FAC Explorer

Audit 404238

FY End
2024-06-30
Total Expended
$802,183
Findings
10
Programs
7
Organization: Maine Rural Water Association (ME)
Year: 2024 Accepted: 2026-06-22
Auditor: HAVERLOCK ESTEY & CURRAN LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1218070 2024-002 Material Weakness Yes B
1218071 2024-002 Material Weakness Yes B
1218072 2024-002 Material Weakness Yes B
1218073 2024-002 Material Weakness Yes B
1218074 2024-002 Material Weakness Yes B
1218075 2024-002 Material Weakness Yes B
1218076 2024-002 Material Weakness Yes B
1218077 2024-002 Material Weakness Yes B
1218078 2024-002 Material Weakness Yes B
1218079 2024-002 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
10.U01 RURAL UTILITIES SERVICE: CIRCUIT RIDER PROGRAM $278,029 Yes 1
66.424 SURVEYS, STUDIES, INVESTIGATIONS, DEMONSTRATIONS, AND TRAINING GRANTS - SECTION 1442 OF THE SAFE DRINKING WATER ACT $127,794 Yes 1
17.289 COMMUNITY PROJECT FUNDING/CONGRESSIONALLY DIRECTED SPENDING $104,692 Yes 1
10.U02 FARM SERVICE AGENCY: SOURCE WATER PROTECTION PROJECT $103,688 Yes 1
66.446 TECHNICAL ASSISTANCE FOR TREATMENT WORKS (CLEAN WATER ACT [CWA] SECTION 104(B)(8)) $30,177 Yes 1
10.761 WATER AND WASTE TECHNICAL ASSISTANCE AND TRAINING GRANTS $1,816 Yes 1
66.436 SURVEYS, STUDIES, INVESTIGATIONS, DEMONSTRATIONS, AND TRAINING GRANTS AND COOPERATIVE AGREEMENTS - SECTION 104(B)(3) OF THE CLEAN WATER ACT $334 Yes 1

Contacts

Name Title Type
C5N2F7TTWJ63 Kirsten Hebert Auditee
2077374092 Danielle Gagnon Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Maine Rural Water Association and Subsidiary under programs of the federal government for the year ended June 30, 2024. 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 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.
Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures follow cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The Association has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
2024-002 – US Department of Agriculture – Federal Assistance Listing Number 10.XXX Circuit Rider Program and Federal Assistance Listing Number 10.761 Wastewater Technical Assistance and Training Criteria: The Association uses an indirect cost rate to allocate indirect costs to Federal Award Programs. Management is responsible for ensuring that the indirect cost calculations are prepared accurately and journal entries are accurately posted to allocated indirect costs to federal programs. Condition: Errors were identified in the spreadsheets used to calculate the indirect cost rate and record journal entries to allocate these costs to the various programs. Cause: In preparing and reviewing the spreadsheet, check figures were not used to verify that total costs allocated agreed to total costs available to allocate. Effect: Indirect costs allocated to programs were overstated due to the error identified with the formula, which also resulted in grant funds receivable being overstated. 2024-002 – Impacts all Federal Awards listed on SEFA Effect: continued: Program Decrease to Indirect Expense Impact to Grant Revenues USDA Circuit Rider Program 10.XXX $ 23,499 $ (9,468) Source Water Protection Project 10.XXX $ 9,230 $(14,046) Wastewater Tech. Assistance 10.761 $ 12,772 $ (7,000) Disaster Recovery Circuit Rider 10.761 $ 13 $ 1,816 US EPA Training and Technical Assistance 66.424 $ 12,564 $(12,564) Private Drinking Water Well Owners 66.436 $ 1,143 $ (1,143) Wastewater Treatment Works – Tech 66.446 $ 1,618 $ (1,618) Wastewater Treatment Works – Tribal 66.446 $ 281 $ (281) Wastewater Treatment Works – Decentralized 66.446 $ 555 $ (555) US Department of Labor Apprenticeship/Congressionally Directed Spending 17.289 $ 7,885 $ (7,885) Recommendations: We recommend adding check figures to this spreadsheet as a way to verify the calculation is complete and accurate, as well as the journal entry to reclassify the expense to the Association’s programs. Responses: The Association agrees with this finding and is in the process of setting up this procedure. The Association also feels that hiring a CFO will provide additional oversight over this calculation and posting of journal entries for indirect costs. Once the procedures have been set up and implemented the Association believes it will be in a much better position to attain accurate financial reporting.