciling invoices sent to Maine Department of Labor.
Department Program Name and Agreement Number Department of Treasury 21.027 Coronavirus state and local fiscal recovery funds Criteria The Organization is responsible for monitoring subrecipients. Conditions and Context The organization did not have proper documentation of annual site visits, debarment and review of subrecipient financial statements. Effect The Organization did not have proper documentation or processes in place to ensure subrecipients were monitored. Recommendation We recommend the organization formalize the process of subrecipients.