FAC Explorer

Finding 509351 (2023-001)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-11-20
Audit: 329145
Organization: Milford, Town of (ME)
Auditor: Rhr Smith & Company

AI Summary

  • Core Issue: The School Department lacks documented payrates for some employees, which is a repeat finding from last year.
  • Impacted Requirements: This violates 2 CFR 200.430(i)(1), risking incorrect employee payments and potential unallowable expenses.
  • Recommended Follow-Up: The School Department should establish internal controls to ensure all payroll files are complete and documented payrates are maintained for every employee.

Finding Text

2023-001 - Allowable Costs/Cost Principles Federal Program Information: Department of Education: Passed through the State of Maine Department of Education ALN - 84.425 - Education Stabilization Fund Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i)(1) Condition: During audit procedures, it was identified that the School Department did not have documented payrates on file for some employees. Cause: The School Department does not require payrate documentation for all employees. Effect: Employees may not be paid the correct amount. This could result in unallowable expenses being charged and subsequently improperly reimbursed by federal funds. Identification of Questioned Costs: None identified. Context: Out of a sample of 11 employees, it was determined that 3 employees did not have documented payrates on file. This is a statistically valid sample. Repeat Finding: This is a repeat finding of 2022-001. Recommendation: It is recommended that the School Department implement internal control processes and procedures to ensure that payroll files are complete and all employees have documented payrates. Views of Responsible Officials and Corrective Action Plan: Client agrees with finding, and the unabridged version of their response can be found in the Corrective Action Plan. Please see the Corrective Action Plan issued by the School Department.

Corrective Action Plan

Finding 2023-001 - 2023-001 - Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: David Dionne, Town Manager and Trish Clark, Superintendent of Schools Corrective Action: The finance department of Town and school has gone through turnover through Fiscal year 24. All Finance Department staff will continue to receive additional training in the reconciliation of the accounts and warrant process system. In addition, the focus will be on having all proper documentation for payments made from the Town and School Treasury. Anticipated Completion Date: June 30, 2025

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 509352 2023-001
    Significant Deficiency Repeat
  • 509353 2023-001
    Significant Deficiency Repeat
  • 509354 2023-002
    Significant Deficiency Repeat
  • 509355 2023-002
    Significant Deficiency Repeat
  • 509356 2023-002
    Significant Deficiency Repeat
  • 1085793 2023-001
    Significant Deficiency Repeat
  • 1085794 2023-001
    Significant Deficiency Repeat
  • 1085795 2023-001
    Significant Deficiency Repeat
  • 1085796 2023-002
    Significant Deficiency Repeat
  • 1085797 2023-002
    Significant Deficiency Repeat
  • 1085798 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $405,536
84.010 Title I Grants to Local Educational Agencies $169,496
10.555 National School Lunch Program $157,612
84.027 Special Education Grants to States $123,165
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $15,953
84.173 Special Education Preschool Grants $1,651
84.424 Student Support and Academic Enrichment Program $1,351
10.649 Pandemic Ebt Administrative Costs $628