Corrective Action Plans

Finding 28236 (2022-064)

Material Weakness 2022

State of Maine

ME

Reporting § 200.303 § 200.510

Department: Health and Human Services Administrative and Financial Services Title: Internal control over submission and review of ELC Schedule of Expenditures of Federal Awards information needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Fina...

Department: Health and Human Services Administrative and Financial Services Title: Internal control over submission and review of ELC Schedule of Expenditures of Federal Awards information needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will work with the Office of the State Controller to develop and implement additional procedures for SEFA reporting. The Office of the State Controller will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. Completion Date: December 31, 2023 and September 1, 2023 respectively Agency Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626 Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451

View Audit 32781

Finding 28235 (2022-063)

Material Weakness 2022

State of Maine

ME

Internal Control / Segregation of Duties Material Weakness Reporting § 200.303

Department: Health and Human Services Title: Internal control over ELC program reporting needs improvement Questioned Costs: None Status: Corrective action complete Corrective Action: The Department has implemented Microsoft Project (within the ELC Team) for each Program Area. The Department has de...

Department: Health and Human Services Title: Internal control over ELC program reporting needs improvement Questioned Costs: None Status: Corrective action complete Corrective Action: The Department has implemented Microsoft Project (within the ELC Team) for each Program Area. The Department has developed a process to document the completion of each submission. The first quarterly reports due will be submitted to federal CDC using the new documented process Completion Date: January 15, 2023 (first and second items) and February 28, 2023 (third item) Agency Contact: Sara Robinson, Senior Program Manager, DHHS, 207-287-4610

View Audit 32781

Finding 28222 (2022-061)

Significant Deficiency 2022

State of Maine

ME

Cash Management Internal Control / Segregation of Duties Significant Deficiency § 200.302 § 200.303

Department: Administrative and Financial Services Title: Internal control over ICA program cash management needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will reconcile daily files for the Immunization grants from 2...

Department: Administrative and Financial Services Title: Internal control over ICA program cash management needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will reconcile daily files for the Immunization grants from 2021 to present. Completion Date: December 31, 2023 Agency Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626

View Audit 32781

Finding 28221 (2022-060)

Significant Deficiency 2022

State of Maine

ME

Reporting § 200.303 § 200.510

Department: Health and Human Services Administrative and Financial Services Title: Internal control over the submission of ICA Schedule of Expenditures of Federal Awards reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Maine Immunization...

Department: Health and Human Services Administrative and Financial Services Title: Internal control over the submission of ICA Schedule of Expenditures of Federal Awards reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Maine Immunization Program (MIP) Senior Health Program Manager will request the data needed for the SEFA from the MIP Planning and Research Associate. The MIP Senior Health Program Manager will review the data prior to the submission to the Service Center, which will include fiscal year accuracy of the report. The Service Center will provide the CDC/Immunization program a summary and back up of what is being reported and the CDC/Immunization program will verify it is accurate. The Service Center will add to the reviewer?s checklist that the preparer has consulted and has the proper backup with the CDC/Immunization program to verify that the information provided was accurate. Completion Date: December 31, 2023 Agency Contact: Jessica Shiminski, Health Program Manager, Maine Center for Disease Control & Prevention, DHHS, 207-287-7087

View Audit 32781

Finding 28219 (2022-058)

Material Weakness 2022

State of Maine

ME

Subrecipient Monitoring § 200.303 § 200.332

Department: Health and Human Services Title: Internal control over ICA program subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will update subrecipient monitoring policies and procedures for all OPHE ...

Department: Health and Human Services Title: Internal control over ICA program subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will update subrecipient monitoring policies and procedures for all OPHE subawards based on this finding and recommendations. The Department will develop a subaward tracking tool for each agreement. The Department will transfer all subaward monitoring records to a centralized location within OPHE that can be accessed by the entire team, including approval records and copies of reports submitted by each subaward recipient. The Department will conduct subaward risk assessments for SFY23 contracts. The Department will complete subaward monitoring processes for SFY23 contracts following the updated monitoring policies and procedures and ensure all documentation (including approvals) is saved in the centralized location. Completion Date: March 30, 2023, April 15, 2023, April 30, 2023 and June 30, 2023 respectively Agency Contact: Ian Yaffe, Director, Office of Population Health Equity, DHHS, 207- 592-1481

View Audit 32781

Finding 28212 (2022-056)

Significant Deficiency 2022

State of Maine

ME

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

Department: Education Title: Internal control over ESF special reporting needs improvement Questioned Costs: None Status: Corrective action complete Corrective Action: Beginning in February 2022, the Department implemented a procedure for reviewing FFATA reports for accuracy prior to submission. Wh...

Department: Education Title: Internal control over ESF special reporting needs improvement Questioned Costs: None Status: Corrective action complete Corrective Action: Beginning in February 2022, the Department implemented a procedure for reviewing FFATA reports for accuracy prior to submission. Where this finding relates to FFATA reports prior to February 2022, and the Department has taken steps to address the previous finding, management feels that no further corrective action is necessary. Completion Date: February 28, 2022 Agency Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161

View Audit 32781

Finding 28203 (2022-006)

Material Weakness 2022

Metropolitan School District of Steuben County

IN

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2022-006 Contact Person Responsible for Corrective Action: Schauna Relue Contact Phone Number: 260-665-2854 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The ESSER reports requested by IDOE will follow the same procedures of all FER reports...

FINDING 2022-006 Contact Person Responsible for Corrective Action: Schauna Relue Contact Phone Number: 260-665-2854 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The ESSER reports requested by IDOE will follow the same procedures of all FER reports. The ?data collection? for the ESSER grants was not identified as a financial report, and thus did not follow these processes. Now that we know this is a financial report, the steps below will be followed. The grant was initially not set up correctly and expenses were expended to and then transferred to the correct accounts once the grants were set up correctly. These changes were in flux when the report was requested, so what was reported at the time of the report is no longer what is reflected in grants? ledgers. The corrective action will require that the program director gathers the initial data, the data will be reviewed by the administrative assistant to the grants? director, and then reviewed by the Treasurer. All three employees will sign/initial a printed copy of the report before it is submitted. Data regarding students served by programs and staff reports will be reviewed by the program director and the data specialist and signed off on by both parties to ensure accuracy. Anticipated Completion Date: Effective Immediately; Completion will occur when the next report is requested.

View Audit 30930

Finding 28200 (2022-005)

Material Weakness 2022

Metropolitan School District of Steuben County

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2022-005 Contact Person Responsible for Corrective Action: Kathy Bahr Contact Phone Number: 260-316-5797 Views of Responsible Official: MSD of Steuben will work in collaboration with Northeast Indiana Special Education Cooperative and the DeKalb Eastern Treasurer (LEA) Description of Correct...

FINDING 2022-005 Contact Person Responsible for Corrective Action: Kathy Bahr Contact Phone Number: 260-316-5797 Views of Responsible Official: MSD of Steuben will work in collaboration with Northeast Indiana Special Education Cooperative and the DeKalb Eastern Treasurer (LEA) Description of Corrective Action Plan: MSD of Steuben will work with the Northeast Indiana Special Education Cooperative (NEISEC) to implement the procedures detailed below. NEISEC Treasurer will reach out to MSD of Steuben during the writing process of the IDEA 611 and 619 grants in order for MSD of Steuben to submit their plans for their allocation of proportionate share money. NEISEC will provide the allocation amounts to MSD of Steuben. These submissions will include a proportionate share budget and include proportionate share staff names and any necessary information for the budget categories. The NEISEC Treasurer will then compile the proportionate share information on the grant submission. The LEA Treasurer will be given a copy of the grant application and budget upon approval of the grant. Any NEISEC employee being paid out of proportionate share grant funds for salary and benefits will be paid from the LEA?s financial software. The LEA Treasurer will keep a spreadsheet of employee proportionate share expenses and this spreadsheet will be updated monthly based on time and effort logs that are submitted by MSD of Steuben to the LEA and NEISEC. Any employee utilizing proportionate share funds that is not an employee of NEISEC, but rather a direct employee of MSD of Steuben, will be paid directly by MSD of Steuben. Time and effort logs will still be submitted to the LEA and NEISEC Treasurers for these employees in order to generate a direct reimbursement from the grant fund to the member school. For any expenses for a category outside of salary and benefits, MSD of Steuben will submit an invoice and proof of purchase for equipment, supplies, etc. to NEISEC and the LEA in order to be directly reimbursed for those proportionate share expenses. If the request was not in the initial grant budget, MSD of Steuben will submit all relevant information to NEISEC in order for a grant modification to be completed. Per IDOE, the grant modification must be approved first prior to purchasing the items. Time and effort logs as well as invoice and proof of payment will be sent to the LEA Treasurer in order to complete the grant reimbursement requests. At the end of the grant period, any remaining proportionate share money will require that a waiver be completed. As of this date (2/10/2023) the LEA (DeKalb County Eastern CSD) and NEISEC are still in communication with SBOA and IDOE to review the proportionate share plan and ensure all necessary requirements will be satisfied. This will be communicated with MSD of Steuben. Anticipated Completion Date: Changes discussed above will be implemented for the remainder of the FY23 grant period starting 07/01/2023.

View Audit 30930

Finding 28188 (2022-003)

Material Weakness 2022

Metropolitan School District of Steuben County

IN

Procurement, Suspension & Debarment School Nutrition Programs § 200.303

FINDING 2022-003 Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: The bids for bread and milk were renewed by Region 8 for the 2020-2021 school year. The Service Center...

FINDING 2022-003 Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: The bids for bread and milk were renewed by Region 8 for the 2020-2021 school year. The Service Center could not provide documentation that procedures were performed to verify the vendors were not suspended or debarred from participation in federal programs prior to entering into covered transactions with these vendors. Description of Corrective Action Plan: Food Service will review bid packets to ensure documentation was provided as proof that the vendors were not suspended or debarred. If such evidence is not provided, the Food Service Director will verify and request appropriate documentation Anticipated Completion Date: February 10, 2023

View Audit 30930

Finding 28186 (2022-004)

Material Weakness 2022

Metropolitan School District of Steuben County

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.1 § 200.303 § 200.317 § 200.318 § 200.319

FINDING 2022-004 Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: 1. Procurement: The School Corporation did not obtain price or rate quotes for milk, bread, or food ex...

FINDING 2022-004 Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: 1. Procurement: The School Corporation did not obtain price or rate quotes for milk, bread, or food exceeding $10,000.00 from an adequate number of sources, as required under the small purchase procedures. 2. Suspension and Debarment: The School Corporation did not verify that vendors with contracts over $25,000.00 were not excluded or disqualified from participation in federal award programs. Description of Corrective Action Plan: 1. Food Service will maintain additional prices for like items and/or services. Documentation will be maintained regarding why each vendor is being utilized. Said documentation will be reviewed, initialed and dated by the Food Service Director and an additional staff member. 2. Food Service will maintain annual vendor certificates to ensure that they were not suspended or debarred from participation in federal programs. Anticipated Completion Date: February 10, 2023

View Audit 30930

Finding 28185 (2022-002)

Material Weakness 2022

Metropolitan School District of Steuben County

IN

School Nutrition Programs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: The School Corporation had not separated activities related to payroll withholding and benefit disbursements. These wer...

Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: The School Corporation had not separated activities related to payroll withholding and benefit disbursements. These were paid without evidence of review and approval by a person not involved in the original disbursement process. Description of Corrective Action Plan: Effective immediately, Payroll initials and dates all activities related to payroll withholding and benefit disbursements. Additionally, The Business Managers reviews and approves by initialing and dating. Anticipated Completion Date: January 2023

View Audit 30930

Finding 28168 (2022-057)

Significant Deficiency 2022

State of Maine

ME

Equipment & Real Property Management Subrecipient Monitoring § 200.303 § 200.313 § 200.332

Department: Education Title: Internal control over ESF subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: During the review of ESF applications, the Office of Federal Emergency Relief Programs (OFERP) team will confirm...

Department: Education Title: Internal control over ESF subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: During the review of ESF applications, the Office of Federal Emergency Relief Programs (OFERP) team will confirm that equipment purchases are denoted in the equipment budget category of the application. Equipment inventories and real property lists will be collected during the subrecipient monitoring process from school administrative units (SAUs) and reviewed for compliance by the OFERP team. Completion Date: December 31, 2023 Agency Contact: Shelly Chasse-Johndro, Director of OFERP, DOE, 207-458-3180

View Audit 32781

Finding 28164 (2022-052)

Material Weakness 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

Department: Education Title: Internal control over ESF expenditures needs improvement Questioned Costs: Known: $620,676 Likely: $6,364,627 Status: Management?s opinion is that corrective action is not required Corrective Action: The Maine Department of Education (MDOE) disagrees with the identified ...

Department: Education Title: Internal control over ESF expenditures needs improvement Questioned Costs: Known: $620,676 Likely: $6,364,627 Status: Management?s opinion is that corrective action is not required Corrective Action: The Maine Department of Education (MDOE) disagrees with the identified questioned costs. The Office of Federal Emergency Relief Programs (OFERP) utilized guidance provided by the U.S. Department of Education (grantor) and conferred in writing with Maine?s assigned U.S. Department of Education program officer throughout the Education Stabilization Fund application review process. The Maine Department of Education?s OFERP provided the auditor with the grantor?s guidance which clearly states that the questioned costs were allowable, reasonable, and necessary to prepare, prevent, and respond to the COVID-19 pandemic. Throughout the application review process, OFERP utilized ESF federal statutory language and the grantor?s published guidance to determine allowability. Once funding applications were approved, SAUs requested reimbursement from the OFERP for the approved costs outlined in the school administrative unit (SAU) application. The OFERP reviewed SAU reimbursement requests and provided payment for approved expenses. The ESF costs outlined in this finding were allowable, reasonable, and necessary to prepare, prevent, and respond to the COVID-19 pandemic. Documentation provided by the grantor supports the determinations made by the Maine Department of Education. Completion Date: N/A Agency Contact: Shelly Chasse-Johndro, Director of OFERP, DOE, 207-458-3180

View Audit 32781 Questioned Costs: $1

Finding 28163 (2022-053)

Material Weakness 2022

State of Maine

ME

Reporting § 200.303 § 200.510

Department: Education Administrative and Financial Services Title: Internal control over submission and review of ESF Schedule of Expenditures of Federal Awards information needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department of Education w...

Department: Education Administrative and Financial Services Title: Internal control over submission and review of ESF Schedule of Expenditures of Federal Awards information needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department of Education will verify individual Assistance Listing Numbers on the SEFA report review. The Office of the State Controller will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. Completion Date: September 1, 2023 Agency Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451

View Audit 32781

Finding 28162 (2022-051)

Material Weakness 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles § 200.1 § 200.302 § 200.303 § 200.403

Department: Labor Administrative and Financial Services Title: Internal control over CSLFRF expenditures needs improvement Questioned Costs: Known: $51,482,644 Likely: $51,482,644 Status: Management?s opinion is that corrective action is not required Corrective Action: We disagree with this finding....

Department: Labor Administrative and Financial Services Title: Internal control over CSLFRF expenditures needs improvement Questioned Costs: Known: $51,482,644 Likely: $51,482,644 Status: Management?s opinion is that corrective action is not required Corrective Action: We disagree with this finding. Likewise, we are unable to determine why the auditor has identified a questioned cost or includes a recommendation that only allowable costs are funded by CSLFRF. The transfer of $80 million to the Unemployment Trust Fund is completely allowable, with a portion categorized under the Public Health and Economic Impacts use category and a portion under the Revenue Loss - Provision of Government Services use category. All documentation to support the allowability of this transfer was provided to the auditor for review. There were errors in the original calculation of the total amount eligible under the Public Health and Economic Impacts category; however, we provided documentation to support that the total amount was eligible under the Revenue Loss - Provision of Government Services use category. Although we have identified a weakness in internal control over compliance, there was no actual noncompliance. Consequently, there is no cost that is considered unallowable; therefore, there should be no questioned cost. Completion Date: N/A Agency Contact: DOL Contact: Kimberly Smith, Deputy Commissioner, Department of Labor, 207-621-5096 DAFS Contact: Frank Wiltuck, Director of Internal Audit, OSC, 207-626-8420

View Audit 32781 Questioned Costs: $1

Finding 28161 (2022-050)

Material Weakness 2022

State of Maine

ME

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.303

Department: Economic and Community Development Title: Internal control over ERA Program reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will require MaineHousing to submit data gathered to prepare reports to DECD for review a...

Department: Economic and Community Development Title: Internal control over ERA Program reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will require MaineHousing to submit data gathered to prepare reports to DECD for review and approval prior to certification and submission. Completion Date: June 30, 2023 Agency Contact: Deborah Johnson, Director, Office of Community Development, DECD, 207-624-9817

View Audit 32781

Finding 28160 (2022-049)

Material Weakness 2022

State of Maine

ME

Subrecipient Monitoring § 200.303 § 200.332

Department: Economic and Community Development Title: Internal control over ERA Program subrecipient monitoring needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will contract with a consultant to conduct close out procedures that will e...

Department: Economic and Community Development Title: Internal control over ERA Program subrecipient monitoring needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will contract with a consultant to conduct close out procedures that will ensure these subrecipient funds were used for authorized purposes and in compliance with Federal regulations. The Department will ensure that the review of subrecipient audit reports are sufficiently documented. Completion Date: June 30, 2023 Agency Contact: Deborah Johnson, Director, Office of Community Development, DECD, 207-624-9817

View Audit 32781

Finding 28159 (2022-048)

Material Weakness 2022

State of Maine

ME

Subrecipient Monitoring Internal Control / Segregation of Duties Material Weakness § 200.303

Department: Economic and Community Development Title: Internal control over ERA Program special reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department has modified existing policies and procedures to ensure FFATA reporting is comple...

Department: Economic and Community Development Title: Internal control over ERA Program special reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department has modified existing policies and procedures to ensure FFATA reporting is completed for all subawards that meet or exceed the first-tier threshold. Monthly reports are run for new awards which are then reported within 30 days in FFATA. The Department will complete FFATA reporting for all prior and current subawards that meet or exceed the first-tier threshold related to this program. Completion Date: June 30, 2023 Agency Contact: Deborah Johnson, Director, Office of Community Development, DECD, 207-624-9817

View Audit 32781

Finding 28151 (2022-045)

Material Weakness 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403

Department: Labor Title: Internal control over UI claim payments needs improvement Questioned Costs: Known: $19,278 Likely: $2,700,000 Status: Management?s opinion is that corrective action is not required (first item) Corrective action in progress (remaining items) Corrective Action: The Department...

Department: Labor Title: Internal control over UI claim payments needs improvement Questioned Costs: Known: $19,278 Likely: $2,700,000 Status: Management?s opinion is that corrective action is not required (first item) Corrective action in progress (remaining items) Corrective Action: The Department disagrees with the findings around the PUA program and the timing of the notices to provide Proof of Employment for continued eligibility. USDOL in its guidance acknowledged that it would take time to implement the new requirement from a systems and operational perspective. The Department worked diligently to implement the new requirement (along with other requirements from the CAA) as soon as possible. Furthermore, the PUA program was a one-time program created by the Federal government in response to the COVID-19 pandemic, to provide monetary support to those individuals who traditionally do not qualify for unemployment compensation benefits. All CARES Act programs, including PUA, ended in September, 2021. At this time there is no corrective action we can take, as the program no longer exists in its prior form. At most we may still see PUA eligibility as a result of a pending appeal, or court case. We will follow established processes at that time, which are based on Federal guidance provided. The Department will add a text field to obtain more information on the location of a job fair or the name of an activity when a claimant reports a CareerCenter job fair or other activity as a work search. Information will be provided to businesses through a new report for review. The Department will create a work search issue for fact-finding and possible adjudication when a claimant reports a CareerCenter Job Fair or other activity as a work search more than three times. The Department will review functionality of Vital Statistics Crossmatch to ensure that all data related to date of death for active claimants is received as timely as possible. The Department will add system controls when entering a date of birth, both for claimants and businesses to prevent avoidable data entry errors. Completion Date: June 30, 2023 (second and third items), June 30, 2024 (fourth and fifth items) Agency Contact: Laura Boyett, Director, Bureau of Unemployment Compensation, DOL, 207-621-5156

View Audit 32781 Questioned Costs: $1

Finding 28150 (2022-021)

Significant Deficiency 2022

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.303

Department: Labor Administrative and Financial Services Title: Internal control over valuing estimates for the allowances for uncollectible unemployment insurance receivables needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office of the State Con...

Department: Labor Administrative and Financial Services Title: Internal control over valuing estimates for the allowances for uncollectible unemployment insurance receivables needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office of the State Controller (OSC) will provide guidance to the Department of Labor (DOL) to develop a reporting mechanism that will provide a more detailed analysis of the activity of the receivable balances. The OSC is responsible for determining the estimates in the financial statements. The accounting estimates are based on subjective, as well as, objective factors; therefore, professional judgement is required to estimate an amount for uncollectible receivables using an aging methodology, which is considered a common and acceptable method within the industry. Management's opinion is that this method is not overly sensitive to variations, is consistent with historical patterns and is not overly subjective or susceptible to bias. Applying this methodology, the OSC and the DOL accumulate relevant, sufficient, and reliable data on which to base the estimate. Additionally, we believe that the estimate is presented in conformity with the applicable accounting principles and that disclosure is adequate. The OSC recently performed a five-year trend analysis of historical collections with information provided by the DOL. The OSC compared the percentages and the assumptions used in the past and updated the reserve percentages accordingly. The OSC will continue to use the rolling year trend analysis with the actual collection data, as provided by the DOL, to update the reserve percentage. The DOL implemented a new system and the OSC will continue to review the reserve process to ensure the allowance continues to be valued properly. Completion Date: June 30, 2023 Agency Contact: Stacey Thomas, Financial Management Coordinator, OSC, 207-626-8431

View Audit 32781

Finding 28147 (2022-046)

Significant Deficiency 2022

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.430

Department: Administrative and Financial Services Title: Internal control over monitoring of employee classification and compensation needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will require Service Center and Agency HR Directors t...

Department: Administrative and Financial Services Title: Internal control over monitoring of employee classification and compensation needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will require Service Center and Agency HR Directors to notify supervisors at least twice per year of overdue performance evaluations. The Department will require Service Center and Agency HR Directors to review Hiring Requests to ensure duties identified are consistent with classifications. The Department will require Service Center and Agency HR Directors and/or HR recruiters to review job vacancy postings to ensure duties are consistent with classifications. The Department will implement a 'review of classification specification date' on class specs (currently only note date when a change is made). Completion Date: October 1, 2023 (first item), and April 30, 2023 (remaining items) Agency Contact: Breena D Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886

View Audit 32781

Finding 28116 (2022-019)

Significant Deficiency 2022

State of Maine

ME

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

Department: Administrative and Financial Services Health and Human Services Title: Internal control over financial reporting of OFI overpayments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department of Health and Human Services and the Offic...

Department: Administrative and Financial Services Health and Human Services Title: Internal control over financial reporting of OFI overpayments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department of Health and Human Services and the Office of the State Controller agree that the variance between the receivable and reserve should be booked as a deferred inflow. A claim termination policy will be established in accordance with federal regulations. Completion Date: June 30, 2023 Agency Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28106 (2022-044)

Significant Deficiency 2022

State of Maine

ME

Subrecipient Monitoring § 200.303 § 200.332

Department: Education Title: Internal control over CACFP subrecipient risk evaluation procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The CACFP team will create a risk assessment tool to use in scheduling subrecipient reviews. Completion D...

Department: Education Title: Internal control over CACFP subrecipient risk evaluation procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The CACFP team will create a risk assessment tool to use in scheduling subrecipient reviews. Completion Date: June 30, 2023 Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 32781

Finding 28105 (2022-043)

Significant Deficiency 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303

Department: Education Title: Internal control over CACFP eligibility needs improvement Questioned Costs: Known: $50,275 Likely: Undeterminable Status: Corrective action complete Corrective Action: The Department added to the check list a space for the on-site documentation for the pre-approval site ...

Department: Education Title: Internal control over CACFP eligibility needs improvement Questioned Costs: Known: $50,275 Likely: Undeterminable Status: Corrective action complete Corrective Action: The Department added to the check list a space for the on-site documentation for the pre-approval site visit to be uploaded into CNPWeb. The Department made the pre-site visit mandatory before the start of the program. Completion Date: March 6, 2023 Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 32781 Questioned Costs: $1

Finding 28104 (2022-042)

Material Weakness 2022

State of Maine

ME

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.332

Department: Education Title: Internal control over CACFP subrecipient audit procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will implement policies and procedures for the tracking, receipt, and review of audits for subre...

Department: Education Title: Internal control over CACFP subrecipient audit procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will implement policies and procedures for the tracking, receipt, and review of audits for subrecipients that expend over $750,000, in accordance with Federal regulations. Completion Date: June 30, 2023 Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 32781

Corrective Action Plans

Filters