FAC Explorer

Finding 1238608 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-09-30
Audit: 413489
Organization: TOWN OF BETHEL (ME)
Auditor: RHR SMITH & COMPANY CPA'S

AI Summary

  • Core Issue: The Town lacks a formal Procurement Policy, leading to non-compliance with federal procurement requirements.
  • Impacted Requirements: Failure to document procurement methods and include necessary federal contract language as outlined in 2 CFR 200.200.318(a)(i).
  • Recommended Follow-Up: Implement a Procurement Policy to establish proper internal controls and ensure compliance with federal regulations.

Finding Text

2025-001 - Procurement Federal Program Information: US Department of Agriculture - Rural Development ALN - 10.760 - Water and Waste Disposal Systems for Rural Communities Criteria: The following CFR(s) apply to this finding: 2 CFR 200.200.318(a)(i) Condition: During audit procedures, it was identified that the Town did not have a Procurement Policy. Cause: The Town does not have the necessary internal controls over compliance. This is due to the Town’s lack of processes to update the procurement policy on a consistent basis. Effect: The Town did not have the necessary method of procurement documentation to ensure that contracts for Federally funded projects contained the required language to be in compliance with the law. Identification of Questioned Costs: None identified. Context: No approved procurement policy which resulted in contracts that did not have the necessary method of procurement documentation nor the required Federal contract language. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Town implement a Procurement Policy to ensure that internal control processes and procedures meet the Federal procurement requirements. Management’s Response: Please see attached Corrective Action Plan.

Corrective Action Plan

CORRECTIVE ACTION PLAN (Concerning Finding 2025-001)- Procurement Policy for the Rural Development A ward Contact Person Responsible for Con-ective Action: Sharon Jackson, Town Manager Con-ective Action: The Town of Bethel will take the following actions to address finding 2025-001 The current Town Manager was appointed by the Select Board in October 2023 and had no knowledge of the material weakness. She is an experienced Manager that has implemented training for the Finance Officer and Finance Assistant, the Treasurer and the Select Board. RHR Smith & Company has been contracted and has completed the Town audits through June 2025. The Town Manager will work in conjunction with the Finance employees to put a Procurement Policy together and put the policy through the administrative process of review and approval by the Select Board. Anticipated Completion Date: 12/31/2026

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $1.89M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $245,530
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $207,197
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $117,894
90.601 NORTHERN BORDER REGIONAL DEVELOPMENT $29,733