EIN: 010312916
UEI: NJEKQK2U8ZJ5
Audited by: Baker Newman & Noyes LLC
Cognizant agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 25, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 25, 2026 (158 days ago).
What is a management decision? →2024-001: Subrecipient Monitoring – Low Income Home Energy Assistance Program Federal Program: Low Income Home Energy Assistance/COVID-19 – Low Income Home Energy Assistance– American Rescue Plan Act Assistance Listing No.: 93.568 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Federal Award Identification Number: 2401MELIEA/2501MELIEA/2401MELIEI/COVID-19 2101MEE5C6 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. MaineHousing performs annual quality assurance reviews over subrecipients for the Low Income Home Energy Assistance (LIHEAP) Program to ensure source documentation for determining benefits is accurate. In addition, MaineHousing performs annual fiscal monitoring reviews for subrecipients participating in the LIHEAP Program. Condition – During 2024, for two subrecipients, MaineHousing did not perform annual quality assurance reviews. For one high-risk subrecipient, MaineHousing did not formally document their fiscal monitoring review. Questioned costs – None. Cause – MaineHousing did not perform annual quality assurance reviews for two subrecipients due to staff turnover in the program. The annual fiscal monitoring review was not formally documented for one high-risk subrecipient as the subrecipient did not have an annual audit performed for the fiscal year. Effect or potential effect – There is a risk that LIHEAP benefits may not be properly calculated and beneficiaries may not have provided proper support in their request for benefits. Context – The sample of subrecipients was a statistically valid sample. Recommendation – MaineHousing should enhance controls to ensure that all subrecipients undergo required quality assurance reviews annually. If fiscal monitoring reviews are not applicable to certain subrecipients, management should document what steps were taken to supplant the monitoring reviews to ensure that the subrecipient was appropriately monitored and reviewed. 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.
Show full finding ▾Hide full finding ▴2024-001: Subrecipient Monitoring – Low Income Home Energy Assistance Program Federal Program: Low Income Home Energy Assistance/COVID-19 – Low Income Home Energy Assistance– American Rescue Plan Act Assistance Listing No.: 93.568 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Federal Award Identification Number: 2401MELIEA/2501MELIEA/2401MELIEI/COVID-19 2101MEE5C6 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. MaineHousing performs annual quality assurance reviews over subrecipients for the Low Income Home Energy Assistance (LIHEAP) Program to ensure source documentation for determining benefits is accurate. In addition, MaineHousing performs annual fiscal monitoring reviews for subrecipients participating in the LIHEAP Program. Condition – During 2024, for two subrecipients, MaineHousing did not perform annual quality assurance reviews. For one high-risk subrecipient, MaineHousing did not formally document their fiscal monitoring review. Questioned costs – None. Cause – MaineHousing did not perform annual quality assurance reviews for two subrecipients due to staff turnover in the program. The annual fiscal monitoring review was not formally documented for one high-risk subrecipient as the subrecipient did not have an annual audit performed for the fiscal year. Effect or potential effect – There is a risk that LIHEAP benefits may not be properly calculated and beneficiaries may not have provided proper support in their request for benefits. Context – The sample of subrecipients was a statistically valid sample. Recommendation – MaineHousing should enhance controls to ensure that all subrecipients undergo required quality assurance reviews annually. If fiscal monitoring reviews are not applicable to certain subrecipients, management should document what steps were taken to supplant the monitoring reviews to ensure that the subrecipient was appropriately monitored and reviewed. 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.
2024-001: Subrecipient Monitoring – Low Income Energy Assistance Program Name of Contact Person: Bobbie Crooker, Director of Energy and Housing Management’s Views and Corrective Action Plan: The Department of Energy and Housing Services (EHS) at MaineHousing agrees that not all subrecipients had the required annual quality assurance reviews performed within the specified timeframe. Additionally, it agrees that all monitoring reviews were not formally documented. This issue occurred due to staff turnover within the LIHEAP Team, within the Fiscal Team, and within the EHS Department overall, as well as due to an insufficient monitoring process. EHS is in the process of developing and implementing a department wide Monitoring group with representation from all Teams in the department. As part of this, the Monitoring group is developing a regular schedule to visit the Community Action Agencies (CAAs) each year based on the established schedule. At the conclusion of each review, a consolidated report with an overall summary will be completed for each CAA. This new process will ensure that all CAAs are monitored by all program teams as well as the fiscal team each year and that all monitoring visits are documented appropriately. In addition to this, EHS has hired a Quality Control Specialist to review all monitoring reports, and program processes to ensure that each Team is monitoring to the applicable programmatic requirements annually. The monitoring group will be fully implemented by January 2026. Proposed Completion Date: January 2026
2024-002: Reporting – Low Income Home Energy Assistance Program Federal Program: Low Income Home Energy Assistance/COVID-19 – Low Income Home Energy Assistance – American Rescue Plan Act Assistance Listing No.: 93.568 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Federal Award Identification Number: 2401MELIEA/2501MELIEA/2401MELIEI/COVID-19 2101MEE5C6 Repeat Finding: This is not a repeat finding Criteria – MaineHousing is required to review and submit certain annual, monthly and quarterly reports as part of its administration of the LIHEAP program. Condition – MaineHousing filed certain reports after the required reporting deadlines, including the Federal Financial Report (SF-425), Performance Data Report, Carryover and Reallotment Report and Annual Report on Households Assisted by LIHEAP. In addition, not all reports had clear documentation that supervisory review was completed. Questioned costs – None. Cause – Turnover within the LIHEAP department delayed the review and submission of the reports noted above. Effect or potential effect – Reports are not submitted in accordance with federal guidelines and amounts within those reports may not be accurate. Context – Our sample of reports was a statistically valid sample. Recommendation – MaineHousing should enhance controls over reporting to ensure that due dates are monitored and adhered to. In addition, supervisory review of all reports should be clearly documented and retained by the individual performing the review. 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.
Show full finding ▾Hide full finding ▴2024-002: Reporting – Low Income Home Energy Assistance Program Federal Program: Low Income Home Energy Assistance/COVID-19 – Low Income Home Energy Assistance – American Rescue Plan Act Assistance Listing No.: 93.568 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Federal Award Identification Number: 2401MELIEA/2501MELIEA/2401MELIEI/COVID-19 2101MEE5C6 Repeat Finding: This is not a repeat finding Criteria – MaineHousing is required to review and submit certain annual, monthly and quarterly reports as part of its administration of the LIHEAP program. Condition – MaineHousing filed certain reports after the required reporting deadlines, including the Federal Financial Report (SF-425), Performance Data Report, Carryover and Reallotment Report and Annual Report on Households Assisted by LIHEAP. In addition, not all reports had clear documentation that supervisory review was completed. Questioned costs – None. Cause – Turnover within the LIHEAP department delayed the review and submission of the reports noted above. Effect or potential effect – Reports are not submitted in accordance with federal guidelines and amounts within those reports may not be accurate. Context – Our sample of reports was a statistically valid sample. Recommendation – MaineHousing should enhance controls over reporting to ensure that due dates are monitored and adhered to. In addition, supervisory review of all reports should be clearly documented and retained by the individual performing the review. 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.
2024-002: Reporting - Low Income Energy Assistance Program Name of Contact Person: Bobbie Crooker, Director of Energy and Housing Management’s Views and Corrective Action Plan: The Department of Energy and Housing Services (EHS) at MaineHousing agrees that certain reports such as the Federal Financial Report, Performance Data report, Carryover and Reallotment Report, and the Annual Households report were filed after the required reporting deadlines. Additionally, we agree that not all reports had clear documentation showing the supervisory review was completed. This issue occurred due to staff turnover within LIHEAP, within the Fiscal Team, and within the EHS Department overall. Additionally, there were questions as to who was responsible for inputting the information, who was responsible for submitting the reports, and when certain reports were due. EHS is in the process of developing and implementing the use of an up-to-date report tracking spreadsheet for the Department. As part of the training for newly onboarded staff, such as the new department Director, the newly hired Quality Contral Specialist, and the newly hired Fiscal Compliance Coordinator, EHS has also identified who is responsible for maintaining the tracking spreadsheet, identified who is responsible for the information contained in specific reports, identified who is responsible for submitting each report, and identified who is responsible for updating the department calendar with reminders for report due dates. This spreadsheet will help ensure that all reports are submitted accurately and in a timely manner in accordance with federal guidelines. The new tracking spreadsheets and process will be fully implemented by the end of October 2025. Proposed Completion Date: October 2025
2024-003: Reporting – Temporary Assistance for Needy Families (TANF) State Programs Federal Program: Temporary Assistance for Needy Families (TANF) State Programs Assistance Listing No.: 93.558 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Maine State Department of Health and Human Services Federal Award Identification Number: OFI MOU 11/8/17 Repeat Finding: This is not a repeat finding Criteria – MaineHousing is required to submit certain monthly and annual reports to the State of Maine Department of Health and Human Services as part of its administration of the TANF program. Condition – During 2024, MaineHousing did not file its Agreement Closeout Report on a timely basis. Formal evidence of submission of the Program Delivery Report, Program Projections Report, and Monthly Household Reports was not retained. Questioned costs – None. Cause – Turnover within the TANF department delayed the review and submission of the reports noted above. Effect or potential effect – Reports are not submitted in accordance with federal or state guidelines and amounts within the reports might not be accurate. Context – Our sample of reports was a statistically valid sample. Recommendation – MaineHousing should enhance controls over the tracking, completion and review of TANF reporting to ensure that 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.
Show full finding ▾Hide full finding ▴2024-003: Reporting – Temporary Assistance for Needy Families (TANF) State Programs Federal Program: Temporary Assistance for Needy Families (TANF) State Programs Assistance Listing No.: 93.558 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Maine State Department of Health and Human Services Federal Award Identification Number: OFI MOU 11/8/17 Repeat Finding: This is not a repeat finding Criteria – MaineHousing is required to submit certain monthly and annual reports to the State of Maine Department of Health and Human Services as part of its administration of the TANF program. Condition – During 2024, MaineHousing did not file its Agreement Closeout Report on a timely basis. Formal evidence of submission of the Program Delivery Report, Program Projections Report, and Monthly Household Reports was not retained. Questioned costs – None. Cause – Turnover within the TANF department delayed the review and submission of the reports noted above. Effect or potential effect – Reports are not submitted in accordance with federal or state guidelines and amounts within the reports might not be accurate. Context – Our sample of reports was a statistically valid sample. Recommendation – MaineHousing should enhance controls over the tracking, completion and review of TANF reporting to ensure that 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.
2024-003: Reporting – Temporary Assistance for Needy Families (TANF) State Programs Name of Contact Person(s): Bobbie Crooker, Director of Energy and Housing Management’s Views and Corrective Action Plan: The Department of Energy and Housing Services (EHS) at MaineHousing agrees that for 2024 the Program Delivery Report, the Program Projections Report, and many of the Monthly Household reports did not have evidence of submission and that the Closeout Report was not filed timely. This issue occurred due to staff turnover within the LIHEAP Team, within the Fiscal Team, and within the EHS Department overall, as well as due to an insufficient monitoring process or what was required. The State of Maine DHHS verbally informed MaineHousing that all 2024 reporting requirements have been satisfied. EHS is in the process of developing and implementing the use of an up-to-date report tracking spreadsheet for the Department. As part of the training for newly onboarded staff, such as the new department Director, the newly hired Quality Contral Specialist, and the newly hired Fiscal Compliance Coordinator, EHS has also identified who is responsible for maintaining the tracking spreadsheet, identified who is responsible for the information contained in specific reports, identified who is responsible for submitting each report, and identified who is responsible for updating the department calendar with reminders for report due dates. This spreadsheet will help ensure that all reports for all programs are submitted accurately and in a timely manner in accordance with state guidelines for report submission. Additionally, EHS walked through the process and what is required with a representative from Maine DHHS. For TANF, this process and tracking has been fully implemented. Proposed Completion Date: Completed
FAC accepted this audit on September 24, 2024 — management decision was due March 24, 2025.
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.
Show full finding ▾Hide full finding ▴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.
2023-002: Fiscal Monitoring of Subrecipients – Weatherization for Low-Income Persons Name of Contact Person: Jamie Johnson, Senior Director of Operations Management’s Views and Corrective Action Plan: MaineHousing has developed and implemented a tracking tool to ensure each of the components of monitoring (fiscal, programmatic, technical) are conducted at the appropriate time and reports are issued within the required 30 days. Proposed Completion Date: Completed
2023-003: Housing Voucher Cluster – Eligibility – Document Retention Federal Program: Housing Voucher Cluster Assistance Listing No.: 14.871/14.879 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: None Federal Award Identification Number: ME901/COVID-19 ME901/ME901MS5 Repeat Finding: This is not a repeat finding Criteria – As a condition of admission or continued occupancy, HUD requires the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Housing Assistance Payment (HAP) contracts are maintained between MaineHousing and property owners to define the number of units eligible for subsidy. Lease agreements are maintained between property owners and tenants. Condition – MaineHousing maintains both HAP contracts and lease agreements for property owners and beneficiaries under the Housing Choice Voucher program. For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts. Questioned costs – None. Cause – During 2023, MaineHousing removed certain records from its system for contracts and agreements that were no longer in effect. Certain records that were still currently in effect were removed inadvertently. Effect or potential effect – There is a risk that HAP contracts and lease agreements that are maintained by MaineHousing may not be current, resulting in errors in subsidy payments. Context – For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts. The sample was a statistically valid sample. Recommendation – MaineHousing should review any documentation that was inadvertently disposed and work with property owners to restore and retain the most recent HAP contracts and lease agreements with tenants. 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.
Show full finding ▾Hide full finding ▴2023-003: Housing Voucher Cluster – Eligibility – Document Retention Federal Program: Housing Voucher Cluster Assistance Listing No.: 14.871/14.879 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: None Federal Award Identification Number: ME901/COVID-19 ME901/ME901MS5 Repeat Finding: This is not a repeat finding Criteria – As a condition of admission or continued occupancy, HUD requires the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Housing Assistance Payment (HAP) contracts are maintained between MaineHousing and property owners to define the number of units eligible for subsidy. Lease agreements are maintained between property owners and tenants. Condition – MaineHousing maintains both HAP contracts and lease agreements for property owners and beneficiaries under the Housing Choice Voucher program. For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts. Questioned costs – None. Cause – During 2023, MaineHousing removed certain records from its system for contracts and agreements that were no longer in effect. Certain records that were still currently in effect were removed inadvertently. Effect or potential effect – There is a risk that HAP contracts and lease agreements that are maintained by MaineHousing may not be current, resulting in errors in subsidy payments. Context – For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts. The sample was a statistically valid sample. Recommendation – MaineHousing should review any documentation that was inadvertently disposed and work with property owners to restore and retain the most recent HAP contracts and lease agreements with tenants. 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.
2023-003: Housing Voucher Cluster – Eligibility – Document Retention Name of Contact Person(s): Allison Gallagher, Director of Housing Choice Vouchers Management’s Views and Corrective Action Plan: Signed HAP contracts and lease agreements are required for every new lease up and MaineHousing will not release payment to the owner until those signed documents are received. These agreements state the contract rent and subsidy amounts at the time of the initial lease. Annually, each tenant is recertified and a contract amendment is generated with the current contract rent and subsidy amounts listed. These amendments are filed with the original documents. Management is certain that proper rent and subsidy payments were made based on annual and interim recertification documents on file. A new electronic file retention process was implemented in 2022, which involved organizing and converting volumes of physical files to electronic files. Since implementation of the new process, we have determined that some unit information for certain tenants was inadvertently discarded during conversion. Program staff are identifying missing unit information as they process annual recertification or when an outside party requests it and reaching out to the owner to obtain a copy of the signed original documents. The two HAP and lease contracts identified in this finding have been obtained. Management believes that the electronic file retention process currently in place is working well and this was isolated to the period of time when files were being organized and scanned from physical files to electronic files. Proposed Completion Date: Completed
2023-004: Reporting – Expand Affordable Housing – Multi Family Federal Program: COVID-19 (Coronavirus State and Local Fiscal Recovery Funds) Expand Affordable Housing – Multi Family – American Rescue Plan Act Assistance Listing No.: 21.027 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: State of Maine Department of Administrative and Financial Services Federal Award Identification Number: COVID-19/SLFRP0144 Repeat Finding: This is not a repeat finding Criteria – Uniform Guidance requires recipients of federal funds to report expenditures of the federal funds annually on the Schedule of Expenditures for Federal Awards (SEFA). Condition – MaineHousing omitted certain loans from its SEFA that were required to be reported as expenditures. Questioned costs – None. Cause – MaineHousing did not properly review the trial balance for the program to determine all eligible expenditure amounts. Effect or potential effect – There is a risk that SEFA expenditure amounts would be reported inaccurately. Context – An adjustment was posted to record an additional $2,054,189 in expenditures for the program on the SEFA. Recommendation – MaineHousing should review any loans from this program in the future to determine appropriate SEFA reporting. 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.
Show full finding ▾Hide full finding ▴2023-004: Reporting – Expand Affordable Housing – Multi Family Federal Program: COVID-19 (Coronavirus State and Local Fiscal Recovery Funds) Expand Affordable Housing – Multi Family – American Rescue Plan Act Assistance Listing No.: 21.027 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: State of Maine Department of Administrative and Financial Services Federal Award Identification Number: COVID-19/SLFRP0144 Repeat Finding: This is not a repeat finding Criteria – Uniform Guidance requires recipients of federal funds to report expenditures of the federal funds annually on the Schedule of Expenditures for Federal Awards (SEFA). Condition – MaineHousing omitted certain loans from its SEFA that were required to be reported as expenditures. Questioned costs – None. Cause – MaineHousing did not properly review the trial balance for the program to determine all eligible expenditure amounts. Effect or potential effect – There is a risk that SEFA expenditure amounts would be reported inaccurately. Context – An adjustment was posted to record an additional $2,054,189 in expenditures for the program on the SEFA. Recommendation – MaineHousing should review any loans from this program in the future to determine appropriate SEFA reporting. 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.
2023-004: Reporting – Expand Affordable Housing - Multi Family Name of Contact Person(s): Darren Brown, Director of Finance Management’s Views and Corrective Action Plan: Only program expenditures reported in accordance with Generally Accepted Accounting Principles (GAAP) standards were included on the initial SEFA and disbursements for loans were inadvertently omitted. Although loans are not expenditures for GAAP purposes, they need to be included as expenditures on the SEFA. A secondary review performed by the Governmental Accounting Manager has been implemented. This review will ensure that all program disbursements are captured and included on the SEFA and that all amounts reconcile to the trial balance. Proposed Completion Date: Completed
FAC accepted this audit on September 20, 2023 — management decision was due March 20, 2024.
FAC accepted this audit on September 25, 2022 — management decision was due March 25, 2023.
2021-001: Reconciliation of Unspent Advances Within the Emergency Rental Assistance (ERA) Program Criteria ? MaineHousing?s contracts with sub-recipients for ERA program advances, including Housing Stability funds, state that advances from MaineHousing are designated for future program expenditures and generally provide for a contract period 12 months from the date of contract inception. Contracts state that advances will be reduced by billed costs invoiced to MaineHousing. Condition and context ? During 2021, MaineHousing recorded advances to sub-recipients for the Housing Stability program and ERA administrative advances as grant revenues and grant expenditures when amounts were disbursed. Consistent with MaineHousing?s other programs, advances to sub-recipients should only be recognized as grant revenues and expenditures when invoiced by the sub-recipients. Cause ? Initial advanced payments made to sub-recipients for the Housing Stability portion of the ERA program were inadvertently expensed at the time of disbursement. Possible Asserted Effect ? Management reviewed amounts advanced and unspent to sub-recipients under these contracts and posted an adjustment of $2,140,480 to decrease grant revenues and expenditures. Recommendations ? We recommend that going forward, MaineHousing continue to apply this accounting treatment and reconcile all advanced and invoiced amounts under this program on a monthly basis. Management?s Views and Corrective Action Plan ? 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.
Show full finding ▾Hide full finding ▴2021-001: Reconciliation of Unspent Advances Within the Emergency Rental Assistance (ERA) Program Criteria ? MaineHousing?s contracts with sub-recipients for ERA program advances, including Housing Stability funds, state that advances from MaineHousing are designated for future program expenditures and generally provide for a contract period 12 months from the date of contract inception. Contracts state that advances will be reduced by billed costs invoiced to MaineHousing. Condition and context ? During 2021, MaineHousing recorded advances to sub-recipients for the Housing Stability program and ERA administrative advances as grant revenues and grant expenditures when amounts were disbursed. Consistent with MaineHousing?s other programs, advances to sub-recipients should only be recognized as grant revenues and expenditures when invoiced by the sub-recipients. Cause ? Initial advanced payments made to sub-recipients for the Housing Stability portion of the ERA program were inadvertently expensed at the time of disbursement. Possible Asserted Effect ? Management reviewed amounts advanced and unspent to sub-recipients under these contracts and posted an adjustment of $2,140,480 to decrease grant revenues and expenditures. Recommendations ? We recommend that going forward, MaineHousing continue to apply this accounting treatment and reconcile all advanced and invoiced amounts under this program on a monthly basis. Management?s Views and Corrective Action Plan ? 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.
Finding 2021-001: Reconciliation of Unspent Advances within the Emergency Rental Assistance (ERA) Program Name of Contact Person: Darren Brown, Director of Finance Corrective Action Plan: MaineHousing agrees with the recommendation. Initial advanced payments made to sub-recipients for the Housing Stability portion of the ERA program were inadvertently expensed at the time of disbursement. Corrective action was taken to remedy and properly record program revenues and expenditures upon the discovery of the improper treatment. We will continue to reconcile advanced and invoiced amounts each month to ensure the proper accounting treatment of future program revenues and expenditures. Proposed Completion Date: Completed February 2022
2021-002: Reconciliation of ERA Expenditures with Community Action Agencies Criteria ? MaineHousing records revenues and expenditures under the ERA programs based on sub-recipient reported amounts. Condition and context ? During the course of our audit, we performed confirmation procedures with the sub-recipients of ERA program funds for expenditures under the program. The sub-recipients of funds include various Community Action Agencies (CAA) across Maine. Confirmation responses from certain CAAs indicated that there were differences in program expenditures between MaineHousing?s records and the CAA records. Cause ? It was identified that MaineHousing derived program expenditures figures through their own data accumulation procedures. Expenditures reported by the CAAs were based on amounts actually billed to MaineHousing as program funds were spent. Possible Asserted Effect ? MaineHousing posted an adjustment of $897,713 to decrease grant revenues and expenditures in order to agree to amounts billed by each CAA. Recommendations ? We recommend that MaineHousing continue to reconcile expenditures under the program with CAAs on a monthly basis to ensure accurate reporting going forward. Management?s Views and Corrective Action Plan ? 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.
Show full finding ▾Hide full finding ▴2021-002: Reconciliation of ERA Expenditures with Community Action Agencies Criteria ? MaineHousing records revenues and expenditures under the ERA programs based on sub-recipient reported amounts. Condition and context ? During the course of our audit, we performed confirmation procedures with the sub-recipients of ERA program funds for expenditures under the program. The sub-recipients of funds include various Community Action Agencies (CAA) across Maine. Confirmation responses from certain CAAs indicated that there were differences in program expenditures between MaineHousing?s records and the CAA records. Cause ? It was identified that MaineHousing derived program expenditures figures through their own data accumulation procedures. Expenditures reported by the CAAs were based on amounts actually billed to MaineHousing as program funds were spent. Possible Asserted Effect ? MaineHousing posted an adjustment of $897,713 to decrease grant revenues and expenditures in order to agree to amounts billed by each CAA. Recommendations ? We recommend that MaineHousing continue to reconcile expenditures under the program with CAAs on a monthly basis to ensure accurate reporting going forward. Management?s Views and Corrective Action Plan ? 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.
Finding 2021-002: Reconciliation of ERA Expenditures with Community Action Agencies Name of Contact Person: Darren Brown, Director of Finance Corrective Action Plan: MaineHousing agrees with the recommendation. Program expenditures were initially recorded using the readily available information processed and reported by the CAAs through the program?s EmpowOR software. Upon discovering that the information being provided in the software was inconsistent with the amounts reported on the CAAs? monthly billings, action was taken to correct the amounts and total program revenues and expenditures recorded for the year were accurate. We will continue with the established process of reconciling expenditures and using the monthly billings as the basis to record program activities. Proposed Completion Date: Completed February 2022
2021-003: Emergency Rental Assistance Program ? Subrecipient Monitoring Federal Program: COVID-19 ? Emergency Rental Assistance Program, ERA 1 and ERA 2 CFDA No.: 21.023 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: State of Maine Department of Administrative and Financial Services Federal Award Identification Number: COVID-19/OMB 1505-0266; COVID-19/OMB 1505-0270 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 and context ? As part of their subrecipient monitoring procedures for the ERA programs, MaineHousing required CAAs to perform Quality Assurance Reviews (QAR), which were subject to review by MaineHousing. One of the CAAs was unable to perform its QARs due to staffing issues. MaineHousing did not design additional subrecipient monitoring procedures over this CAA to account for the lack of QARs. Questioned Cost ? None. Cause ? The Community Action agency was unable to perform its QARs due to staffing issues. MaineHousing focused its additional specific CAA audits on CAAs that had the majority of ERA expenditures and activity. Possible Asserted Effect ? There is an increased risk of unallowable expenditures at CAAs that have staffing issues and are unable to document QARs in accordance with their agreements with MaineHousing. Recommendations ? In the event that CAAs cannot perform QARs, we recommend that MaineHousing formally document other procedures performed to help ensure that subrecipients expend funds in accordance with program guidelines. Management?s Views and Corrective Action Plan ? 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.
Show full finding ▾Hide full finding ▴2021-003: Emergency Rental Assistance Program ? Subrecipient Monitoring Federal Program: COVID-19 ? Emergency Rental Assistance Program, ERA 1 and ERA 2 CFDA No.: 21.023 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: State of Maine Department of Administrative and Financial Services Federal Award Identification Number: COVID-19/OMB 1505-0266; COVID-19/OMB 1505-0270 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 and context ? As part of their subrecipient monitoring procedures for the ERA programs, MaineHousing required CAAs to perform Quality Assurance Reviews (QAR), which were subject to review by MaineHousing. One of the CAAs was unable to perform its QARs due to staffing issues. MaineHousing did not design additional subrecipient monitoring procedures over this CAA to account for the lack of QARs. Questioned Cost ? None. Cause ? The Community Action agency was unable to perform its QARs due to staffing issues. MaineHousing focused its additional specific CAA audits on CAAs that had the majority of ERA expenditures and activity. Possible Asserted Effect ? There is an increased risk of unallowable expenditures at CAAs that have staffing issues and are unable to document QARs in accordance with their agreements with MaineHousing. Recommendations ? In the event that CAAs cannot perform QARs, we recommend that MaineHousing formally document other procedures performed to help ensure that subrecipients expend funds in accordance with program guidelines. Management?s Views and Corrective Action Plan ? 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.
Finding 2021-003: Emergency Rental Assistance Program ? Subrecipient Monitoring Name of Contact Person: Allison Gallagher, Director of Housing Choice Vouchers Corrective Action Plan: As the COVID-19 pandemic continued to impact the State, MaineHousing focused on distributing rent relief funds to tenants in need as quickly as possible to help keep Maine individuals and families stably housed. MaineHousing accomplished this goal through its network of Community Action Agency (CAA) partners, some of whom experienced staffing issues themselves during the pandemic. When time and resources were limited, processing of applications took priority over procedures not directly related to the application intake and payment process, such as Quality Assurance Reviews (QARs). MaineHousing reached out to the CAA in question, and although not formally implemented or documented, the CAA Executive Director did review files as needed to resolve questions or issues related to specific applications. The QAR process was completed for two months in early 2022, but then lapsed again due to staffing issues. The CAA has recently hired a new Housing Director who will be responsible for ensuring QARs are completed in a timely manner. Additionally, MaineHousing?s Internal Auditor is continuing to audit the ERA program administered by the CAAs. Initially focused on the larger CAAs with the greatest number of applicants and ERA expenditures, the Internal Auditor is now targeting at-risk CAAs. MaineHousing continues to work with all CAAs to ensure rent relief funds are administered within program guidelines. Proposed Completion Date: Completed August 2022
FAC accepted this audit on March 8, 2022 — management decision was due September 8, 2022.
2020-001: Coronavirus Relief Fund, Rent Relief Program ? Subrecipient Monitoring Federal Program: COVID-19 ? Coronavirus Relief Fund, Rent Relief Program CFDA No.: 21.019 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: State of Maine Department of Administrative and Financial Services Federal Award Identification Number: COVID-19/SLT0029/SLT0081 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 and context ? MaineHousing did not document formal written subrecipient monitoring procedures. Questioned Cost ? None. Cause ? The rollout of the Rent Relief Program was intended to get money to subrecipients and beneficiaries as timely as possible. Due to time constraints, MaineHousing was unable to draft formal subrecipient monitoring policies for the funds prior to disbursement. Possible Asserted Effect ? Without formal documented subrecipient monitoring procedures, there is an increased risk that required subrecipient monitoring criteria as outlined in CFR 200.332 are not followed. Recommendations ? We recommend that MaineHousing formally document its subrecipient monitoring procedures as required in CFR 200.332 and maintain documentation as to how these procedures are carried out. Management?s Views and Corrective Action Plan ? 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.
Show full finding ▾Hide full finding ▴2020-001: Coronavirus Relief Fund, Rent Relief Program ? Subrecipient Monitoring Federal Program: COVID-19 ? Coronavirus Relief Fund, Rent Relief Program CFDA No.: 21.019 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: State of Maine Department of Administrative and Financial Services Federal Award Identification Number: COVID-19/SLT0029/SLT0081 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 and context ? MaineHousing did not document formal written subrecipient monitoring procedures. Questioned Cost ? None. Cause ? The rollout of the Rent Relief Program was intended to get money to subrecipients and beneficiaries as timely as possible. Due to time constraints, MaineHousing was unable to draft formal subrecipient monitoring policies for the funds prior to disbursement. Possible Asserted Effect ? Without formal documented subrecipient monitoring procedures, there is an increased risk that required subrecipient monitoring criteria as outlined in CFR 200.332 are not followed. Recommendations ? We recommend that MaineHousing formally document its subrecipient monitoring procedures as required in CFR 200.332 and maintain documentation as to how these procedures are carried out. Management?s Views and Corrective Action Plan ? 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.
Management?s Views and Corrective Action Plan for Maine State Housing Authority For the Year Ended December 31, 2020 Finding 2020-001: Coronavirus Relief Fund, Rent Relief Program ? Subrecipient Monitoring Name of Contact Person: Daniel Drost, Director of Energy and Housing Services Corrective Action Plan: MaineHousing agrees that monitoring procedures were not formally documented. However, certain monitoring procedures were performed and additional procedures are planned. The program was part of an emergency response by the federal government to the COVID-19 pandemic and had a limited duration that began on March 1, 2020 and ended December 30, 2020. A subrecipient arrangement with the State of Maine was executed in September 2020 and a program delivery system had to be expeditiously designed and implemented. Long-standing partnerships with the Maine Community Action Agencies (MCAA) were used to deliver the program. The MCAAs serve as MaineHousing subrecipients for a number of other federal programs. MaineHousing has extensive knowledge of the MCAAs business practices and internal controls for these programs and performs regular monitoring procedures of the MCAAs. This knowledge and the ongoing monitoring procedures were relied upon. In addition, the processing of applications and payments were specifically monitored by reviewing weekly reports provided by each MCAA. All questionable transactions, anomalies, and reports of misuse of funds were promptly investigated and addressed. MaineHousing will obtain a Single Audit Reports for each MCAA and review them to determine if federal statutes, regulations, and program requirements were met. Corrective action plans for noncompliance issues will be required and MaineHousing will review for appropriateness and proper resolution. Proposed Completion Date: March 31, 2022
FAC accepted this audit on December 8, 2020 — management decision was due June 8, 2021.
FAC accepted this audit on September 23, 2019 — management decision was due March 23, 2020.
FAC accepted this audit on September 23, 2018 — management decision was due March 23, 2019.
FAC accepted this audit on September 26, 2017 — management decision was due March 26, 2018.
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