Audit 390750

Significant Deficiency 2025-001 – Allowable Activities/Allowable Costs Federal Program Information: U.S. Department of Agriculture Passed through the State of Maine Department of Education: ALN 10.553,10.555, 10.559 & 10.579 Child Nutrition Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR 200.303 Condition: During audit procedures, it was identified that the Unit did not have consistent internal controls over program expenditures. Cause: The Unit does not have the necessary internal controls over compliance. Effect: Insufficient controls could result in unallowable expenses being charged to the program and subsequently improperly reimbursed by federal funds Identification of Questioned Costs: None identified. Context: During audit procedures, 23 of the 25 disbursement samples did not have the proper approval on the invoices or supporting documents. This is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit develop and implement internal control policies and procedures for a consistent, documented approval process to ensure that only allowable costs are charged to the program. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Regional School Unit No. 29.

2025-002 – Procurement, Suspension & Debarment Federal Program Information: U.S. Department of Agriculture Passed through the State of Maine Department of Education: ALN 10.553,10.555, 10.559 & 10.579 Child Nutrition Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR 200.317-200.327 Condition: During audit procedures, it was identified that the Unit did not follow policies and procedures. Cause: The Unit did not understand the procurement requirements for the program. Effect: Insufficient controls could result in unallowable expenses being charged to the program and subsequently improperly reimbursed by federal funds Identification of Questioned Costs: None identified. Context: During audit procedures, auditor requested copies of the contracts and procurement history files, none could be provided. This is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit familiarize themselves with the program requirements and implement the internal control policies and procedures that have already been adopted by the Unit. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Regional School Unit No. 29.