FAC Explorer

Finding 1163511 (2025-002)

Material Weakness Repeat Finding
Requirement
J
Questioned Costs
$1
Year
2025
Accepted
2025-12-05
Audit: 373145
Organization: Seton Village, Inc. (ME)
Auditor: OTIS ATWELL

AI Summary

  • Answer: Major adjustments were required for management fees and related party transactions to align financial statements with GAAP.
  • Trend: Inadequate controls over financial and reporting processes led to significant misstatements in accounting records.
  • List: Follow up on improving controls to prevent future misstatements and address the $48,720 overpayment in management fees.

Finding Text

Significant audit adjustments related to management fees and due to related party were needed in order to present financial statements in accordance with generally accepted accounting principles caused by inadequate controls over financial and reporting closing procedures. As a result, the Corporation's accounting records were initial misstated by amounts material to the major federal program and management fees have been overpaid by $48,720.

Corrective Action Plan

We have posted the adjustments recommended by the auditors and management will implement the following control: Management agent will refund $48,720 in fees to the project and conduct staff training on monthly and annual procedures over financial close and reporting by October 31, 2025.

Categories

Questioned Costs Reporting

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $5.86M
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $1.42M