Audit 376574

2024-001 – Procurement, Debarment and Suspension Federal Program Information: US Department of the Treasury, passed through State of Maine Efficiency Maine 21.027 - Coronavirus State Local Fiscal Recovery Funds Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.327. Condition: During audit procedures it was identified that the Town did not check sam.gov to confirm the contractor was not debarred or suspended from receiving federal funds nor did they request a Suspension and Debarment certification from the contractor. It was also identified that the contract was missing several required provisions, including but not limited to, Davis Bacon requirement, Clean Air Act, Federal Water Pollution Act, and the procurement file did not have the cost or price analysis documented. Cause: The Town did not follow their adopted procurement policy. Effect: There is a possibility that the contractor could have been debarred or suspended from working on federally funded projects. Funding may have been erroneously paid to a debarred or suspended contractor resulting in a material misstatement. Identification of Questioned Costs: $290,843 Context: The entire population of 12 months of reimbursements from the fiscal year were examined. Only two disbursements were made during the fiscal year, both were examined. Repeat Finding: This is a not a repeat finding. Recommendation: It is recommended that the Town implement internal control processes and procedures to ensure that federal procurement requirements are understood, including those requirements of recipients, subrecipients, contractors and how to determine who is a recipient, subrecipient and/or contractor. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan.

2024-002 – Reporting Federal Program Information: US Department of the Treasury, passed through State of Maine Efficiency Maine CFDA -21.027 - Coronavirus State and Local Fiscal Recovery Funds Criteria: The following CFR(s) apply to this finding: 2 CFR 200.329 Condition: During audit procedures it was identified that the Town could not provide report documentation for the performance reporting requirements of 2 CFR 200.329. Cause: The Town does not have sufficient internal controls to ensure compliance with reporting requirements. Effect: Required performance expectations may not have been met, unallowable activities may have occurred, resulting in noncompliance. Identification of Questioned Costs: No known Questioned Costs. Context: Quarterly performance reports were required in the grant award. The Town could not provide reports for testing. Repeat Finding: This is not repeat finding. Recommendation: It is recommended that the Town implement internal control processes and procedures to ensure that federal reporting requirements are met. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan.