FAC Explorer

Finding 1164380 (2023-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-12-10
Audit: 373784
Organization: Biddeford-Saco-Old Orchard Beach Transit Committee (ME)
Auditor: RHR SMITH AND COMPANY

AI Summary

  • Core Issue: The Committee failed to follow established procurement policies and procedures.
  • Impacted Requirements: Compliance with 2 CFR 200.318 to 327 is not being met, risking unallowable expenses.
  • Recommended Follow-up: Update procurement policies and implement stronger internal controls to ensure compliance.

Finding Text

2023-004 – Procurement, Suspension and Debarment Federal Program Information: Department of Transportation – ALN: - 20.500, 20.507, 20.525 & 20.526 – Federal Transit Cluster 20.509 – Formula Grants for Rural Areas and Tribal Transit Program Criteria: The following CFR(s) apply to this finding: 2 CFR 200.318 to 327. Condition: During audit procedures, it was identified that the Committee did not follow policies and procedures as adopted. Cause: The Committee does not have the necessary internal controls over compliance. Effect: Insufficient controls could result in unallowable expenses being charged to the program and subsequently improperly reimbursed by federal funds. Identification of Questioned Costs: None identified. Context: While reviewing the procurement policies and procedures, the auditor requested the micro and small purchases form, as found in the procurement policies and procedures documents, but none could be provided for the samples originally requested. Repeat Finding: This is not a repeat finding. Recommendation: The auditor recommends that the Committee update its procurement policy and implement internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Biddeford-Saco-Old Orchard Beach Transit Committee.

Corrective Action Plan

2023-004 Procurement, Suspension and Debarment The Committee acknowledges that certain procurement procedures were not followed, leading to a finding of noncompliance. To remedy this, on July 1, 2025 we put new workflow controls in place within our new integrated accounting software. These workflows support compliance with our procurement policies and ensure all required supporting documentation, including forms for micro and small purchases, are secured and archived for capital purchases and grant expenditures. This will ensure that all procurement policies, which are in compliance with all FTA guidelines, are consistently followed.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1164345 2023-002
    Material Weakness Repeat
  • 1164346 2023-002
    Material Weakness Repeat
  • 1164347 2023-002
    Material Weakness Repeat
  • 1164348 2023-002
    Material Weakness Repeat
  • 1164349 2023-002
    Material Weakness Repeat
  • 1164350 2023-002
    Material Weakness Repeat
  • 1164351 2023-002
    Material Weakness Repeat
  • 1164352 2023-002
    Material Weakness Repeat
  • 1164353 2023-002
    Material Weakness Repeat
  • 1164354 2023-002
    Material Weakness Repeat
  • 1164355 2023-002
    Material Weakness Repeat
  • 1164356 2023-002
    Material Weakness Repeat
  • 1164357 2023-003
    Material Weakness Repeat
  • 1164358 2023-003
    Material Weakness Repeat
  • 1164359 2023-003
    Material Weakness Repeat
  • 1164360 2023-003
    Material Weakness Repeat
  • 1164361 2023-003
    Material Weakness Repeat
  • 1164362 2023-003
    Material Weakness Repeat
  • 1164363 2023-003
    Material Weakness Repeat
  • 1164364 2023-003
    Material Weakness Repeat
  • 1164365 2023-003
    Material Weakness Repeat
  • 1164366 2023-003
    Material Weakness Repeat
  • 1164367 2023-003
    Material Weakness Repeat
  • 1164368 2023-003
    Material Weakness Repeat
  • 1164369 2023-004
    Material Weakness Repeat
  • 1164370 2023-004
    Material Weakness Repeat
  • 1164371 2023-004
    Material Weakness Repeat
  • 1164372 2023-004
    Material Weakness Repeat
  • 1164373 2023-004
    Material Weakness Repeat
  • 1164374 2023-004
    Material Weakness Repeat
  • 1164375 2023-004
    Material Weakness Repeat
  • 1164376 2023-004
    Material Weakness Repeat
  • 1164377 2023-004
    Material Weakness Repeat
  • 1164378 2023-004
    Material Weakness Repeat
  • 1164379 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $191,000
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $70,134
20.507 FEDERAL TRANSIT FORMULA GRANTS $14,478