Finding Text
2024-001 - Reporting
Material Weakness in Internal Control and Material Non-Compliance
Federal Agency: Department of Housing and Urban Development
Federal Assistance Listing No. and Program: 14.228 – Community Development Block Grants/State’s
Program and Non-Entitlement Grants in Hawaii
Federal award identification numbers: B17DC560001, B18DC560001, B19DC560001, B20DC560001
Grant Years: 2017-2020
Criteria or specific requirement:
The Community Development Block Grant (CDBG) requires reports for the Authority’s federal awards to
include all activity of the reporting period, be supported by applicable accounting or performance records,
and be fairly presented in accordance with governing requirements. The compliance requirement
mandates that line 18 of the Annual Formula Grants PR28 Performance and Evaluation Report (PER)
Financial Summary Report be greater than or equal to line 31 less $100,000.
Condition:
WCDA filed the CDBG Annual Formula Grants PR28 Performance and Evaluation Report Financial
Summary Report (Financial Summary Report) with incorrect amounts on line 18 “State funds set aside for
State Administration” match.
Cause:
The individuals preparing the report were unaware of the required entry on the report parameter screen
and the requirement for line 18 to be greater than or equal to line 31 less $100,000.
Effect or Potential Effect:
The reports were inaccurately prepared which may have resulted in the federal agency relying on
inaccurate information.
Questioned Costs: None.
Context:
The reporting requirements necessitates a Financial Summary Report for each open annual CDBG grant,
for as long as the grants remain open. During the reporting period, there were five open grants. The
reports were inaccurate for four grants.
Identification as a Repeat Finding: No
Recommendation:
We recommend reviewing HUD guidance on filing the reports and establish policies and procedures to
ensure compliance with the requirements.
Views of Responsible Officials:
The Authority will review the guidance and implement controls and policies to ensure accurate reporting.