2001 1
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CITY OF BANGOR,MAINE
Reports Required by Government Auditing Standards
and OMB Circular A-133
June 30,2001
CERTIFIED PUBLIC ACCOUNTANTS
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AND BUSINESS CONSULTANTS
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. CITY.OF BANGOR,MAINE
Reports Required by Government Auditing Standards� ,
. . and OMB Circular A-133 � �
• � June 30,2001 �
Report Pa�e � �
Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing�Standards 1-2 �
Report on Compliance with Requirements Applicable to Each Major Program and Intemal Control
Over Compliance in Accordance with OMB Circular A-133 � 3-4
Report on Compliance with Requirements Applicable to the Passenger Facility Charge Program,
Internal Control.over Compliance and Schedule of Expenditures of Passenger Facility Charges 5=6
Schedule of Expenditures of Federal Awards � 7-8
:�Schedule of Expenditures of Passenger Facility Charges , 9 '
. .Notes to Schedule of Expenditures of Federal Awards 10 .
� Schedule of Findings and Questioned Costs: , , .
Section I -.Summary of Auditor's Results . , 11
. Section II-Findings Required to be Reported Under Government Auditing Staridards 12
Section III-Findings and Questioned Costs for Federal Awards � 13
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�C,ersteevc �— � �
' OL1 ellCttE Certifietl Public Accountants and Business Consultants
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
� � REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
City Council .
City of Bangor,Maine .
We have audited the general purpose financial statements of the City of Bangor as of and for the year
� ended June 30, 2001, and have issued our report thereon dated October 19,2001. We conducted our �
. audit in accordance with auditing�standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
� Comptroller General of the United States. � �
Compliance .
As part of obtainirig reasonable assurance about whether the City of Bangor's financial statements are
free of material misstatement,we performed tests of its compliance with certain provisions of laws, -
, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on
the determination of financial statement ainounts. However,providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
� The results of our tests disclosed no instances of noncompliance that are required to be reported under
Government Auditing Standards.
Internal Confrol Over Fimancial Reporting � . �
In planning and performing our audit,we considered the City's internal control over fmancial reporting
� in order to determine our auditing procedures for the purpose of expressing our opinion on the fmancial
statements and not to provide assurance on.the internal control over financial reporting. However,we
noted a matter involving the internal control over fmancial reporting and its operation that we consider to
� be a reportable condition. Reportable conditions involve matters coming to our attention relating to
significant deficiencies in the design or operation of the intemal control over financial r.eporting that, in �
our judgment,could adversely affect the City of Bangor's ability to record,process, summarize,and
. report financial data consistent.with the asseitions of management in the financial statements. A .
. reportable condition is described in the accompanying schedule of findings and questioned costs as item
#2001-1. .
A material weakness is a condition.in which the design or operation of one or more of the.intemal �
control components does not reduce to a relatively low level the risk that misstatements in amounts that
would be material in relation to the financial statements being,audited may occur and not be detected
within a timely period by employees in the normal course of performing their assigned functions. Our
consideration of the intemal control over financial reporting would not necessarily disclose all matters in
� th�,internal control that might be reportable conditions and, accordingly,would not necessarily disclose
1
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS,CONTINUED
all reportable conditions that are also considered to be material weaknesses. However,we believe the
reportable condition described above is not a material wealmess. �
We noted other matters involving the internal control over financial reporting that we have reported to
the management of the City in a separate letter dated October 19,2001.
� This report is intended for the information of the City Council, School Board,management and federal
awarding agencies(including the Federal Aviation Adminishation) and pass-through entities and is not
intended to be and should not be used by anyone other than these specifia parties.
. \� �
October 19,2001
South Portland,Maine
2
fZ�v��ov� �--
`1�ersteev� ��
Oj�1 ette�e Certified Public Accountants and Business Consultants
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN.
ACCORDANCE WITH OMB CII2CULA.R A-133
City Council � �
City of Bangor,Maine
Com�liance
We have audited the compliance of the City of Bangor with the types of compliance requirements
described in the U. S. Office of Management and Budget(OMB)Circular A-133 Compliance
Supplement that are applicable to each of its major federal programs for the year ended June 30, 2001:
The City of Bangor's major federal programs are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws,
regulations,contracts, and grants applicable to each of its major federal programs is the responsibility of
the City of Bangor's management. Our responsibility is to express an opinion on the City of Bangor's "
compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America;the standards applicable to fmancial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,Audits of
States,Local Governments, and Non-profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining,on a test basis,evidence about the
City of Bangor's compliance with those requirements and performing such other procedures as we �
considered necessary in the ci�cumstances. We believe that our audit provides a reasonable basis for our
� opinion. Our audit does not provide a legal determination on the City of Bangor's compliance with those �
requirements. �
As described in item#2001-2 in the accompanying schedule of fmdings and questioned costs,the City of
Bangor did not comply with the requirement regarding cash management that is applicable to its U.S.
Department of Education, Special Education—Grants to States(Local Entitlement) (CFDA#.84.027)
� program. Compliance with such requirement is necessary, in our opinion, for the City of Bangor to
comply with requirements applicable to that program. .
In our opinion, except for the noncompliance described in the preceding paragraph,the City of Bangor
complied, in all material respects, with the requirements referred to above that are applicable to each of
, its major federal programs for the year ended June 30,2001.
3
REPORT ON COMPLIANCE WITH REQYJIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVE�t COMPLIANCE IN
ACCORDANCE WITH OMB CII2CULAR A-133,CONTINUED
Internal Control Over Compliance � �
The management of the City of Bangor is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations,contracts,and grants applicable to
federal programs. In planning and performing our audit, we considered the City's internal control over
compliance with requirements that could have a direct and material effect�on a major federal program in
order to determine our auditing procedures for the purpose of expressing our opinion on compliance and '
�to test and report on internal control over compliance in accordance with OMB Circular A-133. � .
Our consideration of the internal control over compliance would not necessarily disclose all matters in
internal control that might be material weaknesses. A material weakness is a condition in which the
design or operation of one or more of the intemal control components does not reduce to a relatively low
. level the risk that noncompliance with applicable requirements of laws,regulations, contracts;and grants
that would be material in relation to a major federal program being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned
� functions. We noted no matters involving the internal control over compliance and its operation that we
consider to be material weaknesses. �
Schedule of Expenditures of Federal Awards
We have audited the general purpose financial statements of the City of Bangor as of and for the year
ended June 30,2001, and have issued our report thereon dated October 19,2001. Our audit was
performed for the purpose of forming an opinion on the financial statements taken as a whole. The .
accompanying schedule of expenditures of federal awards is presented for purposes of additional
- � analysis as required by OMB Circular A-.133 and is not a required part of the financial statements. Such
� information has been subjected to the auditing procedures applied in the audit of the general purpose .
financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general
purpose fmancial statements taken as a whole. �
This report is intended for the information of the City Council, School Board,management and federal . .
awarding agencies and pass-through entities and is not intended to be and should not be used by anyone
other than these specific parties. , • �
. \i`-'�1� �/� D
October 19, 2001 � .
South Portland,Maine �, �
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Oji1���e�t� Certified public Accountants and Business Consultants .
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO TFIE PASSENGER
FACILITY CHARGE PROGRAM,INTERNAL CONTROL OVER COMPLIANCE AND
SCHEDULE OF EXPENDITURES OF PASSEN.GER FACILITY CHARGES
City Council .
City of Bangor, Maine
Compliance _ _
We have audited the compliance of the City of Bangor with the compliance requirements described in
the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation .
Administration(Guide), for its passenger facility charge program for the year ended June 30,2001.
Compliance with the requirements of laws and regulations applicable to its passenger facility charge
program is the responsibility of the City of Bangor's management. Our responsibility is to express an
opinion on the City of Bangor's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits containecl in Government Auditing
Standards, issued by the Comptroller General of the United States; and the Guide. Those standards and
the Guide require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the compliance requirements referred to above that could have a direct and material
effect on the passenger facility charge program occurred. An audit includes examining, on a test basis,
evidence.about the City of Bangor's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal cietermination of the City of
Bangor's compliance with those requirements.
In our opinion,the City of Bangor complied, in all material respects,with the requirements referred to
above that are applicable to its passenger facility charge program for the year ended June 30, 2001.
Internal Control Over Compliance � � �
The management of the City of Bangor is responsible for establishing and maintaining effective intemal
control over compliance with the requirements of laws and regulations applicable to the passenger
facility charge program. In planning and performing our audit,we considered the City of Bangor's
� internal�ontrol over compliance with requirements that could have a direct and material effect on the
passenger facility charge program in order to determine our auditing procedures for the purpose of .
expressing our opinion on compliance and to test and report on the internal control over compliance in
accordance with the Guide.
5
� REPORT ON COMPLIANCE WITH REQUIltEMENTS APPLICABLE TO THE PASSENGER �
FACILITY CHARGE PROGRAM,INTERNAL CONTROL OVER COMPLIANCE AND
SCHEDULE OF EXPENDITURES OF PASSENGER FACILITY CHARGES, CONTINUED
Our consideration of the internal control over compliance would not necessarily disclose all.matters in � .
the internal control that might be material weaknesses. A material weakness is a condition in which the .
. • design or operation of one or more of the internal control components does not reduce to a relatively low � .
level the risk that noncompliance with applicable requirements of laws and regulations that would be �
material in relation to the passenger facility charge program being audited may occur and not be detected
within a timely period by employees in the normal,course of performing their assigned functions. We
' noted no matters involving the internal control over compliance and its operation that we consider to be
_ material weaknesses. .
Schedule of Expenditures of Passenger Facilitv Charees
We have audited the general purpose financial statements of the City of Bangor as of and for the year
� ended June 30,2001, and have issued our report thereon dated October 19,2001. Our audit was ,
performed for the purpose of forming an opinion on the general purpose financial statements taken as a :
whole. The accompanying schedule of expenditures of passenger facility charges is presented for � �
purposes of additional analysis as specified in the Guide and is not a required part of the general purpose
financial statements. Such information has been subjected to the auditing procedures applied in the audit . .
� of the general purpose fmancial statements and,in our opinion,is fairly stated, in all material respects,in
• relation to the general purpose financial statements taken as a whole.
This report is intended solely for the information and use of the City Council,management, and the
Federal Aviation Administration and is not intended to be and should not be used by anyone other than
these specified parties. ,
C'��
�C�i� D
October 19,2001 . .
South Portland,Maine � � � �
. 6 �
CiTY OF BANCOR,MAINE
Schedule af Expenditures of Federal Awards '
For year ended June 30,2001 -
Pass- � '
Federal through/
CFDA Award grantor Beginning Revenue Ending .
Federal Awerds numtier amount number balance Federal State Other Expenditures balance
Beceived Directiv •
Department of Housing and Urban Development:
Community Development Block Grants:
B-98-MG23•0004 14.218 $ , 1,244,000 N/A 764 - - - 764 -
B-99-MG23-0004 14.218 1,252,000 N/A (SOI,928) SOI,928 - - - -
B-00-MC-23-0004 14.218 1,270,000 N/A • 769,897 - 714,142 1,943,780 (459,741)
Supportive Housing: '
ME06B97-0201(8711) 14.235 348,581 N/A 11,091 IIQ056 - - 121.147 -
ME 06B96-0102(8717) J 14.235 46,695 N/A 740 - - 740 -
ME06B96-0105(8718) 14.235 63,000 N/A. - 15,037 . - 15,037 -
ME 06B96-0106(8719) 14.235 395,000 N/A. - 47,350 - - 47,350 -
Shelter Plus Care: �
MEOGC93-1133TRA t4238 740,160 N/A - 158,264 - - 158,264 -
MEO6C93-1135PRA 14.238 558,000 N/A - 18,213 - 18,213 -
Total Department of Housing and Urban Development (489,333) 1,620,745 - 714,142 2,305,295. (459,741)
Department of Justice:
• CopsFast 16.710 592,276 95CFWX3679 - 76,627 - 25,542 102,169 . . -
Local law Enforcement Block Grant 1G.592 28,986 2000-LB-BX-1854 - 28,986 - 3,221 27,347 4,8G0
Local Law Enforcement Block Grant 1G.592 � 32,915 2000-LB-VX-0413 - 32,915 - 3,657 31,806 4,7GG
Totat Departnent of lustice - 138,528 32,420 161,322 9,G26 .
Department of Transpohation:
Airport 6nprovement Plan:
3-23-0005-25 20.106 106,305 N/A (44,421) 102,397 5,639 5,19G 68,8Gt -
3-23-0005-26 20.10G G6,015 N/A (42,17G) 61,033 3,391 12,939 35,187 -
3-23-OOOS-27 20.106 1,793,754 N/A Q23,381) 1,477,549 84,446 80,160 1,518,774 -
3-23-0005-28 20.106 1,278,850 N/A (492) 1,207,307 67,073 74,281 1,348,169 -
3-23-0005-29 20.10G 1,307,992 N/A - 61,033 3,391 52,445 ll6,869 -
3-23-0005-30 � 20.106 281,880 N/A . - - - - 1,838 (1,838)
TotalDepartmentofTransportation (21Q470) 2,909,3t9 163,990 225,021 3,089,698 (1,838)
Environmental Proteciion Agency,Special Purpose 66.606 6,000,000 N/A - 1,431,840 - 1,171,505 2,603,345 -
Pass Throueh
Department of Agriculture,passed through Maine Department of
Human Services:
Women,Infant and Children-Admin: . � �. � � , . � �
WIC 02-00 I0.557 388,394 N/A - 102,347 - 102,34T -
WIC 02-01 � 10.557 364,034 N/A - 273,105 - - 273,105. -
Women,Infant and Children-Food:
WIC 02-00 . 10.557 N/A N/A - 421,447 - - 421,447. - �
WIC 02-01 10.557 N/A N/A - 983,553 - - 983,559 -
Passed through Maine Department of Education:
• Food Distribution-Food Donation Program 10.550 . N/A 013-6134-OS 10,848 50,55G - - 44,80G 1G,598
School Breakfast Program 10.553 N/A O13-7127-OS - 55,702. - - 55,702 -
School Lunch Program 10.555 N/A 013-7128-OS - 376,244 - - 37G,244 -
Summer Food Progrem 10.559 N/A 013-7130-OS - 8,489 - - 8,489 -
Total Department of Agriculture 10,848 2,271,443 - - 2,265,693 16,598
7
CITY OF BANGOR,AIAINE '
. Schedule of Expenditures of Federal A�vards,Continued
Pass-
Federal through/
CFDA A�i�ard � grantor Beginning - Revenue Ending
Federal Awards number amount number balance Federal State Other Expenditures balance
Pass Through.Continued _ �
Federal Emergency Management Agency,passed through �
Maine Emergency Management Agency: '
Public Assistance 83.544 S 20,478 3164-ME-019-02795 - 20,478 - 6,564 27,042 -
Department of Health&Human Services,passed through
Bureau of Health:
Bangor Children's Dental Clinic , 93.994 16,000 . BH O1-31 - 16,000 - 180,530 196,530 -
HIV Prevention&Education 93.118 10,646 BH 01-138 - 5,323 - - 4,562 761
STD/HIV Clinical and Epidemiologic Services 93.977 11Q900� BH 00-61 (4,968) 55,456 - 14,899 73,224 . (7,843)
STD/HN Clinical and Epidemiologic Services 93.977 96,314 BH 01-I31 ' - 47,220 - 16,830 71,837 (7,787)
Immunization Program Nursing 93.268 ]0,000 BH 00-72 (2,295) 10,000 - 22,197 33,453 (3,551)
Immunization Program Nursing 93.268 10,000 BH 01-228 - 2,500 - 30,560 34,924 (1,864)
Deparlment of Health&Human Services,passed through
the Maine Departmenl ofEducation:
HN/AIDS Prevention Ed Grant 93.938 - 013-OSA-3169-15 1,384 - - - - 1,384
Total Department ofHealth&Human Services (5,879) 136,493 - 265,016 414,530 (18,900)
Department of Education,passed through the Maine Department
of Education:
Adult Basic Education 84.002 42,682 013-OSA-6296-642 - . 42,682 - - 42,682 -
Adult Basic Education 84.002 18,000 013-OSA-6297-642 - I8,000 - 18,000 -
Title IA 84.010 857,554 013-OSA-6334-132 133,595 857,554 - - 879,995 111,154
Tide IC 84.011 68,703 013-OSA-7151-132 18,505 68,703 - - 68,451 18,757
TiBe VI ` 84.298 31,004 015-OSA-5063-012 4,108 31,004 - - 27,602 7,510
Eisenhower Elementary and Sewndary 84.281 29,598 013-OSA-8091-]02 29,598 - " - , 22,531 7,067
Special Ed Local EntiUement Title VA EHA 84.027 374,703 013-OSA-6317-122 . 7,643 374,703 - 373,710 8,636
Impacted Aid-Title VIII 84.041 26,799 S014Z-2001-2 i 50 - 26,799 - - 26,799
Emergency ImmigraM 84.162 ' 2,160 013-OSA-5011-40 186 - - - 186 -
Classroom Reduction 84340 173,303 013-OSA-5088-602 - 173,303 - - 173,303 -
Preschool Local Entitlement 84.173 28,377 013-OSA-6241 - 28,377 - - 14,095 14,282 •
Passed through the Maine Department of Substance Abuse: _
Drug Free Schools and Communities 84.086 ^27,079 013-OSA-6346-5'I 3,027 27,079 - - 25,123 4,983
Total Department ofEducation 167,064 1,677,802 - - 1,672,477 172,389
Urban Mass Transportation Assistance,passed through Maine . :
Department of Transportation:
Operating 20.507 287,649 ME-90-X119 - 243,714 43,929 634,567 922,210 -
RTAP 20.509 4,500 ME-18-X-020 - 880 - - 880 -
RTAP 20.509 3,350 ME-18-X-027 - 1,600 - - 1,600 -
RTAP 20.509 1,500 ME-18-X-028 1,265 - - 1,265
Capital 20.500 213,500 ME-90-X105 - 4,952 - 1,238 6,190 -
Total Urban Mass Transportation Assistance - 252,41 I - 43,929 635,805 932,145 -
Total Federal Awards $ (527,770) 1Q459,059 207,919 3,Og0,473 13,471,547 (281,866)
g
�
CITY OF BANGOR,MAINE
Schedule of Expenditures of Passenger Facility Charges
For Year ended June 30,2001
Nlemorandum , 1Vlemorandum
` Only Only
Cumulative Cumulative
Approved Amounts Total _ Year Ended Total
Impose and Use June 30,2000 June 30,2001 June 30,2001
95-01-C-00-BGR
Passenger facili.ty charge revenue and interest $ 8,742,415 2,912,956 519,530 3,432,486
Expenditures: _
Reconstruct Domestic Terminal Ramp,
reconstruct International Ramps(North and South),
reconstruct Ramp Movement Areas,and
reconstruct and Expand Commuter Apron Area - • - -
Total expenditures $ 8,742,415 2,301,222 450 2,301,672
9
CITY OF BANGOR,MAINE
Notes to Schedule of Expenditures of Federal Awards.
June 30,2001
PURPOSE OF THE SCHEDULE
Office of Management and Budget(OMB) Circular A-133,Audits of States. Local Governments and Non-profit
Ort�anizations,requires a Schedule of Expenditures of Federal Awards showing total expenditures for each
federal award program as ident.ified in the Catalog of Federal Domestic Assistance(CFDA).
SIGNIFICANT ACCOIJNTING POLICIES
A. Reporting Entity-The accompanying schedule includes all federal award programs of the City of Bangor
for the fiscal year ended June 30, 2001. The reporting entity is defined in Notes to Financial Statements of
the City of Bangor. '
B. Basis of Presentation-The information in the accompanying Schedule of Expenditures of Federal Awards
is presented in accordance with OMB Circular A-133.
1. Pursuant to OMB Circular A-133, federal awards are defined as assistance provided by a federal
agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan
guarantees,property, interest subsidies, insurance or direct appropriations.
2.. Major- OMB Circular A-133 establishes the level of expenditures or expenses to be used in defining .
major federal award programs. Major programs for the City of Bangor are identified in the summa.ry of
auditor's results in the Schedule of Findings and Questioned Costs.
� - C. Basis of Accounting-The information presented in the Schedule of Expenditures of Federal Awards is -
presented on the modified accrual basis of accounting,wliich is consistent with the reporting in the City's
financial statements.
CITY OF BANGOR,MAINE
Schedule of Findings and Questioned Costs
June 30,2001
Section I-Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unqualified �.
Internal control over financial reporting:
Material weaknesses identified? no
Reportable conditions identified
not considered to be a material weakness? yes
Noncompliance material to financial statements noted? no
Federal Awards '
Internal Control over major programs: � _,
Material weaknesses identified? no
-Reportable conditions identified
not considered to be material weaknesses? no
Type of auditor's report issued on compliance
for major programs: Qualified
Any audit findings disclosed that are required
to be reported in accordance with
Circular A-133, Section.510(a)? yes
Identification of major programs:
CFDA Numbers Name of Federal Program or Cluster
10.557 WIC -Nutrition Prog;ram
20.507 MIDOT-Capital and Operating Assistance
14.218 Communitv Development Block Grant
84.027 Special Education-Grants to States
Dollar threshold used to distinguish
between Type A and Type B programs: $404,146
Auditee qualified as low-risk auditee? y�s
11
-� CITY OF BANGOR,IVIAINE
Schedule of Findings and Questioned.Costs, Continued
. Section II-Findings Required to be Reported Under Government Auditing Standards
#2001-1 - Sewer Svstem Controls � � -
Controls at the sewer utility are potentially weakened because of the utility's relationship with the Bangor Water
District,which is a separate,non-City entity. The problem arises because the water and sewer utilities share
� many aspects of billing and collection. Specifically, sewer bills are based upon water usage data, as provided by
the water districts; water and sewer bills are mailed together; sewer payments may be made at,among otl�er
� places, the water district; and the water district's billing and payment software, which is incompatible with the
City's general accounting software, is also employed by the sewer utility. �
As a result, a number of problems arise. First,where payments are made at the water district, City funds remain
outside the City control for the period of time between their receipt from customers and the forwarding of
payment to the City. This,combined.with the increased handling of the City assets introduces the potential for �
. . diversion of City property by.non-City employees. Second,the flow of funds between the two utilities and their
timing often results in the"float"of relatively large amounts due the City. Third,the incompatibility of systems �
between the sewer utility and the rest of City government makes timely tracking of sewer utility performance
difficult. Further,�it makes reconcilement increasingly important and time consuming. � .
We recommend the City review its relationship with the water utility to correct these•cash liandling and
accounting deficiencies. �
12 •
CITY OF BANGOR,MAINE
� Schedule of Findings and Questioned Costs,Continued
Section III-Findings and Questioned Costs For Federal Awards
#2001 -2 -U.S.Department of Education, Special Education—Grants to States(Local Entitlement),CFDA
#84.027,for the period Julv 1,2000 through June 30,2001.
Finding-The Local Entitlement program had excess cash balances on hand for excessive,periods of time.
� Criteria -Drawdowns of federal funds must be as close as possible to the time of making distributions. Time
should be minimized between the transfer from the U. S. Treasury and the disbursement of funds by the
recipient.
r �:.
Effect-Payment of federal funds could be delayed or denied. , t
Recommendation-Request for drawdowns,which are accomplished in the application, should be timed such
that they are received in the later periods of the grant resulting in these payments being reimbursements for
expenditures already made rather than advances.
Questioned Costs -None. ' _
13
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SOUTH PORTLAND AUGUSTA WATERVILLE
20 Long Creek Drive 189 Water Street 30 Elm Street
South Portland ME 04106 Augusta ME 04330 Waterville ME 04901
Te1. 207-773-2986 Te1. 207-623-8401 Te1. 207-877-9397
Fax 207-772-3361 Fax 207-623-8404 Fax 207-877-9398