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.