Finding 1176970 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-03-09
Audit: 390799
Organization: Papa Ola Lokahi (HI)
Auditor: KKDLY LLC

AI Summary

  • Core Issue: The Organization failed to submit required single audit reports and Data Collection Form on time due to the resignation of its independent auditor.
  • Impacted Requirements: Non-compliance with Uniform Guidance submission deadlines for the year ended June 30, 2023.
  • Recommended Follow-Up: Implement internal controls to ensure timely compliance with audit report submission deadlines.

Finding Text

Significant Deficiency Finding No. 2023-004: Reporting U.S. Department of Education Native Hawaiian Education Act Program Federal Assistance Listing Number 84.362A. U.S. Department of Health and Human Services Health Care for Native Hawaiians Federal Assistance Listing Number 93.932. Criteria A non-Federal entity that expends $750,000 or more in Federal awards during the year must have a single audit conducted in accordance with 2 CFR §200.514. Pursuant to 2 CFR §200.512, the audit must be completed and Form SF-SAC: Data Collection Form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report(s), or nine months after year end of the audit period. Condition Due to the unexpected resignation of its independent auditor, we noted that the Organization has not submitted the single audit reports required by the Uniform Guidance, including the Data Collection Form to the Federal Audit Clearinghouse for the year ended June 30, 2023, within the stipulated nine months after the end of the audit period. Cause The Organization has not adhered to established Uniform Guidance terms and conditions regarding the submission dates of the single audit reports and Data Collection Form for the year ended June 30, 2023. Effect The Organization is not in compliance with the Uniform Guidance terms and conditions regarding the submission dates of the single audit report and Data Collection Form for the year ended June 30, 2023. Identification of a Repeat Finding This finding was reported as a federal award finding in the immediately previous audit as Finding No. 2022-004. Recommendation We recommend that the Organization incorporate internal controls to ensure compliance with the Uniform Guidance with respect to the submission deadline of single audit reports and the Data Collection Form.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action The Organization concurred with the prior year (2022-004) and current year renumbered recommendation (2023-004), acknowledging that the unexpected resignation of the former independent auditor (January 2023), and the domino effect of a delay in securing a new independent auditor (April 2023) and related Organization and new auditor scheduling and staffing challenges, persists. The Organization notes the status and progress of the following single audits: • June 30, 2022, filed in the Federal Audit Clearinghouse in February 2025; • June 30, 2023, field work began March 2025, report draft issued February 2026 and scheduled for Board action; • June 30, 2024, field work began January 2026 and in progress; and • June 30, 2025, pending receipt of auditor engagement letter. The Organization notes the corrective actions that have been implemented, regarding internal controls to ensure compliance with the Uniform Guidance with respect to the submission deadline of single audit reports and the Data Collection Form: A. Internal Controls in Practice Since Inception of New Auditor Engagement – April 2023 As noted in the prior year corrective action response, the Organization established internal compliance controls related to the timely submission of single audit reports. Such process and review controls are implemented by the director of administrative operations, chief of staff (since December 2024), and chief executive officer; and subsequently communicated to the Board finance sub-committee and full Board, including the documented Board action(s) taken (e.g., Board agenda, minutes). B. Financial Policies and Procedures – May 2025. By May 2025, the Organization completed financial policies related to: implementation of significant accounting policies, internal control environment, cash and banking, cash disbursements and check issuance, payroll processes, procure to pay and revenue recognition policies, processes and procedures. Note the internal control policy of the Organization documents process and review controls, which were already in practice, applying to the timely filing of single audit reports. The current practices of the Organization, to the present period of the report dated March 2, 2026, is consistent with established process and review controls for timely submission of single audit reports.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1176963 2023-002
    Material Weakness Repeat
  • 1176964 2023-003
    Material Weakness Repeat
  • 1176965 2023-004
    Material Weakness Repeat
  • 1176966 2023-005
    Material Weakness Repeat
  • 1176967 2023-006
    Material Weakness Repeat
  • 1176968 2023-002
    Material Weakness Repeat
  • 1176969 2023-003
    Material Weakness Repeat
  • 1176971 2023-005
    Material Weakness Repeat
  • 1176972 2023-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.932 NATIVE HAWAIIAN HEALTH CARE SYSTEMS $5.61M
84.362A NATIVE HAWAIIAN EDUCATION $711,178
93.011 NATIONAL ORGANIZATIONS FOR STATE AND LOCAL OFFICIALS $143,172
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $117,660
93.387 NATIONAL AND STATE TOBACCO CONTROL PROGRAM $110,263
93.426 THE NATIONAL CARDIOVASCULAR HEALTH PROGRAM $72,971
93.185 IMMUNIZATION RESEARCH, DEMONSTRATION, PUBLIC INFORMATION AND EDUCATION TRAINING AND CLINICAL SKILLS IMPROVEMENT PROJECTS $56,604
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $35,481
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION’S HEALTH $30,763
45.311 NATIVE AMERICAN AND NATIVE HAWAIIAN LIBRARY SERVICES $24,589
93.334 THE HEALTHY BRAIN INITIATIVE: TECHNICAL ASSISTANCE TO IMPLEMENT PUBLIC HEALTH ACTIONS RELATED TO COGNITIVE HEALTH, COGNITIVE IMPAIRMENT, AND CAREGIVING AT THE STATE AND LOCAL LEVELS $9,374