FAC Explorer

Finding 485490 (2023-011)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-08-30
Audit: 318259
Organization: Our Katahdin and Subsidiary (ME)
Auditor: Berry Dunn McNeil & Parker LLC

AI Summary

  • Core Issue: Internal controls over financial reporting for the Brownfields program are ineffective, risking compliance with federal award requirements.
  • Impacted Requirements: Non-compliance with 2 CFR §200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: Update policies to strengthen internal controls and ensure accurate identification of program costs.

Finding Text

Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 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 tests of financial statement balances, it was determined that multiple internal controls over financial reporting were not effective which would impact federal awards. See Findings 2023-001 through 2023-008 for additional information. Cause and Effect The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds. Questioned Costs N/A Identification of Repeat Findings N/A Recommendation We recommend the Organization update its policies to implement sufficient internal controls over financial reporting to be able to properly identify costs related to the program. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.

Corrective Action Plan

Our Katahdin has engaged an outside consultant to help bring our record keeping and internal financial statements up to date. We are also revising all of our internal processes, including those used to properly identify costs related to grant programs. Responsible official: Stephanie Walsh, Board Treasurer, 207-233-9228 Expected completion date: October 31, 2024

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 485488 2023-009
    Material Weakness Repeat
  • 485489 2023-010
    Material Weakness Repeat
  • 485491 2023-009
    Material Weakness Repeat
  • 485492 2023-010
    Material Weakness Repeat
  • 485493 2023-011
    Material Weakness
  • 485494 2023-009
    Material Weakness Repeat
  • 485495 2023-010
    Material Weakness Repeat
  • 485496 2023-011
    Material Weakness
  • 1061930 2023-009
    Material Weakness Repeat
  • 1061931 2023-010
    Material Weakness Repeat
  • 1061932 2023-011
    Material Weakness
  • 1061933 2023-009
    Material Weakness Repeat
  • 1061934 2023-010
    Material Weakness Repeat
  • 1061935 2023-011
    Material Weakness
  • 1061936 2023-009
    Material Weakness Repeat
  • 1061937 2023-010
    Material Weakness Repeat
  • 1061938 2023-011
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $944,913
90.601 Northern Border Regional Development $10,841