Finding 509354 (2023-002)

Significant Deficiency Repeat Finding

Requirement

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 failed to include required clauses in construction contracts and some payrolls lacked necessary elements.
Impacted Requirements: Non-compliance with 2 CFR Appendix II to Part 200 and 29 CFR 5.5, leading to improper contract execution.
Recommended Follow-up: Implement stronger internal controls to ensure compliance with contract and payroll requirements.

Finding Text

2023-002 - Special Tests and Provisions – Wage Rate Requirements 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 applies to this finding: 2 CFR Appendix II to Part 200, 29 CFR 5.5. Condition: During audit procedures, it was identified that the School Department did not include the full required clause in a construction contract. Additionally, it was identified that some of the weekly payrolls did not include all the required elements or the accompanying Statement of Compliance. Cause: The Department’s procedures do not ensure that the construction contracts are conducted in compliance with the requirements above. Effect: Contracts are not executed in compliance with the requirement above. Identification of Questioned Costs: None identified. Context: One contract was reviewed and the certified payrolls were tested for two subcontracts. It was determined that the contract did not include the full contract provision and that the payrolls submitted for one subcontractor were missing some of the required elements and the certification. This is a statistically valid sample. Repeat Finding: This is a repeat finding of 2022-002. Recommendation: It is recommended that the Department implement internal control processes and procedures to ensure that they are following the criteria above. 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 2023-002 – Special Tests and Provisions – Wage Rate Requirements Contact Person Responsible for Corrective Action: David Dionne, Town Manager and Trish Clark, Superintendent of Schools Corrective Action: Management continues to believe at this time that after some longevity of new staff with the fiscal department, that it can train current staff for review of compliance requirements related to both Town and School funds. In addition, all department staff will receive additional training, in particular the new Finance Director in compliance area for all Town and School funds. Anticipated Completion Date: June 30, 2025

Other Findings in this Audit

509351 2023-001

Significant Deficiency Repeat
509352 2023-001

Significant Deficiency Repeat
509353 2023-001

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