FAC Explorer

Finding 15708 (2022-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-05-08
Audit: 18841
Organization: Penquis C.a.p., Inc. and Its Affiliates (ME)
Auditor: Berry Dunn McNeil & Parker LLC

AI Summary

  • Core Issue: Certain program expenditures were missing from the Schedule of Expenditures of Federal Awards (SEFA), leading to significant understatements in federal assistance listings.
  • Impacted Requirements: The Organization failed to maintain effective internal controls to ensure all federal funds were reported accurately, violating compliance standards.
  • Recommended Follow-Up: Implement a tracking system to ensure all federal award expenditures are accurately reported on the SEFA, in line with Uniform Guidance requirements.

Finding Text

Programs Affected AL 93.600 Head Start AL 93.575 Child Care and Development Block Grant Criteria The Organization is responsible for designing, implementing and maintaining effective internal controls over compliance that provide reasonable assurance that the internal controls will prevent misstatements, intentional or unintentional, from occurring, or detect and correct misstatements on a timely basis. Condition and Context While comparing and reconciling the Schedule of Expenditures of Federal Awards (SEFA) to the consolidated financial statements, we noted certain program expenditures were excluded from the SEFA. Assistance Listing 93.575 was understated by approximately $299,000 and Assistance Listing 93.600 was understated by approximately $1,682,000. Cause and Effect The conditions identified related to turnover as well as a lack of processes to identify and report all federal funds on the SEFA. The condition resulted in management not identifying all programs to be included in the SEFA, which could have resulted in incomplete information reported to users of the SEFA. Questioned Costs N/A Identification of Repeat Findings N/A Recommendation We recommend the Organization implement a tracking system to identify and report all expenditures of federal awards on the SEFA in compliance with the requirements of the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.

Corrective Action Plan

The Penquis Finance Director will ensure fiscal staff are not using any groupings that may exclude program activity that may have closed during the fiscal year. The Finance Director will also verify preliminary SEFA Revenues compiled by fiscal staff agrees with agency wide Trial Balance totals. Additional training for the Financial Analyst will be provided to include a cross check of department reports to ensure all of the fiscal year data is collected. Expected completion date of June 30, 2023. Responsible official: Denice Conary, CFO (207) 973-3500

Categories

Reporting

Other Findings in this Audit

  • 15709 2022-004
    Material Weakness
  • 15710 2022-004
    Material Weakness
  • 15711 2022-004
    Material Weakness
  • 592150 2022-004
    Material Weakness
  • 592151 2022-004
    Material Weakness
  • 592152 2022-004
    Material Weakness
  • 592153 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $34.18M
93.568 Low-Income Home Energy Assistance $4.12M
93.575 Child Care and Development Block Grant $969,878
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $815,211
10.558 Child and Adult Care Food Program $812,337
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $639,906
93.569 Community Services Block Grant $587,414
81.042 Weatherization Assistance for Low-Income Persons $457,915
94.011 Foster Grandparent Program $279,745
21.000 Neighborworks $209,271
16.582 Crime Victim Assistance/discretionary Grants $201,263
16.524 Legal Assistance for Victims $196,573
16.575 Crime Victim Assistance $151,939
10.433 Rural Housing Preservation Grants $124,005
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $123,370
93.600 Head Start $118,497
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $115,093
16.589 Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program $93,290
93.667 Social Services Block Grant $81,522
20.509 Formula Grants for Rural Areas and Tribal Transit Program $74,943
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $57,443
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $57,164
93.472 Title IV-E Prevention and Family Services and Programs (a) $41,270
14.276 Youth Homelessness Demonstration Program $40,376
16.842 Opioid Affected Youth Initiative $39,955
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $39,161
93.590 Community-Based Child Abuse Prevention Grants $37,044
94.002 Retired and Senior Volunteer Program $33,871
16.017 Sexual Assault Services Formula Program $22,146
93.602 Assets for Independence Demonstration Program $20,765
93.558 Temporary Assistance for Needy Families $19,843
93.136 Injury Prevention and Control Research and State and Community Based Programs $19,740
93.268 Immunization Cooperative Agreements $14,313
93.778 Medical Assistance Program $11,339
93.788 Opioid Str $4,823
93.959 Block Grants for Prevention and Treatment of Substance Abuse $3,815
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $1,040
93.550 Transitional Living for Homeless Youth $162