Finding 497979 (2023-002)

2023-002: Fiscal Monitoring of Subrecipients – Weatherization for Low-Income Persons Federal Program: Weatherization for Low-Income Persons Assistance Listing No.: 81.042 Federal Agency: U.S. Department of Energy Pass-Through Entity: None Federal Award Identification Number: EE0009906/EE0009991 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. Condition – As part of their subrecipient monitoring procedures for the Weatherization program, MaineHousing states in their approved State Weatherization plan that they perform annual fiscal monitoring of all Community Action Agencies (CAA) involved in the Weatherization program. Questioned costs – None. Cause – MaineHousing did not complete a full fiscal monitoring review for seven out of ten CAAs involved in the Weatherization program. Effect or potential effect – There is an increased risk of unallowable expenditures at CAAs that have not undergone a complete fiscal monitoring review. Context – For seven out of ten CAAs involved in the Weatherization program, MaineHousing did not complete a full fiscal monitoring review. The sample was a statistically valid sample. Recommendation – MaineHousing should develop a comprehensive monitoring tracker to ensure that all CAAs involved in the Weatherization program undergo an annual fiscal monitoring review, along with other monitoring milestones laid out in their approved State plan. 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.