Finding 1152254 (2024-005)

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

AI Summary

  • Core Issue: The City's procurement policy is missing key provisions required by federal regulations.
  • Impacted Requirements: Noncompliance with 2 CFR §200.318(a) could lead to unallowable costs and unfair procurement practices.
  • Recommended Follow-Up: Revise the procurement policy to meet all federal requirements and establish a regular review process.

Finding Text

2024-005 - Procurement and Suspension and Debarment 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 §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

Categories

Procurement, Suspension & Debarment 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
  • 1152251 2024-004
    Significant Deficiency
  • 1152252 2024-004
    Significant Deficiency
  • 1152253 2024-004
    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