FAC Explorer

Audit 401809

FY End
2025-06-30
Total Expended
$60.80M
Findings
1
Programs
3
Organization: Maine Connectivity Authority (ME)
Year: 2025 Accepted: 2026-05-20
Auditor: BDMP ASSURANCE LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1215119 2025-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $47.90M Yes 0
11.035 BROADBAND EQUITY, ACCESS, AND DEPLOYMENT PROGRAM $3.73M Yes 0
11.033 MIDDLE MILE (BROADBAND) GRANT PROGRAM $1.53M Yes 1

Contacts

Name Title Type
M889SXAMDWG9 Andrew Butcher Auditee
2073707439 Julie Keim Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Maine Connectivity Authority (the Authority) during the year ended June 30, 2025. The information in this Schedule 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 portion of the operations of the Authority, it is not intended to, and does not, present the net position, changes in net position or cash flows of the Authority.
Subsequent to the issuance of the Schedule for the year ended June 30, 2025, management identified that expenditures related to the U.S. Department of Commerce, National Telecommunications and Information Administration Middle Mile Grant Program, Assistance Listing No. 11.033, were inadvertently omitted from the Schedule. The omission occurred during the preparation and review of the Schedule and was not the result of any identified questioned costs or disallowed expenditures. The Schedule has been restated to include $1,528,387 of federal expenditures related to this program for the year ended June 30, 2025. Management reevaluated the effect of the omitted award on the Single Audit, including the Type A/Type B program determination and major program risk assessment. Based on that evaluation, the omitted award was determined to be a Type B program and was not assessed as high risk. Accordingly, inclusion of the omitted award in the Schedule did not change the major program determination for the year ended June 30, 2025. The restatement affects only the presentation of federal expenditures in the and related reporting package. The restatement does not affect the basic financial statements or the allowability of the underlying expenditures.

Finding Details

Finding 2025-002
Finding Number: 2025-002 - Schedule of Expenditures of Federal Awards Criteria: The Authority is responsible for designing, implementing and maintaining effective internal control over the preparation of the schedule of expenditures of federal awards (the Schedule) that provides reasonable assurance that the internal controls will prevent misstatements, intentional or unintentional, from occurring, or detect and correct misstatements on a timely basis. Condition Found: Subsequent to the issuance of the Schedule for the year ended June 30, 2025, management identified that expenditures related to the U.S. Department of Commerce, National Telecommunications and Information Administration Middle Mile Grant Program, Assistance Listing No. 11.033, were inadvertently omitted from the Schedule submitted to the Federal Audit Clearinghouse. Cause and Effect: This condition was primarily due to the implementation of a new general ledger system during the fiscal year ended June 30, 2025. The conversion process resulted in misclassification of certain receivables and deferred revenue balances, which required manual adjustments within the financial system. The Schedule was not reconciled to the audited financial statements for the year ended June 30, 2025. The lack of timely reconciliation increases the risk that material misstatements may not be identified and corrected promptly, thereby impacting the accuracy and timeliness of financial reporting. Recommendation: We recommend management implement a formal process to help ensure that the Schedule is reconciled in a timely manner. Identification as a Repeat Finding, if applicable Not applicable. Management response: While the Authority was aware that the system conversion could result in temporary delays in reconciliation and reporting, the extent and duration of these delays were more significant than anticipated and resulted in the omission of the Schedule. Management agrees with the findings and recommendations.