Finding 1214390 (2025-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-05-11

AI Summary

  • Core Issue: Depreciation schedules were incomplete, causing delays in the audit process.
  • Impacted Requirements: Management must ensure accurate calculation and consistent application of depreciation expenses according to the capitalization policy.
  • Recommended Follow-Up: Implement a standard monthly entry for depreciation to better reflect asset values in financial statements.

Finding Text

During the course of our audit it was noted that the depreciation schedules were not completed, this led to a delay in the completion of the audit. Criteria: Management should review all assets to ensure that depreciation expenses is calculating properly and that live assets are applied consistently based on capitalization policy. The depreciation schedule for should be updated quarterly at the very least to ensure that they are ready for the audit. Cause: Unknown Effect: Funds are not adequately representing a true reflection of the depreciating assets throughout the year. Recommendation: A standard monthly entry would provide the financial statements with an adequate representation of the depreciation expense per month. Management Response: Management is going to keep up to date with its depreciation schedule and monthly entry.

Corrective Action Plan

Recommendation: A standard monthly entry would provide the financial statements with an adequate representation of the depreciation expense per month.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1214381 2025-001
    Material Weakness Repeat
  • 1214382 2025-002
    Material Weakness Repeat
  • 1214383 2025-003
    Material Weakness Repeat
  • 1214384 2025-004
    Material Weakness Repeat
  • 1214385 2025-001
    Material Weakness Repeat
  • 1214386 2025-002
    Material Weakness Repeat
  • 1214387 2025-003
    Material Weakness Repeat
  • 1214388 2025-004
    Material Weakness Repeat
  • 1214389 2025-001
    Material Weakness Repeat
  • 1214391 2025-003
    Material Weakness Repeat
  • 1214392 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $801,558
20.205 HIGHWAY PLANNING AND CONSTRUCTION $174,202
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $134,724
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $55,439
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $31,398
45.310 GRANTS TO STATES $684
97.047 BRIC: Building Resilient Infrastructure and Communities $450