FAC Explorer

Finding 1201303 (2025-010)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 395953
Organization: State of Hawaii, Department of Accounting and General Services (HI)
Auditor: ACCUITY LLP

AI Summary

  • Core Issue: 15 out of 16 equipment acquisitions were not recorded in the State’s Fixed Asset Inventory System (FAIS), indicating a significant compliance gap.
  • Impacted Requirements: Noncompliance with 2 CFR 200.313(b) and State procedures for managing federally acquired equipment.
  • Recommended Follow-Up: Implement internal controls to ensure timely and accurate submission of Form 17A and related documentation for FAIS entries.

Finding Text

Questioned Cost $ – Finding No. 2025-010: Equipment (Material Weakness) State Agency: Department of Land and Natural Resources Federal Agency: Department of Defense AL Number and Title: 12.107 – Readiness and Environmental Protection Integration Award Number and Award Year: N62742-22-2-0002 2022 Repeat Finding? No Condition During our audit, we examined all 16 acquisitions of equipment and real property in the current year. Of the 16 acquisitions, 15 were not properly entered into the State’s Fixed Asset Inventory System (FAIS). Criteria Pursuant to 2 CFR 200.313(b), the State must use, manage and dispose of equipment acquired under a Federal award in accordance with State laws and procedures. The State’s procedures require division-designated individuals to be knowledgeable about submitting Form 17A – Detail Inventory of Property along with supporting evidence, such as purchase orders with proper approvals and final billings and invoices to the State Procurement Office to enter into FAIS in the quarter the asset is placed in service. Effect Failure to record equipment properly reflects noncompliance with State procedures and Federal requirements. Cause and View of Responsible Officials The department did not submit Form 17A timely due to delays and errors in preparation of the forms. Recommendation We recommend that the State department develop internal control procedures to ensure that items are entered into the FAIS accurately and in the proper period.

Corrective Action Plan

Finding No. 2025-010 ALN No. 12.017 Program Title: Readiness and Environmental Protection Integration Grant Award No.: N62742-22-2-0002 Condition No controls in place to ensure that 17A reports are prepared and reviewed in a timely manner to ensure that all fixed assets are included in the FAIS. Corrective Action Plan Management concurs with the finding. The delay in recording equipment acquisitions in FAIS resulted in noncompliance with established equipment control policies. Management acknowledges the importance of timely and accurate asset recording to ensure compliance and maintain effective internal controls. The Department will implement strengthened internal control procedures to ensure equipment is recorded in FAIS accurately and in the proper reporting period. Actions include: • Updating departmental written procedures, outlining the required timeline and documentation for recording equipment acquisitions in FAIS. Procedures will clearly define roles and responsibilities for program staff and fiscal personnel. • Issuing written procedures establishing clear roles, responsibilities, and required timelines for FAIS entries and reporting requirements within the division. • Requiring equipment to be recorded within a defined timeframe following receipt, acceptance and placed in service. • Implementing a tracking mechanism to monitor and conduct monthly reconciliations between procurement records, payment records, and FAIS entries. • Conducting supervisory review and periodic monitoring to ensure compliance. These corrective measures will be incorporated into ongoing internal control monitoring processes to prevent recurrence. Person Responsible Cynthia C. Gomez, Fiscal Management Officer Michelle B. Del Rosario, DOFAW Program Specialist V Anticipated Date of Completion June 30, 2026

Categories

Equipment & Real Property Management Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1201297 2025-005
    Material Weakness Repeat
  • 1201298 2025-006
    Material Weakness Repeat
  • 1201299 2025-007
    Material Weakness Repeat
  • 1201300 2025-008
    Material Weakness Repeat
  • 1201301 2025-009
    Material Weakness Repeat
  • 1201302 2025-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $286.63M
12.401 NATIONAL GUARD MILITARY OPERATIONS AND MAINTENANCE (O&M) PROJECTS $28.04M
21.029 CORONAVIRUS CAPITAL PROJECTS FUND $18.97M
17.225 UNEMPLOYMENT INSURANCE $14.94M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $13.01M
17.277 WIOA NATIONAL DISLOCATED WORKER GRANTS / WIA NATIONAL EMERGENCY GRANTS $12.54M
21.031 STATE SMALL BUSINESS CREDIT INITIATIVE TECHNICAL ASSISTANCE GRANT PROGRAM $11.74M
97.067 HOMELAND SECURITY GRANT PROGRAM $8.04M
10.569 EMERGENCY FOOD ASSISTANCE PROGRAM (FOOD COMMODITIES) $7.04M
12.404 NATIONAL GUARD CHALLENGE PROGRAM $5.88M
15.611 WILDLIFE RESTORATION AND BASIC HUNTER EDUCATION AND SAFETY $5.01M
15.605 SPORT FISH RESTORATION $4.16M
17.259 WIOA YOUTH ACTIVITIES $4.07M
17.258 WIOA ADULT PROGRAM $3.96M
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $3.94M
93.569 COMMUNITY SERVICES BLOCK GRANT $3.40M
12.017 READINESS AND ENVIRONMENTAL PROTECTION INTEGRATION (REPI) PROGRAM $2.82M
11.419 COASTAL ZONE MANAGEMENT ADMINISTRATION AWARDS $2.81M
15.615 COOPERATIVE ENDANGERED SPECIES CONSERVATION FUND $2.54M
15.634 STATE WILDLIFE GRANTS $2.54M
81.041 STATE ENERGY PROGRAM $2.15M
10.678 FOREST STEWARDSHIP PROGRAM $2.09M
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $2.01M
10.179 MICRO-GRANTS FOR FOOD SECURITY PROGRAM $1.96M
10.664 COOPERATIVE FORESTRY ASSISTANCE $1.94M
17.207 EMPLOYMENT SERVICE/WAGNER-PEYSER FUNDED ACTIVITIES $1.91M
12.300 BASIC AND APPLIED SCIENTIFIC RESEARCH $1.79M
17.503 OCCUPATIONAL SAFETY AND HEALTH STATE PROGRAM $1.73M
12.617 ECONOMIC ADJUSTMENT ASSISTANCE FOR STATE GOVERNMENTS $1.52M
20.219 RECREATIONAL TRAILS PROGRAM $1.38M
15.614 COASTAL WETLANDS PLANNING, PROTECTION AND RESTORATION $1.35M
11.469 CONGRESSIONALLY IDENTIFIED AWARDS AND PROJECTS $1.32M
17.235 SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM $1.30M
11.473 OFFICE FOR COASTAL MANAGEMENT $1.21M
15.657 ENDANGERED SPECIES RECOVERY IMPLEMENTATION $1.17M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $1.10M
66.046 CLIMATE POLLUTION REDUCTION GRANTS $1.10M
10.565 COMMODITY SUPPLEMENTAL FOOD PROGRAM $1.09M
45.025 PROMOTION OF THE ARTS PARTNERSHIP AGREEMENTS $1.05M
39.003 DONATION OF FEDERAL SURPLUS PERSONAL PROPERTY $1.04M
64.203 VETERANS CEMETERY GRANTS PROGRAM $1.04M
11.482 CORAL REEF CONSERVATION PROGRAM $1.03M
10.912 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $1.03M
97.012 BOATING SAFETY FINANCIAL ASSISTANCE $1.02M
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $1.00M
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $915,296
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $855,673
17.801 JOBS FOR VETERANS STATE GRANTS $845,612
15.669 COOPERATIVE LANDSCAPE CONSERVATION $812,135
10.698 STATE & PRIVATE FORESTRY COOPERATIVE FIRE ASSISTANCE $810,827
11.611 MANUFACTURING EXTENSION PARTNERSHIP $772,526
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $764,362
17.002 LABOR FORCE STATISTICS $699,002
59.061 STATE TRADE EXPANSION $688,604
16.606 STATE CRIMINAL ALIEN ASSISTANCE PROGRAM $675,303
10.680 FOREST HEALTH PROTECTION $651,424
10.170 SPECIALTY CROP BLOCK GRANT PROGRAM - FARM BILL $610,605
11.035 BROADBAND EQUITY, ACCESS, AND DEPLOYMENT PROGRAM $605,309
90.401 HELP AMERICA VOTE ACT REQUIREMENTS PAYMENTS $557,648
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $556,741
12.114 COLLABORATIVE RESEARCH AND DEVELOPMENT $556,697
11.437 PACIFIC FISHERIES DATA PROGRAM $503,928
17.504 CONSULTATION AGREEMENTS $488,092
11.472 UNALLIED SCIENCE PROGRAM $471,632
15.929 SAVE AMERICA'S TREASURES $466,536
10.025 PLANT AND ANIMAL DISEASE, PEST CONTROL, AND ANIMAL CARE $466,120
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $465,599
66.039 DIESEL EMISSION REDUCTION ACT (DERA) NATIONAL GRANTS $463,417
10.576 SENIOR FARMERS MARKET NUTRITION PROGRAM $441,688
15.660 CANDIDATE SPECIES CONSERVATION $402,704
97.008 NON-PROFIT SECURITY PROGRAM $398,620
97.056 PORT SECURITY GRANT PROGRAM $385,462
12.020 STARBASE PROGRAM $370,205
10.675 URBAN AND COMMUNITY FORESTRY PROGRAM $358,611
59.079 CYBERSECURITY FOR SMALL BUSINESS PILOT PROGRAM $356,264
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $346,010
97.045 COOPERATING TECHNICAL PARTNERS $345,151
66.605 PERFORMANCE PARTNERSHIP GRANTS $344,987
97.111 REGIONAL CATASTROPHIC PREPAREDNESS GRANT PROGRAM (RCPGP) $312,312
11.463 HABITAT CONSERVATION $295,778
90.404 HAVA ELECTION SECURITY GRANTS $287,247
17.285 REGISTERED APPRENTICESHIP $271,727
10.720 INFRASTRUCTURE INVESTMENT AND JOBS ACT COMMUNITY WILDFIRE DEFENSE GRANTS $268,000
15.507 WATERSMART (SUSTAIN AND MANAGE AMERICA’S RESOURCES FOR TOMORROW) $266,034
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $264,396
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $244,432
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $234,907
12.600 COMMUNITY INVESTMENT $222,300
15.069 ZOONOTIC DISEASE INITIATIVE $218,906
10.934 FERAL SWINE ERADICATION AND CONTROL PILOT PROGRAM $209,822
11.429 MARINE SANCTUARY PROGRAM $207,541
15.916 OUTDOOR RECREATION ACQUISITION, DEVELOPMENT AND PLANNING $204,969
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $197,237
10.187 THE EMERGENCY FOOD ASSISTANCE PROGRAM (TEFAP) COMMODITY CREDIT CORPORATION ELIGIBLE RECIPIENT FUNDS $196,203
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $176,422
97.052 EMERGENCY OPERATIONS CENTER $174,862
16.576 CRIME VICTIM COMPENSATION $164,619
10.553 SCHOOL BREAKFAST PROGRAM $163,152
16.593 RESIDENTIAL SUBSTANCE ABUSE TREATMENT FOR STATE PRISONERS $159,635
11.407 INTERJURISDICTIONAL FISHERIES ACT OF 1986 $157,748
17.271 WORK OPPORTUNITY TAX CREDIT PROGRAM (WOTC) $149,857
20.205 HIGHWAY PLANNING AND CONSTRUCTION $147,379
16.575 CRIME VICTIM ASSISTANCE $146,090
66.461 REGIONAL WETLAND PROGRAM DEVELOPMENT GRANTS $144,230
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $144,196
15.554 COOPERATIVE WATERSHED MANAGEMENT $142,919
30.002 EMPLOYMENT DISCRIMINATION_STATE AND LOCAL FAIR EMPLOYMENT PRACTICES AGENCY CONTRACTS $141,967
81.254 GRID INFRASTRUCTURE DEPLOYMENT AND RESILIENCE $137,752
97.132 FINANCIAL ASSISTANCE FOR TARGETED VIOLENCE AND TERRORISM PREVENTION $134,420
81.087 RENEWABLE ENERGY RESEARCH AND DEVELOPMENT $128,899
10.730 COMMUNITY PROJECT FUNDS - CONGRESSIONALLY DIRECTED SPENDING $124,064
11.454 UNALLIED MANAGEMENT PROJECTS $110,924
15.663 NFWF-USFWS CONSERVATION PARTNERSHIP $107,906
14.401 FAIR HOUSING ASSISTANCE PROGRAM $100,847
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $98,703
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $95,774
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $95,360
15.608 FISH AND AQUATIC CONSERVATION - AQUATIC INVASIVE SPECIES $94,665
15.630 COASTAL $91,093
10.734 INFLATION REDUCTION ACT - FOREST LEGACY PROGRAM $87,887
11.467 METEOROLOGIC AND HYDROLOGIC MODERNIZATION DEVELOPMENT $86,198
66.460 NONPOINT SOURCE IMPLEMENTATION GRANTS $85,318
10.676 FOREST LEGACY PROGRAM $82,618
32.011 AFFORDABLE CONNECTIVITY OUTREACH GRANT PROGRAM $81,909
17.273 TEMPORARY LABOR CERTIFICATION FOR FOREIGN WORKERS $73,093
17.289 COMMUNITY PROJECT FUNDING/CONGRESSIONALLY DIRECTED SPENDING $72,705
17.245 TRADE ADJUSTMENT ASSISTANCE $58,274
17.005 COMPENSATION AND WORKING CONDITIONS $54,044
81.253 MANUFACTURING AND ENERGY SUPPLY CHAIN DEMONSTRATIONS AND COMMERCIAL APPLICATIONS $52,000
93.423 1332 STATE INNOVATION WAIVERS $51,692
66.468 DRINKING WATER STATE REVOLVING FUND $49,944
45.308 NATIVE AMERICAN/NATIVE HAWAIIAN MUSEUM SERVICES PROGRAM $45,229
94.013 AMERICORPS VOLUNTEERS IN SERVICE TO AMERICA 94.013 $41,845
10.674 WOOD UTILIZATION ASSISTANCE $33,377
12.400 MILITARY CONSTRUCTION, NATIONAL GUARD $26,304
21.026 HOMEOWNER ASSISTANCE FUND $25,000
15.944 NATURAL RESOURCE STEWARDSHIP $21,388
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $19,062
17.270 REENTRY EMPLOYMENT OPPORTUNITIES $17,880
10.697 STATE & PRIVATE FORESTRY HAZARDOUS FUEL REDUCTION PROGRAM $15,893
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $15,813
10.194 COMMODITY CREDIT CORPORATION (CCC) FUNDING TO ALLEVIATE EMERGENCY SUPPLY CHAIN DISRUPTION IN THE COMMODITY SUPPLEMENTAL FOOD PROGRAM (CSFP) $15,722
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $13,647
10.162 INSPECTION GRADING AND STANDARDIZATION $13,321
10.731 INFLATION REDUCTION ACT LANDSCAPE SCALE RESTORATION $11,568
21.016 EQUITABLE SHARING $10,364
15.623 NORTH AMERICAN WETLANDS CONSERVATION FUND $10,272
97.041 NATIONAL DAM SAFETY PROGRAM $9,810
10.163 MARKET PROTECTION AND PROMOTION $9,200
20.607 ALCOHOL OPEN CONTAINER REQUIREMENTS $7,888
11.U01 2024 Joint Enforcement Agreement $2,865
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $2,189
97.082 EARTHQUAKE STATE ASSISTANCE $1,536
11.032 STATE DIGITAL EQUITY PLANNING AND CAPACITY GRANT $594
16.U02 Domestic Cannabis Eradication $200