FAC Explorer

Finding 974313 (2023-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-05-20
Audit: 306609
Organization: Msad #27 (ME)
Auditor: Rhr Smith and Company

AI Summary

  • Core Issue: The District's approval process for disbursements is ineffective, leading to potential unallowable costs.
  • Impacted Requirements: Compliance with 2 CFR 200.303 is not being met due to lack of internal controls.
  • Recommended Follow-Up: Implement stronger internal control processes to ensure proper documentation and compliance.

Finding Text

2023-002 - ALLOWABLE COSTS AND ACTIVITIES 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 200.303 Condition: During audit procedures, it was identified that the District’s process to document approval over disbursements is not working effectively. Cause: The District does not have the necessary internal controls over compliance. Effect: Insufficient controls could allow for unallowable costs to be charged. Identification Of Questioned Costs: None Identified Context: There were 79 cash disbursements and 37 were tested and it was found that 19 of the disbursements tested did not have the Purchase Orders and 7 did not have approved invoices. The same 19 disbursements that did not have Purchase Orders did not have account codes written on the receipts to help ensure properly charged to the correct accounts. This is not statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by Maine School Administrative District No. 27.

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Other Findings in this Audit

  • 397866 2023-001
    Material Weakness Repeat
  • 397867 2023-001
    Material Weakness Repeat
  • 397868 2023-001
    Material Weakness Repeat
  • 397869 2023-001
    Material Weakness Repeat
  • 397870 2023-002
    Significant Deficiency
  • 397871 2023-002
    Significant Deficiency
  • 397872 2023-002
    Significant Deficiency
  • 397873 2023-002
    Significant Deficiency
  • 974308 2023-001
    Material Weakness Repeat
  • 974309 2023-001
    Material Weakness Repeat
  • 974310 2023-001
    Material Weakness Repeat
  • 974311 2023-001
    Material Weakness Repeat
  • 974312 2023-002
    Significant Deficiency
  • 974314 2023-002
    Significant Deficiency
  • 974315 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $322,946
84.358 Rural Education $53,020
84.367 Improving Teacher Quality State Grants $30,223
84.002 Adult Education - Basic Grants to States $26,247
84.027 Special Education_grants to States $4,878
84.425 Education Stabilization Fund $234