TOWN OF LIMESTONELocal Government

MATERIAL WEAKNESSES 2024-001 - Special Tests and Provisions - Wage Rate Requirement Federal Program Information: Department of Education ALN 84.425 – Elementary and Secondary School Emergency Relief Criteria: The following CFRs apply to this finding: 2 CFR Appendix II to Part 200; 29 CFR 5.2; 29 CFR 5.5 Condition: During audit procedures, it was identified that the School had construction projects in excess of $2,000 and did not have contracts with the required clauses for these projects. Additionally, it was identified that the School did not obtain copies of the required certified payrolls and accompanying Statement of Compliance. Cause: The School did not appropriately identify construction projects expensed to the grant and therefore does not have the necessary internal controls over compliance. Effect: The construction projects may not have been performed in compliance with federal Wage Rate Requirements Identification of Questioned Costs: Payments for the identified construction projects totalled $46,653.19 all of which was performed without contracts containing the required clauses. Related certified payrolls and accompanying Statement of Compliance were not obtained for any of the payments sampled. Context: Two construction projects were identified by auditors in the sample of expenses reviewed for the grant, none of which had contracts with the required clauses. There were $46,653.19 in payments made for these construction projects, which did not have the related certified payrolls and accompanying Statement of Compliance. This was not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the School familiarize themselves with federal Wage Rate Requirements and implement 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 the Limestone Community School.

SIGNIFICANT DEFICIENCY 2024-002 - Reporting Federal Program Information: Department of Education ALN 84.425 – Elementary and Secondary School Emergency Relief ALN 21.027 – Coronavirus Local Fiscal Recovery Fund Criteria: The following CFRs apply to this finding: 2 CFR section 200.328 and 2 CFR section 200.329 Condition: During audit procedures, it was identified that the School could not provide copies of the Annual Performance Report/Annual Performance and Expenditure Report filed for the period under audit. Cause: The School did not have the necessary internal controls over reporting and did not complete and submit or did not appropriately maintain copies of the reports submitted. Effect: Reports may not have been completed and submitted within the 90 day allotted time after the end of the reporting period. Identification of Questioned Costs: None identified Context: The ESSER Performance report was due on April 12, 2024 for the period ending 6/30/23. Information was gathered and notes were made on the report form. No copy of the submitted report was maintained in the client file and client was unable to obtain a copy from the online submission program. A copy of the Coronavirus annual performance report was not maintained in the client files and client was unable to access the a copy of the report online. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the School familiarize themselves with federal Reporting Requirements and implement 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 the Limestone Community School and the Town of Limestone, Maine.

2022-006 – Single Audit Submission Federal Program Information: All federal programs. Criteria: 2 CFR 200.512 (a) (1) - Recipients of federal funds in excess of $750,000 are required to submit audits on a timely basis and file a data collection form and the audit with the federal audit clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: During audit procedures, it was identified that the audit was not submitted to the federal audit clearinghouse before the due date. Cause: Due to the other findings outlined above the audit could not be completed by the deadline. Effect: Client is not in compliance with the criteria above. Identification of Questioned Costs: None identified. Recommendation: We recommend that management takes steps to ensure that the books are closed on a timely basis so that the annual audit can be completed by the deadline. Repeat Finding: This is a repeat finding 2021-006 Views of Responsible Officials: Please see Corrective Action Plan issued by the Town of Limestone, Maine.