Bangor Public Schools

Finding: 2022-004 ? Federal Assistance Listing Number, Federal Agency, and Program Name ? 84.425C, 84.425D, Education Stabilization Fund, U.S. Department of Education Finding Type ? Significant Deficiency (Uniform Guidance). Criteria ? The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition ? The District incurred the expenditures but was unable to bridge the accounting records supporting the transactions requested upon by the previous business manager to the information available from the current business manager in a timely manner. Questioned Costs ? None Context ? At the start of the audit, the District could not provide general ledger detail or the identified expenditures allocated towards the final drawdown of the Education Stabilization Fund award. Cause and Effect ? During the 2022 school year, the District experienced personnel turnover in the business office which aided in the misplacement of information and/or support for transactions entered into by the previous business manager. Recommendation ? The District has already reviewed the circumstances surrounding this occurrence and is cognizant of the corrective action.

The District intends to implement policy addressing document retention as well as providing a centralized location for approved personnel to access information related to the financial reporting process. At the conclusion of the audit process, the District?s full population of expenditures related to the Education Stabilization Fund were found to be for allowable cost and activities.

Finding: 2021-001 ? CFDA Number, Federal Agency, and Program Name ? 10.553, 10.555, 10.556, 10.559, 10.579 Child Nutrition Cluster, U.S. Department of Agriculture Finding Type ? Material weakness (Uniform Guidance). Criteria ? The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses. If an excess fund balance should occur, the School Food Authority (?SFA?) will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. As a result, this allows the SFA to use those excess funds to further improve the school meals program operations. The school food service account is a non-profit account which means that the excess funds cannot be used to profit the general fund. It must be used for a specific purpose in the School Meals Program. Condition ? The District?s fund equity in the Food Service Fund exceeded the allowable three-months of expenditures threshold. Questioned Costs ? None Context ? The District?s Food Service Fund equity at fiscal year-end exceeded the allowable three-months of expenditures threshold. Cause and Effect ? During the 2021 fiscal year, the District?s revenues exceeded expenditures, such that, when added to the opening fund balance, the final fund balance caused the fund to be in non-compliance. Without proper monitoring, the District could see and adverse effect of funding from federal sources. Recommendation ? The District has already reviewed the circumstances surrounding this occurrence and is cognizant of the corrective action. Views of the Responsible Officials and Planned Corrective Actions ? The District will use up fund balance with the purchase of a new equipment. We will monitor the fund balance throughout the 2021-22 school year to ensure the fund balance does not exceed the state limits.

The District will use up fund balance with the purchase of a new equipment. We will monitor the fund balance throughout the 2021-22 school year to ensure the fund balance does not exceed the state limits.

GSA_MIGRATION

GSA_MIGRATION