Finding Text
Name: Water and Waste Disposal Systems for Rural Communities/ Community Development Block Grants/State?s Program and Non-Entitlement Grants in Hawaii CFDA #: 10.760 14.228 Federal Grantor: U.S. Department of Agriculture 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 control over the Schedule of Expenditures of Federal Awards (SEFA) required that the City provide accurate Federal expenditure information to the City Auditor in a timely manner. Condition During our test of major programs we noted that the SEFA provided by the City at the beginning of audit fieldwork contained errors in the federal expenditures. Expenditures included on the SEFA provided at the beginning of the audit were more than actual expenditures by $529,729 in the major programs listed above. Cause The City did not reconcile the federal expenditure claims to the SEFA that was provided to us at the start of the audit. Effect Federal expenditures reported on the original SEFA provided at the beginning of fieldwork was not materially correct and adjustments were overstated by approximately $529,729. 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 reconciling federal expenidtures to the SEFA. Repeat Finding This is not a repeat finding. Recommendation We recommend that the City reconcile federal expenditures claimed to the City's general ledger and SEFA. 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.