2025-001 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) Program and U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds (SLRF) Program for the period of July 1, 2024, through June 30, 2025 Criteria: Uniform Guidance section 2 CFR §200.317-200.327 Procurement Standards, requires purchases exceeding the micro-purchase threshold of $10,000 to follow small purchase procedures, which require obtaining price or rate quotations from an adequate number of qualified sources (§200.320) prior to entering into a contract. In addition, 2 CFR Part 180 and 2 CFR §200.214 require non-federal entities to verify if contractors are suspended or debarred (e.g., Sam.gov check or certification) and include appropriate contract clauses in applicable contracts. Condition: The School Department did not obtain price or rate quotations for two projects that exceeded the micro-purchase threshold. Additionally, the Department did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses). The City did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses) for three of the six contracts tested. Cause: School staff were not aware the projects would be funded with federal funds and did not ensure compliance with federal requirements for competitive pricing and suspension/debarment verification. City staff were not aware projects covered under the SLRF definition of “revenue replacement”, which excludes most procurement requirements, are still required to follow 2 CFR Part 180 and 2 CFR §200.214. Effect: Failure to obtain competitive quotes and verify contractor eligibility to receive Federal funds increases the risk of noncompliance, inefficient use of federal funds, and potential disallowance of costs. Known Questioned Costs: $61,891 for #84.027/84.173; $51,750 for #21.027 Likely Questioned Costs: $12,799 for #21.027 Recommendation: We recommend training staff on procurement and suspension/debarment requirements and implementing a pre-award compliance checklist. We also recommend increasing communication between grant personnel and facilities management personnel so all parties are aware which projects will be funded with federal funds.
2025-002 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2024, through June 30, 2025 Criteria: The School Department receives State and Local Fiscal Recovery Funding passed through the State of Maine for various programs. Each grant requires periodic performance and financial reports. Condition: The School Department was unable to provide the fourth quarter Work Plan and Quarterly Narrative and Metrics Report for the Maine Apprenticeship Program which was due July 15, 2025. In addition, the second quarter report, due January 15, 2025, was not filed until February 12, 2025. Cause: Staff rely on reporting notifications sent by the Maine Department of Education to alert them when reports are due. The report notifications were not received by the Department, and therefore, the Department was unaware the reports were due. The Department has no internal tracking mechanism to ensure reports are submitted on time for all grants. Effect: Failure to submit required performance and financial reports could result in the loss of grant funding. Known Questioned Costs: none Likely Questioned Costs: none Recommendation: We recommend a centralized report tracking spreadsheet be used to ensure report due dates are tracked and timely report completion is monitored.