FAC Explorer

Audit 414254

FY End
2025-12-31
Total Expended
$2.67M
Findings
1
Programs
4
Organization: Boys and Girls Club of Hawaii (HI)
Year: 2025 Accepted: 2026-09-30
Auditor: N&K CPAS INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1239520 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $2.17M Yes 1
84.362 NATIVE HAWAIIAN EDUCATION $42,000 Yes 0
93.933 DEMONSTRATION PROJECTS FOR INDIAN HEALTH $24,000 Yes 0
16.726 JUVENILE MENTORING PROGRAM $20,000 Yes 0

Contacts

Name Title Type
J99HDKEBUX33 Paddy Kauhane Auditee
8083800009 Dwayne Takeno Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of BGCH under programs of the federal government for the year ended December 31, 2025. 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of BGCH, it is not intended to and does not present the financial position, changes in net assets, or cash flows of BGCH.
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.
BGCH has elected to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Ref. No. 2025-001 Noncompliance with Grant Award Terms - Significant Deficiency Federal agency: Department of Health and Human Services Program: ALN No. 93.558 Temporary Assistance for Needy Families Pass-through entity: State Department of Human Services Award number and award year: DHS-24-TANF-0116, June 3, 2024 to August 2, 2025 Criteria: Internal control requirements per 2 CFR §200.303 require a non-federal entity to establish and maintain effective internal control over a federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The DHS-24-TANF-0116 award specifically prohibits BGCH from charging youths or their families for programs or services provided under the award without prior approval from the State. Condition: During the year ended December 31, 2025, BGCH charged summer intersession fees to youth participants at all BGCH Clubhouses without obtaining prior State approval. Cause: BGCH did not have established formal policies and procedures for managing government awards, including a workflow for reviewing contract requirements and training responsible personnel before services commenced. Effect: BGCH improperly collected approximately $62,000 in summer intersession fees, of which was refunded to the youths and their families in May 2026. Without proper policies and procedures in place, there is an increased risk that noncompliance with federal award terms and conditions could occur and not be prevented, detected, and corrected, on a timely basis. Questioned Costs: None identified as part of this finding. The $62,000 relates to fees improperly collected from program beneficiaries rather than federal award funds expended by BGCH. Repeat Finding? No Recommendation: We recommend that management fully implement its corrective action plan submitted to the State Department of Human Services on March 4, 2026, which includes providing training to staff at all levels, refunding fees collected from youth member families, and establishing formal policies and standard operating procedures for managing government contracts. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and the recommendation. See Part V Corrective Action Plan.