Finding Text
SIGNIFICANT DEFICIENCIES 2025-002 – Allowable Costs and Allowable Activities Federal Program Information: 10.553,10.555,10.556,10.5599 Child Nutrition Cluster and 10.582 Criteria: The following CFR applies to this finding: 2 CFR 200.303 Condition: During audit procedures, it was identified that the Districts process to document approval and coding over disbursements is not working effectively. Cause: The District does not have the necessary internal controls over compliance. Effect: Insufficient controls could allow for unallowable costs to be charged. Identification Of Questioned Costs: None Identified Context: 25 Cash Disbursements were tested and it was found that 13 of the disbursements tested did not have the Purchase Orders or approval on the invoices and 14 of the disbursements that did not have account codes written on the invoices or purchase order to help ensure they were properly charged to the correct accounts. This is not statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements 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 Maine School Administrative District No. 27.