Auditors issue unmodified single‑audit compliance opinion for UMS; three significant deficiencies cited, UMA work‑study shortfall ~$91,000

CliftonLarsonAllen told the University of Maine System Audit Committee on a system audit briefing that it issued an unmodified opinion on compliance for the FY25 single audit of major federal programs, while identifying three significant deficiencies.

"We did issue an unmodified opinion on the compliance," said Brenda Scheer, signing director at CliftonLarsonAllen, summarizing the single‑audit result. She said the unmodified opinion is the highest level of assurance the single‑audit process provides on federal program compliance.

The auditors flagged three significant deficiencies: untimely reporting of enrollment changes to the National Student Loan Data System (NSLDS) for four students; a mismatch in program/effective‑date information for one student record; and a Pell Grant overaward for a single student. Scheer said the first finding is a common industry issue linked in part to third‑party clearinghouse behavior and urged campuses to raise problems with servicers so they can be resolved.

Auditors also reported a small coding error under congressional directives: three expenses totaling $420 were incorrectly charged to a grant and were not allowable, producing a discrete finding.

Committee members asked about corrective actions. "Has management provided you with any evidence of completion? If so, have you been able to verify them yet?" Trustee Mishu asked. Scheer replied that CLA will test the corrective action implementation in next year’s audit kickoff procedures and verify whether planned fixes were completed.

The committee focused follow‑up questions on the University of Maine at Augusta (UMA), where auditors noted multiple control issues this cycle: miscoded congressional‑designated spending, untimely reconciliations and underutilized federal work‑study. System staff said UMA has implemented two‑person reviews of reconciliations, is planning or providing grant‑staff training, and has an active monitor of utilization.

Brenda Scheer later reported the unspent work‑study allocation at UMA is approximately $91,000. "You can actually transfer some of the funds to a different program," she said, adding that transfers and carryover can likely address the shortfall within the current year.

Mike Johns, a principal at CliftonLarsonAllen who also led the session, used the meeting to kick off 2026 audit planning, describing the firm’s risk‑based approach, the audit calendar (preliminary work in June–July, substantive testing in September–early October) and required governance communications, including a governance letter and potential management letter if internal control deficiencies are found.

What happens next: CLA will include verification of corrective actions in the next audit cycle; the single‑audit work for major programs will proceed as planned. Committee members asked auditors and management to monitor the UMA work‑study usage and report progress on corrective steps.