Finding 1074423 (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.