Audit 49476

FY End
2022-06-30
Total Expended
$260.73M
Findings
8
Programs
7
Year: 2022 Accepted: 2023-03-29
Auditor: Accuity LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
46913 2022-003 Significant Deficiency - L
46914 2022-004 Significant Deficiency - M
46915 2022-003 Significant Deficiency - L
46916 2022-004 Significant Deficiency - M
623355 2022-003 Significant Deficiency - L
623356 2022-004 Significant Deficiency - M
623357 2022-003 Significant Deficiency - L
623358 2022-004 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $254.73M Yes 0
20.600 State and Community Highway Safety $1.84M Yes 2
20.616 National Priority Safety Programs $1.62M Yes 2
20.607 Alcohol Open Container Requirements $1.19M - 0
20.218 National Motor Carrier Safety $693,692 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $616,464 - 0
20.214 Fata Accident Reporting System Grant $58,042 - 0

Contacts

Name Title Type
JKY3SX6QGC23 Tammy Lee Auditee
8085872218 Donn Nakamura Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Highways Division, Department of Transportation, State of Hawaii (the Highways Division) for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the Highways Division, it is not intended to and does not present the financial position and changes in net position of the Highways Division. Expenditures reported on the Schedule are reported on the cash 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Condition During our audit, we examined a non-statistical sample of seven subawards and found that the required subaward information was not reported in the Federal Funding Accountability and Transparency Act Subaward Reporting System (?FSRS?) as required under the Federal Funding Accountability and Transparency Act (?FFATA?). Criteria Under FFATA, which is codified in 2 CFR ?170, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to FSRS, including the following subaward information: - Subawardee name - Subawardee DUNS number - Amount of subaward - Subaward obligation/action date - Subaward number - Subaward project description Effect Failure to fully report required subaward information in FSRS may result in noncompliance with FFATA reporting requirements and limits the transparency of the use of federal funds awarded. Cause and View of Responsible Officials The Highway Safety Section did not have adequate time to perform the reporting of applicable fiscal year 2022 subawards due to the limited time elapsing between the implementation of a corrective action plan in response to the similar fiscal year 2021 Single Audit finding for another federal program and the end of the current fiscal year. Program personnel plan to utilize their FSRS access to perform the necessary subaward reporting as required by FFATA in a timely manner going forward. Recommendation All personnel involved in the administration of a program for which federal funds are expended should receive adequate training about federal compliance requirements related to such program. In addition, an individual should be assigned the responsibility to monitor compliance with all related federal requirements for programs involving the expenditure of federal funds. Finally, the Highways Division should make a conscious effort to meet the reporting deadline as set in their new policies and procedures.
Condition During our audit, we examined a non-statistical sample of six subawards and found that the most recent Single Audit reports for the three subrecipients required to obtain Single Audits were not reviewed by program personnel. Criteria Per 2 CFR Section 200.332(d), a pass-through entity is required to monitor the activities of the subrecipient as necessary to ensure the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. Monitoring must include a review of financial performance reports, following up with the subrecipient to ensure timely and appropriate action on all deficiencies, issuing management decision for applicable audit findings, resolving audit findings, and verifying that each subrecipient is audited as required by 2 CFR 200, Subpart F. Effect Failure to review the subrecipients? Single Audit reports may result in failure by the subrecipient to take timely and appropriate action to resolve deficiencies detected through the audit. Cause and View of Responsible Officials The Highway Safety Division did not have the capacity to perform the review of applicable subrecipients? Single Audit reports due to significant personnel changes throughout the year. Program personnel plan to assign the review of the Single Audit Reports to specific personnel so that the necessary procedures are performed in a timely manner going forward. Recommendation All personnel involved in the administration of a program for which federal funds are expended should receive adequate training about federal compliance requirements related to such program. In addition, an individual should be assigned the responsibility to monitor compliance with all related federal requirements for programs involving the expenditure of federal funds. Finally, the Highways Division should make a conscious effort to meet the compliance requirement as the Single Audit Reports become available for review through the Federal Audit Clearinghouse.
Condition During our audit, we examined a non-statistical sample of seven subawards and found that the required subaward information was not reported in the Federal Funding Accountability and Transparency Act Subaward Reporting System (?FSRS?) as required under the Federal Funding Accountability and Transparency Act (?FFATA?). Criteria Under FFATA, which is codified in 2 CFR ?170, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to FSRS, including the following subaward information: - Subawardee name - Subawardee DUNS number - Amount of subaward - Subaward obligation/action date - Subaward number - Subaward project description Effect Failure to fully report required subaward information in FSRS may result in noncompliance with FFATA reporting requirements and limits the transparency of the use of federal funds awarded. Cause and View of Responsible Officials The Highway Safety Section did not have adequate time to perform the reporting of applicable fiscal year 2022 subawards due to the limited time elapsing between the implementation of a corrective action plan in response to the similar fiscal year 2021 Single Audit finding for another federal program and the end of the current fiscal year. Program personnel plan to utilize their FSRS access to perform the necessary subaward reporting as required by FFATA in a timely manner going forward. Recommendation All personnel involved in the administration of a program for which federal funds are expended should receive adequate training about federal compliance requirements related to such program. In addition, an individual should be assigned the responsibility to monitor compliance with all related federal requirements for programs involving the expenditure of federal funds. Finally, the Highways Division should make a conscious effort to meet the reporting deadline as set in their new policies and procedures.
Condition During our audit, we examined a non-statistical sample of six subawards and found that the most recent Single Audit reports for the three subrecipients required to obtain Single Audits were not reviewed by program personnel. Criteria Per 2 CFR Section 200.332(d), a pass-through entity is required to monitor the activities of the subrecipient as necessary to ensure the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. Monitoring must include a review of financial performance reports, following up with the subrecipient to ensure timely and appropriate action on all deficiencies, issuing management decision for applicable audit findings, resolving audit findings, and verifying that each subrecipient is audited as required by 2 CFR 200, Subpart F. Effect Failure to review the subrecipients? Single Audit reports may result in failure by the subrecipient to take timely and appropriate action to resolve deficiencies detected through the audit. Cause and View of Responsible Officials The Highway Safety Division did not have the capacity to perform the review of applicable subrecipients? Single Audit reports due to significant personnel changes throughout the year. Program personnel plan to assign the review of the Single Audit Reports to specific personnel so that the necessary procedures are performed in a timely manner going forward. Recommendation All personnel involved in the administration of a program for which federal funds are expended should receive adequate training about federal compliance requirements related to such program. In addition, an individual should be assigned the responsibility to monitor compliance with all related federal requirements for programs involving the expenditure of federal funds. Finally, the Highways Division should make a conscious effort to meet the compliance requirement as the Single Audit Reports become available for review through the Federal Audit Clearinghouse.
Condition During our audit, we examined a non-statistical sample of seven subawards and found that the required subaward information was not reported in the Federal Funding Accountability and Transparency Act Subaward Reporting System (?FSRS?) as required under the Federal Funding Accountability and Transparency Act (?FFATA?). Criteria Under FFATA, which is codified in 2 CFR ?170, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to FSRS, including the following subaward information: - Subawardee name - Subawardee DUNS number - Amount of subaward - Subaward obligation/action date - Subaward number - Subaward project description Effect Failure to fully report required subaward information in FSRS may result in noncompliance with FFATA reporting requirements and limits the transparency of the use of federal funds awarded. Cause and View of Responsible Officials The Highway Safety Section did not have adequate time to perform the reporting of applicable fiscal year 2022 subawards due to the limited time elapsing between the implementation of a corrective action plan in response to the similar fiscal year 2021 Single Audit finding for another federal program and the end of the current fiscal year. Program personnel plan to utilize their FSRS access to perform the necessary subaward reporting as required by FFATA in a timely manner going forward. Recommendation All personnel involved in the administration of a program for which federal funds are expended should receive adequate training about federal compliance requirements related to such program. In addition, an individual should be assigned the responsibility to monitor compliance with all related federal requirements for programs involving the expenditure of federal funds. Finally, the Highways Division should make a conscious effort to meet the reporting deadline as set in their new policies and procedures.
Condition During our audit, we examined a non-statistical sample of six subawards and found that the most recent Single Audit reports for the three subrecipients required to obtain Single Audits were not reviewed by program personnel. Criteria Per 2 CFR Section 200.332(d), a pass-through entity is required to monitor the activities of the subrecipient as necessary to ensure the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. Monitoring must include a review of financial performance reports, following up with the subrecipient to ensure timely and appropriate action on all deficiencies, issuing management decision for applicable audit findings, resolving audit findings, and verifying that each subrecipient is audited as required by 2 CFR 200, Subpart F. Effect Failure to review the subrecipients? Single Audit reports may result in failure by the subrecipient to take timely and appropriate action to resolve deficiencies detected through the audit. Cause and View of Responsible Officials The Highway Safety Division did not have the capacity to perform the review of applicable subrecipients? Single Audit reports due to significant personnel changes throughout the year. Program personnel plan to assign the review of the Single Audit Reports to specific personnel so that the necessary procedures are performed in a timely manner going forward. Recommendation All personnel involved in the administration of a program for which federal funds are expended should receive adequate training about federal compliance requirements related to such program. In addition, an individual should be assigned the responsibility to monitor compliance with all related federal requirements for programs involving the expenditure of federal funds. Finally, the Highways Division should make a conscious effort to meet the compliance requirement as the Single Audit Reports become available for review through the Federal Audit Clearinghouse.
Condition During our audit, we examined a non-statistical sample of seven subawards and found that the required subaward information was not reported in the Federal Funding Accountability and Transparency Act Subaward Reporting System (?FSRS?) as required under the Federal Funding Accountability and Transparency Act (?FFATA?). Criteria Under FFATA, which is codified in 2 CFR ?170, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to FSRS, including the following subaward information: - Subawardee name - Subawardee DUNS number - Amount of subaward - Subaward obligation/action date - Subaward number - Subaward project description Effect Failure to fully report required subaward information in FSRS may result in noncompliance with FFATA reporting requirements and limits the transparency of the use of federal funds awarded. Cause and View of Responsible Officials The Highway Safety Section did not have adequate time to perform the reporting of applicable fiscal year 2022 subawards due to the limited time elapsing between the implementation of a corrective action plan in response to the similar fiscal year 2021 Single Audit finding for another federal program and the end of the current fiscal year. Program personnel plan to utilize their FSRS access to perform the necessary subaward reporting as required by FFATA in a timely manner going forward. Recommendation All personnel involved in the administration of a program for which federal funds are expended should receive adequate training about federal compliance requirements related to such program. In addition, an individual should be assigned the responsibility to monitor compliance with all related federal requirements for programs involving the expenditure of federal funds. Finally, the Highways Division should make a conscious effort to meet the reporting deadline as set in their new policies and procedures.
Condition During our audit, we examined a non-statistical sample of six subawards and found that the most recent Single Audit reports for the three subrecipients required to obtain Single Audits were not reviewed by program personnel. Criteria Per 2 CFR Section 200.332(d), a pass-through entity is required to monitor the activities of the subrecipient as necessary to ensure the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. Monitoring must include a review of financial performance reports, following up with the subrecipient to ensure timely and appropriate action on all deficiencies, issuing management decision for applicable audit findings, resolving audit findings, and verifying that each subrecipient is audited as required by 2 CFR 200, Subpart F. Effect Failure to review the subrecipients? Single Audit reports may result in failure by the subrecipient to take timely and appropriate action to resolve deficiencies detected through the audit. Cause and View of Responsible Officials The Highway Safety Division did not have the capacity to perform the review of applicable subrecipients? Single Audit reports due to significant personnel changes throughout the year. Program personnel plan to assign the review of the Single Audit Reports to specific personnel so that the necessary procedures are performed in a timely manner going forward. Recommendation All personnel involved in the administration of a program for which federal funds are expended should receive adequate training about federal compliance requirements related to such program. In addition, an individual should be assigned the responsibility to monitor compliance with all related federal requirements for programs involving the expenditure of federal funds. Finally, the Highways Division should make a conscious effort to meet the compliance requirement as the Single Audit Reports become available for review through the Federal Audit Clearinghouse.