FAC Explorer

Finding 1203124 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396345
Organization: Department of Human Services (HI)
Auditor: ACCUITY LLP

AI Summary

  • Core Issue: Eight out of 60 daily reconciliations showed variances of $4.9 million that were not investigated or reviewed.
  • Impacted Requirements: Non-compliance with 7 CFR 274.4, which mandates daily reconciliations of SNAP transactions.
  • Recommended Follow-Up: Implement procedures for timely resolution of variances and ensure supervisor reviews are documented.

Finding Text

Condition During our audit, we selected a non-statistical sample of 60 daily reconciliations for testing and noted eight instances where variances were not investigated and there was no evidence that a review of the daily reconciliation was performed. The Department’s daily reconciliations identified variances totaling approximately $4.9 million. A similar finding was reported in the prior year as Finding No. 2024-004. Criteria Pursuant to 7 CFR 274.4, the Department is required to perform daily reconciliations of all SNAP transactions between the State’s Benefit Account, the US Treasury Department, and all the EBT contractors. Effect Failure to resolve the reconciling items resulted in non-compliance with the requirement. Cause and View of Responsible Officials Although the Department has policies and procedures in place regarding reviews, the policies and procedures do not explicitly require a supervisor sign-off documenting their review resulting in the inconsistent application and documentation of supervisor reviews. Recommendation We recommend that the Department develop procedures to ensure that identified variances are resolved and that the reconciliation is reviewed in a timely manner.

Corrective Action Plan

Views of Responding Officials: The Department agrees with the finding, will implement corrective action, and will work with the appropriate parties to address this issue. Corrective Action Taken or Planned: The EBT accounts will be reconciled daily, and once completed, will be reviewed and signed off by the accounting supervisor. If discrepancies are found, they will be checked against the detailed Fidelity National Information Services (FIS) and the Office of Enterprise Technology (OET) reports. Expected Completion Date: June 2026 Responding Official(s): Joey Wong, Fiscal Management Office Accounting Supervisor

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1203108 2025-009
    Material Weakness Repeat
  • 1203109 2025-010
    Material Weakness Repeat
  • 1203110 2025-007
    Material Weakness Repeat
  • 1203111 2025-008
    Material Weakness Repeat
  • 1203112 2025-011
    Material Weakness Repeat
  • 1203113 2025-012
    Material Weakness Repeat
  • 1203114 2025-013
    Material Weakness Repeat
  • 1203115 2025-006
    Material Weakness Repeat
  • 1203116 2025-006
    Material Weakness Repeat
  • 1203117 2025-014
    Material Weakness Repeat
  • 1203118 2025-014
    Material Weakness Repeat
  • 1203119 2025-014
    Material Weakness Repeat
  • 1203120 2025-003
    Material Weakness Repeat
  • 1203121 2025-004
    Material Weakness Repeat
  • 1203122 2025-005
    Material Weakness Repeat
  • 1203123 2025-003
    Material Weakness Repeat
  • 1203125 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 MEDICAL ASSISTANCE PROGRAM $2.15B
10.551 SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $694.52M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $65.98M
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $59.50M
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $36.81M
10.646 SUMMER ELECTRONIC BENEFIT TRANSFER PROGRAM FOR CHILDREN $32.44M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $24.00M
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $21.36M
93.658 FOSTER CARE TITLE IV-E $19.10M
93.667 SOCIAL SERVICES BLOCK GRANT $16.55M
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $15.12M
93.659 ADOPTION ASSISTANCE $14.73M
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $14.33M
96.001 SOCIAL SECURITY DISABILITY INSURANCE $7.86M
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $7.75M
97.088 DISASTER ASSISTANCE PROJECTS $5.87M
93.090 GUARDIANSHIP ASSISTANCE $4.11M
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $1.74M
93.777 STATE SURVEY AND CERTIFICATION OF HEALTH CARE PROVIDERS AND SUPPLIERS (TITLE XVIII) MEDICARE $1.30M
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $940,051
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $736,396
93.464 ACL ASSISTIVE TECHNOLOGY $683,572
93.747 ELDER ABUSE PREVENTION INTERVENTIONS PROGRAM $594,270
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $571,294
93.669 CHILD ABUSE AND NEGLECT STATE GRANTS $517,826
94.011 AMERICORPS SENIORS FOSTER GRANDPARENT PROGRAM (FGP) 94.011 $416,327
84.177 REHABILITATION SERVICES INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE BLIND $396,635
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $298,741
93.497 FAMILY VIOLENCE PREVENTION AND SERVICES/ SEXUAL ASSAULT/RAPE CRISIS SERVICES AND SUPPORTS $257,427
94.016 AMERICORPS SENIORS SENIOR COMPANION PROGRAM (SCP) 94.016 $216,950
93.603 ADOPTION AND LEGAL GUARDIANSHIP INCENTIVE PAYMENTS PROGRAM $206,000
93.369 ACL INDEPENDENT LIVING STATE GRANTS $185,836
93.643 CHILDREN'S JUSTICE GRANTS TO STATES $151,193
16.540 JUVENILE JUSTICE AND DELINQUENCY PREVENTION $136,367
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $104,863
84.187 SUPPORTED EMPLOYMENT SERVICES FOR INDIVIDUALS WITH THE MOST SIGNIFICANT DISABILITIES $104,639
93.599 CHAFEE EDUCATION AND TRAINING VOUCHERS PROGRAM (ETV) $90,544
93.968 STATES ADVANCING ALL-PAYER HEALTH EQUITY APPROACHES AND DEVELOPMENT (AHEAD) MODEL $57,137
93.791 MONEY FOLLOWS THE PERSON REBALANCING DEMONSTRATION $36,428
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $17,218