Finding 1162816 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-21

AI Summary

  • Core Issue: Quarterly expenditure reports were inaccurate, with misclassifications between direct and indirect costs.
  • Impacted Requirements: Reports did not align with SEFA timing, risking non-compliance with grant agreements.
  • Recommended Follow-Up: Conduct a thorough analysis of expenditures for accurate reporting on future grants.

Finding Text

Criteria: Quarterly expenditure and grant close reports submitted should be accurate. Condition: Expenditures reported on quarterly reports did not reconcile with timing of expenditures in the SEFA, and were not classified appropriately between costs subject to indirect and costs not subject to indirect costs in the final grant closing report. Cause: An in-depth analysis of expenditures charged to the program was not completed when completing the reports to ensure proper reporting on timing or classification of expenditures. Effect: Misclassifications could cause grant funds to not be spent in accordance with the grant agreement and budget. Questioned Costs: None Recommendations: We recommend United way complete an in-depth analysis of the timing and classification of expenditures to ensure proper totals on reports. Views of Responsible Officials: While timing and classification between direct costs and indirect costs were not accurate, the total costs reported reflected the expenditures on the grants, particularly in the final report. Any future grants and related reporting will be reconciled throughout the grant program.

Corrective Action Plan

Finding 2024-001: Contact Person responsible for corrective action: Kevin Couey The corrective action planned: Reconcile quarterly and ending reports to the general ledger for expenditures incurred. The anticipated completion date (or starting date if ongoing): We immediately put new processes into action effective October 1, 2025 and will be validated at next audit in May 2026.

Categories

Reporting

Other Findings in this Audit

  • 1162817 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $574,546
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $340,750
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $34,999
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $17,670
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $14,800