Finding 1176902 (2025-002)

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

AI Summary

  • Core Issue: The Unit did not follow procurement policies, leading to potential risks in managing federal funds.
  • Impacted Requirements: Non-compliance with 2 CFR 200.317-200.327 could result in unallowable expenses.
  • Recommended Follow-Up: The Unit should review program requirements and strengthen internal controls as outlined in their Corrective Action Plan.

Finding Text

2025-002 – Procurement, Suspension & Debarment 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 200.317-200.327 Condition: During audit procedures, it was identified that the Unit did not follow policies and procedures. Cause: The Unit did not understand the procurement requirements for the program. 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, auditor requested copies of the contracts and procurement history files, none could be provided. This is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit familiarize themselves with the program requirements and implement the internal control policies and procedures that have already been adopted by the Unit. 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

2025-002 – Procurement, Suspension & Debarment Contact Person Responsible for Corrective Action: Wendy Bradstreet, RSU29 Business Manager Corrective Action: RSU29 has taken the following actions to address finding 2025-002: 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 200.317-200.327, 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). Beginning February 3, 2026, when guidance was received by the external auditing team, a refresher training on proper procurement methods and processes, which have been adopted by RSU29, has been scheduled. This training includes proper documentation of RFPs and applicable contracts utilized for vendors for all funding levels. Anticipated Completion Date: June 30, 2026.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1176897 2025-001
    Material Weakness Repeat
  • 1176898 2025-001
    Material Weakness Repeat
  • 1176899 2025-001
    Material Weakness Repeat
  • 1176900 2025-002
    Material Weakness Repeat
  • 1176901 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