FAC Explorer

Audit 359147

FY End
2024-12-31
Total Expended
$866,166
Findings
2
Programs
2
Organization: Bath Housing Development Corporation (ME)
Year: 2024 Accepted: 2025-06-18
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565324 2024-001 Significant Deficiency - E
1141766 2024-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.195 Project-Based Rental Assistance (pbra) $628,684 Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $237,482 - 0

Contacts

Name Title Type
E2P9KNK27R65 Debora Keller Auditee
2074433116 Michael Guyder Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Bath Housing Development Corporation, under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Bath Housing Development Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Bath Housing Development Corporation. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Bath Housing Development Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Bath Housing Development Corporation, under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Bath Housing Development Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Bath Housing Development Corporation.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Bath Housing Development Corporation, under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Bath Housing Development Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Bath Housing Development Corporation. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Bath Housing Development Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned.
Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Bath Housing Development Corporation, under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Bath Housing Development Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Bath Housing Development Corporation. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Bath Housing Development Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Bath Housing Development Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
2024-001: Eligibility Other Matter / Significant Deficiency U.S. Department of Housing and Urban Development ALN #14.195 – Section 8 Project Based Cluster Criteria: The owner must reexamine the income and composition of all families at least every 12 months. After consultation with the family and upon verification of the information, the owner must make appropriate adjustments in the Total Tenant Payment in accordance with part 5 of this title and determine whether the family's unit size is still appropriate. (24 CFR 880.603(c)) Condition: We selected a sample of 7 re-examinations for participants in the Program and identified the following: •Two instances in which the verifications obtained for the annual recertification could not be located. •One instance in which the Organization relied on self-verification of pension income, without documenting why third-party verifications were not able to be obtained. •One instance in which the Organization obtained sufficient verifications; however, the incorrect amount was used (Net pension amount was used instead of the gross amount). Cause: Document retention issues with re-examination documents. Effect: As a result of being unable to locate certain required documentation, the Organization cannot fully support participant eligibility. Questioned Costs: None Context: We selected a sample of 7 re-examinations from a population of 50 participants. This was not a statistically valid sample. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Organization perform a quality control review to ensure that the appropriate documentation has been retained.
Finding 2024-001
2024-001: Eligibility Other Matter / Significant Deficiency U.S. Department of Housing and Urban Development ALN #14.195 – Section 8 Project Based Cluster Criteria: The owner must reexamine the income and composition of all families at least every 12 months. After consultation with the family and upon verification of the information, the owner must make appropriate adjustments in the Total Tenant Payment in accordance with part 5 of this title and determine whether the family's unit size is still appropriate. (24 CFR 880.603(c)) Condition: We selected a sample of 7 re-examinations for participants in the Program and identified the following: •Two instances in which the verifications obtained for the annual recertification could not be located. •One instance in which the Organization relied on self-verification of pension income, without documenting why third-party verifications were not able to be obtained. •One instance in which the Organization obtained sufficient verifications; however, the incorrect amount was used (Net pension amount was used instead of the gross amount). Cause: Document retention issues with re-examination documents. Effect: As a result of being unable to locate certain required documentation, the Organization cannot fully support participant eligibility. Questioned Costs: None Context: We selected a sample of 7 re-examinations from a population of 50 participants. This was not a statistically valid sample. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Organization perform a quality control review to ensure that the appropriate documentation has been retained.