Finding 1155332 (2024-001)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2024
Accepted
2025-09-25
Audit: 367570
Organization: Maine Sate Housing Authority (ME)

AI Summary

  • Core Issue: MaineHousing failed to conduct required annual quality assurance reviews for two subrecipients and did not formally document fiscal monitoring for a high-risk subrecipient.
  • Impacted Requirements: Compliance with CFR 200.332, which mandates monitoring of subrecipients to ensure proper use of funds and achievement of performance goals.
  • Recommended Follow-Up: Enhance controls to guarantee all subrecipients receive annual quality assurance reviews and document alternative monitoring steps when fiscal reviews are not applicable.

Finding Text

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.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 1155333 2024-001
    Material Weakness Repeat
  • 1155334 2024-002
    Material Weakness Repeat
  • 1155335 2024-002
    Material Weakness Repeat
  • 1155336 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.327 Performance Based Contract Administrator Program $91.43M
21.026 Homeowner Assistance Fund $10.79M
81.042 Weatherization Assistance for Low-Income Persons $9.60M
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.31M
14.275 Housing Trust Fund $4.40M
14.239 Home Investment Partnerships Program $4.19M
21.023 Emergency Rental Assistance Program $3.55M
93.558 Temporary Assistance for Needy Families $3.01M
93.568 Low-Income Home Energy Assistance $2.82M
14.231 Emergency Solutions Grant Program $1.39M
14.871 Section 8 Housing Choice Vouchers $1.11M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $974,834
14.U01 Recovery Housing Program $897,442
14.267 Continuum of Care Program $542,790
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $534,708
14.261 National Homeless Data Analysis Project (nhdap) $326,358
14.921 Older Adults Home Modification Grant Program $256,935
14.900 Lead Hazard Reduction Grant Program $237,717
14.879 Mainstream Vouchers $176,893
14.896 Family Self-Sufficiency Program $90,121
14.326 Project Rental Assistance Demonstration (pra Demo) Program of Section 811 Supportive Housing for Persons with Disabilities $89,413