FAC Explorer

Audit 395953

FY End
2025-06-30
Total Expended
$701.38M
Findings
7
Programs
155
Organization: State of Hawaii, Department of Accounting and General Services (HI)
Year: 2025 Accepted: 2026-03-30
Auditor: ACCUITY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1201297 2025-005 Material Weakness Yes C
1201298 2025-006 Material Weakness Yes C
1201299 2025-007 Material Weakness Yes L
1201300 2025-008 Material Weakness Yes M
1201301 2025-009 Material Weakness Yes N
1201302 2025-009 Material Weakness Yes N
1201303 2025-010 Material Weakness Yes F

Programs

ALN Program Spent Major Findings
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $286.63M Yes 0
12.401 NATIONAL GUARD MILITARY OPERATIONS AND MAINTENANCE (O&M) PROJECTS $28.04M Yes 0
21.029 CORONAVIRUS CAPITAL PROJECTS FUND $18.97M Yes 0
17.225 UNEMPLOYMENT INSURANCE $14.94M Yes 1
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $13.01M Yes 0
17.277 WIOA NATIONAL DISLOCATED WORKER GRANTS / WIA NATIONAL EMERGENCY GRANTS $12.54M Yes 0
21.031 STATE SMALL BUSINESS CREDIT INITIATIVE TECHNICAL ASSISTANCE GRANT PROGRAM $11.74M Yes 0
97.067 HOMELAND SECURITY GRANT PROGRAM $8.04M Yes 0
10.569 EMERGENCY FOOD ASSISTANCE PROGRAM (FOOD COMMODITIES) $7.04M Yes 0
12.404 NATIONAL GUARD CHALLENGE PROGRAM $5.88M Yes 0
15.611 WILDLIFE RESTORATION AND BASIC HUNTER EDUCATION AND SAFETY $5.01M Yes 0
15.605 SPORT FISH RESTORATION $4.16M Yes 0
17.259 WIOA YOUTH ACTIVITIES $4.07M Yes 0
17.258 WIOA ADULT PROGRAM $3.96M Yes 0
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $3.94M Yes 0
93.569 COMMUNITY SERVICES BLOCK GRANT $3.40M Yes 0
12.017 READINESS AND ENVIRONMENTAL PROTECTION INTEGRATION (REPI) PROGRAM $2.82M Yes 1
11.419 COASTAL ZONE MANAGEMENT ADMINISTRATION AWARDS $2.81M Yes 3
15.615 COOPERATIVE ENDANGERED SPECIES CONSERVATION FUND $2.54M Yes 0
15.634 STATE WILDLIFE GRANTS $2.54M Yes 0
81.041 STATE ENERGY PROGRAM $2.15M Yes 0
10.678 FOREST STEWARDSHIP PROGRAM $2.09M Yes 0
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $2.01M Yes 0
10.179 MICRO-GRANTS FOR FOOD SECURITY PROGRAM $1.96M Yes 1
10.664 COOPERATIVE FORESTRY ASSISTANCE $1.94M Yes 0
17.207 EMPLOYMENT SERVICE/WAGNER-PEYSER FUNDED ACTIVITIES $1.91M Yes 0
12.300 BASIC AND APPLIED SCIENTIFIC RESEARCH $1.79M Yes 0
17.503 OCCUPATIONAL SAFETY AND HEALTH STATE PROGRAM $1.73M Yes 0
12.617 ECONOMIC ADJUSTMENT ASSISTANCE FOR STATE GOVERNMENTS $1.52M Yes 0
20.219 RECREATIONAL TRAILS PROGRAM $1.38M Yes 0
15.614 COASTAL WETLANDS PLANNING, PROTECTION AND RESTORATION $1.35M Yes 0
11.469 CONGRESSIONALLY IDENTIFIED AWARDS AND PROJECTS $1.32M Yes 0
17.235 SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM $1.30M Yes 0
11.473 OFFICE FOR COASTAL MANAGEMENT $1.21M Yes 0
15.657 ENDANGERED SPECIES RECOVERY IMPLEMENTATION $1.17M Yes 0
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $1.10M Yes 0
66.046 CLIMATE POLLUTION REDUCTION GRANTS $1.10M Yes 0
10.565 COMMODITY SUPPLEMENTAL FOOD PROGRAM $1.09M Yes 0
45.025 PROMOTION OF THE ARTS PARTNERSHIP AGREEMENTS $1.05M Yes 0
39.003 DONATION OF FEDERAL SURPLUS PERSONAL PROPERTY $1.04M Yes 0
64.203 VETERANS CEMETERY GRANTS PROGRAM $1.04M Yes 0
11.482 CORAL REEF CONSERVATION PROGRAM $1.03M Yes 0
10.912 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $1.03M Yes 0
97.012 BOATING SAFETY FINANCIAL ASSISTANCE $1.02M Yes 0
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $1.00M Yes 0
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $915,296 Yes 0
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $855,673 Yes 0
17.801 JOBS FOR VETERANS STATE GRANTS $845,612 Yes 0
15.669 COOPERATIVE LANDSCAPE CONSERVATION $812,135 Yes 0
10.698 STATE & PRIVATE FORESTRY COOPERATIVE FIRE ASSISTANCE $810,827 Yes 0
11.611 MANUFACTURING EXTENSION PARTNERSHIP $772,526 Yes 0
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $764,362 Yes 0
17.002 LABOR FORCE STATISTICS $699,002 Yes 0
59.061 STATE TRADE EXPANSION $688,604 Yes 0
16.606 STATE CRIMINAL ALIEN ASSISTANCE PROGRAM $675,303 Yes 0
10.680 FOREST HEALTH PROTECTION $651,424 Yes 0
10.170 SPECIALTY CROP BLOCK GRANT PROGRAM - FARM BILL $610,605 Yes 0
11.035 BROADBAND EQUITY, ACCESS, AND DEPLOYMENT PROGRAM $605,309 Yes 0
90.401 HELP AMERICA VOTE ACT REQUIREMENTS PAYMENTS $557,648 Yes 0
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $556,741 Yes 0
12.114 COLLABORATIVE RESEARCH AND DEVELOPMENT $556,697 Yes 0
11.437 PACIFIC FISHERIES DATA PROGRAM $503,928 Yes 0
17.504 CONSULTATION AGREEMENTS $488,092 Yes 0
11.472 UNALLIED SCIENCE PROGRAM $471,632 Yes 0
15.929 SAVE AMERICA'S TREASURES $466,536 Yes 0
10.025 PLANT AND ANIMAL DISEASE, PEST CONTROL, AND ANIMAL CARE $466,120 Yes 0
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $465,599 Yes 0
66.039 DIESEL EMISSION REDUCTION ACT (DERA) NATIONAL GRANTS $463,417 Yes 0
10.576 SENIOR FARMERS MARKET NUTRITION PROGRAM $441,688 Yes 0
15.660 CANDIDATE SPECIES CONSERVATION $402,704 Yes 0
97.008 NON-PROFIT SECURITY PROGRAM $398,620 Yes 0
97.056 PORT SECURITY GRANT PROGRAM $385,462 Yes 0
12.020 STARBASE PROGRAM $370,205 Yes 0
10.675 URBAN AND COMMUNITY FORESTRY PROGRAM $358,611 Yes 0
59.079 CYBERSECURITY FOR SMALL BUSINESS PILOT PROGRAM $356,264 Yes 0
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $346,010 Yes 0
97.045 COOPERATING TECHNICAL PARTNERS $345,151 Yes 0
66.605 PERFORMANCE PARTNERSHIP GRANTS $344,987 Yes 0
97.111 REGIONAL CATASTROPHIC PREPAREDNESS GRANT PROGRAM (RCPGP) $312,312 Yes 0
11.463 HABITAT CONSERVATION $295,778 Yes 0
90.404 HAVA ELECTION SECURITY GRANTS $287,247 Yes 0
17.285 REGISTERED APPRENTICESHIP $271,727 Yes 0
10.720 INFRASTRUCTURE INVESTMENT AND JOBS ACT COMMUNITY WILDFIRE DEFENSE GRANTS $268,000 Yes 0
15.507 WATERSMART (SUSTAIN AND MANAGE AMERICA’S RESOURCES FOR TOMORROW) $266,034 Yes 0
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $264,396 Yes 0
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $244,432 Yes 0
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $234,907 Yes 0
12.600 COMMUNITY INVESTMENT $222,300 Yes 0
15.069 ZOONOTIC DISEASE INITIATIVE $218,906 Yes 0
10.934 FERAL SWINE ERADICATION AND CONTROL PILOT PROGRAM $209,822 Yes 0
11.429 MARINE SANCTUARY PROGRAM $207,541 Yes 0
15.916 OUTDOOR RECREATION ACQUISITION, DEVELOPMENT AND PLANNING $204,969 Yes 0
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $197,237 Yes 0
10.187 THE EMERGENCY FOOD ASSISTANCE PROGRAM (TEFAP) COMMODITY CREDIT CORPORATION ELIGIBLE RECIPIENT FUNDS $196,203 Yes 0
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $176,422 Yes 0
97.052 EMERGENCY OPERATIONS CENTER $174,862 Yes 0
16.576 CRIME VICTIM COMPENSATION $164,619 Yes 0
10.553 SCHOOL BREAKFAST PROGRAM $163,152 Yes 0
16.593 RESIDENTIAL SUBSTANCE ABUSE TREATMENT FOR STATE PRISONERS $159,635 Yes 0
11.407 INTERJURISDICTIONAL FISHERIES ACT OF 1986 $157,748 Yes 0
17.271 WORK OPPORTUNITY TAX CREDIT PROGRAM (WOTC) $149,857 Yes 0
20.205 HIGHWAY PLANNING AND CONSTRUCTION $147,379 Yes 0
16.575 CRIME VICTIM ASSISTANCE $146,090 Yes 0
66.461 REGIONAL WETLAND PROGRAM DEVELOPMENT GRANTS $144,230 Yes 0
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $144,196 Yes 0
15.554 COOPERATIVE WATERSHED MANAGEMENT $142,919 Yes 0
30.002 EMPLOYMENT DISCRIMINATION_STATE AND LOCAL FAIR EMPLOYMENT PRACTICES AGENCY CONTRACTS $141,967 Yes 0
81.254 GRID INFRASTRUCTURE DEPLOYMENT AND RESILIENCE $137,752 Yes 0
97.132 FINANCIAL ASSISTANCE FOR TARGETED VIOLENCE AND TERRORISM PREVENTION $134,420 Yes 0
81.087 RENEWABLE ENERGY RESEARCH AND DEVELOPMENT $128,899 Yes 0
10.730 COMMUNITY PROJECT FUNDS - CONGRESSIONALLY DIRECTED SPENDING $124,064 Yes 0
11.454 UNALLIED MANAGEMENT PROJECTS $110,924 Yes 0
15.663 NFWF-USFWS CONSERVATION PARTNERSHIP $107,906 Yes 0
14.401 FAIR HOUSING ASSISTANCE PROGRAM $100,847 Yes 0
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $98,703 Yes 0
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $95,774 Yes 0
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $95,360 Yes 0
15.608 FISH AND AQUATIC CONSERVATION - AQUATIC INVASIVE SPECIES $94,665 Yes 0
15.630 COASTAL $91,093 Yes 0
10.734 INFLATION REDUCTION ACT - FOREST LEGACY PROGRAM $87,887 Yes 0
11.467 METEOROLOGIC AND HYDROLOGIC MODERNIZATION DEVELOPMENT $86,198 Yes 0
66.460 NONPOINT SOURCE IMPLEMENTATION GRANTS $85,318 Yes 0
10.676 FOREST LEGACY PROGRAM $82,618 Yes 0
32.011 AFFORDABLE CONNECTIVITY OUTREACH GRANT PROGRAM $81,909 Yes 0
17.273 TEMPORARY LABOR CERTIFICATION FOR FOREIGN WORKERS $73,093 Yes 0
17.289 COMMUNITY PROJECT FUNDING/CONGRESSIONALLY DIRECTED SPENDING $72,705 Yes 0
17.245 TRADE ADJUSTMENT ASSISTANCE $58,274 Yes 0
17.005 COMPENSATION AND WORKING CONDITIONS $54,044 Yes 0
81.253 MANUFACTURING AND ENERGY SUPPLY CHAIN DEMONSTRATIONS AND COMMERCIAL APPLICATIONS $52,000 Yes 0
93.423 1332 STATE INNOVATION WAIVERS $51,692 Yes 0
66.468 DRINKING WATER STATE REVOLVING FUND $49,944 Yes 0
45.308 NATIVE AMERICAN/NATIVE HAWAIIAN MUSEUM SERVICES PROGRAM $45,229 Yes 0
94.013 AMERICORPS VOLUNTEERS IN SERVICE TO AMERICA 94.013 $41,845 Yes 0
10.674 WOOD UTILIZATION ASSISTANCE $33,377 Yes 0
12.400 MILITARY CONSTRUCTION, NATIONAL GUARD $26,304 Yes 0
21.026 HOMEOWNER ASSISTANCE FUND $25,000 Yes 0
15.944 NATURAL RESOURCE STEWARDSHIP $21,388 Yes 0
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $19,062 Yes 0
17.270 REENTRY EMPLOYMENT OPPORTUNITIES $17,880 Yes 0
10.697 STATE & PRIVATE FORESTRY HAZARDOUS FUEL REDUCTION PROGRAM $15,893 Yes 0
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $15,813 Yes 0
10.194 COMMODITY CREDIT CORPORATION (CCC) FUNDING TO ALLEVIATE EMERGENCY SUPPLY CHAIN DISRUPTION IN THE COMMODITY SUPPLEMENTAL FOOD PROGRAM (CSFP) $15,722 Yes 0
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $13,647 Yes 0
10.162 INSPECTION GRADING AND STANDARDIZATION $13,321 Yes 0
10.731 INFLATION REDUCTION ACT LANDSCAPE SCALE RESTORATION $11,568 Yes 0
21.016 EQUITABLE SHARING $10,364 Yes 0
15.623 NORTH AMERICAN WETLANDS CONSERVATION FUND $10,272 Yes 0
97.041 NATIONAL DAM SAFETY PROGRAM $9,810 Yes 0
10.163 MARKET PROTECTION AND PROMOTION $9,200 Yes 0
20.607 ALCOHOL OPEN CONTAINER REQUIREMENTS $7,888 Yes 0
11.U01 2024 Joint Enforcement Agreement $2,865 Yes 0
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $2,189 Yes 0
97.082 EARTHQUAKE STATE ASSISTANCE $1,536 Yes 0
11.032 STATE DIGITAL EQUITY PLANNING AND CAPACITY GRANT $594 Yes 0
16.U02 Domestic Cannabis Eradication $200 Yes 0

Contacts

Name Title Type
HKK5YY1DWYM3 Ladea Nash Auditee
8085860600 Donn Nakamura Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of the following State of Hawaii departments and agencies: Department of Accounting and General Services Department of Agriculture and Biosecurity Department of Budget and Finance Department of Business, Economic Development and Tourism Department of Commerce and Consumer Affairs Department of Corrections and Rehabilitation Department of Defense Department of Human Resources Development Department of Labor and Industrial Relations Department of Land and Natural Resources Department of Law Enforcement Department of Taxation Governor’s Office Certain other departments and agencies within the State of Hawaii obtained separate audits performed in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and accordingly, separate Uniform Guidance submissions are made. (See Note 2.)
The following is a summary of State of Hawaii departments and agencies that obtain separate Uniform Guidance audits or do not receive federal grants and, therefore, do not obtain an audit under the Uniform Guidance. Awards listed in these audit reports are not included in the accompanying SEFA: Department of the Attorney General Department of Education Department of Hawaiian Home Lands Department of Health Department of Human Services Department of Transportation Drinking Water Treatment Revolving Loan Fund Hawaii Community Development Authority Hawaii Employer‐Union Health Benefits Trust Fund Hawaii Health Systems Corporation Hawaii Housing Finance and Development Corporation Hawaii Hurricane Relief Fund Hawaii Public Housing Authority Judiciary University of Hawaii Water Pollution Control Revolving Fund
The basic financial statements of the State of Hawaii have been prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles.
The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Expenditures reported in the schedule are reported on the cash basis of accounting.
The SEFA contains values of a nonmonetary assistance program. As provided by program regulations, property received under AL No. 39.003, Donation of Federal Surplus Personal Property, AL No. 10.565, Commodity Supplemental Food Program, and AL No. 10.569, Emergency Food Assistance Program (Food Commodities), are presented at the estimated fair value at the time of donation.
State unemployment tax revenues and government contributions are used to pay benefits under federally approved State unemployment law. Of the $203,754,772 reported as expenditures for AL No. 17.225, Unemployment Insurance, and AL No. COVID‐19 – 17.225, COVID‐19 – Unemployment Insurance, $171,061,385 represented expenditures of the State
The regulations and guidelines governing the preparation of Federal and State financial reports vary by Federal and State agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal and State financial reports do not necessarily agree with the amounts reported in the accompanying SEFA which is prepared as explained in Notes 3 and 4 above.
The State does not use the de minimis indirect cost rate allowed under the Uniform Guidance.
The SEFA includes the following Research and Development amounts: See the Notes to the SEFA for table.

Finding Details

Finding 2025-005
Questioned Cost $ – Finding No. 2025-005: Cash Management (Material Weakness) State Agency: Department of Agriculture and Biosecurity Federal Agency: Department of Agriculture AL Number and Title: 10.179 – Micro-Grants for Food Security Program Award Number and Award Year: AM200100XXXXG132 2020 21MGFSPHI1003-00 2021 AM22MGFSPHI1007-04 2022 23MGFSPHI1011-00 2023 24MGFSPHI1016-00 2024 Repeat Finding? Yes Condition During our audit, we noted that the department only requested two drawdowns of federal awards that were used to pay expenditures in 2025. For one of the drawdowns, we noted one instance totaling approximately $32,000 in which the time elapsing between the receipt of federal award and the disbursement was 583 days. While the expenditures were allowable costs under the grant, it did not appear the State disbursed these federal advances as soon as administratively feasible. Criteria 31 CFR Section 205.33 requires the State to minimize the time between the receipt of federal funds from the federal government and the State’s disbursement of the funds for federal program purposes. Therefore, the timing and amount of funds requested and received must be as close as administratively feasible to the State’s actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs. The State Department of Budget and Finance determined it is administratively feasible to disburse cash in 25 days after receipt from the federal government. Effect Without minimizing time between the drawdown and disbursement of federal funds, the State is not in compliance with federal cash management requirements. Cause and View of Responsible Officials The department has taken actions to reduce the lag since the issue was identified and communicated in the prior year audit. The lag has been significantly reduced during this year. However, due to the timing of the corrective actions, the finding remains applicable for the year ended June 30, 2025. Recommendation The State department should continue to refine controls over monitoring cash management timeliness requirements, ensure program personnel are aware of all federal program requirements, and ensure there is adequate staffing for the program to comply with federal requirements.
Finding 2025-006
Questioned Cost $ – Finding No. 2025-006: Cash Management (Material Weakness) State Agency: Office of Planning and Sustainable Development Federal Agency: Department of Commerce AL Number and Title: 11.419 – Coastal Zone Management Administration Awards Award Number and Award Year: NA22NOS4190022 2022 NA22NOS4190065 2022 NA23NOS4190139 2023 NA24NOSX419C0023 2024 Repeat Finding? No Condition During our audit, we examined 25 haphazardly selected cash disbursements and identified 12 instances totaling approximately $600,000 in which the time elapsing between the receipt of the federal cash draw and the disbursement to vendor were greater than 25 days. While the expenditures were allowable costs under the master grant agreement, the State did not disburse these federal advances as soon as administratively feasible. Criteria 31 CFR Section 205.33 requires the State to minimize the time between the receipt of federal funds from the federal government and the State’s disbursement of the funds for federal program purposes. Therefore, the timing and amount of funds being requested and received must be as close as administratively feasible to the State’s actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs. The State Department of Budget and Finance determined it is administratively feasible to disburse cash in 25 days after receipt from the federal government. Effect Without minimizing time between the drawdown and disbursement of federal funds, the State is not in compliance with federal cash management requirements. Cause and View of Responsible Officials The delays were attributed to the draw down of federal funds based on the expected expenditures submitted by vendors and subrecipients prior to the completion of review and approval of the vendors and subrecipients’ submissions. Recommendation The State department should design and implement controls over monitoring cash management timeliness requirements, ensure program personnel are aware of all federal program requirements, and ensure there is adequate staffing for the program to comply with federal requirements.
Finding 2025-007
Questioned Cost $ – Finding No. 2025-007: FFATA Reporting (Material Weakness) State Agency: Office of Planning and Sustainable Development Federal Agency: Department of Commerce AL Number and Title: 11.419 – Coastal Zone Management Administration Award Number and Award Year: NA22NOS4190022 2022 NA22NOS4190065 2022 NA23NOS4190139 2023 NA24NOSX419C0023 2024 Repeat Finding? No Condition During our audit, we tested a non-statistical sample of two subawards and found that the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the Federal Funding Accountability and Transparency Act (FFATA) was not completed. Criteria In accordance with the FFATA and the requirements of 2 CFR Part 170, Appendix A, prime recipients of federal grants are required to report each subaward of greater than or equal to $30,000. Each subaward must be reported to the SAM.gov (formerly FSRS.gov) no later than the end of the following month in which the subaward was made. Effect Failure to file required reports reduces transparency on the use of program funds and represents noncompliance with the requirements of 2 CFR Part 170. Cause and View of Responsible Officials Program personnel incorrectly classified the subawards as vendor contracts. Recommendation We recommend that management strengthen internal controls over subaward identification and reporting. This includes mandatory training for staff involved in federal grant administration and a management-level review of all subawards to ensure FFATA reporting is complete and timely.
Finding 2025-008
Questioned Cost $ – Finding No. 2025-008: Subrecipient Monitoring (Material Weakness) State Agency: Office of Planning and Sustainable Development Federal Agency: Department of Commerce AL Number and Title: 11.419 – Coastal Zone Management Administration Awards Award Number and Award Year: NA22NOS4190022 2022 NA22NOS4190065 2022 NA23NOS4190139 2023 NA24NOSX419C0023 2024 Repeat Finding? No Condition During our audit, we tested a non-statistical sample of two subawards and found that the State did not communicate the following award information required under 2 CFR 200.332:  Subrecipient’s unique entity identifier;  Federal Award Date;  Subaward Period of Performance Start and End Date;  Subaward Budget Period Start and End Date;  Assistance Listing title and number; the pass-through entity must identify the dollar amount made available under each Federal award and the Assistance Listing Number at the time of disbursement;  Identification of whether the Federal award is for research and development; and  Indirect cost rate for the Federal award (including if the de minimis rate is used in accordance with 200.414). Criteria 2 CFR Section 200.332(a) requires the State to clearly identify certain information to subrecipients at the time of the subaward, including the information specified above. Effect By not including the required information in the subaward, the State may not be providing the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Program personnel incorrectly classified subawards as vendor contracts. Recommendation We recommend that the management strengthen internal controls over subaward identification and monitoring subrecipients to ensure subrecipient monitoring requirements are met.
Finding 2025-009
Questioned Cost $ – Finding No. 2025-009: Special Tests and Provisions (Material Weakness) State Agency: Department of Labor and Industrial Relations Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance Award Number and Award Year: 25-A55-UI-000105 2025 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum case requirements were not met for paid claims for the year ended June 30, 2025. Criteria Pursuant to 20 CFR Part 602, the BAM system requires the State department to complete a minimum number of unemployment cases in order to maintain a current database. The minimum number of cases for completing paid claims is 480 cases per year. Effect Failure to meet minimum case requirements results in noncompliance and prevents the granting agency from maintaining a current database. Cause and View of Responsible Officials The department is experiencing a staffing shortage and was unable to process the minimum number of cases. Recommendation We recommend that the State department address staffing shortages and develop policies and procedures to handle unemployment claims and follow existing policies and procedures established to comply with claim handling requirements, as necessary.
Finding 2025-010
Questioned Cost $ – Finding No. 2025-010: Equipment (Material Weakness) State Agency: Department of Land and Natural Resources Federal Agency: Department of Defense AL Number and Title: 12.107 – Readiness and Environmental Protection Integration Award Number and Award Year: N62742-22-2-0002 2022 Repeat Finding? No Condition During our audit, we examined all 16 acquisitions of equipment and real property in the current year. Of the 16 acquisitions, 15 were not properly entered into the State’s Fixed Asset Inventory System (FAIS). Criteria Pursuant to 2 CFR 200.313(b), the State must use, manage and dispose of equipment acquired under a Federal award in accordance with State laws and procedures. The State’s procedures require division-designated individuals to be knowledgeable about submitting Form 17A – Detail Inventory of Property along with supporting evidence, such as purchase orders with proper approvals and final billings and invoices to the State Procurement Office to enter into FAIS in the quarter the asset is placed in service. Effect Failure to record equipment properly reflects noncompliance with State procedures and Federal requirements. Cause and View of Responsible Officials The department did not submit Form 17A timely due to delays and errors in preparation of the forms. Recommendation We recommend that the State department develop internal control procedures to ensure that items are entered into the FAIS accurately and in the proper period.