Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on 10 first-tier subawards of $30,000 or more. During the audit, we selected four first-tier subawards for testing, noting the following:
The key data elements that did not agree to the supporting documentation included the Amount of Subaward and Subaward Obligation/Action Date.
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier
subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years. The failure to accurately report first-tier subawards to FSRS was caused by a lack of diligence.
Effect: Failure to accurately and timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: See finding 2022-008 included in the Summary Schedule of Prior Audit Findings.
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: 2 CFR Section 200.327 states that “(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances.” Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period.
Condition: We noted four FFRs were not timely submitted.
Context: The program was required to submit eight FFRs during the year. During the audit, we noted that four FFRs selected for testing were submitted between 92 and 117 days after the close of the statutory grant period.
Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFRs was caused by a lack of personnel available to monitor reporting requirements and complete reporting requirements timely.
Effect: Failure to timely submit FFRs results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend that management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: 2 CFR Section 200.327 states that “(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances.” Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period.
Condition: We noted four FFRs were not timely submitted.
Context: The program was required to submit eight FFRs during the year. During the audit, we noted that four FFRs selected for testing were submitted between 92 and 117 days after the close of the statutory grant period.
Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFRs was caused by a lack of personnel available to monitor reporting requirements and complete reporting requirements timely.
Effect: Failure to timely submit FFRs results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend that management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on nine first-tier subawards of $30,000 or more. During the audit, we selected four first-tier subawards for testing, noting the following: The key data elements that did not agree to the supporting documentation included the Amount of Subaward and Subaward Obligation/Action Date.
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years. The failure to accurately report first-tier subawards to FSRS was caused by a lack of diligence.
Effect: Failure to accurately and timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: 42 USC 300x-4(b) states that “a funding agreement for a grant under section 300x of this title is that the State involved will maintain State expenditures for community mental health services at a level that is not less than the average level of such expenditures maintained by the State for the 2-year period preceding the fiscal year for which the State is applying for the grant.”
Condition: We noted that the level of effort – maintenance of effort requirement was not met.
Context: The State shall for each fiscal year maintain aggregate state expenditures for community mental health services at a level that is not less than the average level of such expenditures maintained by the State for the two state fiscal years preceding the fiscal year of the grant. Expenditures for the two previous fiscal years are reported in the State plan. The Secretary of Health and Human Services may exclude from the aggregate State expenditures funds appropriated to the principal agency for authorized activities which are of non-recurring nature and for a specific purpose. Last year, the program applied for and received a waiver for the level of effort – maintenance of effort requirement. At the time of this report, the program is in the process of applying for but has not yet received a waiver.
During the audit, we noted that the average level of State expenditures for the two previous fiscal years was
$134,321,769 and State expenditures for FY2023 was $121,675,108, which is $12,646,661 less than the
required amount.
Cause: Based on further inquiry with Department personnel, we noted that the failure to meet the level of
effort – maintenance of effort requirement is due to higher State expenditures in FY2021 due to the coronavirus pandemic.
Effect: Failure to meet the required level of State expenditures results in noncompliance with the Level of Effort – Maintenance of Effort requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in monitoring State expenditures and request a waiver for the Level of Effort – Maintenance of Effort requirement in a timely manner.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: 42 USC 300x-4(b) states that “a funding agreement for a grant under section 300x of this title is that the State involved will maintain State expenditures for community mental health services at a level that is not less than the average level of such expenditures maintained by the State for the 2-year period preceding the fiscal year for which the State is applying for the grant.”
Condition: We noted that the level of effort – maintenance of effort requirement was not met.
Context: The State shall for each fiscal year maintain aggregate state expenditures for community mental health services at a level that is not less than the average level of such expenditures maintained by the State for the two state fiscal years preceding the fiscal year of the grant. Expenditures for the two previous fiscal years are reported in the State plan. The Secretary of Health and Human Services may exclude from the aggregate State expenditures funds appropriated to the principal agency for authorized activities which are of non-recurring nature and for a specific purpose. Last year, the program applied for and received a waiver for the level of effort – maintenance of effort requirement. At the time of this report, the program is in the process of applying for but has not yet received a waiver.
During the audit, we noted that the average level of State expenditures for the two previous fiscal years was
$134,321,769 and State expenditures for FY2023 was $121,675,108, which is $12,646,661 less than the
required amount.
Cause: Based on further inquiry with Department personnel, we noted that the failure to meet the level of
effort – maintenance of effort requirement is due to higher State expenditures in FY2021 due to the coronavirus pandemic.
Effect: Failure to meet the required level of State expenditures results in noncompliance with the Level of Effort – Maintenance of Effort requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in monitoring State expenditures and request a waiver for the Level of Effort – Maintenance of Effort requirement in a timely manner.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on eight first-tier subawards of $30,000 or more. During the audit, we selected three first-tier subawards for testing, noting the following:
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years.
Effect: Failure to timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: See finding 2022-003 included in the Summary Schedule of Prior Audit Findings.
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on eight first-tier subawards of $30,000 or more. During the audit, we selected three first-tier subawards for testing, noting the following:
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years.
Effect: Failure to timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: See finding 2022-003 included in the Summary Schedule of Prior Audit Findings.
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on nine first-tier subawards of $30,000 or more. During the audit, we selected four first-tier subawards for testing, noting the following:
The key data elements that did not agree to the supporting documentation included the Amount of Subaward and Subaward Obligation/Action Date.
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years. The failure to accurately report first-tier subawards to FSRS was caused by a lack of diligence.
Effect: Failure to accurately and timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on nine first-tier subawards of $30,000 or more. During the audit, we selected four first-tier subawards for testing, noting the following:
The key data elements that did not agree to the supporting documentation included the Amount of Subaward and Subaward Obligation/Action Date.
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years. The failure to accurately report first-tier subawards to FSRS was caused by a lack of diligence.
Effect: Failure to accurately and timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: The federal award program noted above is not subject to the Treasury-State Cash Management Improvement Act agreement and, as such, is subject to 2 CFR 200.305(b), which states: “The timing and amount of advance payments must be as close as is administratively feasible to the actual
disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions.” 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The State of Hawaii, Department of Budget and Finance has determined and communicated in Finance Memorandum 20-02 that their standard for an “administratively feasible time period” was 21 calendar days.
Condition: During the testing of the Department’s cash management procedures, it was determined that two out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 28 to 57 days.
Context: During the fiscal year ended June 30, 2023, the Department expended $8,398,791 (excluding food expenditures).
Cause: The Department draws down federal funds that will be needed based on the expenditures that must be paid. However, since deposits must be posted prior to the processing of payments or disbursing of the funds, it is difficult for the Department to disburse federal funds in accordance with 2 CFR 200.305 (b). Also, the State’s payment process requires all State departments to process payments through DAGS resulting in processing delays.
Effect: Noncompliance with federal regulations could result in a loss of funding that may jeopardize the operations of the Department’s federally funded programs.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: See finding 2022-005 included in the Summary Schedule of Prior Audit Findings.
Recommendation: We recommend that the Department work with DAGS and the Department of Budget and Finance to ensure compliance with established standard and timely disbursement of federal funds in accordance with 2 CFR 200.305(b).
Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on 10 first-tier subawards of $30,000 or more. During the audit, we selected four first-tier subawards for testing, noting the following:
The key data elements that did not agree to the supporting documentation included the Amount of Subaward and Subaward Obligation/Action Date.
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier
subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years. The failure to accurately report first-tier subawards to FSRS was caused by a lack of diligence.
Effect: Failure to accurately and timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: See finding 2022-008 included in the Summary Schedule of Prior Audit Findings.
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: 2 CFR Section 200.327 states that “(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances.” Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period.
Condition: We noted four FFRs were not timely submitted.
Context: The program was required to submit eight FFRs during the year. During the audit, we noted that four FFRs selected for testing were submitted between 92 and 117 days after the close of the statutory grant period.
Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFRs was caused by a lack of personnel available to monitor reporting requirements and complete reporting requirements timely.
Effect: Failure to timely submit FFRs results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend that management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: 2 CFR Section 200.327 states that “(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances.” Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period.
Condition: We noted four FFRs were not timely submitted.
Context: The program was required to submit eight FFRs during the year. During the audit, we noted that four FFRs selected for testing were submitted between 92 and 117 days after the close of the statutory grant period.
Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFRs was caused by a lack of personnel available to monitor reporting requirements and complete reporting requirements timely.
Effect: Failure to timely submit FFRs results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend that management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on nine first-tier subawards of $30,000 or more. During the audit, we selected four first-tier subawards for testing, noting the following: The key data elements that did not agree to the supporting documentation included the Amount of Subaward and Subaward Obligation/Action Date.
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years. The failure to accurately report first-tier subawards to FSRS was caused by a lack of diligence.
Effect: Failure to accurately and timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: 42 USC 300x-4(b) states that “a funding agreement for a grant under section 300x of this title is that the State involved will maintain State expenditures for community mental health services at a level that is not less than the average level of such expenditures maintained by the State for the 2-year period preceding the fiscal year for which the State is applying for the grant.”
Condition: We noted that the level of effort – maintenance of effort requirement was not met.
Context: The State shall for each fiscal year maintain aggregate state expenditures for community mental health services at a level that is not less than the average level of such expenditures maintained by the State for the two state fiscal years preceding the fiscal year of the grant. Expenditures for the two previous fiscal years are reported in the State plan. The Secretary of Health and Human Services may exclude from the aggregate State expenditures funds appropriated to the principal agency for authorized activities which are of non-recurring nature and for a specific purpose. Last year, the program applied for and received a waiver for the level of effort – maintenance of effort requirement. At the time of this report, the program is in the process of applying for but has not yet received a waiver.
During the audit, we noted that the average level of State expenditures for the two previous fiscal years was
$134,321,769 and State expenditures for FY2023 was $121,675,108, which is $12,646,661 less than the
required amount.
Cause: Based on further inquiry with Department personnel, we noted that the failure to meet the level of
effort – maintenance of effort requirement is due to higher State expenditures in FY2021 due to the coronavirus pandemic.
Effect: Failure to meet the required level of State expenditures results in noncompliance with the Level of Effort – Maintenance of Effort requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in monitoring State expenditures and request a waiver for the Level of Effort – Maintenance of Effort requirement in a timely manner.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: 42 USC 300x-4(b) states that “a funding agreement for a grant under section 300x of this title is that the State involved will maintain State expenditures for community mental health services at a level that is not less than the average level of such expenditures maintained by the State for the 2-year period preceding the fiscal year for which the State is applying for the grant.”
Condition: We noted that the level of effort – maintenance of effort requirement was not met.
Context: The State shall for each fiscal year maintain aggregate state expenditures for community mental health services at a level that is not less than the average level of such expenditures maintained by the State for the two state fiscal years preceding the fiscal year of the grant. Expenditures for the two previous fiscal years are reported in the State plan. The Secretary of Health and Human Services may exclude from the aggregate State expenditures funds appropriated to the principal agency for authorized activities which are of non-recurring nature and for a specific purpose. Last year, the program applied for and received a waiver for the level of effort – maintenance of effort requirement. At the time of this report, the program is in the process of applying for but has not yet received a waiver.
During the audit, we noted that the average level of State expenditures for the two previous fiscal years was
$134,321,769 and State expenditures for FY2023 was $121,675,108, which is $12,646,661 less than the
required amount.
Cause: Based on further inquiry with Department personnel, we noted that the failure to meet the level of
effort – maintenance of effort requirement is due to higher State expenditures in FY2021 due to the coronavirus pandemic.
Effect: Failure to meet the required level of State expenditures results in noncompliance with the Level of Effort – Maintenance of Effort requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in monitoring State expenditures and request a waiver for the Level of Effort – Maintenance of Effort requirement in a timely manner.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on eight first-tier subawards of $30,000 or more. During the audit, we selected three first-tier subawards for testing, noting the following:
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years.
Effect: Failure to timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: See finding 2022-003 included in the Summary Schedule of Prior Audit Findings.
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on eight first-tier subawards of $30,000 or more. During the audit, we selected three first-tier subawards for testing, noting the following:
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years.
Effect: Failure to timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: See finding 2022-003 included in the Summary Schedule of Prior Audit Findings.
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on nine first-tier subawards of $30,000 or more. During the audit, we selected four first-tier subawards for testing, noting the following:
The key data elements that did not agree to the supporting documentation included the Amount of Subaward and Subaward Obligation/Action Date.
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years. The failure to accurately report first-tier subawards to FSRS was caused by a lack of diligence.
Effect: Failure to accurately and timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, recipients of grants or cooperative agreements are required to report no later than the end of the month following the month in which the obligation was made.
Condition: While the program properly reported first-tier subawards of $30,000 or more to FSRS, we noted that the first-tier subawards were not timely submitted and key data elements did not agree to the source documents provided.
Context: The program was required to report information on nine first-tier subawards of $30,000 or more. During the audit, we selected four first-tier subawards for testing, noting the following:
The key data elements that did not agree to the supporting documentation included the Amount of Subaward and Subaward Obligation/Action Date.
Cause: Based on further inquiry with Department personnel, we noted that the failure to timely report firsttier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement in prior years. The failure to accurately report first-tier subawards to FSRS was caused by a lack of diligence.
Effect: Failure to accurately and timely report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: Not applicable
Recommendation: We recommend program management be more diligent in following Federal deadlines and grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements.
Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Criteria: The federal award program noted above is not subject to the Treasury-State Cash Management Improvement Act agreement and, as such, is subject to 2 CFR 200.305(b), which states: “The timing and amount of advance payments must be as close as is administratively feasible to the actual
disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions.” 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The State of Hawaii, Department of Budget and Finance has determined and communicated in Finance Memorandum 20-02 that their standard for an “administratively feasible time period” was 21 calendar days.
Condition: During the testing of the Department’s cash management procedures, it was determined that two out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 28 to 57 days.
Context: During the fiscal year ended June 30, 2023, the Department expended $8,398,791 (excluding food expenditures).
Cause: The Department draws down federal funds that will be needed based on the expenditures that must be paid. However, since deposits must be posted prior to the processing of payments or disbursing of the funds, it is difficult for the Department to disburse federal funds in accordance with 2 CFR 200.305 (b). Also, the State’s payment process requires all State departments to process payments through DAGS resulting in processing delays.
Effect: Noncompliance with federal regulations could result in a loss of funding that may jeopardize the operations of the Department’s federally funded programs.
Questioned Costs: None
Identification as a Repeat Finding, if applicable: See finding 2022-005 included in the Summary Schedule of Prior Audit Findings.
Recommendation: We recommend that the Department work with DAGS and the Department of Budget and Finance to ensure compliance with established standard and timely disbursement of federal funds in accordance with 2 CFR 200.305(b).
Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.