Audit 331177

FY End
2023-12-31
Total Expended
$2.97M
Findings
2
Programs
5
Organization: Aha Punana Leo, Inc. (HI)
Year: 2023 Accepted: 2024-12-05
Auditor: Davis Farr LLP

Organization Exclusion Status:

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Contacts

Name Title Type
EJQJH16ALVP8 K. Sean Kekina Auditee
8089354304 Jennifer Farr Auditor
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Notes to SEFA

Title: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards Accounting Policies: The Information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. GAAP De Minimis Rate Used: N Rate Explanation: The Organization did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance. (a) Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the ‘Aha Pūnana Leo (Organization) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. The Organization did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance. (b) Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Any negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass‐through entity identifying numbers are presented where available.

Finding Details

023-001: Completeness of the Schedule of Expenditures of Federal Awards (SEFA) Information on the Federal Program: Assistance Listing Number 93.575 Child Care and Development Block Grant Criteria: Non-federal entities are required to report all expenditures for federal awards for direct support and pass-through funds. Condition and Context: ‘Aha Pūnana Leo did not originally report this program on the SEFA for the year ended December 31, 2023. This resulted in the SEFA being understated by $433,677. Cause: ‘Aha Pūnana Leo has a process of reviewing awards and grants for inclusion on the SEFA. This program was not timely identified for reporting on the SEFA for the year ended December 31, 2023. Effect or Potential Effect: The SEFA is required to be presented fairly in all material respects in relation to the financial statements as a whole. Failing to timely report amounts on the SEFA can lead to inaccurate identification of major programs for testing in accordance with the Single Audit Act. Also, understating the SEFA can be misleading to the users of the SEFA particularly the federal agency awarding the funds. Questioned Costs: $0 Recommendation: We recommend that ‘Aha Pūnana Leo strengthen its system of internal controls when identifying federal awards for reporting on the fiscal year-end SEFA in a timely manner. Views of Responsible Official: We are reviewing grants and awards from federal and nonfederal sources and identify and track all federal funds. We will strengthen our internal controls over reviewing the accuracy and completeness of the SEFA for financial reporting purposes.
023-001: Completeness of the Schedule of Expenditures of Federal Awards (SEFA) Information on the Federal Program: Assistance Listing Number 93.575 Child Care and Development Block Grant Criteria: Non-federal entities are required to report all expenditures for federal awards for direct support and pass-through funds. Condition and Context: ‘Aha Pūnana Leo did not originally report this program on the SEFA for the year ended December 31, 2023. This resulted in the SEFA being understated by $433,677. Cause: ‘Aha Pūnana Leo has a process of reviewing awards and grants for inclusion on the SEFA. This program was not timely identified for reporting on the SEFA for the year ended December 31, 2023. Effect or Potential Effect: The SEFA is required to be presented fairly in all material respects in relation to the financial statements as a whole. Failing to timely report amounts on the SEFA can lead to inaccurate identification of major programs for testing in accordance with the Single Audit Act. Also, understating the SEFA can be misleading to the users of the SEFA particularly the federal agency awarding the funds. Questioned Costs: $0 Recommendation: We recommend that ‘Aha Pūnana Leo strengthen its system of internal controls when identifying federal awards for reporting on the fiscal year-end SEFA in a timely manner. Views of Responsible Official: We are reviewing grants and awards from federal and nonfederal sources and identify and track all federal funds. We will strengthen our internal controls over reviewing the accuracy and completeness of the SEFA for financial reporting purposes.