FAC Explorer

Audit 317846

FY End
2024-06-30
Total Expended
$857,254
Findings
2
Programs
1
Organization: Old Town Voa Affordable Housing, Inc. (penobscot River House) Me36-H0173 (ME)
Year: 2024 Accepted: 2024-08-26
Auditor: Berry Dunn McNeil & Parker LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485074 2024-001 Significant Deficiency - P
1061516 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $857,254 Yes 1

Contacts

Name Title Type
PYBKQNHAB6F7 Kayla Thurlow Auditee
2073731140 Ryan Gough Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Old Town VOA Affordable Housing, Inc. (the Organization), HUD Project No. ME36-H017-342. Financial assistance received directly from federal agencies is included on the Schedule. The information in the Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.

Finding Details

Finding 2024-001
Information on the Federal Program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) Program Name: Section 8 Project-Based Cluster - Section 8 Housing Assistance Payments Program AL: 14.195 Federal Award Identification Number: N/A Federal Award Year: 2024 Specific Requirement: HUD prescribes that required deposits into the residual receipts reserve account be deposited within 90 days after fiscal year end. Condition Foundand Context: During fiscal year 2023, the Organization had identified surplus cash of $59,223 which was required to be deposited into its residual receipts reserve account within 90 days after fiscal year end. This required deposit was not made until 104 days after the fiscal year end. Questioned Costs: $59,223 of known questioned costs. Cause and Effect: The Organization was aware of the requirement to deposit the surplus cash into the residual receipts reserve account within the specified timeframe; however, a process was not implemented to provide reasonable assurance that the deposit was made timely. As a result, the Organization was not compliant with HUD regulations. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation We recommend the Organization implement a process to identify any surplus cash to be deposited into its residual receipts reserve account and a timeline to provide reasonable assurance that the remittance of the required deposits are done within the specified timeframe set by HUD. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan attached.
Finding 2024-001
Information on the Federal Program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) Program Name: Section 8 Project-Based Cluster - Section 8 Housing Assistance Payments Program AL: 14.195 Federal Award Identification Number: N/A Federal Award Year: 2024 Specific Requirement: HUD prescribes that required deposits into the residual receipts reserve account be deposited within 90 days after fiscal year end. Condition Foundand Context: During fiscal year 2023, the Organization had identified surplus cash of $59,223 which was required to be deposited into its residual receipts reserve account within 90 days after fiscal year end. This required deposit was not made until 104 days after the fiscal year end. Questioned Costs: $59,223 of known questioned costs. Cause and Effect: The Organization was aware of the requirement to deposit the surplus cash into the residual receipts reserve account within the specified timeframe; however, a process was not implemented to provide reasonable assurance that the deposit was made timely. As a result, the Organization was not compliant with HUD regulations. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation We recommend the Organization implement a process to identify any surplus cash to be deposited into its residual receipts reserve account and a timeline to provide reasonable assurance that the remittance of the required deposits are done within the specified timeframe set by HUD. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan attached.