FAC Explorer

Audit 350263

FY End
2024-06-30
Total Expended
$726.54M
Findings
14
Programs
140
Organization: State of Hawaii, Department of Accounting and General Services (HI)
Year: 2024 Accepted: 2025-03-28
Auditor: Accuity LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
540509 2024-005 Material Weakness - C
540510 2024-006 Material Weakness - C
540511 2024-007 Material Weakness Yes N
540512 2024-007 Material Weakness Yes N
540513 2024-008 Significant Deficiency Yes G
540514 2024-008 Significant Deficiency Yes G
540515 2024-008 Significant Deficiency Yes G
1116951 2024-005 Material Weakness - C
1116952 2024-006 Material Weakness - C
1116953 2024-007 Material Weakness Yes N
1116954 2024-007 Material Weakness Yes N
1116955 2024-008 Significant Deficiency Yes G
1116956 2024-008 Significant Deficiency Yes G
1116957 2024-008 Significant Deficiency Yes G

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $260.52M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $31.50M Yes 0
12.401 National Guard Military Operations and Maintenance (o&m) Projects $22.56M Yes 0
21.026 Homeowner Assistance Fund $16.43M - 0
17.258 Wioa Adult Program $11.12M Yes 1
97.067 Homeland Security Grant Program $9.70M - 0
10.569 Emergency Food Assistance Program (food Commodities) $7.44M - 0
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $6.84M Yes 0
15.615 Cooperative Endangered Species Conservation Fund $6.32M - 0
15.611 Wildlife Restoration and Basic Hunter Education and Safety $4.78M - 0
12.404 National Guard Challenge Program $4.66M - 0
17.259 Wioa Youth Activities $3.39M Yes 1
21.029 Coronavirus Capital Projects Fund $3.38M Yes 0
15.657 Endangered Species Recovery Implementation $3.07M - 0
10.179 Micro-Grants for Food Security Program $2.99M Yes 1
15.605 Sport Fish Restoration $2.85M - 0
97.042 Emergency Management Performance Grants $2.67M - 0
64.005 Grants to States for Construction of State Home Facilities $2.66M - 0
15.634 State Wildlife Grants $2.50M - 0
11.419 Coastal Zone Management Administration Awards $2.28M - 0
21.031 State Small Business Credit Initiative Technical Assistance Grant Program $2.21M - 0
12.400 Military Construction, National Guard $2.20M Yes 1
17.278 Wioa Dislocated Worker Formula Grants $2.10M Yes 1
17.207 Employment Service/wagner-Peyser Funded Activities $1.77M - 0
17.225 Unemployment Insurance $1.63M Yes 1
64.203 Veterans Cemetery Grants Program $1.62M - 0
10.565 Commodity Supplemental Food Program $1.50M - 0
17.503 Occupational Safety and Health State Program $1.32M - 0
11.307 Economic Adjustment Assistance $1.26M - 0
39.003 Donation of Federal Surplus Personal Property $1.22M - 0
10.664 Cooperative Forestry Assistance $1.04M - 0
11.611 Manufacturing Extension Partnership $1.02M - 0
17.235 Senior Community Service Employment Program $998,688 - 0
10.912 Environmental Quality Incentives Program $950,911 - 0
45.025 Promotion of the Arts Partnership Agreements $927,484 - 0
97.012 Boating Safety Financial Assistance $881,516 - 0
15.614 Coastal Wetlands Planning, Protection and Restoration $873,225 - 0
81.041 State Energy Program $868,670 - 0
15.916 Outdoor Recreation Acquisition, Development and Planning $802,140 - 0
12.017 Readiness and Environmental Protection Integration (repi) Program $745,302 - 0
17.002 Labor Force Statistics $736,448 - 0
17.504 Consultation Agreements $733,248 - 0
20.219 Recreational Trails Program $692,112 - 0
81.042 Weatherization Assistance for Low-Income Persons $647,930 - 0
12.114 Collaborative Research and Development $645,311 - 0
11.482 Coral Reef Conservation Program $638,134 - 0
93.558 Temporary Assistance for Needy Families $621,587 - 0
15.904 Historic Preservation Fund Grants-in-Aid $614,605 - 0
17.801 Jobs for Veterans State Grants $589,996 - 0
10.576 Senior Farmers Market Nutrition Program $574,456 - 0
11.469 Congressionally Identified Awards and Projects $564,584 - 0
11.472 Unallied Science Program $562,460 - 0
10.568 Emergency Food Assistance Program (administrative Costs) $523,986 - 0
11.035 Broadband Equity, Access, and Deployment Program $499,756 - 0
59.061 State Trade Expansion $494,846 - 0
11.473 Office for Coastal Management $475,401 - 0
97.039 Hazard Mitigation Grant $474,845 - 0
84.425 Education Stabilization Fund $474,345 - 0
10.170 Specialty Crop Block Grant Program - Farm Bill $455,870 - 0
11.467 Meteorologic and Hydrologic Modernization Development $441,491 - 0
10.698 State & Private Forestry Cooperative Fire Assistance $420,964 - 0
93.423 1332 State Innovation Waivers $409,364 - 0
11.032 State Digital Equity Planning and Capacity Grant $398,167 - 0
11.437 Pacific Fisheries Data Program $396,128 - 0
10.025 Plant and Animal Disease, Pest Control, and Animal Care $389,912 - 0
97.132 Financial Assistance for Targeted Violence and Terrorism Prevention $368,110 - 0
93.568 Low-Income Home Energy Assistance $365,066 - 0
93.569 Community Services Block Grant $355,123 Yes 0
21.023 Emergency Rental Assistance Program $334,243 - 0
81.087 Renewable Energy Research and Development $328,163 - 0
15.875 Economic, Social, and Political Development of the Territories $327,914 - 0
66.605 Performance Partnership Grants $317,733 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $300,932 - 0
16.753 Congressionally Recommended Awards $273,000 - 0
66.046 Climate Pollution Reduction Grants $251,589 - 0
10.680 Forest Health Protection $249,284 - 0
97.137 State and Local Cybersecurity Grant Program Tribal Cybersecurity Grant Program $248,766 - 0
97.041 National Dam Safety Program $240,008 - 0
97.056 Port Security Grant Program $225,994 - 0
17.271 Work Opportunity Tax Credit Program (wotc) $223,145 - 0
20.500 Federal Transit Capital Investment Grants $198,457 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $197,958 - 0
11.407 Interjurisdictional Fisheries Act of 1986 $197,267 - 0
10.934 Feral Swine Eradication and Control Pilot Program $194,592 - 0
15.660 Candidate Species Conservation $193,187 - 0
10.676 Forest Legacy Program $191,816 - 0
15.669 Cooperative Landscape Conservation $186,947 - 0
12.632 Legacy Resource Management Program $184,924 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $181,764 - 0
16.922 Equitable Sharing Program $177,132 - 0
30.002 Employment Discrimination_state and Local Fair Employment Practices Agency Contracts $176,366 - 0
11.429 Marine Sanctuary Program $168,200 - 0
10.675 Urban and Community Forestry Program $159,483 - 0
10.553 School Breakfast Program $151,802 - 0
15.630 Coastal $147,300 - 0
17.285 Registered Apprenticeship $143,506 - 0
16.593 Residential Substance Abuse Treatment for State Prisoners $142,996 - 0
93.103 Food and Drug Administration Research $138,184 - 0
20.205 Highway Planning and Construction $137,821 - 0
97.045 Cooperating Technical Partners $127,530 - 0
16.737 Gang Resistance Education and Training $122,576 - 0
16.575 Crime Victim Assistance $121,486 - 0
12.617 Economic Adjustment Assistance for State Governments $110,168 - 0
66.461 Regional Wetland Program Development Grants $107,826 - 0
10.678 Forest Stewardship Program $98,164 - 0
97.008 Non-Profit Security Program $94,355 - 0
84.048 Career and Technical Education -- Basic Grants to States $92,000 - 0
97.111 Regional Catastrophic Preparedness Grant Program (rcpgp) $90,807 - 0
10.525 Farm and Ranch Stress Assistance Network Competitive Grants Program $81,132 - 0
90.401 Help America Vote Act Requirements Payments $80,187 - 0
66.460 Nonpoint Source Implementation Grants $72,147 - 0
17.245 Trade Adjustment Assistance $71,489 - 0
15.608 Fish and Aquatic Conservation - Aquatic Invasive Species $70,828 - 0
14.401 Fair Housing Assistance Program $68,128 - 0
59.079 Cybersecurity for Small Business Pilot Program $66,500 - 0
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $55,992 - 0
11.463 Habitat Conservation $49,140 - 0
81.254 Grid Infrastructure Deployment and Resilience $47,140 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $40,644 - 0
90.404 Hava Election Security Grants $39,117 - 0
17.273 Temporary Labor Certification for Foreign Workers $36,414 - 0
11.U01 National Oceanic and Atmosphere Administration – Management Support for Hawaiian Islands Humpback Whale, Joint Enforcement Agreement $34,070 - 0
15.663 Nfwf-Usfws Conservation Partnership $32,136 - 0
32.011 Affordable Connectivity Outreach Grant Program $25,741 - 0
15.944 Natural Resource Stewardship $23,572 - 0
10.674 Wood Utilization Assistance $22,579 - 0
12.300 Basic and Applied Scientific Research $20,975 - 0
97.047 Bric: Building Resilient Infrastructure and Communities $17,633 - 0
17.289 Community Project Funding/congressionally Directed Spending $14,819 - 0
10.162 Inspection Grading and Standardization $13,765 - 0
11.452 Unallied Industry Projects $10,700 - 0
15.623 North American Wetlands Conservation Fund $10,513 - 0
15.554 Cooperative Watershed Management $7,875 - 0
10.163 Market Protection and Promotion $7,800 - 0
16.606 State Criminal Alien Assistance Program $4,279 - 0
11.439 Marine Mammal Data Program $4,208 - 0
15.507 Watersmart (sustain and Manage America’s Resources for Tomorrow) $3,539 - 0
11.454 Unallied Management Projects $3,310 - 0
10.727 Inflation Reduction Act Urban & Community Forestry Program $2,227 - 0
17.270 Reentry Employment Opportunities $196 - 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 Corrections and Rehabilitation 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 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, 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 $267,634,465 reported as expenditures for AL No. 17.225, Unemployment Insurance, and AL No. COVID‐19 – 17.225, COVID‐19 – Unemployment Insurance, $247,988,172 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: See the Notes to the SEFA for table.

Finding Details

Finding 2024-005
Questioned Cost $- Finding No. 2024‐005: Cash Management (Material Weakness) State Agency: Department of Agriculture Federal Agency: Department of Agriculture AL Number and Title: 10.179 – Micro-Grants for Food Security Program Award Number and Award Year: AM200100XXXXG132 2020 21MGFSPHI1003-00 2021 AM22MGFSPHI1007-04 2022 23MGFSPHI1011-00 2023 Repeat Finding? No Condition During our audit, we examined 25 haphazardly selected drawdowns and identified 25 instances totaling approximately $55,000 in which the time elapsing between the receipt of federal award and the disbursement was greater than 25 days, ranging from 48 to 137 days. While the expenditures were allowable costs under the grant, it does not appear the State disbursed these federal advances as soon as administratively feasible. Criteria 31 CFR Section 205.33 requires the State to minimize the time between the receipt of federal funds from the federal government and the State’s disbursement of the funds for federal program purposes. Therefore, the timing and amount of funds being requested and received must be as close as administratively feasible to the State’s actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs. Based on our testing, we determined 25 days to be a reasonable period of time to disburse cash after receipt from the federal government. Effect Without minimizing time between the drawdown and disbursement of federal funds, the State is not in compliance with federal requirements. Cause and View of Responsible Officials The lag in disbursing funds was due to the limited personnel assigned to this program in comparison to the volume of disbursements to beneficiaries. Recommendation The State department should design and implement controls over monitoring cash management timeliness requirements, ensure program personnel are aware of all federal program requirements, and ensure there is adequate staffing for the program to comply with federal requirements.
Finding 2024-006
Questioned Cost $- Finding No. 2024‐006: Cash Management (Material Weakness) State Agency: Hawaii Technology Development Corporation (HTDC) Federal Agency: Department of Defense AL Number and Title: 12.400 – Military Construction, National Guard Award Number and Award Year: W912J6-23-2-2102 2023 Repeat Finding? No Condition During our audit, we examined four haphazardly selected cash disbursements and identified an instance totaling approximately $60,000 in which the time elapsing between the receipt of the federal cash draw and the disbursement to vendor was greater than 45 days. For this instance, the time elapsed was 229 days. While the expenditures were allowable costs under the master cooperative agreement, the State did not disburse these federal advances within National Guard Bureau requirements. Criteria National Guard Regulations 5-1, National Guard Grants and Cooperative Agreements Chapter 11-5: Advance Payment Method, requires the State to minimize the time elapsing between the transfer of funds from the federal government and its disbursement to no more than 45 days. Effect The delay in disbursing advances of federal funding results in the State not complying with federal cash management requirements. Cause and View of Responsible Officials The delay was attributed to the draw down of federal funds by the State Department of Defense and transferring the funds to HTDC for disbursement to contractors. Recommendation We recommend that HTDC design and implement internal controls over the monitoring of cash management and ensure personnel are aware of cash management requirements.
Finding 2024-007
Questioned Cost $- Finding No. 2024‐007: Special Tests and Provisions (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance Award Number and Award Year: 24‐55‐A‐55-UI-000068 2024 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum cases requirements were not met for paid 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 minimum number of cases for completing paid claims is 480 cases. Effect Failure to meet minimum case 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 2024-007
Questioned Cost $- Finding No. 2024‐007: Special Tests and Provisions (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance Award Number and Award Year: 24‐55‐A‐55-UI-000068 2024 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum cases requirements were not met for paid 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 minimum number of cases for completing paid claims is 480 cases. Effect Failure to meet minimum case 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 2024-008
Questioned Cost $- Finding No. 2024‐008: 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: AA347643L0 2022 AA347645P0 2022 Repeat Finding? Yes Condition During our audit, we noted a total of 15.63% of funds were allocated for employment and training activities for adults and dislocated workers. 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. 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 2024-008
Questioned Cost $- Finding No. 2024‐008: 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: AA347643L0 2022 AA347645P0 2022 Repeat Finding? Yes Condition During our audit, we noted a total of 15.63% of funds were allocated for employment and training activities for adults and dislocated workers. 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. 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 2024-008
Questioned Cost $- Finding No. 2024‐008: 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: AA347643L0 2022 AA347645P0 2022 Repeat Finding? Yes Condition During our audit, we noted a total of 15.63% of funds were allocated for employment and training activities for adults and dislocated workers. 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. 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 2024-005
Questioned Cost $- Finding No. 2024‐005: Cash Management (Material Weakness) State Agency: Department of Agriculture Federal Agency: Department of Agriculture AL Number and Title: 10.179 – Micro-Grants for Food Security Program Award Number and Award Year: AM200100XXXXG132 2020 21MGFSPHI1003-00 2021 AM22MGFSPHI1007-04 2022 23MGFSPHI1011-00 2023 Repeat Finding? No Condition During our audit, we examined 25 haphazardly selected drawdowns and identified 25 instances totaling approximately $55,000 in which the time elapsing between the receipt of federal award and the disbursement was greater than 25 days, ranging from 48 to 137 days. While the expenditures were allowable costs under the grant, it does not appear the State disbursed these federal advances as soon as administratively feasible. Criteria 31 CFR Section 205.33 requires the State to minimize the time between the receipt of federal funds from the federal government and the State’s disbursement of the funds for federal program purposes. Therefore, the timing and amount of funds being requested and received must be as close as administratively feasible to the State’s actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs. Based on our testing, we determined 25 days to be a reasonable period of time to disburse cash after receipt from the federal government. Effect Without minimizing time between the drawdown and disbursement of federal funds, the State is not in compliance with federal requirements. Cause and View of Responsible Officials The lag in disbursing funds was due to the limited personnel assigned to this program in comparison to the volume of disbursements to beneficiaries. Recommendation The State department should design and implement controls over monitoring cash management timeliness requirements, ensure program personnel are aware of all federal program requirements, and ensure there is adequate staffing for the program to comply with federal requirements.
Finding 2024-006
Questioned Cost $- Finding No. 2024‐006: Cash Management (Material Weakness) State Agency: Hawaii Technology Development Corporation (HTDC) Federal Agency: Department of Defense AL Number and Title: 12.400 – Military Construction, National Guard Award Number and Award Year: W912J6-23-2-2102 2023 Repeat Finding? No Condition During our audit, we examined four haphazardly selected cash disbursements and identified an instance totaling approximately $60,000 in which the time elapsing between the receipt of the federal cash draw and the disbursement to vendor was greater than 45 days. For this instance, the time elapsed was 229 days. While the expenditures were allowable costs under the master cooperative agreement, the State did not disburse these federal advances within National Guard Bureau requirements. Criteria National Guard Regulations 5-1, National Guard Grants and Cooperative Agreements Chapter 11-5: Advance Payment Method, requires the State to minimize the time elapsing between the transfer of funds from the federal government and its disbursement to no more than 45 days. Effect The delay in disbursing advances of federal funding results in the State not complying with federal cash management requirements. Cause and View of Responsible Officials The delay was attributed to the draw down of federal funds by the State Department of Defense and transferring the funds to HTDC for disbursement to contractors. Recommendation We recommend that HTDC design and implement internal controls over the monitoring of cash management and ensure personnel are aware of cash management requirements.
Finding 2024-007
Questioned Cost $- Finding No. 2024‐007: Special Tests and Provisions (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance Award Number and Award Year: 24‐55‐A‐55-UI-000068 2024 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum cases requirements were not met for paid 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 minimum number of cases for completing paid claims is 480 cases. Effect Failure to meet minimum case 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 2024-007
Questioned Cost $- Finding No. 2024‐007: Special Tests and Provisions (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance Award Number and Award Year: 24‐55‐A‐55-UI-000068 2024 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum cases requirements were not met for paid 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 minimum number of cases for completing paid claims is 480 cases. Effect Failure to meet minimum case 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 2024-008
Questioned Cost $- Finding No. 2024‐008: 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: AA347643L0 2022 AA347645P0 2022 Repeat Finding? Yes Condition During our audit, we noted a total of 15.63% of funds were allocated for employment and training activities for adults and dislocated workers. 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. 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 2024-008
Questioned Cost $- Finding No. 2024‐008: 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: AA347643L0 2022 AA347645P0 2022 Repeat Finding? Yes Condition During our audit, we noted a total of 15.63% of funds were allocated for employment and training activities for adults and dislocated workers. 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. 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 2024-008
Questioned Cost $- Finding No. 2024‐008: 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: AA347643L0 2022 AA347645P0 2022 Repeat Finding? Yes Condition During our audit, we noted a total of 15.63% of funds were allocated for employment and training activities for adults and dislocated workers. 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. 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.