Finding Text
Significant Deficiency Finding No. 2023-006: Procurement U.S. Department of Housing and Urban Development Passed Through the State of Hawaii Department of Human Services Emergency Solutions Grant Program Coronavirus Federal Assistance Listing Number 14.231 Criteria Pursuant to the Uniform Guidance, a non-Federal entity, including subrecipients of a State, must have and use documented procurement standards that conform to the procurement standards of §200.318 through §200.327 of the Uniform Guidance. Condition We noted that KMNH did not adopt procurement standards compliant with sections §200.318 through §200.327 of the Uniform Guidance. Cause Management had not updated its policies and procedures to incorporate the relevant Uniform Guidance procurement standards. Effect The lack of the procurement standards consistent with the Uniform Guidance could result in a material misstatement of KMNH’s expenditures as reported in the statement of expenditures of federal awards. Identification of a Repeat Finding This finding was reported as a federal award finding in the immediate previous audit as Finding No. 2022-004. Recommendation We again recommend that KMNH incorporate §200.318 through §200.327 of the Uniform Guidance procurement standards to their policies and procedures manual to ensure compliance with Federal standards. Views of Responsible Officials and Planned Corrective Action KMNH agrees with the finding and recommendation and effective on April 26, 2024 has implemented procurement standards per the Uniform Guidance.