Audit 43571

FY End
2022-06-30
Total Expended
$2.70M
Findings
16
Programs
22
Organization: Town of Winthrop, Maine (ME)
Year: 2022 Accepted: 2023-01-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
49960 2022-002 - - N
49961 2022-001 - - P
49962 2022-001 - - P
49963 2022-002 - - N
49964 2022-001 - - P
49965 2022-002 - - N
49966 2022-001 - - P
49967 2022-002 - - N
626402 2022-002 - - N
626403 2022-001 - - P
626404 2022-001 - - P
626405 2022-002 - - N
626406 2022-001 - - P
626407 2022-002 - - N
626408 2022-001 - - P
626409 2022-002 - - N

Contacts

Name Title Type
YC1GBNS32FC1 Vernice Boyce Auditee
2073777201 Jennifer Conners Auditor
No contacts on file

Notes to SEFA

Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the Town for the fiscal year ended June 30, 2022. The reporting entity is defined in Notes to Basic Financial Statements of the Town of Winthrop, Maine. B. Basis of Presentation - The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. 2. Major Programs - the Uniform Guidance establishes the level of expenditures to be used in defining major federal financial award programs. Major programs for the Town have been identified in the attached Schedule of Findings and Questioned Costs Summary of Auditors Results. C. Basis of Accounting - The information presented in the Schedule of Expenditures of Federal Awards is presented on a modified accrual basis of accounting, which is a basis consistent with the Town's fund financial statements. The grants included are all accounted for on a modified accrual basis of accounting as described in the notes to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2022-002 ? U.S. Department of Education, for the Period July 1, 2021 through June 30, 2022, Assistance Listing #84.425D, #84.425U Elementary and Secondary School Emergency Fund Statement of Condition: Documentation of wage rate requirements in construction contracts and verification of certified weekly payrolls was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Effect: Contracted employees could potentially not be paid prevailing wage rates, which could jeopardize grant funding. Cause: The School Department did not include language in its construction contracts that included wage rate requirements and did not obtain certified payroll information from contractors. Recommendation: Management should carefully review all contracts related to grants to ensure they include the required language. In addition, management should ensure that contractors submit the required certified payrolls. Questioned Costs: None
2022-001 ? Uniform Guidance Written Procedures Criteria: Under the Uniform Guidance ?200.302 Financial Management, the non-Federal entity must provide written procedures to implement the requirements of ?200.305 (Federal payment), and written procedures for determining the allowability of costs in accordance with subpart E of the Uniform Guidance and the terms and conditions of the Federal award. Condition: The School Department currently does not have written procedures as required by the Uniform Guidance as specified in the criteria. Cause: Although the School Department has adequate procedures in place to prevent non-compliance for most of its Federal grants, those procedures have not been documented. Effect: Without written procedures, the School Department runs the risk of non-compliance for Federal grants. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: The Town and School Department should review their Federal grants and determine which grants need specific written procedures to meet the Uniform Guidance requirements.
2022-001 ? Uniform Guidance Written Procedures Criteria: Under the Uniform Guidance ?200.302 Financial Management, the non-Federal entity must provide written procedures to implement the requirements of ?200.305 (Federal payment), and written procedures for determining the allowability of costs in accordance with subpart E of the Uniform Guidance and the terms and conditions of the Federal award. Condition: The School Department currently does not have written procedures as required by the Uniform Guidance as specified in the criteria. Cause: Although the School Department has adequate procedures in place to prevent non-compliance for most of its Federal grants, those procedures have not been documented. Effect: Without written procedures, the School Department runs the risk of non-compliance for Federal grants. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: The Town and School Department should review their Federal grants and determine which grants need specific written procedures to meet the Uniform Guidance requirements.
2022-002 ? U.S. Department of Education, for the Period July 1, 2021 through June 30, 2022, Assistance Listing #84.425D, #84.425U Elementary and Secondary School Emergency Fund Statement of Condition: Documentation of wage rate requirements in construction contracts and verification of certified weekly payrolls was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Effect: Contracted employees could potentially not be paid prevailing wage rates, which could jeopardize grant funding. Cause: The School Department did not include language in its construction contracts that included wage rate requirements and did not obtain certified payroll information from contractors. Recommendation: Management should carefully review all contracts related to grants to ensure they include the required language. In addition, management should ensure that contractors submit the required certified payrolls. Questioned Costs: None
2022-001 ? Uniform Guidance Written Procedures Criteria: Under the Uniform Guidance ?200.302 Financial Management, the non-Federal entity must provide written procedures to implement the requirements of ?200.305 (Federal payment), and written procedures for determining the allowability of costs in accordance with subpart E of the Uniform Guidance and the terms and conditions of the Federal award. Condition: The School Department currently does not have written procedures as required by the Uniform Guidance as specified in the criteria. Cause: Although the School Department has adequate procedures in place to prevent non-compliance for most of its Federal grants, those procedures have not been documented. Effect: Without written procedures, the School Department runs the risk of non-compliance for Federal grants. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: The Town and School Department should review their Federal grants and determine which grants need specific written procedures to meet the Uniform Guidance requirements.
2022-002 ? U.S. Department of Education, for the Period July 1, 2021 through June 30, 2022, Assistance Listing #84.425D, #84.425U Elementary and Secondary School Emergency Fund Statement of Condition: Documentation of wage rate requirements in construction contracts and verification of certified weekly payrolls was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Effect: Contracted employees could potentially not be paid prevailing wage rates, which could jeopardize grant funding. Cause: The School Department did not include language in its construction contracts that included wage rate requirements and did not obtain certified payroll information from contractors. Recommendation: Management should carefully review all contracts related to grants to ensure they include the required language. In addition, management should ensure that contractors submit the required certified payrolls. Questioned Costs: None
2022-001 ? Uniform Guidance Written Procedures Criteria: Under the Uniform Guidance ?200.302 Financial Management, the non-Federal entity must provide written procedures to implement the requirements of ?200.305 (Federal payment), and written procedures for determining the allowability of costs in accordance with subpart E of the Uniform Guidance and the terms and conditions of the Federal award. Condition: The School Department currently does not have written procedures as required by the Uniform Guidance as specified in the criteria. Cause: Although the School Department has adequate procedures in place to prevent non-compliance for most of its Federal grants, those procedures have not been documented. Effect: Without written procedures, the School Department runs the risk of non-compliance for Federal grants. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: The Town and School Department should review their Federal grants and determine which grants need specific written procedures to meet the Uniform Guidance requirements.
2022-002 ? U.S. Department of Education, for the Period July 1, 2021 through June 30, 2022, Assistance Listing #84.425D, #84.425U Elementary and Secondary School Emergency Fund Statement of Condition: Documentation of wage rate requirements in construction contracts and verification of certified weekly payrolls was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Effect: Contracted employees could potentially not be paid prevailing wage rates, which could jeopardize grant funding. Cause: The School Department did not include language in its construction contracts that included wage rate requirements and did not obtain certified payroll information from contractors. Recommendation: Management should carefully review all contracts related to grants to ensure they include the required language. In addition, management should ensure that contractors submit the required certified payrolls. Questioned Costs: None
2022-002 ? U.S. Department of Education, for the Period July 1, 2021 through June 30, 2022, Assistance Listing #84.425D, #84.425U Elementary and Secondary School Emergency Fund Statement of Condition: Documentation of wage rate requirements in construction contracts and verification of certified weekly payrolls was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Effect: Contracted employees could potentially not be paid prevailing wage rates, which could jeopardize grant funding. Cause: The School Department did not include language in its construction contracts that included wage rate requirements and did not obtain certified payroll information from contractors. Recommendation: Management should carefully review all contracts related to grants to ensure they include the required language. In addition, management should ensure that contractors submit the required certified payrolls. Questioned Costs: None
2022-001 ? Uniform Guidance Written Procedures Criteria: Under the Uniform Guidance ?200.302 Financial Management, the non-Federal entity must provide written procedures to implement the requirements of ?200.305 (Federal payment), and written procedures for determining the allowability of costs in accordance with subpart E of the Uniform Guidance and the terms and conditions of the Federal award. Condition: The School Department currently does not have written procedures as required by the Uniform Guidance as specified in the criteria. Cause: Although the School Department has adequate procedures in place to prevent non-compliance for most of its Federal grants, those procedures have not been documented. Effect: Without written procedures, the School Department runs the risk of non-compliance for Federal grants. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: The Town and School Department should review their Federal grants and determine which grants need specific written procedures to meet the Uniform Guidance requirements.
2022-001 ? Uniform Guidance Written Procedures Criteria: Under the Uniform Guidance ?200.302 Financial Management, the non-Federal entity must provide written procedures to implement the requirements of ?200.305 (Federal payment), and written procedures for determining the allowability of costs in accordance with subpart E of the Uniform Guidance and the terms and conditions of the Federal award. Condition: The School Department currently does not have written procedures as required by the Uniform Guidance as specified in the criteria. Cause: Although the School Department has adequate procedures in place to prevent non-compliance for most of its Federal grants, those procedures have not been documented. Effect: Without written procedures, the School Department runs the risk of non-compliance for Federal grants. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: The Town and School Department should review their Federal grants and determine which grants need specific written procedures to meet the Uniform Guidance requirements.
2022-002 ? U.S. Department of Education, for the Period July 1, 2021 through June 30, 2022, Assistance Listing #84.425D, #84.425U Elementary and Secondary School Emergency Fund Statement of Condition: Documentation of wage rate requirements in construction contracts and verification of certified weekly payrolls was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Effect: Contracted employees could potentially not be paid prevailing wage rates, which could jeopardize grant funding. Cause: The School Department did not include language in its construction contracts that included wage rate requirements and did not obtain certified payroll information from contractors. Recommendation: Management should carefully review all contracts related to grants to ensure they include the required language. In addition, management should ensure that contractors submit the required certified payrolls. Questioned Costs: None
2022-001 ? Uniform Guidance Written Procedures Criteria: Under the Uniform Guidance ?200.302 Financial Management, the non-Federal entity must provide written procedures to implement the requirements of ?200.305 (Federal payment), and written procedures for determining the allowability of costs in accordance with subpart E of the Uniform Guidance and the terms and conditions of the Federal award. Condition: The School Department currently does not have written procedures as required by the Uniform Guidance as specified in the criteria. Cause: Although the School Department has adequate procedures in place to prevent non-compliance for most of its Federal grants, those procedures have not been documented. Effect: Without written procedures, the School Department runs the risk of non-compliance for Federal grants. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: The Town and School Department should review their Federal grants and determine which grants need specific written procedures to meet the Uniform Guidance requirements.
2022-002 ? U.S. Department of Education, for the Period July 1, 2021 through June 30, 2022, Assistance Listing #84.425D, #84.425U Elementary and Secondary School Emergency Fund Statement of Condition: Documentation of wage rate requirements in construction contracts and verification of certified weekly payrolls was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Effect: Contracted employees could potentially not be paid prevailing wage rates, which could jeopardize grant funding. Cause: The School Department did not include language in its construction contracts that included wage rate requirements and did not obtain certified payroll information from contractors. Recommendation: Management should carefully review all contracts related to grants to ensure they include the required language. In addition, management should ensure that contractors submit the required certified payrolls. Questioned Costs: None
2022-001 ? Uniform Guidance Written Procedures Criteria: Under the Uniform Guidance ?200.302 Financial Management, the non-Federal entity must provide written procedures to implement the requirements of ?200.305 (Federal payment), and written procedures for determining the allowability of costs in accordance with subpart E of the Uniform Guidance and the terms and conditions of the Federal award. Condition: The School Department currently does not have written procedures as required by the Uniform Guidance as specified in the criteria. Cause: Although the School Department has adequate procedures in place to prevent non-compliance for most of its Federal grants, those procedures have not been documented. Effect: Without written procedures, the School Department runs the risk of non-compliance for Federal grants. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: The Town and School Department should review their Federal grants and determine which grants need specific written procedures to meet the Uniform Guidance requirements.
2022-002 ? U.S. Department of Education, for the Period July 1, 2021 through June 30, 2022, Assistance Listing #84.425D, #84.425U Elementary and Secondary School Emergency Fund Statement of Condition: Documentation of wage rate requirements in construction contracts and verification of certified weekly payrolls was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Effect: Contracted employees could potentially not be paid prevailing wage rates, which could jeopardize grant funding. Cause: The School Department did not include language in its construction contracts that included wage rate requirements and did not obtain certified payroll information from contractors. Recommendation: Management should carefully review all contracts related to grants to ensure they include the required language. In addition, management should ensure that contractors submit the required certified payrolls. Questioned Costs: None