Audit 341812

FY End

2024-06-30

Total Expended

$5.29M

Findings

2

Programs

2

Organization: Town of Kennebunkport (ME)

Year: 2024 Accepted: 2025-02-10

Auditor: Runyon Kersteen Ouellette

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
522589	2024-001	Significant Deficiency	-	I
1099031	2024-001	Significant Deficiency	-	I

ALN	Program	Spent	Major	Findings
66.458	Clean Water State Revolving Fund	$3.08M	Yes	0
21.027	American Rescue Plan Act ‐ Covid	$2.20M	Yes	1

Contacts

Name	Title	Type
XW5RKXYZG6J3	Nicole Evangelista	Auditee
2079671608	Casey Leonard	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the Town for the fiscal year ended June 30, 2024. The reporting entity is defined in Notes to Basic Financial Statements of the Town of Kennebunkport, Maine. B. Basis of Presentation - The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - the Uniform Guidance establishes the level of expenditures to be used in defining major federal financial award programs. Major programs for the Town have been identified in the attached Schedule of Findings and Questioned Costs – Summary of Auditor’s Results. C. Basis of Accounting - The information presented in the Schedule of Expenditures of Federal Awards is presented on a modified accrual basis of accounting, which is a basis consistent with the Town’s fund financial statements. The grants included are all accounted for on a modified accrual basis of accounting as described in the notes to the basic financial statements. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate - The Town of Kennebunkport, Maine has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

2024-001 U.S. Department of Treasury, Assistance Listing #21.027 ARPA – Maine Infrastructure Adaptation Fund for the period July 1, 2023 through June 30, 2024 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Condition: The Town contracted with a construction company to do work under a grant-funded project and did not document that the contractor was not suspended or debarred. Cause: Although the Town maintains a list of approved contractors and vendors, according to the Town’s purchasing policy, the Town is prohibited from contracting with another party that is suspended or debarred. Therefore, the Town should have obtained proof that the company in question was not suspended or debarred. Effect: The Town runs the risk of performing projects with parties who have been suspended or debarred, which could result in the loss of federal funding. Known Questioned Costs: unknown Likely Questioned Costs: unknown Recommendations: We recommend that the Town implement procedures to annually check active vendors and contractors and document that they are not suspended, debarred, or in some way prohibited from working on Town projects, especially those working on federally-funded projects.

Finding 2024-001

2024-001 U.S. Department of Treasury, Assistance Listing #21.027 ARPA – Maine Infrastructure Adaptation Fund for the period July 1, 2023 through June 30, 2024 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Condition: The Town contracted with a construction company to do work under a grant-funded project and did not document that the contractor was not suspended or debarred. Cause: Although the Town maintains a list of approved contractors and vendors, according to the Town’s purchasing policy, the Town is prohibited from contracting with another party that is suspended or debarred. Therefore, the Town should have obtained proof that the company in question was not suspended or debarred. Effect: The Town runs the risk of performing projects with parties who have been suspended or debarred, which could result in the loss of federal funding. Known Questioned Costs: unknown Likely Questioned Costs: unknown Recommendations: We recommend that the Town implement procedures to annually check active vendors and contractors and document that they are not suspended, debarred, or in some way prohibited from working on Town projects, especially those working on federally-funded projects.