Audit 367570

2024-001: Subrecipient Monitoring – Low Income Home Energy Assistance Program Federal Program: Low Income Home Energy Assistance/COVID-19 – Low Income Home Energy Assistance– American Rescue Plan Act Assistance Listing No.: 93.568 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Federal Award Identification Number: 2401MELIEA/2501MELIEA/2401MELIEI/COVID-19 2101MEE5C6 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. MaineHousing performs annual quality assurance reviews over subrecipients for the Low Income Home Energy Assistance (LIHEAP) Program to ensure source documentation for determining benefits is accurate. In addition, MaineHousing performs annual fiscal monitoring reviews for subrecipients participating in the LIHEAP Program. Condition – During 2024, for two subrecipients, MaineHousing did not perform annual quality assurance reviews. For one high-risk subrecipient, MaineHousing did not formally document their fiscal monitoring review. Questioned costs – None. Cause – MaineHousing did not perform annual quality assurance reviews for two subrecipients due to staff turnover in the program. The annual fiscal monitoring review was not formally documented for one high-risk subrecipient as the subrecipient did not have an annual audit performed for the fiscal year. Effect or potential effect – There is a risk that LIHEAP benefits may not be properly calculated and beneficiaries may not have provided proper support in their request for benefits. Context – The sample of subrecipients was a statistically valid sample. Recommendation – MaineHousing should enhance controls to ensure that all subrecipients undergo required quality assurance reviews annually. If fiscal monitoring reviews are not applicable to certain subrecipients, management should document what steps were taken to supplant the monitoring reviews to ensure that the subrecipient was appropriately monitored and reviewed. 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.

2024-001: Subrecipient Monitoring – Low Income Home Energy Assistance Program Federal Program: Low Income Home Energy Assistance/COVID-19 – Low Income Home Energy Assistance– American Rescue Plan Act Assistance Listing No.: 93.568 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Federal Award Identification Number: 2401MELIEA/2501MELIEA/2401MELIEI/COVID-19 2101MEE5C6 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. MaineHousing performs annual quality assurance reviews over subrecipients for the Low Income Home Energy Assistance (LIHEAP) Program to ensure source documentation for determining benefits is accurate. In addition, MaineHousing performs annual fiscal monitoring reviews for subrecipients participating in the LIHEAP Program. Condition – During 2024, for two subrecipients, MaineHousing did not perform annual quality assurance reviews. For one high-risk subrecipient, MaineHousing did not formally document their fiscal monitoring review. Questioned costs – None. Cause – MaineHousing did not perform annual quality assurance reviews for two subrecipients due to staff turnover in the program. The annual fiscal monitoring review was not formally documented for one high-risk subrecipient as the subrecipient did not have an annual audit performed for the fiscal year. Effect or potential effect – There is a risk that LIHEAP benefits may not be properly calculated and beneficiaries may not have provided proper support in their request for benefits. Context – The sample of subrecipients was a statistically valid sample. Recommendation – MaineHousing should enhance controls to ensure that all subrecipients undergo required quality assurance reviews annually. If fiscal monitoring reviews are not applicable to certain subrecipients, management should document what steps were taken to supplant the monitoring reviews to ensure that the subrecipient was appropriately monitored and reviewed. 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.

2024-002: Reporting – Low Income Home Energy Assistance Program Federal Program: Low Income Home Energy Assistance/COVID-19 – Low Income Home Energy Assistance – American Rescue Plan Act Assistance Listing No.: 93.568 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Federal Award Identification Number: 2401MELIEA/2501MELIEA/2401MELIEI/COVID-19 2101MEE5C6 Repeat Finding: This is not a repeat finding Criteria – MaineHousing is required to review and submit certain annual, monthly and quarterly reports as part of its administration of the LIHEAP program. Condition – MaineHousing filed certain reports after the required reporting deadlines, including the Federal Financial Report (SF-425), Performance Data Report, Carryover and Reallotment Report and Annual Report on Households Assisted by LIHEAP. In addition, not all reports had clear documentation that supervisory review was completed. Questioned costs – None. Cause – Turnover within the LIHEAP department delayed the review and submission of the reports noted above. Effect or potential effect – Reports are not submitted in accordance with federal guidelines and amounts within those reports may not be accurate. Context – Our sample of reports was a statistically valid sample. Recommendation – MaineHousing should enhance controls over reporting to ensure that due dates are monitored and adhered to. In addition, supervisory review of all reports should be clearly documented and retained by the individual performing the review. 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.

2024-002: Reporting – Low Income Home Energy Assistance Program Federal Program: Low Income Home Energy Assistance/COVID-19 – Low Income Home Energy Assistance – American Rescue Plan Act Assistance Listing No.: 93.568 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Federal Award Identification Number: 2401MELIEA/2501MELIEA/2401MELIEI/COVID-19 2101MEE5C6 Repeat Finding: This is not a repeat finding Criteria – MaineHousing is required to review and submit certain annual, monthly and quarterly reports as part of its administration of the LIHEAP program. Condition – MaineHousing filed certain reports after the required reporting deadlines, including the Federal Financial Report (SF-425), Performance Data Report, Carryover and Reallotment Report and Annual Report on Households Assisted by LIHEAP. In addition, not all reports had clear documentation that supervisory review was completed. Questioned costs – None. Cause – Turnover within the LIHEAP department delayed the review and submission of the reports noted above. Effect or potential effect – Reports are not submitted in accordance with federal guidelines and amounts within those reports may not be accurate. Context – Our sample of reports was a statistically valid sample. Recommendation – MaineHousing should enhance controls over reporting to ensure that due dates are monitored and adhered to. In addition, supervisory review of all reports should be clearly documented and retained by the individual performing the review. 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.

2024-003: Reporting – Temporary Assistance for Needy Families (TANF) State Programs Federal Program: Temporary Assistance for Needy Families (TANF) State Programs Assistance Listing No.: 93.558 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Maine State Department of Health and Human Services Federal Award Identification Number: OFI MOU 11/8/17 Repeat Finding: This is not a repeat finding Criteria – MaineHousing is required to submit certain monthly and annual reports to the State of Maine Department of Health and Human Services as part of its administration of the TANF program. Condition – During 2024, MaineHousing did not file its Agreement Closeout Report on a timely basis. Formal evidence of submission of the Program Delivery Report, Program Projections Report, and Monthly Household Reports was not retained. Questioned costs – None. Cause – Turnover within the TANF department delayed the review and submission of the reports noted above. Effect or potential effect – Reports are not submitted in accordance with federal or state guidelines and amounts within the reports might not be accurate. Context – Our sample of reports was a statistically valid sample. Recommendation – MaineHousing should enhance controls over the tracking, completion and review of TANF reporting to ensure that due dates are monitored and adhered to. 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.