FAC Explorer

Finding 375692 (2023-001)

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Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-12
Audit: 294767
Organization: Hancock County Homes Foundation (ME)
Auditor: Haverlock Estey & Curran LLC

AI Summary

  • Core Issue: Hancock County Homes Foundation did not make timely deposits to the replacement reserve account.
  • Impacted Requirements: This failure means non-compliance with USDA's requirement for timely deposits, leading to an underfunded reserve.
  • Recommended Follow-Up: Ensure timely deposits moving forward, as management agrees and has a corrective action plan in place.

Finding Text

Replacement Reserve – Federal Assistance Listing Number 10.415 – U.S. Department of Agriculture – Section 515 Rural Rental Housing Loan Criteria: The U.S. Department of Agriculture (USDA) Rural Development requires that deposits to be deposited timely in the reserve for replacement bank account. Condition: Deposits to the replacement reserve account were not timely. Cause: Hancock County Homes Foundation failed to deposit funds timely to replacement reserve account. Effect: Hancock County Homes Foundation was not in compliance with all USDA compliance requirements and the replacement reserve account was underfunded. Recommendation: Recommend timely deposits. Management's Response: Management agrees with this recommendation and has provided the corrective action plan following the Single Audit report.

Corrective Action Plan

Management will establish more oversight on the deposits to replacement reserve account

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $2.63M
10.427 Rural Rental Assistance Payments $376,586