2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-002 - Inaccurate Schedule of Expenditures of Federal Awards (SEFA), United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements, as well as proper report of SEFA report. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: During our testing of Federal Expenditure for the Uniform Guidance on major program compliance, it was noted that client did not report accurate Federal expenditures of Federal Awards. Cause: As part of key personnel change and lack of documentation to support whether it is a federal expenditure and what amount should or should not be included in SEFA schedule, the SEFA was not accurately calculated. Potential Effect: Lack of supporting documentation and missing entries can leads to inaccurate SEFA preparation. Questioned Costs: None. Recommendation: We recommend the Organization obtain all Federal grant documentation to support the determination to include or to exclude federal expenditures from the SEFA. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-002. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and major program internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-002 - Inaccurate Schedule of Expenditures of Federal Awards (SEFA), United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements, as well as proper report of SEFA report. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: During our testing of Federal Expenditure for the Uniform Guidance on major program compliance, it was noted that client did not report accurate Federal expenditures of Federal Awards. Cause: As part of key personnel change and lack of documentation to support whether it is a federal expenditure and what amount should or should not be included in SEFA schedule, the SEFA was not accurately calculated. Potential Effect: Lack of supporting documentation and missing entries can leads to inaccurate SEFA preparation. Questioned Costs: None. Recommendation: We recommend the Organization obtain all Federal grant documentation to support the determination to include or to exclude federal expenditures from the SEFA. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-002. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and major program internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.
2024-001 – Internal Control over Financial, United States Department of Health and Human Services, Native Hawaiian Health Care 93.932 Criteria: Auditees are responsible for accurate recording and reporting on financial statements. Auditees are also responsible for major program compliance to Uniform Guidance Part 200 requirements. To ensure accuracy and compliance of financials and major program compliance, management is responsible to design sufficient internal control over financials recording and reporting. Condition: As a result of the auditing procedures over the financial statements, significant adjusting journal entries were required that resulted in a material change to the financial statements. In addition, we had the following comments relating to internal controls: Internal control over disbursements - it was noted two out of 25 disbursements tested did not have the proper approval documented on the invoice or the purchase request form. We did note that the check for the disbursement was properly signed by an authorized check signor based on their review of the invoice when signing the check. Review of cancelled checks – it was noted that copies of cancelled checks are not attached to monthly bank statements and a check signor is reviewing images of cancelled checks online. Cause: Due to the personnel turnover in operation and accounting departments, there was a lack of oversight to ensure accurate accounting preparation for the fiscal year. Potential Effect: Lack of sufficient internal controls and monitoring processes increases the likelihood of misstatement and/or fraud. Questioned Costs: None. Recommendation: It is management’s responsibility to review financial statements for accuracy and ensure proper accounting is being performed. The accounting personnel and third party hired by the management to account for and prepare the financial statements should have adequate technical knowledge of Generally Accepted Accounting Standards and how to apply them to the internal procedures for preparing financial statements. In addition to the comments above, recommendation related to improve internal control are as follows: Internal control over disbursements – While we were able to conclude that an authorized check signor approved the disbursement while signing the check we recommend the Organization follow their internal control procedures. These procedures require documented approval on all disbursements, which is noted on the invoice or the purchase request form. Review of cancelled checks - We recommend an authorized check signor review images of cancelled checks monthly either online or attached to bank statements to ensure payee names, amounts and approval signatures are reasonable. Repeat Finding: Yes. See Summary Schedule of Prior Audit Findings, Finding 2023-001. Views of Responsible Officials of the Auditee: The Accounting Department has taken better control and accountability in handling accounting and financial internal control processes and month-end journal entries that have allowed more insights and understanding of financial data. The Organization concurs with the finding and recommendation. See Management Responses and Corrective Action Plans.