Audit 31686

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Ref. No. Compliance and Internal Control over Compliance Findings 2022-002 Subrecipient Monitoring - Significant Deficiency Federal agency: Department of the Treasury Pass-Through Entity: State of Hawaii Executive Office of the Governor Program: ALN No. COVID-19 - 21.019 - Coronavirus Relief Fund Questioned Cost Criteria: Subrecipient monitoring and management requirements for pass-through entities at 2 CFR ?200.332 - Requirements for pass-through entities requires that the County verify that every subrecipient is audited as required by the Uniform Guidance, when it is expected that the subrecipient?s Federal awards expended during the respective fiscal year equaled or exceeded $750,000. Condition: During our testing of the subrecipient monitoring compliance requirement, we noted the County did not track and monitor its subrecipient to ensure that an audit was completed and submitted in accordance with the Uniform Guidance. Cause: The County did not follow its procedures to verify whether its subrecipient was audited as required by the Uniform Guidance. Effect: Failure to verify that subrecipients are audited as required by the Uniform Guidance could result in noncompliance with the authorized purpose and terms and conditions of the subaward. $ -- Identification as a Repeat Finding, if applicable See finding 2021-002 included in the Summary Schedule of Prior Audit Findings. Recommendation We recommend that the County follow its procedures to ensure that audits required by the Uniform Guidance are being performed when monitoring subrecipients. Views of Responsible Officials and Planned Corrective Action The County agrees with the finding and the recommendation. See Part IV Corrective Action Plan.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Ref. No. Compliance and Internal Control over Compliance Findings 2022-002 Subrecipient Monitoring - Significant Deficiency Federal agency: Department of the Treasury Pass-Through Entity: State of Hawaii Executive Office of the Governor Program: ALN No. COVID-19 - 21.019 - Coronavirus Relief Fund Questioned Cost Criteria: Subrecipient monitoring and management requirements for pass-through entities at 2 CFR ?200.332 - Requirements for pass-through entities requires that the County verify that every subrecipient is audited as required by the Uniform Guidance, when it is expected that the subrecipient?s Federal awards expended during the respective fiscal year equaled or exceeded $750,000. Condition: During our testing of the subrecipient monitoring compliance requirement, we noted the County did not track and monitor its subrecipient to ensure that an audit was completed and submitted in accordance with the Uniform Guidance. Cause: The County did not follow its procedures to verify whether its subrecipient was audited as required by the Uniform Guidance. Effect: Failure to verify that subrecipients are audited as required by the Uniform Guidance could result in noncompliance with the authorized purpose and terms and conditions of the subaward. $ -- Identification as a Repeat Finding, if applicable See finding 2021-002 included in the Summary Schedule of Prior Audit Findings. Recommendation We recommend that the County follow its procedures to ensure that audits required by the Uniform Guidance are being performed when monitoring subrecipients. Views of Responsible Officials and Planned Corrective Action The County agrees with the finding and the recommendation. See Part IV Corrective Action Plan.