FAC Explorer

Audit 300162

FY End
2023-06-30
Total Expended
$797.50M
Findings
36
Programs
128
Organization: State of Hawaii, Department of Accounting and General Services (HI)
Year: 2023 Accepted: 2024-03-28
Auditor: Accuity LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388426 2023-005 Significant Deficiency - I
388427 2023-006 Significant Deficiency - L
388428 2023-007 Significant Deficiency - I
388429 2023-008 Significant Deficiency - M
388430 2023-009 Significant Deficiency Yes E
388431 2023-009 Significant Deficiency Yes E
388432 2023-010 Material Weakness Yes N
388433 2023-010 Material Weakness Yes N
388434 2023-011 Significant Deficiency - G
388435 2023-011 Significant Deficiency - G
388436 2023-011 Significant Deficiency - G
388437 2023-012 Material Weakness - L
388438 2023-012 Material Weakness - L
388439 2023-012 Material Weakness - L
388440 2023-013 Material Weakness - M
388441 2023-013 Material Weakness - M
388442 2023-013 Material Weakness - M
388443 2023-014 Significant Deficiency - L
964868 2023-005 Significant Deficiency - I
964869 2023-006 Significant Deficiency - L
964870 2023-007 Significant Deficiency - I
964871 2023-008 Significant Deficiency - M
964872 2023-009 Significant Deficiency Yes E
964873 2023-009 Significant Deficiency Yes E
964874 2023-010 Material Weakness Yes N
964875 2023-010 Material Weakness Yes N
964876 2023-011 Significant Deficiency - G
964877 2023-011 Significant Deficiency - G
964878 2023-011 Significant Deficiency - G
964879 2023-012 Material Weakness - L
964880 2023-012 Material Weakness - L
964881 2023-012 Material Weakness - L
964882 2023-013 Material Weakness - M
964883 2023-013 Material Weakness - M
964884 2023-013 Material Weakness - M
964885 2023-014 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $383.04M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $54.58M - 0
64.005 Grants to States for Construction of State Home Facilities $21.00M - 0
12.401 National Guard Military Operations and Maintenance (o&m) Projects $20.01M - 0
21.023 Emergency Rental Assistance Program $13.63M Yes 0
17.259 Wia Youth Activities $5.96M Yes 3
64.203 State Cemetery Grants $5.07M Yes 0
97.067 Homeland Security Grant Program $4.86M Yes 1
97.042 Emergency Management Performance Grants $4.79M Yes 0
10.569 Emergency Food Assistance Program (food Commodities) $4.61M Yes 0
12.404 National Guard Challenge Program $4.50M Yes 0
15.615 Cooperative Endangered Species Conservation Fund $3.74M Yes 2
15.611 Wildlife Restoration and Basic Hunter Education $3.70M - 0
17.225 Unemployment Insurance $3.59M Yes 2
20.500 Federal Transit_capital Investment Grants $2.97M Yes 0
21.031 State Small Business Credit Initiative Technical Assistance Grant Program $2.83M Yes 0
15.605 Sport Fish Restoration Program $2.80M - 0
11.419 Coastal Zone Management Administration Awards $2.40M - 0
15.634 State Wildlife Grants $2.10M Yes 2
17.207 Employment Service/wagner-Peyser Funded Activities $1.93M - 0
10.179 Micro-Grants for Food Security Program $1.84M - 0
17.503 Occupational Safety and Health_state Program $1.71M - 0
11.307 Economic Adjustment Assistance $1.65M - 0
39.003 Donation of Federal Surplus Personal Property $1.62M - 0
10.565 Commodity Supplemental Food Program $1.53M Yes 0
15.614 Coastal Wetlands Planning, Protection and Restoration Program $1.46M - 0
90.404 2018 Hava Election Security Grants $1.46M - 0
17.277 Workforce Investment Act (wia) National Emergency Grants $1.16M - 0
93.569 Community Services Block Grant $1.15M - 0
15.657 Endangered Species Conservation Ð Recovery Implementation Funds $1.04M Yes 0
17.235 Senior Community Service Employment Program $972,124 - 0
93.558 Temporary Assistance for Needy Families $949,604 - 0
45.025 Promotion of the Arts_partnership Agreements $833,203 - 0
11.611 Manufacturing Extension Partnership $813,472 - 0
17.002 Labor Force Statistics $760,790 - 0
11.482 Coral Reef Conservation Program $749,420 Yes 0
81.041 State Energy Program $734,192 - 0
11.467 Meteorologic and Hydrologic Modernization Development $682,988 - 0
10.664 Cooperative Forestry Assistance $616,484 - 0
20.205 Highway Planning and Construction $606,278 - 0
59.061 State Trade and Export Promotion Pilot Grant Program $601,223 - 0
97.012 Boating Safety Financial Assistance $544,644 - 0
10.568 Emergency Food Assistance Program (administrative Costs) $542,666 Yes 0
15.904 Historic Preservation Fund Grants-in-Aid $534,319 - 0
90.401 Help America Vote Act Requirements Payments $533,380 - 0
17.504 Consultation Agreements $532,220 - 0
81.042 Weatherization Assistance for Low-Income Persons $513,558 - 0
11.473 Office for Coastal Management $511,265 - 0
66.605 Performance Partnership Grants $471,896 - 0
11.472 Unallied Science Program $463,845 - 0
10.680 Forest Health Protection $456,780 - 0
17.801 Jobs for Veterans State Grants $456,478 - 0
93.568 Low-Income Home Energy Assistance $451,326 - 0
93.423 1332 State Innovation Waivers $433,368 - 0
10.576 Senior Farmers Market Nutrition Program $412,475 - 0
11.437 Pacific Fisheries Data Program $409,661 Yes 0
10.170 Specialty Crop Block Grant Program - Farm Bill $401,710 - 0
12.617 Economic Adjustment Assistance for State Governments $394,157 - 0
97.056 Port Security Grant Program $386,278 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $369,633 - 0
15.916 Outdoor Recreation_acquisition, Development and Planning $352,960 - 0
16.922 Equitable Sharing Program $349,404 - 0
97.047 Pre-Disaster Mitigation $328,846 - 0
10.675 Urban and Community Forestry Program $303,066 - 0
97.041 National Dam Safety Program $302,851 - 0
15.660 Endangered Species - Candidate Conservation Action Funds $299,464 Yes 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $296,894 - 0
12.114 Collaborative Research and Development $294,915 Yes 0
15.875 Economic, Social, and Political Development of the Territories $294,372 - 0
21.029 Coronavirus Capital Projects Fund Program $289,274 - 0
66.460 Nonpoint Source Implementation Grants $283,656 - 0
97.008 Non-Profit Security Program $264,508 - 0
12.632 Legacy Resource Management Program $254,826 - 0
97.111 Regional Catastrophic Preparedness Grant Program (rcpgp) $241,116 - 0
10.676 Forest Legacy Program $229,353 - 0
97.132 Financial Assistance for Countering Violent Extremism $210,478 - 0
10.181 Ams - Pandemic Response and Safety Grants Program/ Ams - Farmworker and Meatpacking Worker Relief Grant Program $200,000 - 0
93.103 Food and Drug Administration_research $197,435 Yes 0
30.002 Employment Discrimination – State and Local Fair Employment Practices Agency Contracts $173,841 - 0
10.698 State & Private Forestry Cooperative Fire Assistance $167,234 - 0
16.606 State Criminal Alien Assistance Program $163,317 - 0
11.429 Marine Sanctuary Program $147,308 Yes 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $145,513 - 0
16.575 Crime Victim Assistance $145,469 - 0
66.461 Regional Wetland Program Development Grants $142,715 Yes 0
11.469 Congressionally Identified Awards and Projects $140,014 - 0
84.048 Career and Technical Education -- Basic Grants to States $134,234 - 0
10.025 Plant and Animal Disease, Pest Control, and Animal Care $133,727 - 0
10.934 Feral Swine Eradication and Control Pilot Program (c, Z) $130,941 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $125,301 - 0
15.608 Fish and Wildlife Management Assistance $120,840 - 0
10.525 Farm and Ranch Stress Assistance Network Competitive Grants Program (b) $118,672 - 0
11.032 State Digital Equity Planning and Capacity Grant $118,203 - 0
17.273 Temporary Labor Certification for Foreign Workers $99,817 - 0
97.045 Cooperating Technical Partners $99,391 - 0
17.258 Wia Adult Program $94,517 Yes 3
21.016 Equitable Sharing $93,822 - 0
81.087 Renewable Energy Research and Development $93,067 - 0
10.555 National School Lunch Program $91,497 - 0
16.593 Residential Substance Abuse Treatment for State Prisoners $89,211 - 0
10.678 Forest Stewardship Program $88,921 - 0
17.271 Work Opportunity Tax Credit Program (wotc) $84,172 - 0
17.278 Wia Dislocated Worker Formula Grants $81,319 Yes 3
10.674 Wood Utilization Assistance $80,870 - 0
16.839 Stop School Violence $78,130 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $77,964 - 0
17.245 Trade Adjustment Assistance $71,501 - 0
14.401 Fair Housing Assistance Program_state and Local $69,337 - 0
15.670 Adaptive Science $64,782 Yes 0
12.017 Readiness and Environmental Protection Integration (repi) Program $50,214 - 0
11.407 Interjurisdictional Fisheries Act of 1986 $48,951 Yes 0
10.553 School Breakfast Program $48,445 - 0
11.U01 Management Support for Hawaiian Islands Humpback Whale, Joint Enforcement Agreement $44,551 - 0
15.623 North American Wetlands Conservation Fund $44,487 - 0
11.452 Unallied Industry Projects $43,450 Yes 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $40,134 - 0
11.999 Marine Debris Program $40,097 - 0
15.630 Coastal Program $39,997 Yes 0
11.454 Unallied Management Projects $35,000 Yes 0
15.944 Natural Resource Stewardship $34,181 Yes 0
97.082 Earthquake Consortium $30,248 - 0
11.439 Marine Mammal Data Program $13,655 Yes 0
11.035 Broadband Equity, Access and Deployment Program $10,982 - 0
10.163 Market Protection and Promotion $7,800 - 0
10.162 Inspection Grading and Standardization $7,536 - 0
11.413 Fishery Products Inspection and Certification $4,816 - 0
15.631 Partners for Fish and Wildlife $1,551 - 0
17.270 Reintegration of Ex-Offenders $217 - 0

Contacts

Name Title Type
HKK5YY1DWYM3 Ladea Nash Auditee
8085860600 Donn Nakamura Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting De Minimis Rate Used: N Rate Explanation: The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of the following State of Hawaii departments and agencies: Department of Accounting and General Services Department of Agriculture Department of Budget and Finance Department of Business, Economic Development and Tourism Department of Commerce and Consumer Affairs Department of Defense Department of Human Resources Development Department of Labor and Industrial Relations Department of Land and Natural Resources Department of Law Enforcement Department of Public Safety Department of Taxation Governor’s Office Certain other departments and agencies within the State of Hawaii obtained separate audits performed in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and accordingly, separate Uniform Guidance submissions are made. (See Note 2.)
Title: Other State of Hawaii Departments and Agencies Not Included in the Accompanying Schedule of Expenditures of Federal Awards Accounting Policies: The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting De Minimis Rate Used: N Rate Explanation: The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The following is a summary of State of Hawaii departments and agencies that obtain separate Uniform Guidance audits or do not receive federal grants and, therefore, do not obtain an audit under the Uniform Guidance. Awards listed in these audit reports are not included in the accompanying SEFA: Department of the Attorney General Department of Education Department of Hawaiian Home Lands Department of Health Department of Human Services Department of Transportation Drinking Water Treatment Revolving Loan Fund Hawaii Community Development Authority Hawaii Employer‐Union Health Benefits Trust Fund Hawaii Health Systems Corporation Hawaii Housing Finance and Development Corporation Hawaii Hurricane Relief Fund Hawaii Public Housing Authority Hawaii Tourism Authority Judiciary University of Hawaii Water Pollution Control Revolving Fund
Title: Basis of Accounting Accounting Policies: The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting De Minimis Rate Used: N Rate Explanation: The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles.
Title: Basis of Presentation Accounting Policies: The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting De Minimis Rate Used: N Rate Explanation: The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting.
Title: Nonmonetary Assistance Accounting Policies: The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting De Minimis Rate Used: N Rate Explanation: The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The SEFA contains values of a nonmonetary assistance program. As provided by program regulations, property received under AL No. 39.003, Donation of Federal Surplus Personal Property, and food commodities received under AL No. 10.553, School Breakfast Program, AL No. 10.555, National School Lunch Program, and AL No. 10.569, Emergency Food Assistance Program (Food Commodities), are presented at the estimated fair value at the time of donation.
Title: Unemployment Insurance Accounting Policies: The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting De Minimis Rate Used: N Rate Explanation: The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance State unemployment tax revenues and government contributions are used to pay benefits under federally approved State unemployment law. Of the $208,651,162 reported as expenditures for AL No. 17.225, Unemployment Insurance, and AL No. COVID‐19 – 17.225, COVID‐19 – Unemployment Insurance, $180,763,187 represented expenditures of the State
Title: Relationship to Federal and State Financial Reports Accounting Policies: The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting De Minimis Rate Used: N Rate Explanation: The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The regulations and guidelines governing the preparation of Federal and State financial reports vary by Federal and State agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal and State financial reports do not necessarily agree with the amounts reported in the accompanying SEFA which is prepared as explained in Notes 3 and 4 above.
Title: Indirect Costs Accounting Policies: The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting De Minimis Rate Used: N Rate Explanation: The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Research and Development Cluster Expenditures Accounting Policies: The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting De Minimis Rate Used: N Rate Explanation: The State does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The SEFA includes the following Research and Development amounts: [TABLE]

Finding Details

Finding 2023-005
Questioned Cost $- Finding No. 2023‐005: Suspension and Debarment (Significant Deficiency) State Agency: Department of Land and Natural Resources (“DLNR”) Federal Agency: Department of Interior AL Number and Title: 15.615 – Cooperative Endangered Species Conservation Fund Award Number and Award Year: F22AP03217 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence indicating that program personnel verified whether any of the contractors were federally suspended or debarred. Criteria According to 2 CFR 200.214, regulations restrict awards, subawards and contracts with certain parties that are debarred, suspended, or otherwise excluded from, ineligible from, or ineligible for participation in federal assistance programs or activities. Therefore, verification is required by checking the System for Award Management (SAM), an official website for the U.S. Government, obtaining a certification from the contractor, or adding a clause or condition to the contract. Effect Without evaluating the contractors’ status on the SAM before executing agreements, the State may contract with suspended or debarred entities. Cause and View of Responsible Officials Program personnel responsible for procurement indicated that a review for the federal SAM website was performed prior to the execution of the contract, however, no formal documentation of the review was retained. Recommendation We recommend that program management retain evidence of the suspension and debarment review, including who performed the procedure and the date performed, prior to entering into the agreement.
Finding 2023-006
Questioned Cost $- Finding No. 2023‐006: Reporting (Significant Deficiency) State Agency: DLNR Federal Agency: Department of Interior AL Number and Title: 15.615 – Cooperative Endangered Species Conservation Fund Award Number and Award Year: F22AP03217 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of one subaward and found that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the Federal Funding Accountability and Transparency Act (“FFATA”) was not completed timely. [TABLE] Criteria Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials The department experienced a staffing shortage and was unable to file the report in a timely manner. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.
Finding 2023-007
Questioned Cost $- Finding No. 2023‐007: Suspension and Debarment (Significant Deficiency) State Agency: DLNR Federal Agency: Department of Interior AL Number and Title: 15.634 – State Wildlife Grants (R&D Cluster) Award Number and Award Year: F21AP00578 F22AP03438 2022 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence indicating that program personnel verified whether the contractors were federally suspended or debarred. Criteria According to 2 CFR 200.214, regulations restrict awards, subawards and contracts with certain parties that are debarred, suspended, or otherwise excluded from, ineligible from, or ineligible for participation in federal assistance programs or activities. Therefore, verification is required by checking the SAM, an official website for the U.S. Government, obtaining a certification from the contractor, or adding a clause or condition to the contract. Effect Without evaluating the contractors’ status on the SAM before executing agreements, the State may contract with suspended or debarred entities. Cause and View of Responsible Officials Program personnel responsible for procurement indicated that a review for the federal SAM website was performed prior to the execution of the contract, however, no formal documentation of the review was retained. Recommendation We recommend that program management retain evidence of the suspension and debarment review, including who performed the procedure and the date performed, prior to entering into the agreement.
Finding 2023-008
Questioned Cost $- Finding No. 2023‐008: Subrecipient Monitoring (Significant Deficiency) State Agency: DLNR Federal Agency: Department of Interior AL Number and Title: 15.634 – State Wildlife Grants (R&D Cluster) Award Number and Award Year: F21AP00578 F22AP03438 2022 2022 Repeat Finding? No Condition During our audit, we examined a non‐statistical sample of two subawards and noted the following instances of noncompliance: -Subaward agreements did not include certain required federal award information. -No evidence of pass‐through entity verifying that subrecipients are audited as required by 2 CFR Section 200, Subpart F. Criteria 2 CFR Section 200.332(a) requires subawards to clearly identify information, such as Federal Award Identification Number (FAIN), identification of whether the award is R&D, period of performance, and indirect costs. 2 CFR Section 200.332(f) requires a pass‐through entity to verify that every subrecipient is audited as required by 2 CFR Section 200, Subpart F, when it is expected that the subrecipient’s expenditures exceed applicable thresholds. Effect By not including the required information in the subaward and verifying whether the subrecipient is audited, the State may not be providing the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Program personnel responsible indicated that subaward information was provided and verification of audit was performed, however, no formal documentation of the review was retained. Recommendation We recommend that program management retain evidence of process, including who performed the procedure and the date performed.
Finding 2023-009
Questioned Cost $1,643 Finding No. 2023‐009: Eligibility (Significant Deficiency) State Agency: Department of Labor and Industrial Relations ("DLIR") Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance COVID‐19 – 17.225 – COVID‐19 – Unemployment Insurance Award Number and Award Year: UI‐39318‐23‐55‐A‐15 2023 Repeat Finding? Yes Condition During our audit, we selected a non‐statistical sample of sixty benefit payments made during the year and identified two payments where the recipients did not make the minimum number of work search contacts. Criteria Pursuant to State Handbook of Unemployment Benefits, the following requirements must be met to become eligible for benefit payments: 1) Be totally or partially unemployed; 2) File an application to establish an unemployment insurance claim; 3) File a claim certification on a weekly or bi‐weekly basis to request payment of benefits; 4) Register for work with the State Workforce Development Division; 5) Participate in re‐employment services; 6) Be physically and mentally able to work; 7) Be ready and willing to seek and accept work by making three or more work search contacts every week; 8) Serve a one‐week waiting period; and 9) Report for interviews. Effect Failure to comply with the eligibility requirements results in noncompliance with the terms of the award and may result in recapture of funds by the awarding agency. Cause and View of Responsible Officials The department experienced a staffing shortage and was unable to investigate cases within a timely manner. Recommendation We recommend that the State department follow the policies and procedures established to comply with eligibility requirements. Furthermore, we recommend that the department formalize any modifications to the work search requirements used in practice as allowed under HRS Section 12‐5‐34.
Finding 2023-009
Questioned Cost $1,643 Finding No. 2023‐009: Eligibility (Significant Deficiency) State Agency: Department of Labor and Industrial Relations ("DLIR") Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance COVID‐19 – 17.225 – COVID‐19 – Unemployment Insurance Award Number and Award Year: UI‐39318‐23‐55‐A‐15 2023 Repeat Finding? Yes Condition During our audit, we selected a non‐statistical sample of sixty benefit payments made during the year and identified two payments where the recipients did not make the minimum number of work search contacts. Criteria Pursuant to State Handbook of Unemployment Benefits, the following requirements must be met to become eligible for benefit payments: 1) Be totally or partially unemployed; 2) File an application to establish an unemployment insurance claim; 3) File a claim certification on a weekly or bi‐weekly basis to request payment of benefits; 4) Register for work with the State Workforce Development Division; 5) Participate in re‐employment services; 6) Be physically and mentally able to work; 7) Be ready and willing to seek and accept work by making three or more work search contacts every week; 8) Serve a one‐week waiting period; and 9) Report for interviews. Effect Failure to comply with the eligibility requirements results in noncompliance with the terms of the award and may result in recapture of funds by the awarding agency. Cause and View of Responsible Officials The department experienced a staffing shortage and was unable to investigate cases within a timely manner. Recommendation We recommend that the State department follow the policies and procedures established to comply with eligibility requirements. Furthermore, we recommend that the department formalize any modifications to the work search requirements used in practice as allowed under HRS Section 12‐5‐34.
Finding 2023-010
Questioned Cost $- Finding No. 2023‐010: Special Tests and Provisions (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance COVID‐19 – 17.225 – COVID‐19 – Unemployment Insurance Award Number and Award Year: UI‐39318‐23‐55‐A‐15 2023 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum cases and timeliness requirements were not met for paid and denied claims. Criteria Pursuant to 20 CFR Part 602, the BAM system requires the State department to complete a minimum number of unemployment cases timely in order to maintain a current database. The required number of cases and the timeliness percentages for completing paid and denied claims are as follows: Paid Claims -Minimum cases: 480 paid cases -Timeliness percentages: Complete 70% within 60 days, 95% within 90 days, and 98% within 120 days Denied Claims -Minimum cases: 450 denied cases (150 cases for each category: monetary, separation and non‐separation) -Timeliness percentages: Complete 60% within 60 days, 85% within 90 days, and 98% within 120 days Effect Failure to meet timeliness requirements prevents the granting agency from maintaining a current database. Cause and View of Responsible Officials Due to the COVID‐19 pandemic, the department experienced a staffing shortage and was unable to process the minimum number of cases and/or investigate cases within a timely manner. Recommendation We recommend that the State department address staffing shortages and develop new policies and procedures to handle the increase in unemployment claims and follow existing policies and procedures established to comply with claim handling requirements, as necessary.
Finding 2023-010
Questioned Cost $- Finding No. 2023‐010: Special Tests and Provisions (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance COVID‐19 – 17.225 – COVID‐19 – Unemployment Insurance Award Number and Award Year: UI‐39318‐23‐55‐A‐15 2023 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum cases and timeliness requirements were not met for paid and denied claims. Criteria Pursuant to 20 CFR Part 602, the BAM system requires the State department to complete a minimum number of unemployment cases timely in order to maintain a current database. The required number of cases and the timeliness percentages for completing paid and denied claims are as follows: Paid Claims -Minimum cases: 480 paid cases -Timeliness percentages: Complete 70% within 60 days, 95% within 90 days, and 98% within 120 days Denied Claims -Minimum cases: 450 denied cases (150 cases for each category: monetary, separation and non‐separation) -Timeliness percentages: Complete 60% within 60 days, 85% within 90 days, and 98% within 120 days Effect Failure to meet timeliness requirements prevents the granting agency from maintaining a current database. Cause and View of Responsible Officials Due to the COVID‐19 pandemic, the department experienced a staffing shortage and was unable to process the minimum number of cases and/or investigate cases within a timely manner. Recommendation We recommend that the State department address staffing shortages and develop new policies and procedures to handle the increase in unemployment claims and follow existing policies and procedures established to comply with claim handling requirements, as necessary.
Finding 2023-011
Questioned Cost $- Finding No. 2023‐011: Earmarking (Significant Deficiency) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐33225‐15‐55A‐15 2019 Repeat Finding? No Condition During our audit, we noted the following instances of noncompliance: -A total of 15.61% of funds were allocated for employment and training activities for adults and dislocated workers. -A total of 74.60% of funds were allocated for services to out of school youth. Criteria According to Section 129(b) of the Workforce Innovation and Opportunity Act, not more than 15% of funds allocated shall be used to provide employment and training activities for adults and dislocated workers. According to Section 129(c) of the Workforce Innovation and Opportunity Act, not less than 75% of funds allocated to the local area, except for local area administrative costs, shall be used to provide out of school youth. Effect Failure to comply with the award’s earmarking requirements results in noncompliance with the terms of the award and could result in sanctions by the awarding agency. Cause and View of Responsible Officials When the initial award is provided to the various subrecipients, program personnel allocate amounts in accordance with earmarking requirements. However, as actual results differ from the budget, program personnel became aware of noncompliance at the close of the award. Recommendation We recommend that program management establish policies and procedures with subrecipients to ensure earmarking requirements are met.
Finding 2023-011
Questioned Cost $- Finding No. 2023‐011: Earmarking (Significant Deficiency) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐33225‐15‐55A‐15 2019 Repeat Finding? No Condition During our audit, we noted the following instances of noncompliance: -A total of 15.61% of funds were allocated for employment and training activities for adults and dislocated workers. -A total of 74.60% of funds were allocated for services to out of school youth. Criteria According to Section 129(b) of the Workforce Innovation and Opportunity Act, not more than 15% of funds allocated shall be used to provide employment and training activities for adults and dislocated workers. According to Section 129(c) of the Workforce Innovation and Opportunity Act, not less than 75% of funds allocated to the local area, except for local area administrative costs, shall be used to provide out of school youth. Effect Failure to comply with the award’s earmarking requirements results in noncompliance with the terms of the award and could result in sanctions by the awarding agency. Cause and View of Responsible Officials When the initial award is provided to the various subrecipients, program personnel allocate amounts in accordance with earmarking requirements. However, as actual results differ from the budget, program personnel became aware of noncompliance at the close of the award. Recommendation We recommend that program management establish policies and procedures with subrecipients to ensure earmarking requirements are met.
Finding 2023-011
Questioned Cost $- Finding No. 2023‐011: Earmarking (Significant Deficiency) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐33225‐15‐55A‐15 2019 Repeat Finding? No Condition During our audit, we noted the following instances of noncompliance: -A total of 15.61% of funds were allocated for employment and training activities for adults and dislocated workers. -A total of 74.60% of funds were allocated for services to out of school youth. Criteria According to Section 129(b) of the Workforce Innovation and Opportunity Act, not more than 15% of funds allocated shall be used to provide employment and training activities for adults and dislocated workers. According to Section 129(c) of the Workforce Innovation and Opportunity Act, not less than 75% of funds allocated to the local area, except for local area administrative costs, shall be used to provide out of school youth. Effect Failure to comply with the award’s earmarking requirements results in noncompliance with the terms of the award and could result in sanctions by the awarding agency. Cause and View of Responsible Officials When the initial award is provided to the various subrecipients, program personnel allocate amounts in accordance with earmarking requirements. However, as actual results differ from the budget, program personnel became aware of noncompliance at the close of the award. Recommendation We recommend that program management establish policies and procedures with subrecipients to ensure earmarking requirements are met.
Finding 2023-012
Questioned Cost $- Finding No. 2023‐012: Reporting (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA was completed. [TABLE] Criteria Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials Due to changes in program personnel, there was miscommunication between the parties responsible for filing the FFATA reports. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.
Finding 2023-012
Questioned Cost $- Finding No. 2023‐012: Reporting (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA was completed. [TABLE] Criteria Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials Due to changes in program personnel, there was miscommunication between the parties responsible for filing the FFATA reports. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.
Finding 2023-012
Questioned Cost $- Finding No. 2023‐012: Reporting (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA was completed. [TABLE] Criteria Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials Due to changes in program personnel, there was miscommunication between the parties responsible for filing the FFATA reports. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.
Finding 2023-013
Questioned Cost $- Finding No. 2023‐013: Subrecipient Monitoring (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we examined a non‐statistical sample of three subawards and noted the following instances of noncompliance: -No evidence of evaluation of the subrecipients’ risk of noncompliance at the time of the subawards. -No evidence of on‐site monitoring procedures of the subrecipients. Criteria 2 CFR Section 200.332(b) requires a pass‐through entity to evaluate each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward. 2 CFR Section 200.332(d) requires a pass‐through entity to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in accordance with federal statutes and regulations. Effect Without evaluating the subrecipient’s risk of noncompliance and determining the appropriate subrecipient monitoring procedures necessary, the State may not provide the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Due to resource constraints, program personnel were unable to perform the subrecipient’s risk of noncompliance and on‐going monitoring procedures. Recommendation We recommend that program management ensure that program personnel are familiar with all grant requirements, including compliance with 2 CFR Part 200, which requires the reporting of all necessary federal award information to subrecipients and risk assessments of subrecipients. Management should develop procedures that ensure the State department’s responsibilities as a pass‐through entity are fulfilled, including a formal analysis of each subrecipient’s risk of noncompliance with each of the respective subaward requirements. This evaluation of risk may include consideration of such factors as the following: -The subrecipient’s prior experience with the same or similar subawards; -The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward has been audited as a major program; -Whether the subrecipient has new personnel or new or substantially changed systems; and -The extent and results of federal awarding agency monitoring
Finding 2023-013
Questioned Cost $- Finding No. 2023‐013: Subrecipient Monitoring (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we examined a non‐statistical sample of three subawards and noted the following instances of noncompliance: -No evidence of evaluation of the subrecipients’ risk of noncompliance at the time of the subawards. -No evidence of on‐site monitoring procedures of the subrecipients. Criteria 2 CFR Section 200.332(b) requires a pass‐through entity to evaluate each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward. 2 CFR Section 200.332(d) requires a pass‐through entity to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in accordance with federal statutes and regulations. Effect Without evaluating the subrecipient’s risk of noncompliance and determining the appropriate subrecipient monitoring procedures necessary, the State may not provide the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Due to resource constraints, program personnel were unable to perform the subrecipient’s risk of noncompliance and on‐going monitoring procedures. Recommendation We recommend that program management ensure that program personnel are familiar with all grant requirements, including compliance with 2 CFR Part 200, which requires the reporting of all necessary federal award information to subrecipients and risk assessments of subrecipients. Management should develop procedures that ensure the State department’s responsibilities as a pass‐through entity are fulfilled, including a formal analysis of each subrecipient’s risk of noncompliance with each of the respective subaward requirements. This evaluation of risk may include consideration of such factors as the following: -The subrecipient’s prior experience with the same or similar subawards; -The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward has been audited as a major program; -Whether the subrecipient has new personnel or new or substantially changed systems; and -The extent and results of federal awarding agency monitoring
Finding 2023-013
Questioned Cost $- Finding No. 2023‐013: Subrecipient Monitoring (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we examined a non‐statistical sample of three subawards and noted the following instances of noncompliance: -No evidence of evaluation of the subrecipients’ risk of noncompliance at the time of the subawards. -No evidence of on‐site monitoring procedures of the subrecipients. Criteria 2 CFR Section 200.332(b) requires a pass‐through entity to evaluate each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward. 2 CFR Section 200.332(d) requires a pass‐through entity to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in accordance with federal statutes and regulations. Effect Without evaluating the subrecipient’s risk of noncompliance and determining the appropriate subrecipient monitoring procedures necessary, the State may not provide the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Due to resource constraints, program personnel were unable to perform the subrecipient’s risk of noncompliance and on‐going monitoring procedures. Recommendation We recommend that program management ensure that program personnel are familiar with all grant requirements, including compliance with 2 CFR Part 200, which requires the reporting of all necessary federal award information to subrecipients and risk assessments of subrecipients. Management should develop procedures that ensure the State department’s responsibilities as a pass‐through entity are fulfilled, including a formal analysis of each subrecipient’s risk of noncompliance with each of the respective subaward requirements. This evaluation of risk may include consideration of such factors as the following: -The subrecipient’s prior experience with the same or similar subawards; -The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward has been audited as a major program; -Whether the subrecipient has new personnel or new or substantially changed systems; and -The extent and results of federal awarding agency monitoring
Finding 2023-014
Questioned Cost $- Finding No. 2023‐014: Reporting (Significant Deficiency) State Agency: Department of Defense Federal Agency: Department of Homeland Security AL Number and Title: 97.067 – Homeland Security Grant Program Award Number and Award Year: EMW‐2022‐SS‐0036 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of three subawards and found that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA were not filed timely. [TABLE] Critera Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports timely reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials Due to changes in program personnel, there was miscommunication between the parties responsible for filing the FFATA reports. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.
Finding 2023-005
Questioned Cost $- Finding No. 2023‐005: Suspension and Debarment (Significant Deficiency) State Agency: Department of Land and Natural Resources (“DLNR”) Federal Agency: Department of Interior AL Number and Title: 15.615 – Cooperative Endangered Species Conservation Fund Award Number and Award Year: F22AP03217 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence indicating that program personnel verified whether any of the contractors were federally suspended or debarred. Criteria According to 2 CFR 200.214, regulations restrict awards, subawards and contracts with certain parties that are debarred, suspended, or otherwise excluded from, ineligible from, or ineligible for participation in federal assistance programs or activities. Therefore, verification is required by checking the System for Award Management (SAM), an official website for the U.S. Government, obtaining a certification from the contractor, or adding a clause or condition to the contract. Effect Without evaluating the contractors’ status on the SAM before executing agreements, the State may contract with suspended or debarred entities. Cause and View of Responsible Officials Program personnel responsible for procurement indicated that a review for the federal SAM website was performed prior to the execution of the contract, however, no formal documentation of the review was retained. Recommendation We recommend that program management retain evidence of the suspension and debarment review, including who performed the procedure and the date performed, prior to entering into the agreement.
Finding 2023-006
Questioned Cost $- Finding No. 2023‐006: Reporting (Significant Deficiency) State Agency: DLNR Federal Agency: Department of Interior AL Number and Title: 15.615 – Cooperative Endangered Species Conservation Fund Award Number and Award Year: F22AP03217 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of one subaward and found that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the Federal Funding Accountability and Transparency Act (“FFATA”) was not completed timely. [TABLE] Criteria Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials The department experienced a staffing shortage and was unable to file the report in a timely manner. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.
Finding 2023-007
Questioned Cost $- Finding No. 2023‐007: Suspension and Debarment (Significant Deficiency) State Agency: DLNR Federal Agency: Department of Interior AL Number and Title: 15.634 – State Wildlife Grants (R&D Cluster) Award Number and Award Year: F21AP00578 F22AP03438 2022 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence indicating that program personnel verified whether the contractors were federally suspended or debarred. Criteria According to 2 CFR 200.214, regulations restrict awards, subawards and contracts with certain parties that are debarred, suspended, or otherwise excluded from, ineligible from, or ineligible for participation in federal assistance programs or activities. Therefore, verification is required by checking the SAM, an official website for the U.S. Government, obtaining a certification from the contractor, or adding a clause or condition to the contract. Effect Without evaluating the contractors’ status on the SAM before executing agreements, the State may contract with suspended or debarred entities. Cause and View of Responsible Officials Program personnel responsible for procurement indicated that a review for the federal SAM website was performed prior to the execution of the contract, however, no formal documentation of the review was retained. Recommendation We recommend that program management retain evidence of the suspension and debarment review, including who performed the procedure and the date performed, prior to entering into the agreement.
Finding 2023-008
Questioned Cost $- Finding No. 2023‐008: Subrecipient Monitoring (Significant Deficiency) State Agency: DLNR Federal Agency: Department of Interior AL Number and Title: 15.634 – State Wildlife Grants (R&D Cluster) Award Number and Award Year: F21AP00578 F22AP03438 2022 2022 Repeat Finding? No Condition During our audit, we examined a non‐statistical sample of two subawards and noted the following instances of noncompliance: -Subaward agreements did not include certain required federal award information. -No evidence of pass‐through entity verifying that subrecipients are audited as required by 2 CFR Section 200, Subpart F. Criteria 2 CFR Section 200.332(a) requires subawards to clearly identify information, such as Federal Award Identification Number (FAIN), identification of whether the award is R&D, period of performance, and indirect costs. 2 CFR Section 200.332(f) requires a pass‐through entity to verify that every subrecipient is audited as required by 2 CFR Section 200, Subpart F, when it is expected that the subrecipient’s expenditures exceed applicable thresholds. Effect By not including the required information in the subaward and verifying whether the subrecipient is audited, the State may not be providing the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Program personnel responsible indicated that subaward information was provided and verification of audit was performed, however, no formal documentation of the review was retained. Recommendation We recommend that program management retain evidence of process, including who performed the procedure and the date performed.
Finding 2023-009
Questioned Cost $1,643 Finding No. 2023‐009: Eligibility (Significant Deficiency) State Agency: Department of Labor and Industrial Relations ("DLIR") Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance COVID‐19 – 17.225 – COVID‐19 – Unemployment Insurance Award Number and Award Year: UI‐39318‐23‐55‐A‐15 2023 Repeat Finding? Yes Condition During our audit, we selected a non‐statistical sample of sixty benefit payments made during the year and identified two payments where the recipients did not make the minimum number of work search contacts. Criteria Pursuant to State Handbook of Unemployment Benefits, the following requirements must be met to become eligible for benefit payments: 1) Be totally or partially unemployed; 2) File an application to establish an unemployment insurance claim; 3) File a claim certification on a weekly or bi‐weekly basis to request payment of benefits; 4) Register for work with the State Workforce Development Division; 5) Participate in re‐employment services; 6) Be physically and mentally able to work; 7) Be ready and willing to seek and accept work by making three or more work search contacts every week; 8) Serve a one‐week waiting period; and 9) Report for interviews. Effect Failure to comply with the eligibility requirements results in noncompliance with the terms of the award and may result in recapture of funds by the awarding agency. Cause and View of Responsible Officials The department experienced a staffing shortage and was unable to investigate cases within a timely manner. Recommendation We recommend that the State department follow the policies and procedures established to comply with eligibility requirements. Furthermore, we recommend that the department formalize any modifications to the work search requirements used in practice as allowed under HRS Section 12‐5‐34.
Finding 2023-009
Questioned Cost $1,643 Finding No. 2023‐009: Eligibility (Significant Deficiency) State Agency: Department of Labor and Industrial Relations ("DLIR") Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance COVID‐19 – 17.225 – COVID‐19 – Unemployment Insurance Award Number and Award Year: UI‐39318‐23‐55‐A‐15 2023 Repeat Finding? Yes Condition During our audit, we selected a non‐statistical sample of sixty benefit payments made during the year and identified two payments where the recipients did not make the minimum number of work search contacts. Criteria Pursuant to State Handbook of Unemployment Benefits, the following requirements must be met to become eligible for benefit payments: 1) Be totally or partially unemployed; 2) File an application to establish an unemployment insurance claim; 3) File a claim certification on a weekly or bi‐weekly basis to request payment of benefits; 4) Register for work with the State Workforce Development Division; 5) Participate in re‐employment services; 6) Be physically and mentally able to work; 7) Be ready and willing to seek and accept work by making three or more work search contacts every week; 8) Serve a one‐week waiting period; and 9) Report for interviews. Effect Failure to comply with the eligibility requirements results in noncompliance with the terms of the award and may result in recapture of funds by the awarding agency. Cause and View of Responsible Officials The department experienced a staffing shortage and was unable to investigate cases within a timely manner. Recommendation We recommend that the State department follow the policies and procedures established to comply with eligibility requirements. Furthermore, we recommend that the department formalize any modifications to the work search requirements used in practice as allowed under HRS Section 12‐5‐34.
Finding 2023-010
Questioned Cost $- Finding No. 2023‐010: Special Tests and Provisions (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance COVID‐19 – 17.225 – COVID‐19 – Unemployment Insurance Award Number and Award Year: UI‐39318‐23‐55‐A‐15 2023 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum cases and timeliness requirements were not met for paid and denied claims. Criteria Pursuant to 20 CFR Part 602, the BAM system requires the State department to complete a minimum number of unemployment cases timely in order to maintain a current database. The required number of cases and the timeliness percentages for completing paid and denied claims are as follows: Paid Claims -Minimum cases: 480 paid cases -Timeliness percentages: Complete 70% within 60 days, 95% within 90 days, and 98% within 120 days Denied Claims -Minimum cases: 450 denied cases (150 cases for each category: monetary, separation and non‐separation) -Timeliness percentages: Complete 60% within 60 days, 85% within 90 days, and 98% within 120 days Effect Failure to meet timeliness requirements prevents the granting agency from maintaining a current database. Cause and View of Responsible Officials Due to the COVID‐19 pandemic, the department experienced a staffing shortage and was unable to process the minimum number of cases and/or investigate cases within a timely manner. Recommendation We recommend that the State department address staffing shortages and develop new policies and procedures to handle the increase in unemployment claims and follow existing policies and procedures established to comply with claim handling requirements, as necessary.
Finding 2023-010
Questioned Cost $- Finding No. 2023‐010: Special Tests and Provisions (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance COVID‐19 – 17.225 – COVID‐19 – Unemployment Insurance Award Number and Award Year: UI‐39318‐23‐55‐A‐15 2023 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum cases and timeliness requirements were not met for paid and denied claims. Criteria Pursuant to 20 CFR Part 602, the BAM system requires the State department to complete a minimum number of unemployment cases timely in order to maintain a current database. The required number of cases and the timeliness percentages for completing paid and denied claims are as follows: Paid Claims -Minimum cases: 480 paid cases -Timeliness percentages: Complete 70% within 60 days, 95% within 90 days, and 98% within 120 days Denied Claims -Minimum cases: 450 denied cases (150 cases for each category: monetary, separation and non‐separation) -Timeliness percentages: Complete 60% within 60 days, 85% within 90 days, and 98% within 120 days Effect Failure to meet timeliness requirements prevents the granting agency from maintaining a current database. Cause and View of Responsible Officials Due to the COVID‐19 pandemic, the department experienced a staffing shortage and was unable to process the minimum number of cases and/or investigate cases within a timely manner. Recommendation We recommend that the State department address staffing shortages and develop new policies and procedures to handle the increase in unemployment claims and follow existing policies and procedures established to comply with claim handling requirements, as necessary.
Finding 2023-011
Questioned Cost $- Finding No. 2023‐011: Earmarking (Significant Deficiency) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐33225‐15‐55A‐15 2019 Repeat Finding? No Condition During our audit, we noted the following instances of noncompliance: -A total of 15.61% of funds were allocated for employment and training activities for adults and dislocated workers. -A total of 74.60% of funds were allocated for services to out of school youth. Criteria According to Section 129(b) of the Workforce Innovation and Opportunity Act, not more than 15% of funds allocated shall be used to provide employment and training activities for adults and dislocated workers. According to Section 129(c) of the Workforce Innovation and Opportunity Act, not less than 75% of funds allocated to the local area, except for local area administrative costs, shall be used to provide out of school youth. Effect Failure to comply with the award’s earmarking requirements results in noncompliance with the terms of the award and could result in sanctions by the awarding agency. Cause and View of Responsible Officials When the initial award is provided to the various subrecipients, program personnel allocate amounts in accordance with earmarking requirements. However, as actual results differ from the budget, program personnel became aware of noncompliance at the close of the award. Recommendation We recommend that program management establish policies and procedures with subrecipients to ensure earmarking requirements are met.
Finding 2023-011
Questioned Cost $- Finding No. 2023‐011: Earmarking (Significant Deficiency) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐33225‐15‐55A‐15 2019 Repeat Finding? No Condition During our audit, we noted the following instances of noncompliance: -A total of 15.61% of funds were allocated for employment and training activities for adults and dislocated workers. -A total of 74.60% of funds were allocated for services to out of school youth. Criteria According to Section 129(b) of the Workforce Innovation and Opportunity Act, not more than 15% of funds allocated shall be used to provide employment and training activities for adults and dislocated workers. According to Section 129(c) of the Workforce Innovation and Opportunity Act, not less than 75% of funds allocated to the local area, except for local area administrative costs, shall be used to provide out of school youth. Effect Failure to comply with the award’s earmarking requirements results in noncompliance with the terms of the award and could result in sanctions by the awarding agency. Cause and View of Responsible Officials When the initial award is provided to the various subrecipients, program personnel allocate amounts in accordance with earmarking requirements. However, as actual results differ from the budget, program personnel became aware of noncompliance at the close of the award. Recommendation We recommend that program management establish policies and procedures with subrecipients to ensure earmarking requirements are met.
Finding 2023-011
Questioned Cost $- Finding No. 2023‐011: Earmarking (Significant Deficiency) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐33225‐15‐55A‐15 2019 Repeat Finding? No Condition During our audit, we noted the following instances of noncompliance: -A total of 15.61% of funds were allocated for employment and training activities for adults and dislocated workers. -A total of 74.60% of funds were allocated for services to out of school youth. Criteria According to Section 129(b) of the Workforce Innovation and Opportunity Act, not more than 15% of funds allocated shall be used to provide employment and training activities for adults and dislocated workers. According to Section 129(c) of the Workforce Innovation and Opportunity Act, not less than 75% of funds allocated to the local area, except for local area administrative costs, shall be used to provide out of school youth. Effect Failure to comply with the award’s earmarking requirements results in noncompliance with the terms of the award and could result in sanctions by the awarding agency. Cause and View of Responsible Officials When the initial award is provided to the various subrecipients, program personnel allocate amounts in accordance with earmarking requirements. However, as actual results differ from the budget, program personnel became aware of noncompliance at the close of the award. Recommendation We recommend that program management establish policies and procedures with subrecipients to ensure earmarking requirements are met.
Finding 2023-012
Questioned Cost $- Finding No. 2023‐012: Reporting (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA was completed. [TABLE] Criteria Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials Due to changes in program personnel, there was miscommunication between the parties responsible for filing the FFATA reports. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.
Finding 2023-012
Questioned Cost $- Finding No. 2023‐012: Reporting (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA was completed. [TABLE] Criteria Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials Due to changes in program personnel, there was miscommunication between the parties responsible for filing the FFATA reports. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.
Finding 2023-012
Questioned Cost $- Finding No. 2023‐012: Reporting (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of two subawards and found no evidence that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA was completed. [TABLE] Criteria Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials Due to changes in program personnel, there was miscommunication between the parties responsible for filing the FFATA reports. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.
Finding 2023-013
Questioned Cost $- Finding No. 2023‐013: Subrecipient Monitoring (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we examined a non‐statistical sample of three subawards and noted the following instances of noncompliance: -No evidence of evaluation of the subrecipients’ risk of noncompliance at the time of the subawards. -No evidence of on‐site monitoring procedures of the subrecipients. Criteria 2 CFR Section 200.332(b) requires a pass‐through entity to evaluate each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward. 2 CFR Section 200.332(d) requires a pass‐through entity to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in accordance with federal statutes and regulations. Effect Without evaluating the subrecipient’s risk of noncompliance and determining the appropriate subrecipient monitoring procedures necessary, the State may not provide the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Due to resource constraints, program personnel were unable to perform the subrecipient’s risk of noncompliance and on‐going monitoring procedures. Recommendation We recommend that program management ensure that program personnel are familiar with all grant requirements, including compliance with 2 CFR Part 200, which requires the reporting of all necessary federal award information to subrecipients and risk assessments of subrecipients. Management should develop procedures that ensure the State department’s responsibilities as a pass‐through entity are fulfilled, including a formal analysis of each subrecipient’s risk of noncompliance with each of the respective subaward requirements. This evaluation of risk may include consideration of such factors as the following: -The subrecipient’s prior experience with the same or similar subawards; -The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward has been audited as a major program; -Whether the subrecipient has new personnel or new or substantially changed systems; and -The extent and results of federal awarding agency monitoring
Finding 2023-013
Questioned Cost $- Finding No. 2023‐013: Subrecipient Monitoring (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we examined a non‐statistical sample of three subawards and noted the following instances of noncompliance: -No evidence of evaluation of the subrecipients’ risk of noncompliance at the time of the subawards. -No evidence of on‐site monitoring procedures of the subrecipients. Criteria 2 CFR Section 200.332(b) requires a pass‐through entity to evaluate each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward. 2 CFR Section 200.332(d) requires a pass‐through entity to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in accordance with federal statutes and regulations. Effect Without evaluating the subrecipient’s risk of noncompliance and determining the appropriate subrecipient monitoring procedures necessary, the State may not provide the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Due to resource constraints, program personnel were unable to perform the subrecipient’s risk of noncompliance and on‐going monitoring procedures. Recommendation We recommend that program management ensure that program personnel are familiar with all grant requirements, including compliance with 2 CFR Part 200, which requires the reporting of all necessary federal award information to subrecipients and risk assessments of subrecipients. Management should develop procedures that ensure the State department’s responsibilities as a pass‐through entity are fulfilled, including a formal analysis of each subrecipient’s risk of noncompliance with each of the respective subaward requirements. This evaluation of risk may include consideration of such factors as the following: -The subrecipient’s prior experience with the same or similar subawards; -The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward has been audited as a major program; -Whether the subrecipient has new personnel or new or substantially changed systems; and -The extent and results of federal awarding agency monitoring
Finding 2023-013
Questioned Cost $- Finding No. 2023‐013: Subrecipient Monitoring (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.258 – WIOA Adult Program 17.259 – WIOA Youth Activities 17.278 – WIOA Dislocated Worker Formula Grant (WIOA Cluster) Award Number and Award Year: AA‐38525‐22‐55‐A‐15 2022 Repeat Finding? No Condition During our audit, we examined a non‐statistical sample of three subawards and noted the following instances of noncompliance: -No evidence of evaluation of the subrecipients’ risk of noncompliance at the time of the subawards. -No evidence of on‐site monitoring procedures of the subrecipients. Criteria 2 CFR Section 200.332(b) requires a pass‐through entity to evaluate each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward. 2 CFR Section 200.332(d) requires a pass‐through entity to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in accordance with federal statutes and regulations. Effect Without evaluating the subrecipient’s risk of noncompliance and determining the appropriate subrecipient monitoring procedures necessary, the State may not provide the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Due to resource constraints, program personnel were unable to perform the subrecipient’s risk of noncompliance and on‐going monitoring procedures. Recommendation We recommend that program management ensure that program personnel are familiar with all grant requirements, including compliance with 2 CFR Part 200, which requires the reporting of all necessary federal award information to subrecipients and risk assessments of subrecipients. Management should develop procedures that ensure the State department’s responsibilities as a pass‐through entity are fulfilled, including a formal analysis of each subrecipient’s risk of noncompliance with each of the respective subaward requirements. This evaluation of risk may include consideration of such factors as the following: -The subrecipient’s prior experience with the same or similar subawards; -The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward has been audited as a major program; -Whether the subrecipient has new personnel or new or substantially changed systems; and -The extent and results of federal awarding agency monitoring
Finding 2023-014
Questioned Cost $- Finding No. 2023‐014: Reporting (Significant Deficiency) State Agency: Department of Defense Federal Agency: Department of Homeland Security AL Number and Title: 97.067 – Homeland Security Grant Program Award Number and Award Year: EMW‐2022‐SS‐0036 2022 Repeat Finding? No Condition During our audit, we tested a non‐statistical sample of three subawards and found that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA were not filed timely. [TABLE] Critera Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally‐awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Effect Failure to file required reports timely reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of 2 CFR Part 200. Cause and View of Responsible Officials Due to changes in program personnel, there was miscommunication between the parties responsible for filing the FFATA reports. Recommendation We recommend that program personnel ensure that required FFATA reports are filed timely.