FAC Explorer

Audit 320643

FY End
2023-12-31
Total Expended
$273.89M
Findings
6
Programs
23
Organization: Maine Sate Housing Authority (ME)
Year: 2023 Accepted: 2024-09-24
Auditor: Baker Newman & Noyes LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497979 2023-002 Significant Deficiency - M
497980 2023-003 Significant Deficiency - E
497981 2023-004 Significant Deficiency - P
1074421 2023-002 Significant Deficiency - M
1074422 2023-003 Significant Deficiency - E
1074423 2023-004 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.327 Performance Based Contract Administrator Program $81.67M - 0
21.026 Homeowner Assistance Fund $27.76M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $13.57M Yes 0
21.023 Emergency Rental Assistance Program $13.44M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $9.87M Yes 1
93.568 Low-Income Home Energy Assistance $8.11M - 0
81.042 Weatherization Assistance for Low-Income Persons $6.00M Yes 1
14.275 Housing Trust Fund $2.42M - 0
93.558 Temporary Assistance for Needy Families $1.55M - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.46M - 0
14.871 Section 8 Housing Choice Vouchers $972,061 Yes 0
14.U01 Recovery Housing Program $869,573 - 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $598,475 - 0
14.267 Continuum of Care Program $389,266 - 0
93.499 Low Income Household Water Assistance Program $367,075 Yes 0
14.261 Homeless Management Information Systems Technical Assistance $341,588 - 0
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $255,173 - 0
14.921 Older Adults Home Modification Grant Program $240,368 - 0
14.879 Mainstream Vouchers $163,086 Yes 0
14.326 Project Rental Assistance Demonstration (pra Demo) Program of Section 811 Supportive Housing for Persons with Disabilities $98,903 - 0
14.896 Family Self-Sufficiency Program $85,830 - 0
14.231 Emergency Solutions Grant Program $63,963 - 0
14.239 Home Investment Partnerships Program $32,432 Yes 0

Contacts

Name Title Type
NJEKQK2U8ZJ5 Darren Brown Auditee
2076264600 Jason Emery Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Maine State Housing Authority (MaineHousing) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 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 selected portion of the operations of MaineHousing, it is not intended to and does not present the financial position, changes in net position, or cash flows of MaineHousing. 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. Expenditures under the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Program are required to be reported when eligible expenditures are incurred by MaineHousing and approved by the Federal Emergency Management Agency. Amounts to subrecipients are determined to be expended when payment is made to the subrecipient after eligible expenditures have been incurred. De Minimis Rate Used: N Rate Explanation: MaineHousing has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Maine State Housing Authority (MaineHousing) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 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 selected portion of the operations of MaineHousing, it is not intended to and does not present the financial position, changes in net position, or cash flows of MaineHousing.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Maine State Housing Authority (MaineHousing) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 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 selected portion of the operations of MaineHousing, it is not intended to and does not present the financial position, changes in net position, or cash flows of MaineHousing. 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. Expenditures under the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Program are required to be reported when eligible expenditures are incurred by MaineHousing and approved by the Federal Emergency Management Agency. Amounts to subrecipients are determined to be expended when payment is made to the subrecipient after eligible expenditures have been incurred. De Minimis Rate Used: N Rate Explanation: MaineHousing has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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. Expenditures under the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Program are required to be reported when eligible expenditures are incurred by MaineHousing and approved by the Federal Emergency Management Agency. Amounts to subrecipients are determined to be expended when payment is made to the subrecipient after eligible expenditures have been incurred.
Title: Indirect Cost Rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Maine State Housing Authority (MaineHousing) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 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 selected portion of the operations of MaineHousing, it is not intended to and does not present the financial position, changes in net position, or cash flows of MaineHousing. 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. Expenditures under the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Program are required to be reported when eligible expenditures are incurred by MaineHousing and approved by the Federal Emergency Management Agency. Amounts to subrecipients are determined to be expended when payment is made to the subrecipient after eligible expenditures have been incurred. De Minimis Rate Used: N Rate Explanation: MaineHousing has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. MaineHousing has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
2023-002: Fiscal Monitoring of Subrecipients – Weatherization for Low-Income Persons Federal Program: Weatherization for Low-Income Persons Assistance Listing No.: 81.042 Federal Agency: U.S. Department of Energy Pass-Through Entity: None Federal Award Identification Number: EE0009906/EE0009991 Repeat Finding: This is not a repeat finding Criteria – CFR 200.332 states that pass-through entities must evaluate each subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Pass-through entities must also monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward and that subaward performance goals are achieved. Condition – As part of their subrecipient monitoring procedures for the Weatherization program, MaineHousing states in their approved State Weatherization plan that they perform annual fiscal monitoring of all Community Action Agencies (CAA) involved in the Weatherization program. Questioned costs – None. Cause – MaineHousing did not complete a full fiscal monitoring review for seven out of ten CAAs involved in the Weatherization program. Effect or potential effect – There is an increased risk of unallowable expenditures at CAAs that have not undergone a complete fiscal monitoring review. Context – For seven out of ten CAAs involved in the Weatherization program, MaineHousing did not complete a full fiscal monitoring review. The sample was a statistically valid sample. Recommendation – MaineHousing should develop a comprehensive monitoring tracker to ensure that all CAAs involved in the Weatherization program undergo an annual fiscal monitoring review, along with other monitoring milestones laid out in their approved State plan. Views of responsible officials – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.
Finding 2023-003
2023-003: Housing Voucher Cluster – Eligibility – Document Retention Federal Program: Housing Voucher Cluster Assistance Listing No.: 14.871/14.879 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: None Federal Award Identification Number: ME901/COVID-19 ME901/ME901MS5 Repeat Finding: This is not a repeat finding Criteria – As a condition of admission or continued occupancy, HUD requires the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Housing Assistance Payment (HAP) contracts are maintained between MaineHousing and property owners to define the number of units eligible for subsidy. Lease agreements are maintained between property owners and tenants. Condition – MaineHousing maintains both HAP contracts and lease agreements for property owners and beneficiaries under the Housing Choice Voucher program. For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts. Questioned costs – None. Cause – During 2023, MaineHousing removed certain records from its system for contracts and agreements that were no longer in effect. Certain records that were still currently in effect were removed inadvertently. Effect or potential effect – There is a risk that HAP contracts and lease agreements that are maintained by MaineHousing may not be current, resulting in errors in subsidy payments. Context – For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts. The sample was a statistically valid sample. Recommendation – MaineHousing should review any documentation that was inadvertently disposed and work with property owners to restore and retain the most recent HAP contracts and lease agreements with tenants. Views of responsible officials – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.
Finding 2023-004
2023-004: Reporting – Expand Affordable Housing – Multi Family Federal Program: COVID-19 (Coronavirus State and Local Fiscal Recovery Funds) Expand Affordable Housing – Multi Family – American Rescue Plan Act Assistance Listing No.: 21.027 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: State of Maine Department of Administrative and Financial Services Federal Award Identification Number: COVID-19/SLFRP0144 Repeat Finding: This is not a repeat finding Criteria – Uniform Guidance requires recipients of federal funds to report expenditures of the federal funds annually on the Schedule of Expenditures for Federal Awards (SEFA). Condition – MaineHousing omitted certain loans from its SEFA that were required to be reported as expenditures. Questioned costs – None. Cause – MaineHousing did not properly review the trial balance for the program to determine all eligible expenditure amounts. Effect or potential effect – There is a risk that SEFA expenditure amounts would be reported inaccurately. Context – An adjustment was posted to record an additional $2,054,189 in expenditures for the program on the SEFA. Recommendation – MaineHousing should review any loans from this program in the future to determine appropriate SEFA reporting. Views of responsible officials – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.
Finding 2023-002
2023-002: Fiscal Monitoring of Subrecipients – Weatherization for Low-Income Persons Federal Program: Weatherization for Low-Income Persons Assistance Listing No.: 81.042 Federal Agency: U.S. Department of Energy Pass-Through Entity: None Federal Award Identification Number: EE0009906/EE0009991 Repeat Finding: This is not a repeat finding Criteria – CFR 200.332 states that pass-through entities must evaluate each subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Pass-through entities must also monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward and that subaward performance goals are achieved. Condition – As part of their subrecipient monitoring procedures for the Weatherization program, MaineHousing states in their approved State Weatherization plan that they perform annual fiscal monitoring of all Community Action Agencies (CAA) involved in the Weatherization program. Questioned costs – None. Cause – MaineHousing did not complete a full fiscal monitoring review for seven out of ten CAAs involved in the Weatherization program. Effect or potential effect – There is an increased risk of unallowable expenditures at CAAs that have not undergone a complete fiscal monitoring review. Context – For seven out of ten CAAs involved in the Weatherization program, MaineHousing did not complete a full fiscal monitoring review. The sample was a statistically valid sample. Recommendation – MaineHousing should develop a comprehensive monitoring tracker to ensure that all CAAs involved in the Weatherization program undergo an annual fiscal monitoring review, along with other monitoring milestones laid out in their approved State plan. Views of responsible officials – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.
Finding 2023-003
2023-003: Housing Voucher Cluster – Eligibility – Document Retention Federal Program: Housing Voucher Cluster Assistance Listing No.: 14.871/14.879 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: None Federal Award Identification Number: ME901/COVID-19 ME901/ME901MS5 Repeat Finding: This is not a repeat finding Criteria – As a condition of admission or continued occupancy, HUD requires the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Housing Assistance Payment (HAP) contracts are maintained between MaineHousing and property owners to define the number of units eligible for subsidy. Lease agreements are maintained between property owners and tenants. Condition – MaineHousing maintains both HAP contracts and lease agreements for property owners and beneficiaries under the Housing Choice Voucher program. For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts. Questioned costs – None. Cause – During 2023, MaineHousing removed certain records from its system for contracts and agreements that were no longer in effect. Certain records that were still currently in effect were removed inadvertently. Effect or potential effect – There is a risk that HAP contracts and lease agreements that are maintained by MaineHousing may not be current, resulting in errors in subsidy payments. Context – For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts. The sample was a statistically valid sample. Recommendation – MaineHousing should review any documentation that was inadvertently disposed and work with property owners to restore and retain the most recent HAP contracts and lease agreements with tenants. Views of responsible officials – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.
Finding 2023-004
2023-004: Reporting – Expand Affordable Housing – Multi Family Federal Program: COVID-19 (Coronavirus State and Local Fiscal Recovery Funds) Expand Affordable Housing – Multi Family – American Rescue Plan Act Assistance Listing No.: 21.027 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: State of Maine Department of Administrative and Financial Services Federal Award Identification Number: COVID-19/SLFRP0144 Repeat Finding: This is not a repeat finding Criteria – Uniform Guidance requires recipients of federal funds to report expenditures of the federal funds annually on the Schedule of Expenditures for Federal Awards (SEFA). Condition – MaineHousing omitted certain loans from its SEFA that were required to be reported as expenditures. Questioned costs – None. Cause – MaineHousing did not properly review the trial balance for the program to determine all eligible expenditure amounts. Effect or potential effect – There is a risk that SEFA expenditure amounts would be reported inaccurately. Context – An adjustment was posted to record an additional $2,054,189 in expenditures for the program on the SEFA. Recommendation – MaineHousing should review any loans from this program in the future to determine appropriate SEFA reporting. Views of responsible officials – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.