FAC Explorer

Finding 1230057 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-17
Audit: 411338
Organization: Maine Sate Housing Authority (ME)
Auditor: BAKER NEWMAN & NOYES LLC

AI Summary

  • Core Issue: MaineHousing failed to submit required financial and performance reports on time for the Community Development Block Grants program.
  • Impacted Requirements: Timely submission of reports is mandated by federal guidelines from HUD.
  • Recommended Follow-Up: Improve tracking and review processes to ensure compliance with report due dates.

Finding Text

Finding 2025-001: Reporting – Community Development Block Grants/State’s Program and Non- Entitlement Grants in Hawaii Federal Program: Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii Assistance Listing No.: 14.228 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: None Federal Award Identification Number: B-20/B-22/B-23/B-24-RH-23-0001 Repeat Finding: This is not a repeat finding Criteria – MaineHousing is required to submit annual financial and performance reports to the U.S. Department of Housing and Urban Development (HUD) as part of its administration of the Recovery Housing Program under the Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii. Condition – During 2025, MaineHousing did not file their Federal Financial Report or their Performance Report on a timely basis. Questioned costs – None. Cause – The Federal Financial Reports and Performance Report were submitted late due to difficulty in uploading and submitting information to the HUD portals and lack of sufficient follow-up to resolve the issue. Effect or potential effect – Reports are not submitted timely in accordance with federal guidelines. Context – Our sample of reports was a statistically valid sample. Of our sample of four Federal Financial Reports and one Performance Report, none were submitted timely. Recommendation – MaineHousing should enhance controls over the tracking, completion and review of the program reporting to ensure that the due dates are monitored and adhered to. 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.

Corrective Action Plan

Finding 2025-001: Reporting – Community Development Block Grant/State’s Program and Non- Entitlement Grants in Hawaii Name of Contact Person: Ashley Carson, Chief Counsel Management’s Views and Corrective Action Plan: The Legal & Compliance Department is responsible for the submission of the Annual Performance Report for the Recovery Housing Program and agree with the finding. For 2025, MaineHousing was experiencing an error in HUD’s Disaster Recovery Grant Reporting (DRGR) system with submission of the report and reached out to HUD for assistance. HUD was non-responsive to the first two requests for assistance, and a third request was not made until after the report filing deadline. HUD responded to the third request and assisted by providing technical assistance which allowed the report to be submitted. The report was not filed in a timely manner due to the DRGR system errors and the elapsed time between follow-ups with HUD. As system errors for DRGR are a common issue, the following corrective action will ensure that MaineHousing is proactive in the submission of Annual Performance Report for Recovery Housing. The Annual Performance Report for the Recovery Housing Program is due on October 30th. No later than September 15th each year, MaineHousing will attempt to verify any issues with the DRGR system ahead of the reporting deadline and immediately reach out to HUD for technical assistance with any issues found. MaineHousing will gather the information for the Recovery Housing Annual Performance Report at least 45 days ahead of the October 30th deadline (if available) and attempt submission of that report no later than October 5th. If errors occur in DRGR in submitting the report, MaineHousing will immediately contact HUD and continue to follow up weekly until the issue is resolved, attempting other modes of contact if HUD is unresponsive. If the report cannot be submitted in a timely manner, MaineHousing will request that HUD confirm in writing that late submission is acceptable given the circumstances. Proposed Completion Date: Completed

Categories

Reporting Subrecipient Monitoring HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1230056 2025-004
    Material Weakness Repeat
  • 1230058 2025-002
    Material Weakness Repeat
  • 1230059 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.327 PERFORMANCE BASED CONTRACT ADMINISTRATOR PROGRAM $101.15M
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $35.90M
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $15.57M
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $3.93M
14.275 HOUSING TRUST FUND $2.55M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $2.34M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $2.05M
21.026 HOMEOWNER ASSISTANCE FUND $1.97M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.77M
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $1.40M
14.900 LEAD HAZARD REDUCTION GRANT PROGRAM $1.20M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $986,617
14.267 CONTINUUM OF CARE PROGRAM $885,118
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $534,692
14.261 NATIONAL HOMELESS DATA ANALYSIS PROJECT (NHDAP) $460,633
14.921 OLDER ADULTS HOME MODIFICATION GRANT PROGRAM $371,220
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $365,250
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $187,450
14.879 MAINSTREAM VOUCHERS $183,489
14.326 PROJECT RENTAL ASSISTANCE PROGRAM OF THE SECTION 811 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (811 PRA). $102,661
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $31,840
14.913 HEALTHY HOMES PRODUCTION PROGRAM $25,086