Audit 311070

2023-001 Reporting - Material Weakness AL Number and Title: 93.932 - Native Hawaiian Health Care Systems Award Number and Award Year: 5H1CCS0016-32-00 2022 Federal Agency: Department of Health and Human Services Criteria: The terms and conditions of the award requires that an annual Federal Financial Report (FFR) be submitted no later than ninety (90) calendar days following the end of the budget period. Condition: During our audit, we noted the annual Federal Financial Report (SF-425) was not submitted in a timely manner. Cause: Lack of adherence to reporting requirements exhibited by key accounting personnel due to employee turnover. Effect: Without an effective internal control system over reporting, untimely reporting could result in the misrepresentation of data and could adversely affect program outcomes and future funding. Repeat Finding? No Recommendation Ke Ola Mamo should improve processes and procedures over reporting compliance requirements to ensure that reports required by federal awards are completed and submitted on a timely basis. Views of Responsible Officials and Planned Corrective Action Ke Ola Mamo agrees with the finding and the recommendation. See Part V Correction Action Plan.

2023-002 Reporting - Significant Deficiency AL Number and Title: 93.932 - Native Hawaiian Health Care Systems Award Number and Award Year: 5H1CCS0016-32-00 2022 Federal Agency: Department of Health and Human Services Criteria: The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During our audit, we noted one instance out of forty that the employees timesheet did not agree to the payroll register. The hours on the timesheet were 45, while the hours on the payroll register were 48 hours. This resulted in an overcharge of $159 to the program. We also noted one out of seventy one timesheets were not approved by a supervisor. Cause: This finding was due to management oversight and a clerical error. Effect: Without an effective internal control system over allowable costs, costs may be charged to the federal aware improperly. Projecting this error to the amount of costs in the sample ($79,528) to the population ($1,464,088) resulted in a projected error of $2,927. As the projected error is less than $25,000, no amounts are reported as questioned costs. Repeat Finding? No Recommendation Ke Ola Mamo should exercise greater care in reviewing timesheets and data entered into the payroll system to ensure that only allowable costs are charged to the program. Views of Responsible Officials and Planned Corrective Action Ke Ola Mamo agrees with the finding and the recommendation. See Part V Correction Action Plan.

2023-001 Reporting - Material Weakness AL Number and Title: 93.932 - Native Hawaiian Health Care Systems Award Number and Award Year: 5H1CCS0016-32-00 2022 Federal Agency: Department of Health and Human Services Criteria: The terms and conditions of the award requires that an annual Federal Financial Report (FFR) be submitted no later than ninety (90) calendar days following the end of the budget period. Condition: During our audit, we noted the annual Federal Financial Report (SF-425) was not submitted in a timely manner. Cause: Lack of adherence to reporting requirements exhibited by key accounting personnel due to employee turnover. Effect: Without an effective internal control system over reporting, untimely reporting could result in the misrepresentation of data and could adversely affect program outcomes and future funding. Repeat Finding? No Recommendation Ke Ola Mamo should improve processes and procedures over reporting compliance requirements to ensure that reports required by federal awards are completed and submitted on a timely basis. Views of Responsible Officials and Planned Corrective Action Ke Ola Mamo agrees with the finding and the recommendation. See Part V Correction Action Plan.

2023-002 Reporting - Significant Deficiency AL Number and Title: 93.932 - Native Hawaiian Health Care Systems Award Number and Award Year: 5H1CCS0016-32-00 2022 Federal Agency: Department of Health and Human Services Criteria: The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During our audit, we noted one instance out of forty that the employees timesheet did not agree to the payroll register. The hours on the timesheet were 45, while the hours on the payroll register were 48 hours. This resulted in an overcharge of $159 to the program. We also noted one out of seventy one timesheets were not approved by a supervisor. Cause: This finding was due to management oversight and a clerical error. Effect: Without an effective internal control system over allowable costs, costs may be charged to the federal aware improperly. Projecting this error to the amount of costs in the sample ($79,528) to the population ($1,464,088) resulted in a projected error of $2,927. As the projected error is less than $25,000, no amounts are reported as questioned costs. Repeat Finding? No Recommendation Ke Ola Mamo should exercise greater care in reviewing timesheets and data entered into the payroll system to ensure that only allowable costs are charged to the program. Views of Responsible Officials and Planned Corrective Action Ke Ola Mamo agrees with the finding and the recommendation. See Part V Correction Action Plan.