FAC Explorer

Audit 17972

FY End
2022-06-30
Total Expended
$519.57M
Findings
10
Programs
56
Organization: City and County of Honolulu (HI)
Year: 2022 Accepted: 2023-03-29
Auditor: Accuity LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
21344 2022-002 Significant Deficiency Yes M
21345 2022-003 Significant Deficiency - N
21346 2022-003 Significant Deficiency - N
21347 2022-003 Significant Deficiency - N
21348 2022-003 Significant Deficiency - N
597786 2022-002 Significant Deficiency Yes M
597787 2022-003 Significant Deficiency - N
597788 2022-003 Significant Deficiency - N
597789 2022-003 Significant Deficiency - N
597790 2022-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $87.12M Yes 0
20.500 Federal Transit_capital Investment Grants $70.00M Yes 0
14.871 Section 8 Housing Choice Vouchers $63.37M Yes 1
20.507 Federal Transit_formula Grants $41.16M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $19.47M Yes 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $12.33M - 0
14.218 Community Development Block Grants/entitlement Grants $9.00M - 0
59.075 Shuttered Venue Operators Grant Program $4.58M Yes 0
14.239 Home Investment Partnerships Program $3.48M Yes 1
20.205 Highway Planning and Construction $2.18M Yes 0
16.575 Crime Victim Assistance $1.66M Yes 0
14.879 Mainstream Vouchers $1.64M Yes 1
95.001 High Intensity Drug Trafficking Areas Program $1.36M - 0
17.259 Wia Youth Activities $1.18M - 0
97.067 Homeland Security Grant Program $1.07M - 0
17.258 Wia Adult Program $941,993 - 0
17.278 Wia Dislocated Worker Formula Grants $875,578 - 0
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $844,739 - 0
16.922 Equitable Sharing Program $789,337 Yes 0
14.241 Housing Opportunities for Persons with Aids $690,150 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $646,357 - 0
14.231 Emergency Solutions Grant Program $633,714 - 0
97.042 Emergency Management Performance Grants $573,693 - 0
17.274 Youthbuild $473,337 - 0
16.741 Dna Backlog Reduction Program $420,203 - 0
21.019 Coronavirus Relief Fund $395,119 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $355,570 - 0
20.616 National Priority Safety Programs $337,682 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $312,506 - 0
10.559 Summer Food Service Program for Children $296,863 - 0
14.896 Family Self-Sufficiency Program $199,142 - 0
14.275 Housing Trust Fund $172,903 - 0
20.600 State and Community Highway Safety $166,761 - 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $163,522 - 0
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $148,748 - 0
16.588 Violence Against Women Formula Grants $122,019 - 0
16.320 Services for Trafficking Victims $120,047 - 0
17.207 Employment Service/wagner-Peyser Funded Activities $113,627 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $96,990 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $96,120 - 0
94.002 Retired and Senior Volunteer Program $93,388 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $89,034 - 0
93.788 Opioid Str $82,467 - 0
97.045 Cooperating Technical Partners $80,072 - 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $69,440 Yes 0
16.034 Coronavirus Emergency Supplemental Funding Program $56,016 - 0
16.609 Project Safe Neighborhoods $45,255 - 0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $44,305 - 0
17.268 H-1b Job Training Grants $36,194 - 0
97.039 Hazard Mitigation Grant $32,497 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $21,033 - 0
84.287 Twenty-First Century Community Learning Centers $10,386 - 0
93.053 Nutrition Services Incentive Program $9,367 - 0
21.016 Equitable Sharing $8,161 - 0
10.675 Urban and Community Forestry Program $432 - 0
16.833 National Sexual Assault Kit Initiative $2 - 0

Contacts

Name Title Type
D4W7SB9CF8G4 Arushi Kumar Auditee
8087683132 Donn Nakamura Auditor
No contacts on file

Notes to SEFA

Title: Capitalized Grants for Clean Water State Revolving Funds Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and County of Honolulu (City) and is presented on the cash basis of accounting and in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts may differ from amounts presented in, or used in the preparation of the basic financial statements. The schedule does not include the federal grant activity of the Board of Water Supply, a discretely-presented component unit of the City. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended June 30, 2022, federal awards and state matching fund expenditures under capitalization grants for clean water state revolving funds were $12,328,712 and $789, respectively.
Title: Loans Outstanding Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and County of Honolulu (City) and is presented on the cash basis of accounting and in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts may differ from amounts presented in, or used in the preparation of the basic financial statements. The schedule does not include the federal grant activity of the Board of Water Supply, a discretely-presented component unit of the City. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Loan balances outstanding at the end of the audit period were $23,903,551, $22,634,794, $1,359,535, and $3,647,688 for COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS (14.218), HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239), HOUSING TRUST FUND (14.275), and SECTION 8 HOUSING CHOICE VOUCHERS (14.871), respectively.

Finding Details

Finding 2022-002
Condition During our audit, we examined six haphazardly selected subrecipient monitoring reports and identified one subrecipient for which the financial review portion of their subrecipient monitoring was not performed timely. Criteria 2 CFR 92.504(d) requires a financial review to be performed at least annually for rental projects with 10 or more units. Effect Failure to perform reviews timely may result in subrecipients misusing or mismanaging program funds. Cause Due to significant staffing turnover and COVID 19 pandemic restrictions, the City was unable to perform timely reviews and complete the monitoring reports. Recommendation Management should create policies and procedures to ensure required monitoring procedures are performed and completed timely.
Finding 2022-003
Condition During our audit, we examined 25 haphazardly selected failed Housing Quality Standards (?HQS?) inspections to test if corrections and verifications of corrections were performed within the correction period and proper action taken by the Public Housing Agency (?PHA?). We identified for one owner, verification of correction was performed after the correction period, but no housing assistance payments (?HAP?) were abated. Criteria 24 CFR 92.252(a) provides certain rental assistance limitations that apply to the rent plus the tenant?s utility allowance. The maximum rent is the lesser of 1) the fair market rent for existing housing for comparable units in the area as established by the Department of Housing and Urban Development (?HUD?) under 24 CFR 888.111; or 2) a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD include average occupancy per unit and adjusted income assumptions. 24 CFR sections 982.404(a) requires owners to maintain units in accordance with HQS. If an owner fails to maintain a dwelling in accordance with HQS and fails to correct the HQS deficiencies within the correction period, the PHA should abate HAP or terminate the contract. Effect As the City verified correction of HQS deficiencies after the correction period, HAP in the amount of $12,222 was improperly disbursed in the year ended June 30, 2022 resulting in questioned costs. Cause Although the City has policies and procedures in place to ensure proper HQS enforcement, there was a lack of diligence in complying with the policies and procedures due to staffing shortages. Recommendation We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing HQS inspections and taking appropriate action timely when an owner fails to correct HQS deficiencies identified.
Finding 2022-003
Condition During our audit, we examined 25 haphazardly selected failed Housing Quality Standards (?HQS?) inspections to test if corrections and verifications of corrections were performed within the correction period and proper action taken by the Public Housing Agency (?PHA?). We identified for one owner, verification of correction was performed after the correction period, but no housing assistance payments (?HAP?) were abated. Criteria 24 CFR 92.252(a) provides certain rental assistance limitations that apply to the rent plus the tenant?s utility allowance. The maximum rent is the lesser of 1) the fair market rent for existing housing for comparable units in the area as established by the Department of Housing and Urban Development (?HUD?) under 24 CFR 888.111; or 2) a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD include average occupancy per unit and adjusted income assumptions. 24 CFR sections 982.404(a) requires owners to maintain units in accordance with HQS. If an owner fails to maintain a dwelling in accordance with HQS and fails to correct the HQS deficiencies within the correction period, the PHA should abate HAP or terminate the contract. Effect As the City verified correction of HQS deficiencies after the correction period, HAP in the amount of $12,222 was improperly disbursed in the year ended June 30, 2022 resulting in questioned costs. Cause Although the City has policies and procedures in place to ensure proper HQS enforcement, there was a lack of diligence in complying with the policies and procedures due to staffing shortages. Recommendation We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing HQS inspections and taking appropriate action timely when an owner fails to correct HQS deficiencies identified.
Finding 2022-003
Condition During our audit, we examined 25 haphazardly selected failed Housing Quality Standards (?HQS?) inspections to test if corrections and verifications of corrections were performed within the correction period and proper action taken by the Public Housing Agency (?PHA?). We identified for one owner, verification of correction was performed after the correction period, but no housing assistance payments (?HAP?) were abated. Criteria 24 CFR 92.252(a) provides certain rental assistance limitations that apply to the rent plus the tenant?s utility allowance. The maximum rent is the lesser of 1) the fair market rent for existing housing for comparable units in the area as established by the Department of Housing and Urban Development (?HUD?) under 24 CFR 888.111; or 2) a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD include average occupancy per unit and adjusted income assumptions. 24 CFR sections 982.404(a) requires owners to maintain units in accordance with HQS. If an owner fails to maintain a dwelling in accordance with HQS and fails to correct the HQS deficiencies within the correction period, the PHA should abate HAP or terminate the contract. Effect As the City verified correction of HQS deficiencies after the correction period, HAP in the amount of $12,222 was improperly disbursed in the year ended June 30, 2022 resulting in questioned costs. Cause Although the City has policies and procedures in place to ensure proper HQS enforcement, there was a lack of diligence in complying with the policies and procedures due to staffing shortages. Recommendation We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing HQS inspections and taking appropriate action timely when an owner fails to correct HQS deficiencies identified.
Finding 2022-003
Condition During our audit, we examined 25 haphazardly selected failed Housing Quality Standards (?HQS?) inspections to test if corrections and verifications of corrections were performed within the correction period and proper action taken by the Public Housing Agency (?PHA?). We identified for one owner, verification of correction was performed after the correction period, but no housing assistance payments (?HAP?) were abated. Criteria 24 CFR 92.252(a) provides certain rental assistance limitations that apply to the rent plus the tenant?s utility allowance. The maximum rent is the lesser of 1) the fair market rent for existing housing for comparable units in the area as established by the Department of Housing and Urban Development (?HUD?) under 24 CFR 888.111; or 2) a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD include average occupancy per unit and adjusted income assumptions. 24 CFR sections 982.404(a) requires owners to maintain units in accordance with HQS. If an owner fails to maintain a dwelling in accordance with HQS and fails to correct the HQS deficiencies within the correction period, the PHA should abate HAP or terminate the contract. Effect As the City verified correction of HQS deficiencies after the correction period, HAP in the amount of $12,222 was improperly disbursed in the year ended June 30, 2022 resulting in questioned costs. Cause Although the City has policies and procedures in place to ensure proper HQS enforcement, there was a lack of diligence in complying with the policies and procedures due to staffing shortages. Recommendation We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing HQS inspections and taking appropriate action timely when an owner fails to correct HQS deficiencies identified.
Finding 2022-002
Condition During our audit, we examined six haphazardly selected subrecipient monitoring reports and identified one subrecipient for which the financial review portion of their subrecipient monitoring was not performed timely. Criteria 2 CFR 92.504(d) requires a financial review to be performed at least annually for rental projects with 10 or more units. Effect Failure to perform reviews timely may result in subrecipients misusing or mismanaging program funds. Cause Due to significant staffing turnover and COVID 19 pandemic restrictions, the City was unable to perform timely reviews and complete the monitoring reports. Recommendation Management should create policies and procedures to ensure required monitoring procedures are performed and completed timely.
Finding 2022-003
Condition During our audit, we examined 25 haphazardly selected failed Housing Quality Standards (?HQS?) inspections to test if corrections and verifications of corrections were performed within the correction period and proper action taken by the Public Housing Agency (?PHA?). We identified for one owner, verification of correction was performed after the correction period, but no housing assistance payments (?HAP?) were abated. Criteria 24 CFR 92.252(a) provides certain rental assistance limitations that apply to the rent plus the tenant?s utility allowance. The maximum rent is the lesser of 1) the fair market rent for existing housing for comparable units in the area as established by the Department of Housing and Urban Development (?HUD?) under 24 CFR 888.111; or 2) a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD include average occupancy per unit and adjusted income assumptions. 24 CFR sections 982.404(a) requires owners to maintain units in accordance with HQS. If an owner fails to maintain a dwelling in accordance with HQS and fails to correct the HQS deficiencies within the correction period, the PHA should abate HAP or terminate the contract. Effect As the City verified correction of HQS deficiencies after the correction period, HAP in the amount of $12,222 was improperly disbursed in the year ended June 30, 2022 resulting in questioned costs. Cause Although the City has policies and procedures in place to ensure proper HQS enforcement, there was a lack of diligence in complying with the policies and procedures due to staffing shortages. Recommendation We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing HQS inspections and taking appropriate action timely when an owner fails to correct HQS deficiencies identified.
Finding 2022-003
Condition During our audit, we examined 25 haphazardly selected failed Housing Quality Standards (?HQS?) inspections to test if corrections and verifications of corrections were performed within the correction period and proper action taken by the Public Housing Agency (?PHA?). We identified for one owner, verification of correction was performed after the correction period, but no housing assistance payments (?HAP?) were abated. Criteria 24 CFR 92.252(a) provides certain rental assistance limitations that apply to the rent plus the tenant?s utility allowance. The maximum rent is the lesser of 1) the fair market rent for existing housing for comparable units in the area as established by the Department of Housing and Urban Development (?HUD?) under 24 CFR 888.111; or 2) a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD include average occupancy per unit and adjusted income assumptions. 24 CFR sections 982.404(a) requires owners to maintain units in accordance with HQS. If an owner fails to maintain a dwelling in accordance with HQS and fails to correct the HQS deficiencies within the correction period, the PHA should abate HAP or terminate the contract. Effect As the City verified correction of HQS deficiencies after the correction period, HAP in the amount of $12,222 was improperly disbursed in the year ended June 30, 2022 resulting in questioned costs. Cause Although the City has policies and procedures in place to ensure proper HQS enforcement, there was a lack of diligence in complying with the policies and procedures due to staffing shortages. Recommendation We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing HQS inspections and taking appropriate action timely when an owner fails to correct HQS deficiencies identified.
Finding 2022-003
Condition During our audit, we examined 25 haphazardly selected failed Housing Quality Standards (?HQS?) inspections to test if corrections and verifications of corrections were performed within the correction period and proper action taken by the Public Housing Agency (?PHA?). We identified for one owner, verification of correction was performed after the correction period, but no housing assistance payments (?HAP?) were abated. Criteria 24 CFR 92.252(a) provides certain rental assistance limitations that apply to the rent plus the tenant?s utility allowance. The maximum rent is the lesser of 1) the fair market rent for existing housing for comparable units in the area as established by the Department of Housing and Urban Development (?HUD?) under 24 CFR 888.111; or 2) a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD include average occupancy per unit and adjusted income assumptions. 24 CFR sections 982.404(a) requires owners to maintain units in accordance with HQS. If an owner fails to maintain a dwelling in accordance with HQS and fails to correct the HQS deficiencies within the correction period, the PHA should abate HAP or terminate the contract. Effect As the City verified correction of HQS deficiencies after the correction period, HAP in the amount of $12,222 was improperly disbursed in the year ended June 30, 2022 resulting in questioned costs. Cause Although the City has policies and procedures in place to ensure proper HQS enforcement, there was a lack of diligence in complying with the policies and procedures due to staffing shortages. Recommendation We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing HQS inspections and taking appropriate action timely when an owner fails to correct HQS deficiencies identified.
Finding 2022-003
Condition During our audit, we examined 25 haphazardly selected failed Housing Quality Standards (?HQS?) inspections to test if corrections and verifications of corrections were performed within the correction period and proper action taken by the Public Housing Agency (?PHA?). We identified for one owner, verification of correction was performed after the correction period, but no housing assistance payments (?HAP?) were abated. Criteria 24 CFR 92.252(a) provides certain rental assistance limitations that apply to the rent plus the tenant?s utility allowance. The maximum rent is the lesser of 1) the fair market rent for existing housing for comparable units in the area as established by the Department of Housing and Urban Development (?HUD?) under 24 CFR 888.111; or 2) a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD include average occupancy per unit and adjusted income assumptions. 24 CFR sections 982.404(a) requires owners to maintain units in accordance with HQS. If an owner fails to maintain a dwelling in accordance with HQS and fails to correct the HQS deficiencies within the correction period, the PHA should abate HAP or terminate the contract. Effect As the City verified correction of HQS deficiencies after the correction period, HAP in the amount of $12,222 was improperly disbursed in the year ended June 30, 2022 resulting in questioned costs. Cause Although the City has policies and procedures in place to ensure proper HQS enforcement, there was a lack of diligence in complying with the policies and procedures due to staffing shortages. Recommendation We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing HQS inspections and taking appropriate action timely when an owner fails to correct HQS deficiencies identified.