EIN: 016000089
UEI: UNUKGB242KY8
Audited by: Runyon Kersteen Ouellette
Oversight agency: 84 [Department of Education]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 29, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 29, 2026 (34 days ago).
What is a management decision? →The School Department did not obtain price or rate quotations for two projects that exceeded the micro-purchase threshold. Additionally, the Department did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses). The City did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses) for three of the six contracts tested. Cause: School staff were not aware the projects would be funded with federal funds and did not ensure compliance with federal requirements for competitive pricing and suspension/debarment verification. City staff were not aware projects covered under the SLRF definition of “revenue replacement”, which excludes most procurement requirements, are still required to follow 2 CFR Part 180 and 2 CFR §200.214. Effect: Failure to obtain competitive quotes and verify contractor eligibility to receive Federal funds increases the risk of noncompliance, inefficient use of federal funds, and potential disallowance of costs. Known Questioned Costs: $61,891 for #84.027/84.173; $51,750 for #21.027 Likely Questioned Costs: $12,799 for #21.027 Recommendation: We recommend training staff on procurement and suspension/debarment requirements and implementing a pre-award compliance checklist. We also recommend increasing communication between grant personnel and facilities management personnel so all parties are aware which projects will be funded with federal funds.
Show full finding ▾Hide full finding ▴2025-001 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) Program and U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds (SLRF) Program for the period of July 1, 2024, through June 30, 2025 Criteria: Uniform Guidance section 2 CFR §200.317-200.327 Procurement Standards, requires purchases exceeding the micro-purchase threshold of $10,000 to follow small purchase procedures, which require obtaining price or rate quotations from an adequate number of qualified sources (§200.320) prior to entering into a contract. In addition, 2 CFR Part 180 and 2 CFR §200.214 require non-federal entities to verify if contractors are suspended or debarred (e.g., Sam.gov check or certification) and include appropriate contract clauses in applicable contracts. Condition: The School Department did not obtain price or rate quotations for two projects that exceeded the micro-purchase threshold. Additionally, the Department did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses). The City did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses) for three of the six contracts tested. Cause: School staff were not aware the projects would be funded with federal funds and did not ensure compliance with federal requirements for competitive pricing and suspension/debarment verification. City staff were not aware projects covered under the SLRF definition of “revenue replacement”, which excludes most procurement requirements, are still required to follow 2 CFR Part 180 and 2 CFR §200.214. Effect: Failure to obtain competitive quotes and verify contractor eligibility to receive Federal funds increases the risk of noncompliance, inefficient use of federal funds, and potential disallowance of costs. Known Questioned Costs: $61,891 for #84.027/84.173; $51,750 for #21.027 Likely Questioned Costs: $12,799 for #21.027 Recommendation: We recommend training staff on procurement and suspension/debarment requirements and implementing a pre-award compliance checklist. We also recommend increasing communication between grant personnel and facilities management personnel so all parties are aware which projects will be funded with federal funds.
Management Response/Corrective Action Plan: The School Department reviewed both the federal and local procurement policies with the administrative team in December of 2024. A memo was also sent to all administrators specifically discussing the suspension and debarment procedures regarding the use of federal funds. Since then, the School Board has since reviewed both policies and has revised threshold amounts and other language per the advice of legal counsel and MSMA. Now adopted, the policies have been shared with administration to ensure that purchasing procedures are followed and will be reviewed regularly. If there is any chance of federal funds being used for a purchase, the Department will follow the federal procurement requirements. Municipal staff attempted to follow Treasury guidance to administer the State and Local Fiscal Recover Fund (SLFRF) grant and interpreted the “Revenue Replacement” category of expenditure to be exempt from nearly all of the usual federal grant requirements, including the Suspension and Debarment verification step. More recently, the interpretation of the rule changed, but not before certain projects had been initiated, in which the verification step had been missed. Going forward, this will not be an issue as all SLFRF monies have been expended.
The School Department did not obtain price or rate quotations for two projects that exceeded the micro-purchase threshold. Additionally, the Department did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses). The City did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses) for three of the six contracts tested. Cause: School staff were not aware the projects would be funded with federal funds and did not ensure compliance with federal requirements for competitive pricing and suspension/debarment verification. City staff were not aware projects covered under the SLRF definition of “revenue replacement”, which excludes most procurement requirements, are still required to follow 2 CFR Part 180 and 2 CFR §200.214. Effect: Failure to obtain competitive quotes and verify contractor eligibility to receive Federal funds increases the risk of noncompliance, inefficient use of federal funds, and potential disallowance of costs. Known Questioned Costs: $61,891 for #84.027/84.173; $51,750 for #21.027 Likely Questioned Costs: $12,799 for #21.027 Recommendation: We recommend training staff on procurement and suspension/debarment requirements and implementing a pre-award compliance checklist. We also recommend increasing communication between grant personnel and facilities management personnel so all parties are aware which projects will be funded with federal funds.
Show full finding ▾Hide full finding ▴2025-001 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) Program and U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds (SLRF) Program for the period of July 1, 2024, through June 30, 2025 Criteria: Uniform Guidance section 2 CFR §200.317-200.327 Procurement Standards, requires purchases exceeding the micro-purchase threshold of $10,000 to follow small purchase procedures, which require obtaining price or rate quotations from an adequate number of qualified sources (§200.320) prior to entering into a contract. In addition, 2 CFR Part 180 and 2 CFR §200.214 require non-federal entities to verify if contractors are suspended or debarred (e.g., Sam.gov check or certification) and include appropriate contract clauses in applicable contracts. Condition: The School Department did not obtain price or rate quotations for two projects that exceeded the micro-purchase threshold. Additionally, the Department did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses). The City did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses) for three of the six contracts tested. Cause: School staff were not aware the projects would be funded with federal funds and did not ensure compliance with federal requirements for competitive pricing and suspension/debarment verification. City staff were not aware projects covered under the SLRF definition of “revenue replacement”, which excludes most procurement requirements, are still required to follow 2 CFR Part 180 and 2 CFR §200.214. Effect: Failure to obtain competitive quotes and verify contractor eligibility to receive Federal funds increases the risk of noncompliance, inefficient use of federal funds, and potential disallowance of costs. Known Questioned Costs: $61,891 for #84.027/84.173; $51,750 for #21.027 Likely Questioned Costs: $12,799 for #21.027 Recommendation: We recommend training staff on procurement and suspension/debarment requirements and implementing a pre-award compliance checklist. We also recommend increasing communication between grant personnel and facilities management personnel so all parties are aware which projects will be funded with federal funds.
Management Response/Corrective Action Plan: The School Department reviewed both the federal and local procurement policies with the administrative team in December of 2024. A memo was also sent to all administrators specifically discussing the suspension and debarment procedures regarding the use of federal funds. Since then, the School Board has since reviewed both policies and has revised threshold amounts and other language per the advice of legal counsel and MSMA. Now adopted, the policies have been shared with administration to ensure that purchasing procedures are followed and will be reviewed regularly. If there is any chance of federal funds being used for a purchase, the Department will follow the federal procurement requirements. Municipal staff attempted to follow Treasury guidance to administer the State and Local Fiscal Recover Fund (SLFRF) grant and interpreted the “Revenue Replacement” category of expenditure to be exempt from nearly all of the usual federal grant requirements, including the Suspension and Debarment verification step. More recently, the interpretation of the rule changed, but not before certain projects had been initiated, in which the verification step had been missed. Going forward, this will not be an issue as all SLFRF monies have been expended.
The School Department was unable to provide the fourth quarter Work Plan and Quarterly Narrative and Metrics Report for the Maine Apprenticeship Program which was due July 15, 2025. In addition, the second quarter report, due January 15, 2025, was not filed until February 12, 2025. Cause: Staff rely on reporting notifications sent by the Maine Department of Education to alert them when reports are due. The report notifications were not received by the Department, and therefore, the Department was unaware the reports were due. The Department has no internal tracking mechanism to ensure reports are submitted on time for all grants. Effect: Failure to submit required performance and financial reports could result in the loss of grant funding. Known Questioned Costs: none Likely Questioned Costs: none Recommendation: We recommend a centralized report tracking spreadsheet be used to ensure report due dates are tracked and timely report completion is monitored.
Show full finding ▾Hide full finding ▴2025-002 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2024, through June 30, 2025 Criteria: The School Department receives State and Local Fiscal Recovery Funding passed through the State of Maine for various programs. Each grant requires periodic performance and financial reports. Condition: The School Department was unable to provide the fourth quarter Work Plan and Quarterly Narrative and Metrics Report for the Maine Apprenticeship Program which was due July 15, 2025. In addition, the second quarter report, due January 15, 2025, was not filed until February 12, 2025. Cause: Staff rely on reporting notifications sent by the Maine Department of Education to alert them when reports are due. The report notifications were not received by the Department, and therefore, the Department was unaware the reports were due. The Department has no internal tracking mechanism to ensure reports are submitted on time for all grants. Effect: Failure to submit required performance and financial reports could result in the loss of grant funding. Known Questioned Costs: none Likely Questioned Costs: none Recommendation: We recommend a centralized report tracking spreadsheet be used to ensure report due dates are tracked and timely report completion is monitored.
Management Response/Corrective Action Plan: The Finance Office has a monthly task list to ensure reports and other required tasks are completed in a timely manner. Quarterly reports for the Apprenticeship Program grant have been added for future quarters. This practice will be followed for future grants.
The School Department was unable to provide the fourth quarter Work Plan and Quarterly Narrative and Metrics Report for the Maine Apprenticeship Program which was due July 15, 2025. In addition, the second quarter report, due January 15, 2025, was not filed until February 12, 2025. Cause: Staff rely on reporting notifications sent by the Maine Department of Education to alert them when reports are due. The report notifications were not received by the Department, and therefore, the Department was unaware the reports were due. The Department has no internal tracking mechanism to ensure reports are submitted on time for all grants. Effect: Failure to submit required performance and financial reports could result in the loss of grant funding. Known Questioned Costs: none Likely Questioned Costs: none Recommendation: We recommend a centralized report tracking spreadsheet be used to ensure report due dates are tracked and timely report completion is monitored.
Show full finding ▾Hide full finding ▴2025-002 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2024, through June 30, 2025 Criteria: The School Department receives State and Local Fiscal Recovery Funding passed through the State of Maine for various programs. Each grant requires periodic performance and financial reports. Condition: The School Department was unable to provide the fourth quarter Work Plan and Quarterly Narrative and Metrics Report for the Maine Apprenticeship Program which was due July 15, 2025. In addition, the second quarter report, due January 15, 2025, was not filed until February 12, 2025. Cause: Staff rely on reporting notifications sent by the Maine Department of Education to alert them when reports are due. The report notifications were not received by the Department, and therefore, the Department was unaware the reports were due. The Department has no internal tracking mechanism to ensure reports are submitted on time for all grants. Effect: Failure to submit required performance and financial reports could result in the loss of grant funding. Known Questioned Costs: none Likely Questioned Costs: none Recommendation: We recommend a centralized report tracking spreadsheet be used to ensure report due dates are tracked and timely report completion is monitored.
Management Response/Corrective Action Plan: The Finance Office has a monthly task list to ensure reports and other required tasks are completed in a timely manner. Quarterly reports for the Apprenticeship Program grant have been added for future quarters. This practice will be followed for future grants.
FAC accepted this audit on June 17, 2026 — management decision was due December 17, 2026.
The School Department did not obtain price or rate quotations for two projects that exceeded the micro-purchase threshold. Additionally, the Department did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses). The City did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses) for three of the six contracts tested. Cause: School staff were not aware the projects would be funded with federal funds and did not ensure compliance with federal requirements for competitive pricing and suspension/debarment verification. City staff were not aware projects covered under the SLRF definition of “revenue replacement”, which excludes most procurement requirements, are still required to follow 2 CFR Part 180 and 2 CFR §200.214. Effect: Failure to obtain competitive quotes and verify contractor eligibility to receive Federal funds increases the risk of noncompliance, inefficient use of federal funds, and potential disallowance of costs. Known Questioned Costs: $61,891 for #84.027/84.173; $51,750 for #21.027 Likely Questioned Costs: $12,799 for #21.027 Recommendation: We recommend training staff on procurement and suspension/debarment requirements and implementing a pre-award compliance checklist. We also recommend increasing communication between grant personnel and facilities management personnel so all parties are aware which projects will be funded with federal funds.
Show full finding ▾Hide full finding ▴2025-001 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) Program and U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds (SLRF) Program for the period of July 1, 2024, through June 30, 2025 Criteria: Uniform Guidance section 2 CFR §200.317-200.327 Procurement Standards, requires purchases exceeding the micro-purchase threshold of $10,000 to follow small purchase procedures, which require obtaining price or rate quotations from an adequate number of qualified sources (§200.320) prior to entering into a contract. In addition, 2 CFR Part 180 and 2 CFR §200.214 require non-federal entities to verify if contractors are suspended or debarred (e.g., Sam.gov check or certification) and include appropriate contract clauses in applicable contracts. Condition: The School Department did not obtain price or rate quotations for two projects that exceeded the micro-purchase threshold. Additionally, the Department did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses). The City did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses) for three of the six contracts tested. Cause: School staff were not aware the projects would be funded with federal funds and did not ensure compliance with federal requirements for competitive pricing and suspension/debarment verification. City staff were not aware projects covered under the SLRF definition of “revenue replacement”, which excludes most procurement requirements, are still required to follow 2 CFR Part 180 and 2 CFR §200.214. Effect: Failure to obtain competitive quotes and verify contractor eligibility to receive Federal funds increases the risk of noncompliance, inefficient use of federal funds, and potential disallowance of costs. Known Questioned Costs: $61,891 for #84.027/84.173; $51,750 for #21.027 Likely Questioned Costs: $12,799 for #21.027 Recommendation: We recommend training staff on procurement and suspension/debarment requirements and implementing a pre-award compliance checklist. We also recommend increasing communication between grant personnel and facilities management personnel so all parties are aware which projects will be funded with federal funds.
Management Response/Corrective Action Plan: The School Department reviewed both the federal and local procurement policies with the administrative team in December of 2024. A memo was also sent to all administrators specifically discussing the suspension and debarment procedures regarding the use of federal funds. Since then, the School Board has since reviewed both policies and has revised threshold amounts and other language per the advice of legal counsel and MSMA. Now adopted, the policies have been shared with administration to ensure that purchasing procedures are followed and will be reviewed regularly. If there is any chance of federal funds being used for a purchase, the Department will follow the federal procurement requirements. Municipal staff attempted to follow Treasury guidance to administer the State and Local Fiscal Recover Fund (SLFRF) grant and interpreted the “Revenue Replacement” category of expenditure to be exempt from nearly all of the usual federal grant requirements, including the Suspension and Debarment verification step. More recently, the interpretation of the rule changed, but not before certain projects had been initiated, in which the verification step had been missed. Going forward, this will not be an issue as all SLFRF monies have been expended.
The School Department did not obtain price or rate quotations for two projects that exceeded the micro-purchase threshold. Additionally, the Department did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses). The City did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses) for three of the six contracts tested. Cause: School staff were not aware the projects would be funded with federal funds and did not ensure compliance with federal requirements for competitive pricing and suspension/debarment verification. City staff were not aware projects covered under the SLRF definition of “revenue replacement”, which excludes most procurement requirements, are still required to follow 2 CFR Part 180 and 2 CFR §200.214. Effect: Failure to obtain competitive quotes and verify contractor eligibility to receive Federal funds increases the risk of noncompliance, inefficient use of federal funds, and potential disallowance of costs. Known Questioned Costs: $61,891 for #84.027/84.173; $51,750 for #21.027 Likely Questioned Costs: $12,799 for #21.027 Recommendation: We recommend training staff on procurement and suspension/debarment requirements and implementing a pre-award compliance checklist. We also recommend increasing communication between grant personnel and facilities management personnel so all parties are aware which projects will be funded with federal funds.
Show full finding ▾Hide full finding ▴2025-001 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) Program and U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds (SLRF) Program for the period of July 1, 2024, through June 30, 2025 Criteria: Uniform Guidance section 2 CFR §200.317-200.327 Procurement Standards, requires purchases exceeding the micro-purchase threshold of $10,000 to follow small purchase procedures, which require obtaining price or rate quotations from an adequate number of qualified sources (§200.320) prior to entering into a contract. In addition, 2 CFR Part 180 and 2 CFR §200.214 require non-federal entities to verify if contractors are suspended or debarred (e.g., Sam.gov check or certification) and include appropriate contract clauses in applicable contracts. Condition: The School Department did not obtain price or rate quotations for two projects that exceeded the micro-purchase threshold. Additionally, the Department did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses). The City did not perform, or document required suspension and debarment procedures for the contractor (e.g., verification against SAM.gov, obtaining certifications, or including contract clauses) for three of the six contracts tested. Cause: School staff were not aware the projects would be funded with federal funds and did not ensure compliance with federal requirements for competitive pricing and suspension/debarment verification. City staff were not aware projects covered under the SLRF definition of “revenue replacement”, which excludes most procurement requirements, are still required to follow 2 CFR Part 180 and 2 CFR §200.214. Effect: Failure to obtain competitive quotes and verify contractor eligibility to receive Federal funds increases the risk of noncompliance, inefficient use of federal funds, and potential disallowance of costs. Known Questioned Costs: $61,891 for #84.027/84.173; $51,750 for #21.027 Likely Questioned Costs: $12,799 for #21.027 Recommendation: We recommend training staff on procurement and suspension/debarment requirements and implementing a pre-award compliance checklist. We also recommend increasing communication between grant personnel and facilities management personnel so all parties are aware which projects will be funded with federal funds.
Management Response/Corrective Action Plan: The School Department reviewed both the federal and local procurement policies with the administrative team in December of 2024. A memo was also sent to all administrators specifically discussing the suspension and debarment procedures regarding the use of federal funds. Since then, the School Board has since reviewed both policies and has revised threshold amounts and other language per the advice of legal counsel and MSMA. Now adopted, the policies have been shared with administration to ensure that purchasing procedures are followed and will be reviewed regularly. If there is any chance of federal funds being used for a purchase, the Department will follow the federal procurement requirements. Municipal staff attempted to follow Treasury guidance to administer the State and Local Fiscal Recover Fund (SLFRF) grant and interpreted the “Revenue Replacement” category of expenditure to be exempt from nearly all of the usual federal grant requirements, including the Suspension and Debarment verification step. More recently, the interpretation of the rule changed, but not before certain projects had been initiated, in which the verification step had been missed. Going forward, this will not be an issue as all SLFRF monies have been expended.
The School Department was unable to provide the fourth quarter Work Plan and Quarterly Narrative and Metrics Report for the Maine Apprenticeship Program which was due July 15, 2025. In addition, the second quarter report, due January 15, 2025, was not filed until February 12, 2025. Cause: Staff rely on reporting notifications sent by the Maine Department of Education to alert them when reports are due. The report notifications were not received by the Department, and therefore, the Department was unaware the reports were due. The Department has no internal tracking mechanism to ensure reports are submitted on time for all grants. Effect: Failure to submit required performance and financial reports could result in the loss of grant funding. Known Questioned Costs: none Likely Questioned Costs: none Recommendation: We recommend a centralized report tracking spreadsheet be used to ensure report due dates are tracked and timely report completion is monitored.
Show full finding ▾Hide full finding ▴2025-002 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2024, through June 30, 2025 Criteria: The School Department receives State and Local Fiscal Recovery Funding passed through the State of Maine for various programs. Each grant requires periodic performance and financial reports. Condition: The School Department was unable to provide the fourth quarter Work Plan and Quarterly Narrative and Metrics Report for the Maine Apprenticeship Program which was due July 15, 2025. In addition, the second quarter report, due January 15, 2025, was not filed until February 12, 2025. Cause: Staff rely on reporting notifications sent by the Maine Department of Education to alert them when reports are due. The report notifications were not received by the Department, and therefore, the Department was unaware the reports were due. The Department has no internal tracking mechanism to ensure reports are submitted on time for all grants. Effect: Failure to submit required performance and financial reports could result in the loss of grant funding. Known Questioned Costs: none Likely Questioned Costs: none Recommendation: We recommend a centralized report tracking spreadsheet be used to ensure report due dates are tracked and timely report completion is monitored.
Management Response/Corrective Action Plan: The Finance Office has a monthly task list to ensure reports and other required tasks are completed in a timely manner. Quarterly reports for the Apprenticeship Program grant have been added for future quarters. This practice will be followed for future grants.
The School Department was unable to provide the fourth quarter Work Plan and Quarterly Narrative and Metrics Report for the Maine Apprenticeship Program which was due July 15, 2025. In addition, the second quarter report, due January 15, 2025, was not filed until February 12, 2025. Cause: Staff rely on reporting notifications sent by the Maine Department of Education to alert them when reports are due. The report notifications were not received by the Department, and therefore, the Department was unaware the reports were due. The Department has no internal tracking mechanism to ensure reports are submitted on time for all grants. Effect: Failure to submit required performance and financial reports could result in the loss of grant funding. Known Questioned Costs: none Likely Questioned Costs: none Recommendation: We recommend a centralized report tracking spreadsheet be used to ensure report due dates are tracked and timely report completion is monitored.
Show full finding ▾Hide full finding ▴2025-002 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2024, through June 30, 2025 Criteria: The School Department receives State and Local Fiscal Recovery Funding passed through the State of Maine for various programs. Each grant requires periodic performance and financial reports. Condition: The School Department was unable to provide the fourth quarter Work Plan and Quarterly Narrative and Metrics Report for the Maine Apprenticeship Program which was due July 15, 2025. In addition, the second quarter report, due January 15, 2025, was not filed until February 12, 2025. Cause: Staff rely on reporting notifications sent by the Maine Department of Education to alert them when reports are due. The report notifications were not received by the Department, and therefore, the Department was unaware the reports were due. The Department has no internal tracking mechanism to ensure reports are submitted on time for all grants. Effect: Failure to submit required performance and financial reports could result in the loss of grant funding. Known Questioned Costs: none Likely Questioned Costs: none Recommendation: We recommend a centralized report tracking spreadsheet be used to ensure report due dates are tracked and timely report completion is monitored.
Management Response/Corrective Action Plan: The Finance Office has a monthly task list to ensure reports and other required tasks are completed in a timely manner. Quarterly reports for the Apprenticeship Program grant have been added for future quarters. This practice will be followed for future grants.
FAC accepted this audit on April 4, 2025 — management decision was due October 4, 2025.
During our testing of payroll expenditures at the School Department over the Coronavirus State and Local Fiscal Recovery Funds Program, we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $4,422 Likely Questioned Costs: $31,105 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Show full finding ▾Hide full finding ▴2024-001 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2023 through June 30, 2024 Criteria: Uniform Guidance section 2 CFR 200.430(g) Standards for Documentation of Personnel Expenses requires records to support the distribution of employee salaries or wages when they are allocated amongst more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: During our testing of payroll expenditures at the School Department over the Coronavirus State and Local Fiscal Recovery Funds Program, we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $4,422 Likely Questioned Costs: $31,105 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Management Response/Corrective Action Plan: The School Department completed the necessary time and effort documents for expense reimbursement that were approved by the Department of Education. The time and effort was not specific to actual time worked for those split among multiple grants or funds. Moving forward, any employee who has time split between multiple grants or Federal and non-Federal activities will be expected to complete a personnel activity report. This report will record actual time spent working on eligible activities for each fund. If the employee has a regular schedule, the employee’s schedule will suffice as their personnel activity report, as long as it follows the guidelines. The personnel activity reports will be requested each month during the reimbursement request process and will be signed by the employee and their supervisor.
During our testing of payroll expenditures at the School Department over the Coronavirus State and Local Fiscal Recovery Funds Program, we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $4,422 Likely Questioned Costs: $31,105 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Show full finding ▾Hide full finding ▴2024-001 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2023 through June 30, 2024 Criteria: Uniform Guidance section 2 CFR 200.430(g) Standards for Documentation of Personnel Expenses requires records to support the distribution of employee salaries or wages when they are allocated amongst more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: During our testing of payroll expenditures at the School Department over the Coronavirus State and Local Fiscal Recovery Funds Program, we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $4,422 Likely Questioned Costs: $31,105 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Management Response/Corrective Action Plan: The School Department completed the necessary time and effort documents for expense reimbursement that were approved by the Department of Education. The time and effort was not specific to actual time worked for those split among multiple grants or funds. Moving forward, any employee who has time split between multiple grants or Federal and non-Federal activities will be expected to complete a personnel activity report. This report will record actual time spent working on eligible activities for each fund. If the employee has a regular schedule, the employee’s schedule will suffice as their personnel activity report, as long as it follows the guidelines. The personnel activity reports will be requested each month during the reimbursement request process and will be signed by the employee and their supervisor.
During our testing of payroll expenditures at the School Department over the Special Education Cluster (IDEA), we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $1,243 Likely Questioned Costs: $7,394 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Show full finding ▾Hide full finding ▴2024-002 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period of July 1, 2023 through June 30, 2024 Criteria: Uniform Guidance section 2 CFR 200.430(g) Standards for Documentation of Personnel Expenses requires records to support the distribution of employee salaries or wages when they are allocated amongst more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: During our testing of payroll expenditures at the School Department over the Special Education Cluster (IDEA), we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $1,243 Likely Questioned Costs: $7,394 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Management Response/Corrective Action Plan: The School Department completed the necessary time and effort documents for expense reimbursement that were approved by the Department of Education. The time and effort was not specific to actual time worked for those split among multiple grants or funds. Moving forward, any employee who has time split between multiple grants or Federal and non-Federal activities will be expected to complete a personnel activity report. This report will record actual time spent working on eligible activities for each fund. If the employee has a regular schedule, the employee’s schedule will suffice as their personnel activity report, as long as it follows the guidelines. The personnel activity reports will be requested each month during the reimbursement request process and will be signed by the employee and their supervisor.
During our testing of payroll expenditures at the School Department over the Special Education Cluster (IDEA), we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $1,243 Likely Questioned Costs: $7,394 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Show full finding ▾Hide full finding ▴2024-002 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period of July 1, 2023 through June 30, 2024 Criteria: Uniform Guidance section 2 CFR 200.430(g) Standards for Documentation of Personnel Expenses requires records to support the distribution of employee salaries or wages when they are allocated amongst more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: During our testing of payroll expenditures at the School Department over the Special Education Cluster (IDEA), we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $1,243 Likely Questioned Costs: $7,394 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Management Response/Corrective Action Plan: The School Department completed the necessary time and effort documents for expense reimbursement that were approved by the Department of Education. The time and effort was not specific to actual time worked for those split among multiple grants or funds. Moving forward, any employee who has time split between multiple grants or Federal and non-Federal activities will be expected to complete a personnel activity report. This report will record actual time spent working on eligible activities for each fund. If the employee has a regular schedule, the employee’s schedule will suffice as their personnel activity report, as long as it follows the guidelines. The personnel activity reports will be requested each month during the reimbursement request process and will be signed by the employee and their supervisor.
During our disbursement test, we selected a consulting contract that did not include documentation that one of the three suspension and debarment verifications were performed. Cause: Although the School’s procurement policy references the suspension and debarment requirements, the School does not have a procedure in place to ensure compliance with the requirement prior to contracting with a vendor. Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program. Known Questioned Costs: None Likely Questioned Costs: None Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their Federal Procurement Manual to ensure that one of the three verifications is present prior to entering into a covered transaction.
Show full finding ▾Hide full finding ▴2024-003 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period July 1, 2023 through June 30, 2024 Criteria: In accordance with 2 CFR part 180, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity. Condition: During our disbursement test, we selected a consulting contract that did not include documentation that one of the three suspension and debarment verifications were performed. Cause: Although the School’s procurement policy references the suspension and debarment requirements, the School does not have a procedure in place to ensure compliance with the requirement prior to contracting with a vendor. Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program. Known Questioned Costs: None Likely Questioned Costs: None Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their Federal Procurement Manual to ensure that one of the three verifications is present prior to entering into a covered transaction.
Management Response/Corrective Action Plan: Once notified of this requirement, the School District put procedures in place to comply with 2 CFR part 180. If federal funds are to be used to contract with a party that is expected to equal or exceed $25,000, the finance department will check SAM.gov exclusions to ensure the contractor is not suspended or debarred. Administration who may enter into a contract with a party using federal funds will be given a memo describing the need to notify the finance department before entering into a contract.
During our disbursement test, we selected a consulting contract that did not include documentation that one of the three suspension and debarment verifications were performed. Cause: Although the School’s procurement policy references the suspension and debarment requirements, the School does not have a procedure in place to ensure compliance with the requirement prior to contracting with a vendor. Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program. Known Questioned Costs: None Likely Questioned Costs: None Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their Federal Procurement Manual to ensure that one of the three verifications is present prior to entering into a covered transaction.
Show full finding ▾Hide full finding ▴2024-003 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period July 1, 2023 through June 30, 2024 Criteria: In accordance with 2 CFR part 180, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity. Condition: During our disbursement test, we selected a consulting contract that did not include documentation that one of the three suspension and debarment verifications were performed. Cause: Although the School’s procurement policy references the suspension and debarment requirements, the School does not have a procedure in place to ensure compliance with the requirement prior to contracting with a vendor. Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program. Known Questioned Costs: None Likely Questioned Costs: None Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their Federal Procurement Manual to ensure that one of the three verifications is present prior to entering into a covered transaction.
Management Response/Corrective Action Plan: Once notified of this requirement, the School District put procedures in place to comply with 2 CFR part 180. If federal funds are to be used to contract with a party that is expected to equal or exceed $25,000, the finance department will check SAM.gov exclusions to ensure the contractor is not suspended or debarred. Administration who may enter into a contract with a party using federal funds will be given a memo describing the need to notify the finance department before entering into a contract.
We performed a payroll test of two employees charged to the Special Education Cluster (IDEA). One of the two employees tested had an incorrect MainePERS retirement contribution calculation. Cause: The employee tested was allocated 9% to the Federal grant and 91% to non-Federal activities. The contribution rates were not updated in the payroll system to reflect the correct allocation of Federal and non-Federal rates. Effect: As a result, the Special Education Cluster (IDEA) grant was overcharged for the employer portion of MainePERS contributions. Known Questioned Costs: $386 Likely Questioned Costs: $3,205 Recommendation: We recommend all employees charged to both Federal and non-Federal activities be reviewed in the payroll system to ensure the system is calculating the correct Federal and non-Federal rates. We also recommend developing policies to ensure that the correct rates are updated in the system each year and rates are properly applied when employee additions or allocation changes are made.
Show full finding ▾Hide full finding ▴2024-004 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period July 1, 2023 through June 30, 2024 Criteria: Brunswick School Department teachers participate in the MainePERS retirement program. Teacher salaries and benefits, including the employer portion of MainePERS contributions, are charged to the Special Education Cluster (IDEA). Teacher employer contribution rates for the MainePERS retirement system were 4.47% for non-Federally funded teachers, and 19.57% for federally funded teachers during fiscal year 2024. Employees allocated to federal and non-federal activities should have their contributions prorated using the non-Federal and Federal rates based on the percentage of time allocated to each activity. Condition: We performed a payroll test of two employees charged to the Special Education Cluster (IDEA). One of the two employees tested had an incorrect MainePERS retirement contribution calculation. Cause: The employee tested was allocated 9% to the Federal grant and 91% to non-Federal activities. The contribution rates were not updated in the payroll system to reflect the correct allocation of Federal and non-Federal rates. Effect: As a result, the Special Education Cluster (IDEA) grant was overcharged for the employer portion of MainePERS contributions. Known Questioned Costs: $386 Likely Questioned Costs: $3,205 Recommendation: We recommend all employees charged to both Federal and non-Federal activities be reviewed in the payroll system to ensure the system is calculating the correct Federal and non-Federal rates. We also recommend developing policies to ensure that the correct rates are updated in the system each year and rates are properly applied when employee additions or allocation changes are made.
Management Response/Corrective Action Plan: We have had a lot of turnover in the business office with a new finance director, payroll coordinator, and finance accounts coordinator (bookkeeper). Since being notified of the issue, we have put procedures in place to ensure issues related to MainePERS contributions do not occur and/or are resolved in a timely manner. As employees are hired, or change funding accounts, the payroll coordinator now has procedures in place to check the appropriate deductions for each account. We also are up to date with MainePERS reconciliation, which includes reviewing contributions for federally funded employees. If an error occurs, the process will cause us to review the issue and reconcile the accounts as necessary.
We performed a payroll test of two employees charged to the Special Education Cluster (IDEA). One of the two employees tested had an incorrect MainePERS retirement contribution calculation. Cause: The employee tested was allocated 9% to the Federal grant and 91% to non-Federal activities. The contribution rates were not updated in the payroll system to reflect the correct allocation of Federal and non-Federal rates. Effect: As a result, the Special Education Cluster (IDEA) grant was overcharged for the employer portion of MainePERS contributions. Known Questioned Costs: $386 Likely Questioned Costs: $3,205 Recommendation: We recommend all employees charged to both Federal and non-Federal activities be reviewed in the payroll system to ensure the system is calculating the correct Federal and non-Federal rates. We also recommend developing policies to ensure that the correct rates are updated in the system each year and rates are properly applied when employee additions or allocation changes are made.
Show full finding ▾Hide full finding ▴2024-004 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period July 1, 2023 through June 30, 2024 Criteria: Brunswick School Department teachers participate in the MainePERS retirement program. Teacher salaries and benefits, including the employer portion of MainePERS contributions, are charged to the Special Education Cluster (IDEA). Teacher employer contribution rates for the MainePERS retirement system were 4.47% for non-Federally funded teachers, and 19.57% for federally funded teachers during fiscal year 2024. Employees allocated to federal and non-federal activities should have their contributions prorated using the non-Federal and Federal rates based on the percentage of time allocated to each activity. Condition: We performed a payroll test of two employees charged to the Special Education Cluster (IDEA). One of the two employees tested had an incorrect MainePERS retirement contribution calculation. Cause: The employee tested was allocated 9% to the Federal grant and 91% to non-Federal activities. The contribution rates were not updated in the payroll system to reflect the correct allocation of Federal and non-Federal rates. Effect: As a result, the Special Education Cluster (IDEA) grant was overcharged for the employer portion of MainePERS contributions. Known Questioned Costs: $386 Likely Questioned Costs: $3,205 Recommendation: We recommend all employees charged to both Federal and non-Federal activities be reviewed in the payroll system to ensure the system is calculating the correct Federal and non-Federal rates. We also recommend developing policies to ensure that the correct rates are updated in the system each year and rates are properly applied when employee additions or allocation changes are made.
Management Response/Corrective Action Plan: We have had a lot of turnover in the business office with a new finance director, payroll coordinator, and finance accounts coordinator (bookkeeper). Since being notified of the issue, we have put procedures in place to ensure issues related to MainePERS contributions do not occur and/or are resolved in a timely manner. As employees are hired, or change funding accounts, the payroll coordinator now has procedures in place to check the appropriate deductions for each account. We also are up to date with MainePERS reconciliation, which includes reviewing contributions for federally funded employees. If an error occurs, the process will cause us to review the issue and reconcile the accounts as necessary.
FAC accepted this audit on February 24, 2025 — management decision was due August 24, 2025.
During our testing of payroll expenditures at the School Department over the Coronavirus State and Local Fiscal Recovery Funds Program, we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $4,422 Likely Questioned Costs: $31,105 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Show full finding ▾Hide full finding ▴2024-001 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2023 through June 30, 2024 Criteria: Uniform Guidance section 2 CFR 200.430(g) Standards for Documentation of Personnel Expenses requires records to support the distribution of employee salaries or wages when they are allocated amongst more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: During our testing of payroll expenditures at the School Department over the Coronavirus State and Local Fiscal Recovery Funds Program, we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $4,422 Likely Questioned Costs: $31,105 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Management Response/Corrective Action Plan: The School Department completed the necessary time and effort documents for expense reimbursement that were approved by the Department of Education. The time and effort was not specific to actual time worked for those split among multiple grants or funds. Moving forward, any employee who has time split between multiple grants or Federal and non-Federal activities will be expected to complete a personnel activity report. This report will record actual time spent working on eligible activities for each fund. If the employee has a regular schedule, the employee’s schedule will suffice as their personnel activity report, as long as it follows the guidelines. The personnel activity reports will be requested each month during the reimbursement request process and will be signed by the employee and their supervisor.
During our testing of payroll expenditures at the School Department over the Coronavirus State and Local Fiscal Recovery Funds Program, we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $4,422 Likely Questioned Costs: $31,105 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Show full finding ▾Hide full finding ▴2024-001 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2023 through June 30, 2024 Criteria: Uniform Guidance section 2 CFR 200.430(g) Standards for Documentation of Personnel Expenses requires records to support the distribution of employee salaries or wages when they are allocated amongst more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: During our testing of payroll expenditures at the School Department over the Coronavirus State and Local Fiscal Recovery Funds Program, we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $4,422 Likely Questioned Costs: $31,105 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Management Response/Corrective Action Plan: The School Department completed the necessary time and effort documents for expense reimbursement that were approved by the Department of Education. The time and effort was not specific to actual time worked for those split among multiple grants or funds. Moving forward, any employee who has time split between multiple grants or Federal and non-Federal activities will be expected to complete a personnel activity report. This report will record actual time spent working on eligible activities for each fund. If the employee has a regular schedule, the employee’s schedule will suffice as their personnel activity report, as long as it follows the guidelines. The personnel activity reports will be requested each month during the reimbursement request process and will be signed by the employee and their supervisor.
During our testing of payroll expenditures at the School Department over the Special Education Cluster (IDEA), we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $1,243 Likely Questioned Costs: $7,394 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Show full finding ▾Hide full finding ▴2024-002 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period of July 1, 2023 through June 30, 2024 Criteria: Uniform Guidance section 2 CFR 200.430(g) Standards for Documentation of Personnel Expenses requires records to support the distribution of employee salaries or wages when they are allocated amongst more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: During our testing of payroll expenditures at the School Department over the Special Education Cluster (IDEA), we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $1,243 Likely Questioned Costs: $7,394 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Management Response/Corrective Action Plan: The School Department completed the necessary time and effort documents for expense reimbursement that were approved by the Department of Education. The time and effort was not specific to actual time worked for those split among multiple grants or funds. Moving forward, any employee who has time split between multiple grants or Federal and non-Federal activities will be expected to complete a personnel activity report. This report will record actual time spent working on eligible activities for each fund. If the employee has a regular schedule, the employee’s schedule will suffice as their personnel activity report, as long as it follows the guidelines. The personnel activity reports will be requested each month during the reimbursement request process and will be signed by the employee and their supervisor.
During our testing of payroll expenditures at the School Department over the Special Education Cluster (IDEA), we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $1,243 Likely Questioned Costs: $7,394 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Show full finding ▾Hide full finding ▴2024-002 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period of July 1, 2023 through June 30, 2024 Criteria: Uniform Guidance section 2 CFR 200.430(g) Standards for Documentation of Personnel Expenses requires records to support the distribution of employee salaries or wages when they are allocated amongst more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: During our testing of payroll expenditures at the School Department over the Special Education Cluster (IDEA), we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year. Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked. Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable. Known Questioned Costs: $1,243 Likely Questioned Costs: $7,394 Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.
Management Response/Corrective Action Plan: The School Department completed the necessary time and effort documents for expense reimbursement that were approved by the Department of Education. The time and effort was not specific to actual time worked for those split among multiple grants or funds. Moving forward, any employee who has time split between multiple grants or Federal and non-Federal activities will be expected to complete a personnel activity report. This report will record actual time spent working on eligible activities for each fund. If the employee has a regular schedule, the employee’s schedule will suffice as their personnel activity report, as long as it follows the guidelines. The personnel activity reports will be requested each month during the reimbursement request process and will be signed by the employee and their supervisor.
During our disbursement test, we selected a consulting contract that did not include documentation that one of the three suspension and debarment verifications were performed. Cause: Although the School’s procurement policy references the suspension and debarment requirements, the School does not have a procedure in place to ensure compliance with the requirement prior to contracting with a vendor. Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program. Known Questioned Costs: None Likely Questioned Costs: None Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their Federal Procurement Manual to ensure that one of the three verifications is present prior to entering into a covered transaction.
Show full finding ▾Hide full finding ▴2024-003 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period July 1, 2023 through June 30, 2024 Criteria: In accordance with 2 CFR part 180, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity. Condition: During our disbursement test, we selected a consulting contract that did not include documentation that one of the three suspension and debarment verifications were performed. Cause: Although the School’s procurement policy references the suspension and debarment requirements, the School does not have a procedure in place to ensure compliance with the requirement prior to contracting with a vendor. Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program. Known Questioned Costs: None Likely Questioned Costs: None Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their Federal Procurement Manual to ensure that one of the three verifications is present prior to entering into a covered transaction.
Management Response/Corrective Action Plan: Once notified of this requirement, the School District put procedures in place to comply with 2 CFR part 180. If federal funds are to be used to contract with a party that is expected to equal or exceed $25,000, the finance department will check SAM.gov exclusions to ensure the contractor is not suspended or debarred. Administration who may enter into a contract with a party using federal funds will be given a memo describing the need to notify the finance department before entering into a contract.
During our disbursement test, we selected a consulting contract that did not include documentation that one of the three suspension and debarment verifications were performed. Cause: Although the School’s procurement policy references the suspension and debarment requirements, the School does not have a procedure in place to ensure compliance with the requirement prior to contracting with a vendor. Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program. Known Questioned Costs: None Likely Questioned Costs: None Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their Federal Procurement Manual to ensure that one of the three verifications is present prior to entering into a covered transaction.
Show full finding ▾Hide full finding ▴2024-003 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period July 1, 2023 through June 30, 2024 Criteria: In accordance with 2 CFR part 180, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity. Condition: During our disbursement test, we selected a consulting contract that did not include documentation that one of the three suspension and debarment verifications were performed. Cause: Although the School’s procurement policy references the suspension and debarment requirements, the School does not have a procedure in place to ensure compliance with the requirement prior to contracting with a vendor. Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program. Known Questioned Costs: None Likely Questioned Costs: None Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their Federal Procurement Manual to ensure that one of the three verifications is present prior to entering into a covered transaction.
Management Response/Corrective Action Plan: Once notified of this requirement, the School District put procedures in place to comply with 2 CFR part 180. If federal funds are to be used to contract with a party that is expected to equal or exceed $25,000, the finance department will check SAM.gov exclusions to ensure the contractor is not suspended or debarred. Administration who may enter into a contract with a party using federal funds will be given a memo describing the need to notify the finance department before entering into a contract.
We performed a payroll test of two employees charged to the Special Education Cluster (IDEA). One of the two employees tested had an incorrect MainePERS retirement contribution calculation. Cause: The employee tested was allocated 9% to the Federal grant and 91% to non-Federal activities. The contribution rates were not updated in the payroll system to reflect the correct allocation of Federal and non-Federal rates. Effect: As a result, the Special Education Cluster (IDEA) grant was overcharged for the employer portion of MainePERS contributions. Known Questioned Costs: $386 Likely Questioned Costs: $3,205 Recommendation: We recommend all employees charged to both Federal and non-Federal activities be reviewed in the payroll system to ensure the system is calculating the correct Federal and non-Federal rates. We also recommend developing policies to ensure that the correct rates are updated in the system each year and rates are properly applied when employee additions or allocation changes are made.
Show full finding ▾Hide full finding ▴2024-004 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period July 1, 2023 through June 30, 2024 Criteria: Brunswick School Department teachers participate in the MainePERS retirement program. Teacher salaries and benefits, including the employer portion of MainePERS contributions, are charged to the Special Education Cluster (IDEA). Teacher employer contribution rates for the MainePERS retirement system were 4.47% for non-Federally funded teachers, and 19.57% for federally funded teachers during fiscal year 2024. Employees allocated to federal and non-federal activities should have their contributions prorated using the non-Federal and Federal rates based on the percentage of time allocated to each activity. Condition: We performed a payroll test of two employees charged to the Special Education Cluster (IDEA). One of the two employees tested had an incorrect MainePERS retirement contribution calculation. Cause: The employee tested was allocated 9% to the Federal grant and 91% to non-Federal activities. The contribution rates were not updated in the payroll system to reflect the correct allocation of Federal and non-Federal rates. Effect: As a result, the Special Education Cluster (IDEA) grant was overcharged for the employer portion of MainePERS contributions. Known Questioned Costs: $386 Likely Questioned Costs: $3,205 Recommendation: We recommend all employees charged to both Federal and non-Federal activities be reviewed in the payroll system to ensure the system is calculating the correct Federal and non-Federal rates. We also recommend developing policies to ensure that the correct rates are updated in the system each year and rates are properly applied when employee additions or allocation changes are made.
Management Response/Corrective Action Plan: We have had a lot of turnover in the business office with a new finance director, payroll coordinator, and finance accounts coordinator (bookkeeper). Since being notified of the issue, we have put procedures in place to ensure issues related to MainePERS contributions do not occur and/or are resolved in a timely manner. As employees are hired, or change funding accounts, the payroll coordinator now has procedures in place to check the appropriate deductions for each account. We also are up to date with MainePERS reconciliation, which includes reviewing contributions for federally funded employees. If an error occurs, the process will cause us to review the issue and reconcile the accounts as necessary.
We performed a payroll test of two employees charged to the Special Education Cluster (IDEA). One of the two employees tested had an incorrect MainePERS retirement contribution calculation. Cause: The employee tested was allocated 9% to the Federal grant and 91% to non-Federal activities. The contribution rates were not updated in the payroll system to reflect the correct allocation of Federal and non-Federal rates. Effect: As a result, the Special Education Cluster (IDEA) grant was overcharged for the employer portion of MainePERS contributions. Known Questioned Costs: $386 Likely Questioned Costs: $3,205 Recommendation: We recommend all employees charged to both Federal and non-Federal activities be reviewed in the payroll system to ensure the system is calculating the correct Federal and non-Federal rates. We also recommend developing policies to ensure that the correct rates are updated in the system each year and rates are properly applied when employee additions or allocation changes are made.
Show full finding ▾Hide full finding ▴2024-004 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period July 1, 2023 through June 30, 2024 Criteria: Brunswick School Department teachers participate in the MainePERS retirement program. Teacher salaries and benefits, including the employer portion of MainePERS contributions, are charged to the Special Education Cluster (IDEA). Teacher employer contribution rates for the MainePERS retirement system were 4.47% for non-Federally funded teachers, and 19.57% for federally funded teachers during fiscal year 2024. Employees allocated to federal and non-federal activities should have their contributions prorated using the non-Federal and Federal rates based on the percentage of time allocated to each activity. Condition: We performed a payroll test of two employees charged to the Special Education Cluster (IDEA). One of the two employees tested had an incorrect MainePERS retirement contribution calculation. Cause: The employee tested was allocated 9% to the Federal grant and 91% to non-Federal activities. The contribution rates were not updated in the payroll system to reflect the correct allocation of Federal and non-Federal rates. Effect: As a result, the Special Education Cluster (IDEA) grant was overcharged for the employer portion of MainePERS contributions. Known Questioned Costs: $386 Likely Questioned Costs: $3,205 Recommendation: We recommend all employees charged to both Federal and non-Federal activities be reviewed in the payroll system to ensure the system is calculating the correct Federal and non-Federal rates. We also recommend developing policies to ensure that the correct rates are updated in the system each year and rates are properly applied when employee additions or allocation changes are made.
Management Response/Corrective Action Plan: We have had a lot of turnover in the business office with a new finance director, payroll coordinator, and finance accounts coordinator (bookkeeper). Since being notified of the issue, we have put procedures in place to ensure issues related to MainePERS contributions do not occur and/or are resolved in a timely manner. As employees are hired, or change funding accounts, the payroll coordinator now has procedures in place to check the appropriate deductions for each account. We also are up to date with MainePERS reconciliation, which includes reviewing contributions for federally funded employees. If an error occurs, the process will cause us to review the issue and reconcile the accounts as necessary.
FAC accepted this audit on March 12, 2024 — management decision was due September 12, 2024.
FAC accepted this audit on March 6, 2023 — management decision was due September 6, 2023.
FAC accepted this audit on December 6, 2021 — management decision was due June 6, 2022.
FAC accepted this audit on January 20, 2021 — management decision was due July 20, 2021.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on December 11, 2018 — management decision was due June 11, 2019.
FAC accepted this audit on December 12, 2017 — management decision was due June 12, 2018.
FAC accepted this audit on January 5, 2017 — management decision was due July 5, 2017.
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