Old Town VOA Affordable Housing, Inc. (Penobscot River House)Non-Profit

Finding Number 2025-001 Information on the Federal Program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) Program Name: Section 8 Project-Based Cluster - Section 8 Housing Assistance Payments Program AL: 14.195 Federal Award Identification Number: N/A Federal Award Year: 2025 Specific Requirement: HUD prescribes that required deposits into the residual receipts reserve account be deposited within 90 days after fiscal year end. Condition Found and Context: During fiscal year 2024, the Organization had identified surplus cash of $89,684 which was required to be deposited into its residual receipts reserve account within 90 days after fiscal year end. This required deposit was not made until 123 days after the fiscal year end. Questioned Costs: $89,684 of known questioned costs. Cause and Effect: The Organization was aware of the requirement to deposit the surplus cash into the residual receipts reserve account within the specified timeframe; however, a process was not implemented to provide reasonable assurance that the deposit was made timely. As a result, the Organization was not compliant with HUD regulations. Identification as a Repeat Finding, if Applicable: 2014-001 Recommendation We recommend the Organization implement a process to identify any surplus cash to be deposited into its residual receipts reserve account and a timeline to provide reasonable assurance that the remittance of the required deposits are done within the specified timeframe set by HUD. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan attached.

Information on the Federal Program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) Program Name: Section 8 Project-Based Cluster - Section 8 Housing Assistance Payments Program AL: 14.195 Federal Award Identification Number: N/A Federal Award Year: 2024 Specific Requirement: HUD prescribes that required deposits into the residual receipts reserve account be deposited within 90 days after fiscal year end. Condition Foundand Context: During fiscal year 2023, the Organization had identified surplus cash of $59,223 which was required to be deposited into its residual receipts reserve account within 90 days after fiscal year end. This required deposit was not made until 104 days after the fiscal year end. Questioned Costs: $59,223 of known questioned costs. Cause and Effect: The Organization was aware of the requirement to deposit the surplus cash into the residual receipts reserve account within the specified timeframe; however, a process was not implemented to provide reasonable assurance that the deposit was made timely. As a result, the Organization was not compliant with HUD regulations. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation We recommend the Organization implement a process to identify any surplus cash to be deposited into its residual receipts reserve account and a timeline to provide reasonable assurance that the remittance of the required deposits are done within the specified timeframe set by HUD. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan attached.