Finding Text
2022-002 Name: Community Development Block Grants/State?s Program and Non-Entitlement Grants in Hawaii Assistance Listing #: 14.228 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Other Criteria Internal controls over the Schedule of Expenditures of Federal Awards (SEFA) requires that the City provide accurate Federal expenditure information to the City Auditor in a timely manner. Condition During our testing of major programs, we noted that the SEFA provided by the City at the beginning of the audit fieldwork contained errors in the federal expenditures. Expenditures included on the City?s SEFA provided at the beginning of the audit were more than actual expenditures by $495,601 in the programs listed above. Cause The City did not provide accurate information to include on the SEFA that was provided to us at the beginning of the audit. Effect The SEFA provided at the beginning of fieldwork was not materially correct and adjustments were needed to accurately reflect all Federal expenditures. Questioned Cost No questioned costs were identified as a result of our procedures. Context The condition noted above was identified during our procedures related to reporting over the programs. Repeat Finding This is not a repeat finding. Recommendation We recommend that the City provide the Auditor with accurate federal expenditure information at the beginning of audit fieldwork. Views of Responsible Officials and Planned Corrective Action Refer to separate Management?s Corrective Action Plan for views of responsible officials and management?s responses.