Finding 1224797 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-07-28
Audit: 408025
Organization: Town of Cape Elizabeth (ME)

AI Summary

  • Core Issue: The Town failed to verify that contracted companies for special education services were not suspended or debarred.
  • Impacted Requirements: Compliance with federal regulations prohibiting contracts with excluded parties and the need for robust internal controls.
  • Recommended Follow-Up: Establish procedures to check and document the status of contractors regarding suspension and debarment, particularly for federally funded projects.

Finding Text

2025-001 U.S. Department Education, Assistance Listing #84.027-84.173 Special Education Cluster for the period July 1, 2024, through June 30, 2025 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Condition: The Town contracted with companies for special education services and did not document that the companies were not suspended or debarred. Cause: Although the Town has procurement standards that refer to the Uniform Guidance requirements, there is nothing in the standards requiring a check for suspension and debarment. In addition, there are no specific procedures to follow related to suspension and debarment. Effect: The Town runs the risk of contracting with parties who have been suspended or debarred, which could result in the loss of federal funding. Known Questioned Costs: Unknown Likely Questioned Costs: Unknown Recommendations: We recommend that the Town implement procedures to check companies with which they contract and document that they are not suspended, debarred, or in some way prohibited from working on Town projects, especially those working on federally funded projects.

Corrective Action Plan

Management’s response/corrective action plan: The School Business Manager and the Assistant Superintendent/Special Education Director will ensure all contracts going forward will have the contract language necessary to prevent using any parties who have been suspended or debarred.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1224796 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 Local Entitlement $687,381
20.205 Highway Planning and Construction $335,129
93.566 Disaster Grants - Public Assistance (Presidentially Declared Disasters) $175,649
21.027 COVID - Pre-K expansion $138,598
10.555 National school lunch program $95,701
10.555 Donated Commodities $72,792
20.205 Highway Planning and Construction - prior years $40,763
84.367 Title IIA Supporting Effective Instruction $25,619
10.553 School breakfast program $25,143
84.010 Title IA Disadvantaged $20,895
10.675 Urban and Community Forestry (Project Canopy) $10,000
84.173 Preschool $6,609
20.616 HV Distracted Driving Enforcement $5,822
20.616 Click It or Ticket $3,465
20.616 Impaired Driving Enforcement $1,990
16.738 Byrne Jag Grant $1,072
16.922 Equitable sharing program $840