Finding No.: 2022-006 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.155 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Rural Health Research Centers Federal award no. and year: 1 H3LRH42223-01-00 07/01/21 ? 12/31/22 Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted the program did not report first-tier subawards of $30,000 or more to FSRS. Context: During the audit, we were informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the failure to report first-tier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement. Effect: Failure to report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-003 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.958 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Block Grants for Community Mental Health Services Federal award no. and year: 1B09SM082596-01 10/01/19 ? 09/30/21 1B09SM083798-01 10/01/20 ? 09/30/22 1B09SM083952-01 03/15/21 ? 03/14/23 1B09SM085353-01 03/01/21 ? 09/30/25 1B09SM085881-01 09/01/21 ? 09/30/25 Criteria: 2 CFR Section 200.327 states that "(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances." Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period. Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted one FFR was not timely submitted and the program did not report first-tier subawards of $30,000 or more to FSRS. Context: The program was required to submit one FFR during FY2022. During the audit, we noted that the FFR was submitted 133 days after the close of the statutory grant period. During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFR and failure to report first-tier subawards to FSRS was caused by a lack of personnel available to monitor reporting requirements and complete reporting requirements timely. Effect: Failure to timely submit reports and report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-004 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend program management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-004 Monitoring Procedures and Risk Assessment Process Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.958 Requirement: Subrecipient Monitoring Type of Finding: Material Weakness Program: Block Grants for Community Mental Health Services Federal award no. and year: 1B09SM082596-01 10/01/19 ? 09/30/21 1B09SM083798-01 10/01/20 ? 09/30/22 1B09SM083952-01 03/15/21 ? 03/14/23 1B09SM085353-01 03/01/21 ? 09/30/25 1B09SM085881-01 09/01/21 ? 09/30/25 Criteria: In accordance with 2 CFR section 200.331, all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. In addition, all pass-through entities must evaluate each subrecipient?s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Condition: Although the program did not have any subrecipients that required a single audit report to be obtained during the fiscal year, we were informed by program personnel that the program was unable to fill vacant positions that would monitor this compliance requirement. As a result, the control over this compliance requirement was not in place during the current fiscal year. Context: The program had six subrecipients in FY2022, none of which expended more than $750,000 during the year. However, the program did not have any personnel monitoring subrecipient expenditures and reviewing single audit reports as applicable. Cause: According to management, the program did not have sufficient staff available who are qualified to conduct subrecipient monitoring. Effect: Failure to properly monitor subrecipients could lead to noncompliance with the subrecipient monitoring requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-005 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend the Department hire adequate staff resources to follow its procedures and internal controls to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Finding No.: 2022-003 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.958 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Block Grants for Community Mental Health Services Federal award no. and year: 1B09SM082596-01 10/01/19 ? 09/30/21 1B09SM083798-01 10/01/20 ? 09/30/22 1B09SM083952-01 03/15/21 ? 03/14/23 1B09SM085353-01 03/01/21 ? 09/30/25 1B09SM085881-01 09/01/21 ? 09/30/25 Criteria: 2 CFR Section 200.327 states that "(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances." Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period. Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted one FFR was not timely submitted and the program did not report first-tier subawards of $30,000 or more to FSRS. Context: The program was required to submit one FFR during FY2022. During the audit, we noted that the FFR was submitted 133 days after the close of the statutory grant period. During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFR and failure to report first-tier subawards to FSRS was caused by a lack of personnel available to monitor reporting requirements and complete reporting requirements timely. Effect: Failure to timely submit reports and report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-004 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend program management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-004 Monitoring Procedures and Risk Assessment Process Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.958 Requirement: Subrecipient Monitoring Type of Finding: Material Weakness Program: Block Grants for Community Mental Health Services Federal award no. and year: 1B09SM082596-01 10/01/19 ? 09/30/21 1B09SM083798-01 10/01/20 ? 09/30/22 1B09SM083952-01 03/15/21 ? 03/14/23 1B09SM085353-01 03/01/21 ? 09/30/25 1B09SM085881-01 09/01/21 ? 09/30/25 Criteria: In accordance with 2 CFR section 200.331, all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. In addition, all pass-through entities must evaluate each subrecipient?s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Condition: Although the program did not have any subrecipients that required a single audit report to be obtained during the fiscal year, we were informed by program personnel that the program was unable to fill vacant positions that would monitor this compliance requirement. As a result, the control over this compliance requirement was not in place during the current fiscal year. Context: The program had six subrecipients in FY2022, none of which expended more than $750,000 during the year. However, the program did not have any personnel monitoring subrecipient expenditures and reviewing single audit reports as applicable. Cause: According to management, the program did not have sufficient staff available who are qualified to conduct subrecipient monitoring. Effect: Failure to properly monitor subrecipients could lead to noncompliance with the subrecipient monitoring requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-005 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend the Department hire adequate staff resources to follow its procedures and internal controls to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Finding No.: 2022-005 Cash Management Federal Agency: Department of Agriculture Assistance Listing No.: 10.557 Requirement: Cash Management Type of Finding: Significant Deficiency Program: Special Supplemental Nutrition Program for Woman, Infants, and Children Federal award no. and year: 7HI700HI7 10/01/2020 ? 09/30/2021 10/01/2021 ? 09/30/2022 7HI700HI1 10/01/2019 ? 09/30/2021 10/01/2020 ? 09/30/2022 Criteria: The federal award program noted above is not subject to the Treasury-State Cash Management Improvement Act agreement and, as such, is subject to 2 CFR 200.305(b), which states: ?The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions.? The State of Hawaii, Department of Budget and Finance has determined that the ?Administratively feasible time period? was 21 calendar days. Condition: During the testing of the Department?s cash management procedures, it was determined that three out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 22 to 27 days. Context: During the fiscal year ended June 30, 2022, the Department expended $8,398,791 (excluding food expenditures). Cause: The Department draws down federal funds that it estimates will be needed based on the expenditures that must be paid. However, since deposits must be posted prior to the processing of payments or disbursing of the funds, it is difficult for the Department to disburse federal funds in accordance with 2 CFR 200.305 (b). Also, the State?s payment process requires all State departments to process payments through DAGS resulting in processing delays. Effect: Noncompliance with federal regulations could result in a loss of funding that may jeopardize the operations of the Department?s federally funded programs. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-006 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend that the Department work with DAGS and the Department of Budget and Finance to ensure compliance with established standard and timely disbursement of federal funds in accordance with 2 CFR 200.305(b). Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Finding No.: 2022-005 Cash Management Federal Agency: Department of Agriculture Assistance Listing No.: 10.557 Requirement: Cash Management Type of Finding: Significant Deficiency Program: Special Supplemental Nutrition Program for Woman, Infants, and Children Federal award no. and year: 7HI700HI7 10/01/2020 ? 09/30/2021 10/01/2021 ? 09/30/2022 7HI700HI1 10/01/2019 ? 09/30/2021 10/01/2020 ? 09/30/2022 Criteria: The federal award program noted above is not subject to the Treasury-State Cash Management Improvement Act agreement and, as such, is subject to 2 CFR 200.305(b), which states: ?The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions.? The State of Hawaii, Department of Budget and Finance has determined that the ?Administratively feasible time period? was 21 calendar days. Condition: During the testing of the Department?s cash management procedures, it was determined that three out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 22 to 27 days. Context: During the fiscal year ended June 30, 2022, the Department expended $8,398,791 (excluding food expenditures). Cause: The Department draws down federal funds that it estimates will be needed based on the expenditures that must be paid. However, since deposits must be posted prior to the processing of payments or disbursing of the funds, it is difficult for the Department to disburse federal funds in accordance with 2 CFR 200.305 (b). Also, the State?s payment process requires all State departments to process payments through DAGS resulting in processing delays. Effect: Noncompliance with federal regulations could result in a loss of funding that may jeopardize the operations of the Department?s federally funded programs. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-006 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend that the Department work with DAGS and the Department of Budget and Finance to ensure compliance with established standard and timely disbursement of federal funds in accordance with 2 CFR 200.305(b). Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Finding No.: 2022-007 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.982 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Mental Health Disaster Assistance and Emergency Mental Health Federal award no. and year: 1H79FG000623-01 09/30/20 ? 09/29/21 Criteria: 2 CFR Section 200.327 states that "(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances." Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period. Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted one FFR was not timely submitted and the program did not report first-tier subawards of $30,000 or more to FSRS. Context: The program was required to submit one FFR during FY2022. During the audit, we noted that the FFR was submitted 126 days after the close of the statutory grant period. During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFR was caused by a lack of communication between ASO and program management. We further noted that the failure to report first-tier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement. Effect: Failure to timely submit reports and report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend program management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-007 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.982 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Mental Health Disaster Assistance and Emergency Mental Health Federal award no. and year: 1H79FG000623-01 09/30/20 ? 09/29/21 Criteria: 2 CFR Section 200.327 states that "(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances." Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period. Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted one FFR was not timely submitted and the program did not report first-tier subawards of $30,000 or more to FSRS. Context: The program was required to submit one FFR during FY2022. During the audit, we noted that the FFR was submitted 126 days after the close of the statutory grant period. During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFR was caused by a lack of communication between ASO and program management. We further noted that the failure to report first-tier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement. Effect: Failure to timely submit reports and report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend program management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-008 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.243 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Substance Abuse and Mental Health Services Federal award no. and year: 5H79SP081001-03 09/30/20 ? 09/29/21 5H79SP081001-04 09/30/21 ? 09/29/22 5H79TI026663-05 09/30/20 ? 09/29/21 5H79TI080196-04 09/30/20 ? 09/29/21 Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted the program did not report first-tier subawards of $30,000 or more to FSRS. Context: During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the failure to report first-tier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement. Effect: Failure to report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend program management be more diligent in following Federal grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-009 Subrecipient Monitoring Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.243 Requirement: Subrecipient Monitoring Type of Finding: Material Noncompliance and Material Weakness Program: Substance Abuse and Mental Health Services Federal award no. and year: 5H79SP081001-03 09/30/20 ? 09/29/21 5H79SP081001-04 09/30/21 ? 09/29/22 5H79TI026663-05 09/30/20 ? 09/29/21 5H79TI080196-04 09/30/20 ? 09/29/21 Criteria: In accordance with 2 CFR section 200.331, all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. In addition, all pass-through entities must evaluate each subrecipient?s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Condition: The program did not comply with its documented monitoring procedures consistently. Context: Of a total 19 contracts, we selected three contracts based on a non-statistical sample. We noted that for one of the three contracts selected, the required monitoring procedures were not performed based on the program?s documented procedures. Cause: There was a lack of diligence in following documented monitoring procedures. Effect: Failure to follow a subrecipient monitoring policy that meets the requirements in 2 CFR section 200.331 results in noncompliance with the subrecipient monitoring requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend that management follow its documented monitoring procedures for all subrecipient contracts. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-006 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.155 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Rural Health Research Centers Federal award no. and year: 1 H3LRH42223-01-00 07/01/21 ? 12/31/22 Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted the program did not report first-tier subawards of $30,000 or more to FSRS. Context: During the audit, we were informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the failure to report first-tier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement. Effect: Failure to report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-003 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.958 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Block Grants for Community Mental Health Services Federal award no. and year: 1B09SM082596-01 10/01/19 ? 09/30/21 1B09SM083798-01 10/01/20 ? 09/30/22 1B09SM083952-01 03/15/21 ? 03/14/23 1B09SM085353-01 03/01/21 ? 09/30/25 1B09SM085881-01 09/01/21 ? 09/30/25 Criteria: 2 CFR Section 200.327 states that "(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances." Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period. Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted one FFR was not timely submitted and the program did not report first-tier subawards of $30,000 or more to FSRS. Context: The program was required to submit one FFR during FY2022. During the audit, we noted that the FFR was submitted 133 days after the close of the statutory grant period. During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFR and failure to report first-tier subawards to FSRS was caused by a lack of personnel available to monitor reporting requirements and complete reporting requirements timely. Effect: Failure to timely submit reports and report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-004 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend program management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-004 Monitoring Procedures and Risk Assessment Process Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.958 Requirement: Subrecipient Monitoring Type of Finding: Material Weakness Program: Block Grants for Community Mental Health Services Federal award no. and year: 1B09SM082596-01 10/01/19 ? 09/30/21 1B09SM083798-01 10/01/20 ? 09/30/22 1B09SM083952-01 03/15/21 ? 03/14/23 1B09SM085353-01 03/01/21 ? 09/30/25 1B09SM085881-01 09/01/21 ? 09/30/25 Criteria: In accordance with 2 CFR section 200.331, all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. In addition, all pass-through entities must evaluate each subrecipient?s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Condition: Although the program did not have any subrecipients that required a single audit report to be obtained during the fiscal year, we were informed by program personnel that the program was unable to fill vacant positions that would monitor this compliance requirement. As a result, the control over this compliance requirement was not in place during the current fiscal year. Context: The program had six subrecipients in FY2022, none of which expended more than $750,000 during the year. However, the program did not have any personnel monitoring subrecipient expenditures and reviewing single audit reports as applicable. Cause: According to management, the program did not have sufficient staff available who are qualified to conduct subrecipient monitoring. Effect: Failure to properly monitor subrecipients could lead to noncompliance with the subrecipient monitoring requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-005 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend the Department hire adequate staff resources to follow its procedures and internal controls to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Finding No.: 2022-003 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.958 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Block Grants for Community Mental Health Services Federal award no. and year: 1B09SM082596-01 10/01/19 ? 09/30/21 1B09SM083798-01 10/01/20 ? 09/30/22 1B09SM083952-01 03/15/21 ? 03/14/23 1B09SM085353-01 03/01/21 ? 09/30/25 1B09SM085881-01 09/01/21 ? 09/30/25 Criteria: 2 CFR Section 200.327 states that "(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances." Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period. Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted one FFR was not timely submitted and the program did not report first-tier subawards of $30,000 or more to FSRS. Context: The program was required to submit one FFR during FY2022. During the audit, we noted that the FFR was submitted 133 days after the close of the statutory grant period. During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFR and failure to report first-tier subawards to FSRS was caused by a lack of personnel available to monitor reporting requirements and complete reporting requirements timely. Effect: Failure to timely submit reports and report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-004 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend program management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-004 Monitoring Procedures and Risk Assessment Process Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.958 Requirement: Subrecipient Monitoring Type of Finding: Material Weakness Program: Block Grants for Community Mental Health Services Federal award no. and year: 1B09SM082596-01 10/01/19 ? 09/30/21 1B09SM083798-01 10/01/20 ? 09/30/22 1B09SM083952-01 03/15/21 ? 03/14/23 1B09SM085353-01 03/01/21 ? 09/30/25 1B09SM085881-01 09/01/21 ? 09/30/25 Criteria: In accordance with 2 CFR section 200.331, all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. In addition, all pass-through entities must evaluate each subrecipient?s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Condition: Although the program did not have any subrecipients that required a single audit report to be obtained during the fiscal year, we were informed by program personnel that the program was unable to fill vacant positions that would monitor this compliance requirement. As a result, the control over this compliance requirement was not in place during the current fiscal year. Context: The program had six subrecipients in FY2022, none of which expended more than $750,000 during the year. However, the program did not have any personnel monitoring subrecipient expenditures and reviewing single audit reports as applicable. Cause: According to management, the program did not have sufficient staff available who are qualified to conduct subrecipient monitoring. Effect: Failure to properly monitor subrecipients could lead to noncompliance with the subrecipient monitoring requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-005 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend the Department hire adequate staff resources to follow its procedures and internal controls to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Finding No.: 2022-005 Cash Management Federal Agency: Department of Agriculture Assistance Listing No.: 10.557 Requirement: Cash Management Type of Finding: Significant Deficiency Program: Special Supplemental Nutrition Program for Woman, Infants, and Children Federal award no. and year: 7HI700HI7 10/01/2020 ? 09/30/2021 10/01/2021 ? 09/30/2022 7HI700HI1 10/01/2019 ? 09/30/2021 10/01/2020 ? 09/30/2022 Criteria: The federal award program noted above is not subject to the Treasury-State Cash Management Improvement Act agreement and, as such, is subject to 2 CFR 200.305(b), which states: ?The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions.? The State of Hawaii, Department of Budget and Finance has determined that the ?Administratively feasible time period? was 21 calendar days. Condition: During the testing of the Department?s cash management procedures, it was determined that three out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 22 to 27 days. Context: During the fiscal year ended June 30, 2022, the Department expended $8,398,791 (excluding food expenditures). Cause: The Department draws down federal funds that it estimates will be needed based on the expenditures that must be paid. However, since deposits must be posted prior to the processing of payments or disbursing of the funds, it is difficult for the Department to disburse federal funds in accordance with 2 CFR 200.305 (b). Also, the State?s payment process requires all State departments to process payments through DAGS resulting in processing delays. Effect: Noncompliance with federal regulations could result in a loss of funding that may jeopardize the operations of the Department?s federally funded programs. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-006 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend that the Department work with DAGS and the Department of Budget and Finance to ensure compliance with established standard and timely disbursement of federal funds in accordance with 2 CFR 200.305(b). Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Finding No.: 2022-005 Cash Management Federal Agency: Department of Agriculture Assistance Listing No.: 10.557 Requirement: Cash Management Type of Finding: Significant Deficiency Program: Special Supplemental Nutrition Program for Woman, Infants, and Children Federal award no. and year: 7HI700HI7 10/01/2020 ? 09/30/2021 10/01/2021 ? 09/30/2022 7HI700HI1 10/01/2019 ? 09/30/2021 10/01/2020 ? 09/30/2022 Criteria: The federal award program noted above is not subject to the Treasury-State Cash Management Improvement Act agreement and, as such, is subject to 2 CFR 200.305(b), which states: ?The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions.? The State of Hawaii, Department of Budget and Finance has determined that the ?Administratively feasible time period? was 21 calendar days. Condition: During the testing of the Department?s cash management procedures, it was determined that three out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 22 to 27 days. Context: During the fiscal year ended June 30, 2022, the Department expended $8,398,791 (excluding food expenditures). Cause: The Department draws down federal funds that it estimates will be needed based on the expenditures that must be paid. However, since deposits must be posted prior to the processing of payments or disbursing of the funds, it is difficult for the Department to disburse federal funds in accordance with 2 CFR 200.305 (b). Also, the State?s payment process requires all State departments to process payments through DAGS resulting in processing delays. Effect: Noncompliance with federal regulations could result in a loss of funding that may jeopardize the operations of the Department?s federally funded programs. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2021-006 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend that the Department work with DAGS and the Department of Budget and Finance to ensure compliance with established standard and timely disbursement of federal funds in accordance with 2 CFR 200.305(b). Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.
Finding No.: 2022-007 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.982 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Mental Health Disaster Assistance and Emergency Mental Health Federal award no. and year: 1H79FG000623-01 09/30/20 ? 09/29/21 Criteria: 2 CFR Section 200.327 states that "(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances." Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period. Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted one FFR was not timely submitted and the program did not report first-tier subawards of $30,000 or more to FSRS. Context: The program was required to submit one FFR during FY2022. During the audit, we noted that the FFR was submitted 126 days after the close of the statutory grant period. During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFR was caused by a lack of communication between ASO and program management. We further noted that the failure to report first-tier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement. Effect: Failure to timely submit reports and report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend program management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-007 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.982 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Mental Health Disaster Assistance and Emergency Mental Health Federal award no. and year: 1H79FG000623-01 09/30/20 ? 09/29/21 Criteria: 2 CFR Section 200.327 states that "(financial) information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances." Under this reporting requirement, the program must submit a Federal Financial Report (FFR) within 90 days after the close of the statutory grant period. Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted one FFR was not timely submitted and the program did not report first-tier subawards of $30,000 or more to FSRS. Context: The program was required to submit one FFR during FY2022. During the audit, we noted that the FFR was submitted 126 days after the close of the statutory grant period. During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the delay in submitting the FFR was caused by a lack of communication between ASO and program management. We further noted that the failure to report first-tier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement. Effect: Failure to timely submit reports and report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend program management be more diligent in following Federal deadlines in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-008 Reporting Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.243 Requirement: Reporting Type of Finding: Material Noncompliance and Material Weakness Program: Substance Abuse and Mental Health Services Federal award no. and year: 5H79SP081001-03 09/30/20 ? 09/29/21 5H79SP081001-04 09/30/21 ? 09/29/22 5H79TI026663-05 09/30/20 ? 09/29/21 5H79TI080196-04 09/30/20 ? 09/29/21 Criteria: Under 2 CFR Appendix A to Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: We noted the program did not report first-tier subawards of $30,000 or more to FSRS. Context: During the audit, we were also informed by Department personnel that required information on first-tier subawards of $30,000 or more were not reported to FSRS, a requirement that is included in the programs notice of awards. The following table summarizes our findings: See Schedule of Findings and Questioned Costs for table. We tested all first-tier subawards that amounted to $30,000 or more during FY2022. Cause: Based on further inquiry with Department personnel, we noted that the failure to report first-tier subawards to FSRS was caused by a lack of awareness of the FSRS reporting requirement. Effect: Failure to report first-tier subawards of $30,000 or more to FSRS results in noncompliance with the reporting requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend program management be more diligent in following Federal grant agreements in order to ensure compliance with Federal requirements. We also recommend program management be more diligent in understanding all requirements of grant agreements to ensure compliance with Federal requirements. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.
Finding No.: 2022-009 Subrecipient Monitoring Federal Agency: Department of Health and Human Services (DHHS) Assistance Listing No.: 93.243 Requirement: Subrecipient Monitoring Type of Finding: Material Noncompliance and Material Weakness Program: Substance Abuse and Mental Health Services Federal award no. and year: 5H79SP081001-03 09/30/20 ? 09/29/21 5H79SP081001-04 09/30/21 ? 09/29/22 5H79TI026663-05 09/30/20 ? 09/29/21 5H79TI080196-04 09/30/20 ? 09/29/21 Criteria: In accordance with 2 CFR section 200.331, all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. In addition, all pass-through entities must evaluate each subrecipient?s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Condition: The program did not comply with its documented monitoring procedures consistently. Context: Of a total 19 contracts, we selected three contracts based on a non-statistical sample. We noted that for one of the three contracts selected, the required monitoring procedures were not performed based on the program?s documented procedures. Cause: There was a lack of diligence in following documented monitoring procedures. Effect: Failure to follow a subrecipient monitoring policy that meets the requirements in 2 CFR section 200.331 results in noncompliance with the subrecipient monitoring requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: Not applicable Recommendation: We recommend that management follow its documented monitoring procedures for all subrecipient contracts. Views of Responsible Officials and Planned Corrective Action: See Part VI Corrective Action Plan.