FAC Explorer

Audit 392901

FY End
2025-06-30
Total Expended
$1.37M
Findings
1
Programs
1
Organization: Malama Honua Public Charter School Foundation (HI)
Year: 2025 Accepted: 2026-03-19
Auditor: LINKED ACCOUNTING LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1181625 2025-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
84.362 NATIVE HAWAIIAN EDUCATION $1.37M Yes 1

Contacts

Name Title Type
FC4XTP4WY5E7 Tiffany Desilva Auditee
8082595522 Jay Yoon Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes grant activity of Malama Houna Public Charter School Foundation (the “Foundation”) under programs of federal government for the year ended June 30, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, certain amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Foundation did not elect the 10% de minimis indirect cost rate of the Uniform Guidance.
The Foundation had no subrecipients.

Finding Details

Finding 2025-001
Section II – Federal Award Findings and Questioned Costs Finding Number: 2025-001 Cash Management – Advance Drawdown Held 81 Days Federal Agency: Department of Education Federal Program: ALN 84.362A – Native Hawaiian Education Repeat Finding: No Type of Finding: Significant Deficiency Criteria According to 2 CFR Part 200.305, the Department pays grantees in advance of their expenditures if the grantee demonstrates a willingness and ability to minimize the time between the transfer of funds to the grantee and the disbursement of the funds by the grantee. Condition During testing of cash drawdowns from the G5 system, we noted that the grantee received an advance drawdown of $1,370,000 on February 7, 2025 but note disbursed to vendor until 81 days later on April 29, 2025. As a result, the grantee maintained excess Federal cash on hand for an extended period. Cause The grantee did not have effective controls to ensure Federal drawdowns were limited to immediate disbursement needs for draw requests were not consistently supported by a near-term disbursement schedule. Effect Maintaining Federal funds in advance of actual disbursement increases the risk that Federal funds are not managed in accordance with cash management requirements and interest liability may arise, if funds were maintained in an interest-bearing account. Recommendation We recommend the grantee implement and document controls to ensure drawdowns are limited to immediate cash needs for requesting draw requests to be supported by a disbursement forecast covering no more than 5 business days of expected payments and establishing written procedures for addressing delayed project timelines (e.g., reducing or returning funds, revising draw schedules).