Finding 1224748 (2024-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2026-07-27
Audit: 407949
Organization: County of Aroostook (ME)

AI Summary

  • Core Issue: The County failed to include necessary contract documentation for federal procurement, leading to potential compliance risks.
  • Impacted Requirements: Key federal regulations (2 CFR 200.317-327, 200.314) were not met, risking loss of federal funds.
  • Recommended Follow-Up: Establish internal controls to ensure all federal procurement documentation is complete and timely submitted.

Finding Text

MATERIAL WEAKNESSES 2024-001 - Procurement Federal Program Information: US Department of Treasury: ALN - 21.027 - Coronavirus State and Local Fiscal Recovery Funds Criteria: The following CFR(s) apply to this finding: 2 CFR 200.317-327, 2 CFR section 200.314, 2 CFR 200 Appendix II. Condition: The procurement history file did not include the contract or documentation containing the required provisions. Cause: The County does not have the necessary understanding of the requirement to be able to understand the necessary internal controls over compliance at the time the contract was signed. Effect: The County did not require a contract which resulted in required procurement provisions such as the termination clause, Davis Bacon requirement. This increases the likelihood of restricted or loss of federal funds. Identification of Questioned Costs: None identified. Context: There was one new procurement in FY 24 that was tested. The procurement was missing the contract and other required provision documentation. Repeat Finding: This is a repeat finding of 2022-001 and 2023-001 Recommendation: It is recommended that the County implement internal control processes and procedures to ensure that federal reimbursements requests are submitted on a timely basis. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the County of Aroostook, Maine.

Corrective Action Plan

CORRECTIVE ACTION PLAN (Concerning Finding 2024-001) Contact Person Responsible for Corrective Action: Dana L. Gendreau, Interim County Administrator Corrective Action: The County of Aroostook acknowledges the procurement deficiency identified in Finding 2024-001. The County previously developed and formally adopted a Federal Grant Procurement Policy on February 18, 2026, establishing procedures compliant with 2 CFR 200.317–327 and Appendix II, including required procurement methods, documentation standards, and inclusion of applicable federal contract provisions. The finding is reported as a repeat finding of prior years; however, the policy establishing these controls was adopted subsequent to the period in which the procurement activity under review occurred or during early implementation of the policy. As a result, the condition identified reflects a lapse in the consistent application of newly established procedures rather than a deficiency in policy design. To address this, the County has strengthened internal controls by requiring completion of standardized procurement checklists for all federally funded purchases and implementing enhanced supervisory review of procurement files to ensure that contracts and required federal provisions are included prior to execution and reimbursement. Additional guidance has been provided to staff to reinforce compliance expectations and ensure consistent application of procurement procedures. The County will continue to monitor procurement activities to ensure full implementation of established controls and anticipates that this finding will be resolved upon demonstration of consistent compliance in the subsequent audit period. Anticipated Completion Date: February 18, 2026 (Implemented)

Categories

Procurement, Suspension & Debarment Cash Management Material Weakness Internal Control / Segregation of Duties Special Tests & Provisions

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $900,514
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $100,000
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $87,941
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $61,664
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $53,090
97.067 HOMELAND SECURITY GRANT PROGRAM $32,040
16.575 CRIME VICTIM ASSISTANCE $24,298
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $12,797
20.703 INTERAGENCY HAZARDOUS MATERIALS PUBLIC SECTOR TRAINING AND PLANNING GRANTS $797