Audit 404503

U.S. Department of Health and Human Services Direct Program Program Name: Rural Health Outreach and Rural Network Development / National Organizations for State and Local Officials CFDA#: 93.912 / 93.011 SIGNIFICANT DEFICIENCY Reporting Criteria: Under Uniform Guidance 2 CFR § 200.512(a)(1), the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). Condition: Hawaii State Rural Health Association (HSRHA) did not meet the reporting deadline with the Federal Audit Clearinghouse. Cause: Partially due to the rural healthcare outreach for COVID-19, the amount of Federal grant funds awarded to HSRHA increased significantly during 2023, while the administrative operations were still managed by volunteer Board members. Potential Effect: The potential effect is non-renewal of Federal grant funds. Questioned Costs: There were no questioned costs associated with this finding as no unallowable expenditures were noted. Recommendation: I recommend that HSRHA start the audit process soon enough to make sure the Uniform Guidance reporting deadline is met. Views of responsible officials and planned corrective action: HSRHA agrees with this finding. Please refer to the corrective action plan.