FAC Explorer

Finding 388342 (2023-011)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 300124
Organization: State of Hawaii Department of Health (HI)
Auditor: Kmh LLP

AI Summary

  • Core Issue: The Department failed to make timely payments, with two out of sixty payments exceeding the 21-day standard set by the State of Hawaii.
  • Impacted Requirements: This noncompliance violates 2 CFR 200.305(b), which mandates that advance payments align closely with actual disbursements.
  • Recommended Follow-Up: Collaborate with DAGS and the Department of Budget and Finance to improve payment processes and ensure compliance with federal regulations.

Finding Text

Criteria: The federal award program noted above is not subject to the Treasury-State Cash Management Improvement Act agreement and, as such, is subject to 2 CFR 200.305(b), which states: “The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions.” 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The State of Hawaii, Department of Budget and Finance has determined and communicated in Finance Memorandum 20-02 that their standard for an “administratively feasible time period” was 21 calendar days. Condition: During the testing of the Department’s cash management procedures, it was determined that two out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 28 to 57 days. Context: During the fiscal year ended June 30, 2023, the Department expended $8,398,791 (excluding food expenditures). Cause: The Department draws down federal funds that will be needed based on the expenditures that must be paid. However, since deposits must be posted prior to the processing of payments or disbursing of the funds, it is difficult for the Department to disburse federal funds in accordance with 2 CFR 200.305 (b). Also, the State’s payment process requires all State departments to process payments through DAGS resulting in processing delays. Effect: Noncompliance with federal regulations could result in a loss of funding that may jeopardize the operations of the Department’s federally funded programs. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2022-005 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend that the Department work with DAGS and the Department of Budget and Finance to ensure compliance with established standard and timely disbursement of federal funds in accordance with 2 CFR 200.305(b). Views of Responsible Officials and Planned Corrective Action: See Part VI Correction Action Plan.

Corrective Action Plan

Reporting – Cash Management During the testing of the Department’s cash management procedures, it was determined that two out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 28 to 57 days. Corrective Action Plan The Accountant draws cash from ASAP. After drawing federal funds, the Accountant sends the TDR to Budget and Finance (B&F) Treasury Management Section. B&F verifies the deposit and validates the TDR. Accountant will check Datamart daily to ensure funds are correctly posted in DataMart one day after B&F validates the TDR. The Accountant will also check DataMart daily to ensure adequate funds are available when invoice payment checks are processed. For payroll and indirect expenses, and DHO invoice expenditures and Pcard transactions the Accountant draws an estimated amount two days before the payroll cycle ends to be sure funds are available in Datamart. The Accountant checks the balance in DataMart daily. Implementation Date: April 1, 2024 Responding Official: Paul Uchima, WIC Administrative Officer

Categories

Cash Management

Other Findings in this Audit

  • 388332 2023-005
    Material Weakness Repeat
  • 388333 2023-006
    Material Weakness
  • 388334 2023-006
    Material Weakness
  • 388335 2023-007
    Material Weakness
  • 388336 2023-008
    Material Weakness
  • 388337 2023-008
    Material Weakness
  • 388338 2023-009
    Material Weakness Repeat
  • 388339 2023-009
    Material Weakness Repeat
  • 388340 2023-010
    Material Weakness
  • 388341 2023-010
    Material Weakness
  • 964774 2023-005
    Material Weakness Repeat
  • 964775 2023-006
    Material Weakness
  • 964776 2023-006
    Material Weakness
  • 964777 2023-007
    Material Weakness
  • 964778 2023-008
    Material Weakness
  • 964779 2023-008
    Material Weakness
  • 964780 2023-009
    Material Weakness Repeat
  • 964781 2023-009
    Material Weakness Repeat
  • 964782 2023-010
    Material Weakness
  • 964783 2023-010
    Material Weakness
  • 964784 2023-011
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $97.01M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $29.60M
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $24.50M
66.468 Capitalization Grants for Drinking Water State Revolving Funds $20.78M
93.268 Covid-19 Immunization Cooperative Agreements $13.88M
66.458 Capitalization Grants for Clean Water State Revolving Funds $12.31M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $10.32M
93.788 Opioid Str $4.39M
93.958 Block Grants for Community Mental Health Services $3.65M
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $3.31M
93.069 Public Health Emergency Preparedness $3.21M
93.268 Immunization Cooperative Agreements $2.94M
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $2.72M
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $2.69M
93.982 Mental Health Disaster Assistance and Emergency Mental Health $2.57M
93.136 Injury Prevention and Control Research and State and Community Based Programs $2.55M
93.777 State Survey and Certification of Health Care Providers and Suppliers (title Xviii) Medicare $2.54M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $2.52M
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $2.33M
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $2.11M
93.994 Maternal and Child Health Services Block Grant to the States $2.10M
66.419 Water Pollution Control State, Interstate, and Tribal Program Support $2.06M
84.181 Special Education-Grants for Infants and Families $1.96M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.75M
93.426 Improving the Health of Americans Through Prevention and Management of Diabetes and Heart Disease and Stroke $1.70M
93.940 Hiv Prevention Activities_health Department Based $1.68M
93.495 Community Health Workers for Public Health Response and Resilient $1.58M
93.354 Covid-19 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1.55M
93.387 National and State Tobacco Control Program (b) $1.26M
93.110 Maternal and Child Health Federal Consolidated Programs $1.22M
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $1.18M
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $1.17M
66.460 Nonpoint Source Implementation Grants $1.14M
93.917 Hiv Care Formula Grants $1.08M
93.889 National Bioterrorism Hospital Preparedness Program $1.03M
93.958 Covid-19 Block Grants for Community Mental Health Services $950,661
93.665 Covid-19 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $876,607
93.045 Covid-19 Special Programs for the Aging_title Iii, Part C_nutrition Services $839,777
93.959 Covid-19 Block Grants for Prevention and Treatment of Substance Abuse $834,230
93.044 Covid-19 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $783,042
93.991 Preventive Health and Health Services Block Grant $767,074
84.181 Covid-19 Special Education-Grants for Infants and Families $641,589
93.215 Hospitalization and Care of Hansen's Disease $640,996
66.817 State and Tribal Response Program Grants $634,867
93.336 Behavioral Risk Factor Surveillance System $564,135
93.630 Developmental Disabilities Basic Support and Advocacy Grants $559,741
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $540,664
93.241 State Rural Hospital Flexibility Program $537,822
93.283 Centers for Disease Control and Prevention_investigations and Technical Assistance $534,558
66.432 State Public Water System Supervision $529,078
93.000 US Fda Tobacco Retail Inspection Contract/hawaii State Enforcement $501,051
93.889 Covid-19 National Bioterrorism Hospital Preparedness Program $485,153
66.801 Hazardous Waste Management State Program Support $458,964
93.052 National Family Caregiver Support, Title Iii, Part E $426,681
93.590 Community-Based Child Abuse Prevention Grants $395,110
66.001 Air Pollution Control Program Support $382,117
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $364,357
93.324 State Health Insurance Assistance Program $354,222
93.155 Covid-19 Rural Health Research Centers $354,134
93.197 Childhood Lead Poisoning Prevention Projects_state and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $353,346
93.053 Nutrition Services Incentive Program $336,807
66.472 Beach Monitoring and Notification Program Implementation Grants $325,336
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $314,164
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $303,145
93.870 Covid-19 Maternal, Infant and Early Childhood Home Visiting Grant $294,908
66.805 Leaking Underground Storage Tank Trust Fund Corrective Action Program $277,832
66.804 Underground Storage Tank (ust) Prevention, Detection, and Compliance Program $269,470
66.444 Lead Testing in School and Child Care Program Drinking Water (sdwa 1464(d)) (a) $263,563
93.810 Paul Coverdell National Acute Stroke Program National Center for Chronic Disease Prevention and Health Promotion $261,954
66.802 Superfund State, Political Subdivision, and Indian Tribe Site-Specific Cooperative Agreements $252,008
93.334 The Healthy Brain Initiative: Technical Assistance to Implement Public Health Actions Related to Cognitive Health, Cognitive Impairment, and Caregiving at the State and Local Levels $248,564
93.103 Food and Drug Administration_research $244,397
12.113 State Memorandum of Agreement Program for the Reimbursement of Technical Services $241,162
93.150 Projects for Assistance in Transition From Homelessness (path) $234,679
93.913 Grants to States for Operation of Offices of Rural Health $228,851
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $214,280
93.270 Adult Viral Hepatitis Prevention and Control $207,860
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $200,564
93.127 Emergency Medical Services for Children $177,705
93.946 Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative Programs $167,349
66.605 Performance Partnership Grants $166,517
93.590 Covid-19 Community-Based Child Abuse Prevention Grants $154,778
66.454 Water Quality Management Planning $153,852
93.110 Covid-19 Maternal and Child Health Federal Consolidated Programs $148,105
93.778 Medical Assistance Program $133,571
10.025 Plant and Animal Disease, Pest Control, and Animal Care $126,999
93.071 Medicare Enrollment Assistance Program $121,989
93.043 Covid-19 - Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $113,963
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $111,846
93.301 Small Rural Hospital Improvement Grant Program $111,350
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $108,614
93.945 Assistance Programs for Chronic Disease Prevention and Control $104,457
93.314 Early Hearing Detection and Intervention Information System (ehdi-Is) Surveillance Program $103,287
93.251 Early Hearing Detection and Intervention $93,112
93.000 Hawaii State Mental Health Data Infrastructure Contract for Quality Improvement $77,639
93.747 Covid-19 Elder Abuse Prevention Interventions Program $77,160
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $69,444
93.052 Covid-19 National Family Caregiver Support, Title Iii, Part E $65,743
93.051 Alzheimer's Disease Demonstration Grants to States $59,733
66.608 Environmental Information Exchange Network Grant Program and Related Assistance $55,000
93.130 Cooperative Agreements to States/territories for the Coordination and Development of Primary Care Offices $38,638
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $14,643
66.204 Multipurpose Grants to States and Tribes $12,577
93.630 Covid-19 Developmental Disabilities Basic Support and Advocacy Grants $8,661
66.701 Toxic Substances Compliance Monitoring Cooperative Agreements $4,048
93.000 Transformation Transfer Initiative $1,800
93.069 Covid-19 Public Health Emergency Preparedness $1,500