FAC Explorer

Audit 383127

FY End
2025-06-30
Total Expended
$1.87M
Findings
1
Programs
5
Organization: Motivational Services, Inc. (ME)
Year: 2025 Accepted: 2026-01-21
Auditor: OUELLETTE & ASSOCIATES P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1170169 2025-001 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
14.275 HOUSING TRUST FUND $763,274 Yes 1
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $680,090 Yes 0
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $225,000 Yes 0
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $125,513 Yes 0
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $74,925 Yes 0

Contacts

Name Title Type
RLS4X4CKE655 John Zarrilli Auditee
2076240492 Michael Dunn Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Motivational Services, Inc. under programs of the federal government for the year ended June 30, 2025. The information on 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 this Schedule presents only a selected portion of the operations of Motivational Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Motivational Services, Inc..
Motivational Services, Inc. has received several indirect U.S. Department of Housing and Urban Development and U.S. Department of Treasury loans for the development of 18 Green Street. All loans were passed through from Maine State Housing Authority. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at June 30, 2025 consists of: 14.218 Community Development Block Grants/Entitlement Grants $225,000; 14.275 Housing Trust Funds $763,274; 21.027 Coronavirus State and Local Fiscal Recovery Funds $453,393.

Finding Details

Finding 2025-001
Criteria: The Uniform Guidance requires that Organization have written procurement policies in place that comply with 2 CFR 200, Sections Subparts D and E. Condition: While testing compliance with 2 CFR 200, Sections Subparts D and E we found that management had not adopted the required procurement policies under 2 CFR Sections 200.318 – 200.327. Cause: Management does not regularly expend federal dollars above the threshold requiring a Single Audit under the Uniform Guidance. As such, policies related to procurement were not adopted. Effect: Internal controls surrounding Uniform Guidance are incomplete. Recommendation: Management should review 2 CFR Sections 200.138 – 300.327 and develop written policies that comply with the compliance requirements. Questioned Costs: None Management’s Response: Management has started incorporating 2 CFR Sections 200.138 – 300.327 into their current procurement policies and will adopt the policy changes in fiscal year 2026.