Audit 353712

FY End

2024-12-31

Total Expended

$45.73M

Findings

2

Programs

1

Organization: Maine Guaranteed Access Reinsurance Association (ME)

Year: 2024 Accepted: 2025-04-15

Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
555117	2024-002	Significant Deficiency	-	L
1131559	2024-002	Significant Deficiency	-	L

ALN	Program	Spent	Major	Findings
93.423	1332 State Innovation Waivers	$45.73M	Yes	1

Contacts

Name	Title	Type
YMJKWKQM6XC6	Laren Walker	Auditee
2087948840	Jodi Daugherty	Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Association does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Maine Guaranteed Access Reinsurance Association (the Association) under programs of the federal government for the year ended December 31, 2024. The information 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 the Association, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Association.

Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Association does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.

Title: NOTE 3 - INDIRECT COST RATE Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Association does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The Association does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.

Finding Details

Finding 2024-002

U.S. Department of Health and Human Services Federal Financial Assistance Listing 93.423 1332 State Innovation Waivers Reporting Significant Deficiency in Internal Control in Federal Compliance Criteria: Recipients of federal funds must submit financial reports as required by the Federal award. Reports submitted annually by the recipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period, in accordance with CFR § 200.328(c). Condition: The Association’s existing controls over their reporting processes, to ensure reports were submitted timely, were not functioning in such a way that ensured reports were submitted on time. Cause: The Association didn’t set a reminder or have a pre-arranged schedule that notified management a report was due. Effect: 1 quarterly report was submitted 3 days late. 1 quarterly report was submitted 2 days late. Questioned Costs: None reported Context/Sampling: Sampling was not used. 100% of the reports submitted during the year were tested. Repeat Finding from Prior Year(s): No Recommendation: Management should have a control in place to ensure they are notified that a report is coming due so they are able to compile and submit it on time. If information required to be included in the report is not available at the time the report is due, management should have a control in place to request an extension for the delayed submission of the report. Views of Responsible Officials: Management of the Association agrees with the finding.

Finding 2024-002

U.S. Department of Health and Human Services Federal Financial Assistance Listing 93.423 1332 State Innovation Waivers Reporting Significant Deficiency in Internal Control in Federal Compliance Criteria: Recipients of federal funds must submit financial reports as required by the Federal award. Reports submitted annually by the recipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period, in accordance with CFR § 200.328(c). Condition: The Association’s existing controls over their reporting processes, to ensure reports were submitted timely, were not functioning in such a way that ensured reports were submitted on time. Cause: The Association didn’t set a reminder or have a pre-arranged schedule that notified management a report was due. Effect: 1 quarterly report was submitted 3 days late. 1 quarterly report was submitted 2 days late. Questioned Costs: None reported Context/Sampling: Sampling was not used. 100% of the reports submitted during the year were tested. Repeat Finding from Prior Year(s): No Recommendation: Management should have a control in place to ensure they are notified that a report is coming due so they are able to compile and submit it on time. If information required to be included in the report is not available at the time the report is due, management should have a control in place to request an extension for the delayed submission of the report. Views of Responsible Officials: Management of the Association agrees with the finding.