Finding 1152251 (2024-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-09-08
Audit: 365798
Organization: City of Ellsworth (ME)

AI Summary

  • Core Issue: Four out of nine disbursements totaling $460,844 were approved without following the City’s internal control procedures.
  • Impacted Requirements: The City failed to document invoice approvals as required by 2 CFR §200.303.
  • Recommended Follow-Up: The City should enhance internal control processes to ensure all invoices are approved according to policy.

Finding Text

2024-004 - Allowable Cost/Cost Principles Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.303 Condition: During our testing of 9 disbursements under the State & Local Fiscal Recovery Funds, we noted that 4 disbursements totaling $460,844 were approved without following the City’s documented internal control procedures. Specifically, the City’s policy requires documenting the approval of invoices, but this process was not followed for the identified transactions. Cause: The control lapse occurred because there was turnover in key positions. Effect: By not following its own internal control procedures, the City increased the risk of unallowable or unsupported costs being charged to the program. Although we did not identify any unallowable costs in the items tested, the absence of proper approvals diminishes assurance that expenses are appropriate and compliant. Identification of Questioned Costs: None identified. Context: The entire population of 12 months of reimbursements from the fiscal year were examined which is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the City implement internal control processes and procedures to ensure that all invoices are approved per the City’s policy. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 575809 2024-004
    Significant Deficiency
  • 575810 2024-004
    Significant Deficiency
  • 575811 2024-004
    Significant Deficiency
  • 575812 2024-005
    Significant Deficiency
  • 575813 2024-005
    Significant Deficiency
  • 575814 2024-005
    Significant Deficiency
  • 1152252 2024-004
    Significant Deficiency
  • 1152253 2024-004
    Significant Deficiency
  • 1152254 2024-005
    Significant Deficiency
  • 1152255 2024-005
    Significant Deficiency
  • 1152256 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $402,599
84.027 Special Education Grants to States $381,176
90.601 Northern Border Regional Development $350,974
20.205 Highway Planning and Construction $156,437
97.083 Staffing for Adequate Fire and Emergency Response (safer) $142,050
84.048 Career and Technical Education -- Basic Grants to States $136,102
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $134,890
10.553 School Breakfast Program $71,461
84.424 Student Support and Academic Enrichment Program $51,641
10.582 Fresh Fruit and Vegetable Program $44,423
84.002 Adult Education - Basic Grants to States $18,070
21.027 Coronavirus State and Local Fiscal Recovery Funds $15,226
84.358 Rural Education $14,546
20.616 National Priority Safety Programs $6,983
20.600 State and Community Highway Safety $5,761
84.425 Education Stabilization Fund $4,047
97.067 Homeland Security Grant Program $3,307
10.555 National School Lunch Program $3,202
10.649 Pandemic Ebt Administrative Costs $1,306