FAC Explorer

Audit 51843

FY End
2022-06-30
Total Expended
$3.12M
Findings
2
Programs
2
Organization: Hancock County Homes Foundation (ME)
Year: 2022 Accepted: 2023-02-26
Auditor: Haverlock Estey & Curran LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48174 2022-001 - - N
624616 2022-001 - - N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $2.73M Yes 1
10.427 Rural Rental Assistance Payments $387,907 - 0

Contacts

Name Title Type
Y989JP71VEF4 Kelley Tupper Auditee
2076672651 Randy Baker, CPA Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note A - Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hancock County Homes Foundation, d/b/a Meadow View Apartments, USDA RD Project No. 01-2-357232994, under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Hancock County Homes Foundation, d/b/a Meadow View Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Hancock County Homes Foundation, d/b/a Meadow View Apartments.NOTE B Summary of Significant Accounting PoliciesExpenditures 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 limited as to reimbursement. Hancock County Homes Foundation, d/b/a Meadow View Apartments, USDA RD Project No. 01-2-357232994 has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 2432388.

Finding Details

Finding 2022-001
Criteria: The U.S. Department of Agriculture (USDA) Rural Development requires that disbursements from the reserve for replacement fund may be made only after written consent is received from Rural Development. Condition: Disbursements from the reserve for replacement funds were made without written consent.. Cause: Hancock County Homes Foundation failed to collect an approval from Rural Development for an automatic withdrawal of funds for the purchase of checks for that account. Effect: Hancock County Homes Foundation was not in compliance with all USDA compliance requirements and the replacement reserve account was underfunded. Recommendation: Recommend obtaining approval from Rural Developement for all disbursements. Management's Response: Management agrees with this recommendation and has provided the corrective action plan following the Single Audit report.
Finding 2022-001
Criteria: The U.S. Department of Agriculture (USDA) Rural Development requires that disbursements from the reserve for replacement fund may be made only after written consent is received from Rural Development. Condition: Disbursements from the reserve for replacement funds were made without written consent.. Cause: Hancock County Homes Foundation failed to collect an approval from Rural Development for an automatic withdrawal of funds for the purchase of checks for that account. Effect: Hancock County Homes Foundation was not in compliance with all USDA compliance requirements and the replacement reserve account was underfunded. Recommendation: Recommend obtaining approval from Rural Developement for all disbursements. Management's Response: Management agrees with this recommendation and has provided the corrective action plan following the Single Audit report.