Finding 1176899 (2025-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-09
Audit: 390750
Organization: Rsu/msad No. 29 (ME)

AI Summary

  • Core Issue: The Unit lacks consistent internal controls over program expenditures, risking unallowable costs.
  • Impacted Requirements: Compliance with 2 CFR 200.303 is not being met due to inadequate approval processes for expenditures.
  • Recommended Follow-Up: Develop and implement documented internal control policies to ensure proper approval of all program costs.

Finding Text

Significant Deficiency 2025-001 – Allowable Activities/Allowable Costs Federal Program Information: U.S. Department of Agriculture Passed through the State of Maine Department of Education: ALN 10.553,10.555, 10.559 & 10.579 Child Nutrition Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR 200.303 Condition: During audit procedures, it was identified that the Unit did not have consistent internal controls over program expenditures. Cause: The Unit 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: During audit procedures, 23 of the 25 disbursement samples did not have the proper approval on the invoices or supporting documents. This is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit develop and implement internal control policies and procedures for a consistent, documented approval process to ensure that only allowable costs are charged to the program. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Regional School Unit No. 29.

Corrective Action Plan

2025-001 – Allowable Activities/Allowable Costs Contact Person Responsible for Corrective Action: Wendy Bradstreet, RSU29 Business Manager Corrective Action: RSU29 has taken the following actions to address finding 2025-001: The district has been implementing new procedures and processes as of February 1, 2026, to correct the issues in question to comply with CFR(s): 2 CFR 200.303, to make sure we remain in compliance with OMB guidelines. Findings have been shared with the Food Services Director and training has been utilized from guidance and resources provided by the Maine Department of Education Nutrition Services site which include financial training and procurement practices and resources provided by the USDA School Nutrition Program regulations (7 CFR Part 210, 215, 220). Internal approvals have been revised to have not only the Food Service Director approving purchases, but an approval from the district Business Manager prior to payment of invoices to vendors. A copy of the OMB Circulars containing the CFR guidelines have been received and reviewed by the Business Manager and applicable grant managers/coordinators to implement a more stringent internal control process and procedure to ensure all requirements are followed. The Business Manager has updated the district’s Food Service Director and central office staff of applicable guidelines to ensure compliance of all projects that is being paid for by federal and/or state funding. Anticipated Completion Date: June 30, 2026.

Categories

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 1176897 2025-001
    Material Weakness Repeat
  • 1176898 2025-001
    Material Weakness Repeat
  • 1176900 2025-002
    Material Weakness Repeat
  • 1176901 2025-002
    Material Weakness Repeat
  • 1176902 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.16M
84.425 EDUCATION STABILIZATION FUND $617,697
10.555 NATIONAL SCHOOL LUNCH PROGRAM $486,577
84.027 SPECIAL EDUCATION_GRANTS TO STATES $287,604
84.367 IMPROVING TEACHER QUALITY STATE GRANTS $118,534
10.553 SCHOOL BREAKFAST PROGRAM $107,382
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $102,685
84.060 INDIAN EDUCATION_GRANTS TO LOCAL EDUCATIONAL AGENCIES $59,560
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $50,433
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $40,849
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $31,732
84.358 RURAL EDUCATION $11,982
84.173 SPECIAL EDUCATION_PRESCHOOL GRANTS $7,097
32.004 UNIVERSAL SERVICE FUND - SCHOOLS AND LIBRARIES $6,075