Town of Millinocket

2023-001 - Allowable Costs/Cost Principles Federal Program Information: Department of Education - Passed through the Maine Department of Education: ALN: - 84.425 - Education Stabilization Fund ALN: - 84.010 - Title I - Grants to Local Educational Agencies Criteria: The following CFR(s) apply to this finding: 2 CFR 200.303, 2 CFR 200.430(i) Condition: During audit procedures, it was identified that the school department does not follow a consistent, documented method to ensure employees were paid the proper amount ensuring that only allowable costs are being charged to the program. Cause: The school department does not have the necessary internal controls over compliance. Effect: The school department is at an increased risk for unallowable cost to be charged to the program. Identification of Questioned Costs: None identified. Context: The population for the test consisted of transactions of 121 payroll expenditures. 79 payroll samples were selected using the haphazard method. Of the 79 samples, we identified issues with 17 payroll charges. One employee contract accounted for 11 of those charges. The contract did not accurately describe the employee’s classification. The remaining 6 of the 17 payroll charges had insufficient documentation to support the amount paid. This is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the school department develop and implement internal policies and procedures to ensure that sufficient documentation to support the charge and to ensure that only allowable costs are charged to the program. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by Town of Millinocket School Department.

2023-002 - Allowable Costs/Cost Principles Federal Program Information: Department of Education - Passed through the Maine Department of Education: ALN: - 84.010 - Title I - Grants to Local Educational Agencies Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i) Condition: During the audit process it was identified that the School Department did not maintain sufficient documentation that reflected the work performed. Cause: The school department does not have the necessary internal controls over compliance. Effect: This School Department does not have records that reflect an accurate account of the employee’s time and effort devoted to the program, which could have allowed incorrect amounts to be charged to the grant. Identification of Questioned Costs: None identified. Context: The population for the test consisted of 53 payroll expenditures. We tested 18 out of 21 employees. The School Department completed time and effort certifications for all employees; however, the following issues were identified. 18 employees did not have the proper documentation for the distribution of their wages. The entity’s internal control noted that the direct supervisor overseeing the work completed should sign the documentation, where in these cases the superintendent signed. The documentation for 7 out of the 18 employees time and effort certifications were signed prior to the work being completed and the documentation for 2 out of the 18 employees noted an incorrect percentage charged to the grant. This is not a statistically valid sample. Repeat Finding: This is a repeat finding of 2022-001. Recommendation: It is recommended that the School Department implement internal control processes and procedures to ensure that time certifications are completed at the period end to ensure charges reflect an accurate account of the employee’s time devoted to the program. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by Town of Millinocket School Department.

2022-001 - Allowable Costs/Cost Principles Federal Program Information: Department of Education: ALN - 84.425D - Education Stabilization Fund Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i)(1(vii) Condition: During audit procedures, it was identified that the School Department certifications for time and effort records were missing or incomplete. Cause: The School Department does not have the necessary internal controls over compliance. Effect: The School Department is not obtaining the required employee certifications that 100% of their time was spent on the grant cost objective ensuring that charges to the program reflect an accurate account of the employee?s time and effort devoted to the program. Identification of Questioned Costs: None identified. Context: The School Department does not collect time certifications for the employees that were paid with the federal funds. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the School Department implement internal control processes and procedures to ensure that time certifications are completed at the period end to ensure charges reflect an accurate account of the employee?s time devoted to the program. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the School Department.

2020-001 ? Uniform Guidance Procurement Standards (Town) Criteria: One of the more significant provisions of the Uniform Guidance that affects the Town is the procurement standards under 2 CFR sections 200.318 through 200.326. Under the procurement standards, the Town is required to have a documented purchasing policy, which at a minimum, incorporates the provisions of the Uniform Guidance. Statement of Condition: The Office of Management and Budget (OMB) revised regulations applicable to federally funded programs. The new regulations are contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Uniform Guidance replaced OMB Circulars A-133, A-87, and A-110 and incorporates requirements for grant recipients. The Uniform Guidance includes not only protocols for program management and administration, but also updates compliance regulations for federal awards. Currently, the Town does not have a formal written procurement policy that incorporates all provisions of the Uniform Guidance procurement standards. Cause: The Town has not adopted a procurement policy that covers all aspects required by the Uniform Guidance. However, during our testing of procurement over federal expenditures, we did not notate any violations of the Uniform Guidance procurement standards. Effect: Items required by the Uniform Guidance procurement standards that are not currently addressed in the Town?s procurement policy are as follows: ? Conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts ? Contracting with small and minority businesses, women?s business enterprises, and labor surplus area firms ? Bonding requirements ? Contract provisions ? Subrecipient and contractor determinations ? Retention requirements for records Recommendation: We recommend that management review the applicable provisions of the Uniform Guidance procurement standards and update the Town's procurement policy appropriately. This would include adding any missing components to the Town?s current procurement policy and updating definitions of types of procurement, i.e., micro-purchases, small purchases, and small acquisition threshold, to match the language used in the Uniform Guidance procurement standards.

2019-001 ? Uniform Guidance Procurement Standards (Town) Criteria: One of the more significant provisions of the Uniform Guidance that affects the Town is the procurement standards under 2 CFR sections 200.318 through 200.326. Under the new procurement standards, the Town is required to have a documented purchasing policy, which at a minimum, incorporates the provisions of the Uniform Guidance. Statement of Condition: The Office of Management and Budget (OMB) revised regulations applicable to federally funded programs. The new regulations are contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Uniform Guidance replaced OMB Circulars A-133, A-87, and A-110 and incorporates new requirements for grant recipients. The Uniform Guidance includes not only protocols for program management and administration, but also updates compliance regulations for federal awards. Currently, the Town does not have a formal written procurement policy that incorporates all provisions of the Uniform Guidance procurement standards. Cause: The Town has not adopted a procurement policy that covers all aspects required by the Uniform Guidance. However, during our testing of procurement over federal expenditures, we did not notate any violations of the Uniform Guidance procurement standards. Effect: Items required by the Uniform Guidance procurement standards that are not currently addressed in the Town?s procurement policy are as follows: ? Conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts ? Contracting with small and minority businesses, women?s business enterprises, and labor surplus area firms ? Bonding requirements ? Contract provisions ? Subrecipient and contractor determinations ? Retention requirements for records Recommendation: We recommend that management review the applicable provisions of the Uniform Guidance procurement standards and update the Town's procurement policy appropriately. This would include adding any missing components to the Town?s current procurement policy and updating definitions of types of procurement, i.e., micro-purchases, small purchases, and small acquisition threshold, to match the language used in the Uniform Guidance procurement standards. Management response/corrective action plan: The Town is working on implementing a procurement policy to be in line with federal procurement standards in 2020.

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