FAC Explorer

Finding 952134 (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.

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