FAC Explorer

Finding 35110 (2022-013)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 33040
Organization: Our Katahdin and Subsidiary (ME)
Auditor: Berry Dunn McNeil & Parker LLC

AI Summary

  • Core Issue: Invoices for costs related to the Brownfields program were not properly approved, violating internal control requirements.
  • Impacted Requirements: This finding breaches the requirement to maintain effective internal controls over federal awards as outlined in 2 CFR §200.303.
  • Recommended Follow-Up: Review and implement corrective actions as detailed in Finding 2022-004 to ensure compliance and prevent future issues.

Finding Text

Finding 2022-013 Program Affected: 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2022 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria: According to 2 CFR ?200.303, the Organization must "establish and maintain effective internal control over the Federal award . . ." Condition and Context: During the test of allowable costs, it was determined that invoices were not approved. See Finding 2022-004 for additional information. Cause and Effect: See Finding 2022-004 Questioned Costs: N/A Identification of Repeat Findings: N/A Recommendation: See Finding 2022-004 Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See attached Planned Corrective Actions.

Corrective Action Plan

Our Katahdin will implement a process where their employee enters all payments due, and the Board Treasurer will review and approve those payments. Because of limited staff, both of these individuals will be authorized signers, which is partially mitigated through the dual control over reconciliations and review. Our Katahdin will also assign a board member without account signing authority to perform a monthly activity review. Responsible official: Nancy DeWitt, Treasurer (207) 618-9187 Expected completion date: October 31, 2023

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32779 2022-008
    Material Weakness
  • 32780 2022-009
    Material Weakness
  • 32781 2022-010
    Material Weakness
  • 32782 2022-011
    Material Weakness
  • 32783 2022-012
    Material Weakness
  • 609221 2022-008
    Material Weakness
  • 609222 2022-009
    Material Weakness
  • 609223 2022-010
    Material Weakness
  • 609224 2022-011
    Material Weakness
  • 609225 2022-012
    Material Weakness
  • 611552 2022-013
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $879,180