Finding Text
Type of Finding: Significant deficiency Federal Agencies, Programs, and Assistance Listing Numbers: o U.S. Department of Agriculture: State of Hawaiʻi, Department of Education, Hawaiʻi Child Nutrition Program: • Summer Food Service Program for Children (Assistance Listing No. 10.559) Criteria – In accordance with Title 2, Subtitle A, Chapter II, Section 200.303 (2 CFR § 200.303), non-federal entities must establish and maintain effective internal controls over federal awards that provide reasonable assurance that the entity is managing the award in compliance with federal statutes, regulations, and terms and conditions of the award. Segregation of duties and management oversight are essential components of effective internal control. Condition – During our audit, we noted that the meal reimbursement claims submitted for June and July 2025 reconciled to supporting documentation. However, there was no evidence of management's review and approval of the submitted meal reimbursement claims. Cause – The Organization's meal reimbursement process did not require management review or approval of claims prior to submission. Effect – Insufficient management review increases the risk of unsubstantiated claim reimbursements which could result in noncompliance with program requirements. Questioned Costs – None Identification as a Repeat Finding, if applicable – Yes; refer to prior year Finding No. 2024-002 in the Summary Schedule of Prior Audit Findings. Recommendation – In addition to existing processes and controls over meal reimbursement claim submissions, we recommend management document their review and approval of meal reimbursement claims with a reviewer sign off. Views of Responsible Official(s) and Planned Corrective Action – See Corrective Action Plan on page 39.