Audit 36001

FY End
2022-12-31
Total Expended
$5.99M
Findings
20
Programs
8
Year: 2022 Accepted: 2023-09-27
Auditor: Christensen King

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
31883 2022-001 Material Weakness Yes AB
31884 2022-002 Material Weakness - AB
31885 2022-003 Material Weakness - AB
31886 2022-001 Material Weakness Yes AB
31887 2022-002 Material Weakness - AB
31888 2022-003 Material Weakness - AB
31889 2022-001 Material Weakness Yes AB
31890 2022-002 Material Weakness - AB
31891 2022-001 Material Weakness Yes AB
31892 2022-002 Material Weakness - AB
608325 2022-001 Material Weakness Yes AB
608326 2022-002 Material Weakness - AB
608327 2022-003 Material Weakness - AB
608328 2022-001 Material Weakness Yes AB
608329 2022-002 Material Weakness - AB
608330 2022-003 Material Weakness - AB
608331 2022-001 Material Weakness Yes AB
608332 2022-002 Material Weakness - AB
608333 2022-001 Material Weakness Yes AB
608334 2022-002 Material Weakness - AB

Programs

ALN Program Spent Major Findings
93.568 Low-Income Home Energy Assistance $3.81M Yes 2
14.267 Continuum of Care Program $721,793 - 0
93.569 Community Services Block Grant $470,411 Yes 2
14.239 Home Investment Partnerships Program $268,235 Yes 3
81.042 Weatherization Assistance for Low-Income Persons $241,325 - 0
14.241 Housing Opportunities for Persons with Aids $215,238 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $131,187 - 0
81.999 Unknown $110,470 - 0

Contacts

Name Title Type
Z24FW5AN4BM1 Judith Gidley Auditee
5095454042 Caryle Brown Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the 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. Negative amounts show on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the deferral award activity of the Organization under programs of the federal government for the year ended December 31, 2022. 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 (Uniform Guidance). 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.

Finding Details

Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries related expenditures and benefits that are allocated based on time were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The allocations are made based on the time distributions updated each payroll period to reflect the time recorded on the reviewed and approved timesheets. Cause: The allocations are recorded based on distribution table data updated each time a new payroll is processed. As a result, if the salaries and related expenditures cost allocations are not recorded on a timely basis the appropriate distribution table data will not reflect the appropriate payroll period data and the error will not be detected by the current internal control structure. Effect: Due to the untimely recording of salaries and related expenditures based on time, the expenditures allocated for the various programs are based on the incorrect supporting time data. Recommendation: BFCAC needs to implement internal control procedures to ensure that allocated salaries and related expenditures are recorded on a timely basis and reflect the appropriate supporting distribution allocation time data. Questioned Costs: Undeterminable
Department of Housing and Urban Development Material Weaknesses Condition: The internal controls over eligible recipients? rental assistance payments did not detect that the client received the incorrect subsidy amounts due to income changes not being verified at the time of notification from the client and/or having the incorrect subsidy amount be paid to the applicable landlord. Criteria: Internal controls should be in place to ensure that all eligible recipients receive the appropriate level of rental subsidy based on the income calculation supported by income documentation provided by clients Cause: Internal control policies did not include procedures for verifying that all income change information data received from supported clients is captured in the client files and rental subsidies adjusted for supportive payments made to applicable landlords. Effect: The lack of internal controls led to clients receiving incorrectly calculated subsidy payment amounts. Recommendation: BFCAC should adopt internal control procedures to ensure that all supporting income documentation provided by clients is reevaluated and subsidy amounts adjusted and that approved landlord vendor payments reflect the updated subsidy amounts.
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries related expenditures and benefits that are allocated based on time were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The allocations are made based on the time distributions updated each payroll period to reflect the time recorded on the reviewed and approved timesheets. Cause: The allocations are recorded based on distribution table data updated each time a new payroll is processed. As a result, if the salaries and related expenditures cost allocations are not recorded on a timely basis the appropriate distribution table data will not reflect the appropriate payroll period data and the error will not be detected by the current internal control structure. Effect: Due to the untimely recording of salaries and related expenditures based on time, the expenditures allocated for the various programs are based on the incorrect supporting time data. Recommendation: BFCAC needs to implement internal control procedures to ensure that allocated salaries and related expenditures are recorded on a timely basis and reflect the appropriate supporting distribution allocation time data. Questioned Costs: Undeterminable
Department of Housing and Urban Development Material Weaknesses Condition: The internal controls over eligible recipients? rental assistance payments did not detect that the client received the incorrect subsidy amounts due to income changes not being verified at the time of notification from the client and/or having the incorrect subsidy amount be paid to the applicable landlord. Criteria: Internal controls should be in place to ensure that all eligible recipients receive the appropriate level of rental subsidy based on the income calculation supported by income documentation provided by clients Cause: Internal control policies did not include procedures for verifying that all income change information data received from supported clients is captured in the client files and rental subsidies adjusted for supportive payments made to applicable landlords. Effect: The lack of internal controls led to clients receiving incorrectly calculated subsidy payment amounts. Recommendation: BFCAC should adopt internal control procedures to ensure that all supporting income documentation provided by clients is reevaluated and subsidy amounts adjusted and that approved landlord vendor payments reflect the updated subsidy amounts.
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries related expenditures and benefits that are allocated based on time were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The allocations are made based on the time distributions updated each payroll period to reflect the time recorded on the reviewed and approved timesheets. Cause: The allocations are recorded based on distribution table data updated each time a new payroll is processed. As a result, if the salaries and related expenditures cost allocations are not recorded on a timely basis the appropriate distribution table data will not reflect the appropriate payroll period data and the error will not be detected by the current internal control structure. Effect: Due to the untimely recording of salaries and related expenditures based on time, the expenditures allocated for the various programs are based on the incorrect supporting time data. Recommendation: BFCAC needs to implement internal control procedures to ensure that allocated salaries and related expenditures are recorded on a timely basis and reflect the appropriate supporting distribution allocation time data. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries related expenditures and benefits that are allocated based on time were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The allocations are made based on the time distributions updated each payroll period to reflect the time recorded on the reviewed and approved timesheets. Cause: The allocations are recorded based on distribution table data updated each time a new payroll is processed. As a result, if the salaries and related expenditures cost allocations are not recorded on a timely basis the appropriate distribution table data will not reflect the appropriate payroll period data and the error will not be detected by the current internal control structure. Effect: Due to the untimely recording of salaries and related expenditures based on time, the expenditures allocated for the various programs are based on the incorrect supporting time data. Recommendation: BFCAC needs to implement internal control procedures to ensure that allocated salaries and related expenditures are recorded on a timely basis and reflect the appropriate supporting distribution allocation time data. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries related expenditures and benefits that are allocated based on time were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The allocations are made based on the time distributions updated each payroll period to reflect the time recorded on the reviewed and approved timesheets. Cause: The allocations are recorded based on distribution table data updated each time a new payroll is processed. As a result, if the salaries and related expenditures cost allocations are not recorded on a timely basis the appropriate distribution table data will not reflect the appropriate payroll period data and the error will not be detected by the current internal control structure. Effect: Due to the untimely recording of salaries and related expenditures based on time, the expenditures allocated for the various programs are based on the incorrect supporting time data. Recommendation: BFCAC needs to implement internal control procedures to ensure that allocated salaries and related expenditures are recorded on a timely basis and reflect the appropriate supporting distribution allocation time data. Questioned Costs: Undeterminable
Department of Housing and Urban Development Material Weaknesses Condition: The internal controls over eligible recipients? rental assistance payments did not detect that the client received the incorrect subsidy amounts due to income changes not being verified at the time of notification from the client and/or having the incorrect subsidy amount be paid to the applicable landlord. Criteria: Internal controls should be in place to ensure that all eligible recipients receive the appropriate level of rental subsidy based on the income calculation supported by income documentation provided by clients Cause: Internal control policies did not include procedures for verifying that all income change information data received from supported clients is captured in the client files and rental subsidies adjusted for supportive payments made to applicable landlords. Effect: The lack of internal controls led to clients receiving incorrectly calculated subsidy payment amounts. Recommendation: BFCAC should adopt internal control procedures to ensure that all supporting income documentation provided by clients is reevaluated and subsidy amounts adjusted and that approved landlord vendor payments reflect the updated subsidy amounts.
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries related expenditures and benefits that are allocated based on time were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The allocations are made based on the time distributions updated each payroll period to reflect the time recorded on the reviewed and approved timesheets. Cause: The allocations are recorded based on distribution table data updated each time a new payroll is processed. As a result, if the salaries and related expenditures cost allocations are not recorded on a timely basis the appropriate distribution table data will not reflect the appropriate payroll period data and the error will not be detected by the current internal control structure. Effect: Due to the untimely recording of salaries and related expenditures based on time, the expenditures allocated for the various programs are based on the incorrect supporting time data. Recommendation: BFCAC needs to implement internal control procedures to ensure that allocated salaries and related expenditures are recorded on a timely basis and reflect the appropriate supporting distribution allocation time data. Questioned Costs: Undeterminable
Department of Housing and Urban Development Material Weaknesses Condition: The internal controls over eligible recipients? rental assistance payments did not detect that the client received the incorrect subsidy amounts due to income changes not being verified at the time of notification from the client and/or having the incorrect subsidy amount be paid to the applicable landlord. Criteria: Internal controls should be in place to ensure that all eligible recipients receive the appropriate level of rental subsidy based on the income calculation supported by income documentation provided by clients Cause: Internal control policies did not include procedures for verifying that all income change information data received from supported clients is captured in the client files and rental subsidies adjusted for supportive payments made to applicable landlords. Effect: The lack of internal controls led to clients receiving incorrectly calculated subsidy payment amounts. Recommendation: BFCAC should adopt internal control procedures to ensure that all supporting income documentation provided by clients is reevaluated and subsidy amounts adjusted and that approved landlord vendor payments reflect the updated subsidy amounts.
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries related expenditures and benefits that are allocated based on time were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The allocations are made based on the time distributions updated each payroll period to reflect the time recorded on the reviewed and approved timesheets. Cause: The allocations are recorded based on distribution table data updated each time a new payroll is processed. As a result, if the salaries and related expenditures cost allocations are not recorded on a timely basis the appropriate distribution table data will not reflect the appropriate payroll period data and the error will not be detected by the current internal control structure. Effect: Due to the untimely recording of salaries and related expenditures based on time, the expenditures allocated for the various programs are based on the incorrect supporting time data. Recommendation: BFCAC needs to implement internal control procedures to ensure that allocated salaries and related expenditures are recorded on a timely basis and reflect the appropriate supporting distribution allocation time data. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries related expenditures and benefits that are allocated based on time were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The allocations are made based on the time distributions updated each payroll period to reflect the time recorded on the reviewed and approved timesheets. Cause: The allocations are recorded based on distribution table data updated each time a new payroll is processed. As a result, if the salaries and related expenditures cost allocations are not recorded on a timely basis the appropriate distribution table data will not reflect the appropriate payroll period data and the error will not be detected by the current internal control structure. Effect: Due to the untimely recording of salaries and related expenditures based on time, the expenditures allocated for the various programs are based on the incorrect supporting time data. Recommendation: BFCAC needs to implement internal control procedures to ensure that allocated salaries and related expenditures are recorded on a timely basis and reflect the appropriate supporting distribution allocation time data. Questioned Costs: Undeterminable