Finding Number: 2025-002 Federal Agency: U.S. Department of Education Cluster/Program(s): Title 1A Disadvantaged Assistance Listing Number(s): 84.010 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency – Internal Control over Compliance Criteria: Under Title I’s high school graduation rate requirements, to remove a student from a cohort, a school must confirm in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. Grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: During testing, we identified eleven of the eighteen students tested lacked appropriate documentation of review/approval, as required by the control process. Cause: The District’s procedures for documenting and reviewing cohort removals were not applied consistently, and monitoring controls did not detect the missing approvals. Effect: High school graduation rate information could be reported incorrectly to the State of Maine. Recommendation: Management should ensure that existing controls and policies are followed. Questioned Costs: None
Finding Number: 2025-003 Federal Agency: U.S. Department of Agriculture Cluster/Program(s): School Nutrition Cluster Assistance Listing Number(s): 10.553-10.559, 10.582 Compliance Requirement: Reporting Type of Finding: Significant Deficiency – Internal Control over Compliance Statement of Condition: During our testing we reviewed the meal counts for four of the twelve monthly claim forms, and identified immaterial differences in the number of meals reported versus the number of meals documented for each month. Criteria: Essential to proper controls over reporting is ensuring that information included in each report is accurate, and properly substantiated. Cause: When preparing the monthly claim forms, clerical errors occurred either in the ticksheets or transfer of information to the claim form which resulted in an inaccurate amount of meals reported, and this error was not identified in the review process. Effect: The total meal counts reported for the year were not accurate by an immaterial amount. Inaccurate reporting to the oversight agency could jeopardize future funding. Recommendation: Management review the control process in place and emphasize the importance of accurate reporting.
Finding Number: 2025-004 Federal Agency: U.S. Department of Agriculture Cluster/Program(s): School Nutrition Cluster Assistance Listing Number(s): 10.553-10.559, 10.582 Compliance Requirement: Allowable Costs Type of Finding: Significant Deficiency – Internal Control over Compliance Statement of Condition: During our review of fresh fruit and vegetable invoices, we noted that 5 of 64 invoices tested did not contain evidence of required approval prior to payment. Criteria: It is the District’s control process to review FFVP invoice prior to payment to ensure costs are allowable. Cause: The District’s procedures for documenting and reviewing invoices were not applied consistently, and monitoring controls did not detect the missing approvals. Effect: Several purchases for Fresh Fruit and Vegetable Program were missing documented review. While all costs were allowable this increases the risk that costs not allowable under the grant will be improperly charged to the grant. Recommendation: Management should reinforce the control process in place.
Finding Number: 2025-005 Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program(s): Community Project Funding Assistance Listing Number(s): 14.251 Compliance Requirement: Reporting Type of Finding: Significant Deficiency – Internal Control over Compliance Compliance Finding Statement of Condition: Performance reports were not submitted within 30 calendar days of the end of the reporting period. Criteria: Non-federal entities are required to report timely and accurate information to awarding agencies as part of grant acceptance. In addition, under the requirements of reporting, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Cause: A misunderstanding of the requirements delayed the submission of the required performance reports. Effect: Failure to complete reports on time could result in the loss of future federal funding. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: We recommend that the School Unit implement procedures to ensure reports are completed accurately and in a timely manner to meet the federal requirements as outlined in the grant agreements.
Finding Number: 2025-006 Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program(s): Community Project Funding Assistance Listing Number(s): 14.251 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency – Internal Control over Compliance Compliance Finding Statement of Condition: A Build America, Buy America (BABA) waiver was not received prior to receiving project funding, despite the project involving materials subject to BABA domestic content requirements. Criteria: The Infrastructure Investment and Jobs Act (IIJA) and implementing federal guidance require that all covered infrastructure projects comply with BABA domestic sourcing requirements, unless a formal waiver is approved by the applicable federal awarding agency prior to obligation of funds. Cause: Grant funds were drawn prior to the final approval of the BABA waiver. Effect: Failure to obtain the BABA waiver could result in the loss of future federal funding. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: We recommend that the School Unit implement procedures to ensure all requirements are met on future projects/grants prior to drawdowns being submitted.