FAC Explorer

Finding 1172037 (2024-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2026-02-03
Audit: 385115
Organization: Biddeford-Saco-Old Orchard Beach Transit Committee (ME)
Auditor: RHR SMITH & COMPANY

AI Summary

  • Core Issue: The Committee failed to follow established procurement policies, leading to potential compliance risks.
  • Impacted Requirements: Non-compliance with 2 CFR 200.318 to 327 could result in unallowable expenses and improper federal reimbursements.
  • Recommended Follow-up: Update procurement policies and strengthen internal controls to ensure adherence to federal criteria.

Finding Text

Significant Deficiencies 2024-004 - Procurement, Suspension and Debarment Federal Program Information: Department of Transportation – ALN: - 20.500, 20.507, 20.525 & 20.526 – Federal Transit Cluster 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 a repeat finding of 2023-004. 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: See attached Corrective Action Plan.

Corrective Action Plan

2024-004 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

  • 1172005 2024-002
    Material Weakness Repeat
  • 1172006 2024-003
    Material Weakness Repeat
  • 1172007 2024-004
    Material Weakness Repeat
  • 1172008 2024-002
    Material Weakness Repeat
  • 1172009 2024-003
    Material Weakness Repeat
  • 1172010 2024-004
    Material Weakness Repeat
  • 1172011 2024-002
    Material Weakness Repeat
  • 1172012 2024-003
    Material Weakness Repeat
  • 1172013 2024-004
    Material Weakness Repeat
  • 1172014 2024-002
    Material Weakness Repeat
  • 1172015 2024-003
    Material Weakness Repeat
  • 1172016 2024-004
    Material Weakness Repeat
  • 1172017 2024-002
    Material Weakness Repeat
  • 1172018 2024-003
    Material Weakness Repeat
  • 1172019 2024-004
    Material Weakness Repeat
  • 1172020 2024-002
    Material Weakness Repeat
  • 1172021 2024-003
    Material Weakness Repeat
  • 1172022 2024-004
    Material Weakness Repeat
  • 1172023 2024-002
    Material Weakness Repeat
  • 1172024 2024-003
    Material Weakness Repeat
  • 1172025 2024-004
    Material Weakness Repeat
  • 1172026 2024-002
    Material Weakness Repeat
  • 1172027 2024-003
    Material Weakness Repeat
  • 1172028 2024-004
    Material Weakness Repeat
  • 1172029 2024-002
    Material Weakness Repeat
  • 1172030 2024-003
    Material Weakness Repeat
  • 1172031 2024-004
    Material Weakness Repeat
  • 1172032 2024-002
    Material Weakness Repeat
  • 1172033 2024-003
    Material Weakness Repeat
  • 1172034 2024-004
    Material Weakness Repeat
  • 1172035 2024-002
    Material Weakness Repeat
  • 1172036 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.507 FEDERAL TRANSIT_FORMULA GRANTS $1.23M
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $123,388
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $13,577