FAC Explorer

Audit 301342

FY End
2023-06-30
Total Expended
$1.26M
Findings
4
Programs
6
Organization: YWCA of Hawai`i Island (HI)
Year: 2023 Accepted: 2024-03-30
Auditor: Taketa Iwata Hara & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
390575 2023-002 Significant Deficiency - A
390576 2023-001 Material Weakness Yes C
967017 2023-002 Significant Deficiency - A
967018 2023-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $631,827 Yes 2
93.575 Child Care and Development Block Grant $360,729 - 0
84.215 Fund for the Improvement of Education $86,707 - 0
10.558 Child and Adult Care Food Program $78,630 - 0
16.575 Crime Victim Assistance $50,000 - 0
16.588 Violence Against Women Formula Grants $49,352 - 0

Contacts

Name Title Type
H4NWVGY9FCD6 Kathleen McGilvray Auditee
8089356067 Jon Arbles Auditor
No contacts on file

Notes to SEFA

Accounting Policies: General - The accompanying schedule of expenditures of federal awards presents the activity of all federal financial assistance programs of YWCA of Hawaii Island (Organization). The reporting entity of the Organization is defined in Note 1 to the Organization's basic financial statements. A program or award amount may extend over grant periods differing from the Organization's fiscal year. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Basis of Accounting - The accompanying schedule of expenditures of federal awards is presented in accordance with generally accepted accounting principles in the United States of America, which is described in Note 1 to the Organization's financial statements. Relationship to Basic Financial Statements - Federal financial assistance revenues are reported in the Organization's basic financial statements. Actual expenditures related to the federal program have been reconciled to the accounting records,underlying the Organization's financial statements. De Minimis Rate Used: N Rate Explanation: General - The accompanying schedule of expenditures of federal awards presents the activity of all federal financial assistance programs of YWCA of Hawaii Island (Organization). The reporting entity of the Organization is defined in Note 1 to the Organization's basic financial statements. A program or award amount may extend over grant periods differing from the Organization's fiscal year. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Basis of Accounting - The accompanying schedule of expenditures of federal awards is presented in accordance with generally accepted accounting principles in the United States of America, which is described in Note 1 to the Organization's financial statements. Relationship to Basic Financial Statements - Federal financial assistance revenues are reported in the Organization's basic financial statements. Actual expenditures related to the federal program have been reconciled to the accounting records,underlying the Organization's financial statements.

Finding Details

Finding 2023-002
Finding 2023 - 002 Federal Grant Expenditures: Allowable Costs Information Federal Agency: Department of Health and Human Services Program Name: Maternal, Infant, and Early Childhood Home Visiting Grant Program Assistance Listing Number: 93.870 Award Period: July 1, 2022 to June 30, 2023 Criteria General journal entries should be supported by appropriate references and documentation and receive proper approval in accordance with accounting policies and procedures. Condition During audit procedures we noted an expense being incorrectly charged to a federal grant. Management has since corrected this error but we recommend federal awards be closely monitored for allowable expenses. Questioned Costs Questioned costs for this condition amounted to $60. Cause An error in data entry occurred and policy and procedures related to a final review of federal awards by program personnel was not conducted. Effect Disallowed costs can be required to be refunded to the grantor and can have a negative impact on the financial effect of an organization. Recommendation We recommend that management follow policy and procedures to have program personnel conduct a final review of all expenses prior to submitting report/reimbursement request. Repeat Finding No Finding 2023 - 002 Federal Grant Expenditures: Allowable Costs (continued) Views of Responsible Officials and Planned Corrective Action See the Organization’s Corrective Action Plan on page 32.
Finding 2023-001
Finding 2023 - 001 Reconciliation of General Ledger Accounts Criteria Reconciliation of statement of financial position accounts is a check on the accuracy of the record-keeping process and maintains general ledger balances on a timely and accurate basis. Condition During our audit we noted statement of financial position accounts were not being properly reconciled to the general ledger and contained obvious misstatements. These included accounts receivable, preschool receivables, accounts payable, and deferred revenue for the year ended June 30, 2023. Cause A lack of timely reconciling, monitoring, and incomplete internal control policies and procedures resulted in a weak control environment and the inability to detect misstatements to the financial statements. Effect A lack of monitoring and proper reconciling of accounts, in accordance with the policy and procedure manual, could result in misstatements in the Organization’s financial statements going undetected beyond a reasonable period. Recommendation We recommend that management strengthen its system of internal controls by reviewing the policy and procedure manual, updating and implementing internal control procedures mandating timely reconciliations, and assigning monitoring responsibilities as necessary. Further, we recommend that management allocate necessary resources and provide training and development to accounting staff. Repeat Finding Yes – Modified: 2022-001 Control Environment and Monitoring of Control Procedures, 2022-002 Support for Journal Entries Views of Responsible Officials and Planned Corrective Action See the Organization’s Corrective Action Plan on page 32.
Finding 2023-002
Finding 2023 - 002 Federal Grant Expenditures: Allowable Costs Information Federal Agency: Department of Health and Human Services Program Name: Maternal, Infant, and Early Childhood Home Visiting Grant Program Assistance Listing Number: 93.870 Award Period: July 1, 2022 to June 30, 2023 Criteria General journal entries should be supported by appropriate references and documentation and receive proper approval in accordance with accounting policies and procedures. Condition During audit procedures we noted an expense being incorrectly charged to a federal grant. Management has since corrected this error but we recommend federal awards be closely monitored for allowable expenses. Questioned Costs Questioned costs for this condition amounted to $60. Cause An error in data entry occurred and policy and procedures related to a final review of federal awards by program personnel was not conducted. Effect Disallowed costs can be required to be refunded to the grantor and can have a negative impact on the financial effect of an organization. Recommendation We recommend that management follow policy and procedures to have program personnel conduct a final review of all expenses prior to submitting report/reimbursement request. Repeat Finding No Finding 2023 - 002 Federal Grant Expenditures: Allowable Costs (continued) Views of Responsible Officials and Planned Corrective Action See the Organization’s Corrective Action Plan on page 32.
Finding 2023-001
Finding 2023 - 001 Reconciliation of General Ledger Accounts Criteria Reconciliation of statement of financial position accounts is a check on the accuracy of the record-keeping process and maintains general ledger balances on a timely and accurate basis. Condition During our audit we noted statement of financial position accounts were not being properly reconciled to the general ledger and contained obvious misstatements. These included accounts receivable, preschool receivables, accounts payable, and deferred revenue for the year ended June 30, 2023. Cause A lack of timely reconciling, monitoring, and incomplete internal control policies and procedures resulted in a weak control environment and the inability to detect misstatements to the financial statements. Effect A lack of monitoring and proper reconciling of accounts, in accordance with the policy and procedure manual, could result in misstatements in the Organization’s financial statements going undetected beyond a reasonable period. Recommendation We recommend that management strengthen its system of internal controls by reviewing the policy and procedure manual, updating and implementing internal control procedures mandating timely reconciliations, and assigning monitoring responsibilities as necessary. Further, we recommend that management allocate necessary resources and provide training and development to accounting staff. Repeat Finding Yes – Modified: 2022-001 Control Environment and Monitoring of Control Procedures, 2022-002 Support for Journal Entries Views of Responsible Officials and Planned Corrective Action See the Organization’s Corrective Action Plan on page 32.