FAC Explorer

Finding 388343 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 300126
Organization: Department of Education, State of Hawaii (HI)
Auditor: Accuity LLP

AI Summary

  • Core Issue: Two out of six required financial and narrative reports were missing, with four additional reports also unprepared.
  • Impacted Requirements: Reports must be submitted within 30 days post-reporting period as per OIA guidelines.
  • Recommended Follow-up: Ensure program staff receive training and clear procedures on reporting requirements to prevent future oversights.

Finding Text

Questioned Costs $- Finding No. 2023‐002: Reporting (Material Weakness) Federal Agency: U.S. Department of the Interior Assistance Listing Number and Title: 15.875 – Economic, Social, and Political Development of the Territories Condition During our audit, for 2 out of 6 financial and narrative of project status reports selected for testing, we noted no available evidence to verify the reports were prepared. We were also informed by program personnel that 4 semi‐annual financial reports and 4 narrative of project status reports which were not selected for testing, were also not prepared. Criteria The Office of Insular Affairs (“OIA”) requires financial reports and a narrative of project status to be submitted within 30 days after the end of the reporting period. Cause Due to turnover in critical positions, the lack of report preparation may be attributed to general oversight by the program personnel. Effect The failure to file required reports reduces transparency on the use of program funds and hinders monitoring by the awarding agency. Context A sample of 6 reports were selected for audit from a population of 14 reports. Our test found two instances in which reports were not submitted. We were also informed by management that the 8 reports which were not selected for testing were also not submitted. Our sample was a statistically valid sample. Repeat Finding This is not a repeat finding. Recommendation We recommend that the program personnel responsible for preparing and reviewing reports have adequate knowledge of reporting requirements. Cause and View of Responsible Officials The program personnel were unaware of the reporting requirements as defined in the OIA Cooperative Agreement. The Office of Monitoring and Compliance Branch will ensure program personnel are informed through written procedures and training.

Corrective Action Plan

2023-002 Reporting – Material Weakness View of Responsible Officials Administration agrees with the findings and recommendations. Corrective Action Plan The Office of Monitoring and Compliance (MAC) will provide training to recipients when funds are allocated within the Department. The Policy, Innovation, Planning and Evaluation Branch (PIPE) will communicate with the Office of Fiscal Services and MAC on a semi-annual basis to start the reporting process on December 1 and June 1 of each year to meet the January 31 and July 31 respective deadlines. Additionally, PIPE has identified a dedicated staff member who will spearhead the administration of this grant to ensure that any changes in the reporting requirements as defined in the OIA Cooperative Agreement will be quickly identified and followed. Contact Persons: Ken Kakesako, Director Policy, Innovation, Planning and Evaluation Branch Office of Strategy Innovation and Performance Jacy Yamamoto, Interim Director Office of Monitoring and Compliance Office of the Deputy Superintendent Anticipated Completion Date: June 1, 2024

Categories

Subrecipient Monitoring Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $50.00M
84.010 Title I Grants to Local Educational Agencies $48.49M
84.371 Striving Readers $11.46M
84.367 Improving Teacher Quality State Grants $9.02M
84.424 Student Support and Academic Enrichment Program $6.79M
84.287 Twenty-First Century Community Learning Centers $6.40M
84.027 Special Education_grants to States $5.36M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $5.33M
15.875 Economic, Social, and Political Development of the Territories $4.53M
10.555 National School Lunch Program $4.46M
93.558 Temporary Assistance for Needy Families $4.03M
84.365 English Language Acquisition State Grants $3.73M
84.041 Impact Aid $3.70M
84.002 Adult Education - Basic Grants to States $3.20M
84.048 Career and Technical Education -- Basic Grants to States $2.77M
45.310 Grants to States $2.31M
84.011 Migrant Education_state Grant Program $2.09M
12.558 Department of Defense Impact Aid (supplement, Cwsd, Brac) $1.89M
84.369 Grants for State Assessments and Related Activities $1.63M
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $1.58M
10.582 Fresh Fruit and Vegetable Program $1.27M
84.425 Education Stabilization Fund $1.16M
10.560 State Administrative Expenses for Child Nutrition $871,179
12.556 Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools $824,788
10.558 Child and Adult Care Food Program $694,366
84.372 Statewide Longitudinal Data Systems $625,241
84.184 Safe and Drug-Free Schools and Communities_national Programs $476,839
84.196 Education for Homeless Children and Youth $373,480
84.259 Native Hawaiian Career and Technical Education $283,634
12.600 Community Investment $221,906
84.362 Native Hawaiian Education $166,796
84.173 Special Education_preschool Grants $115,885
93.600 Head Start $108,990
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $101,574
10.574 Team Nutrition Grants $94,051
84.424 Trauma Recovery Demonstration Grant Program $91,685
84.144 Migrant Education_coordination Program $84,339
10.541 Child Nutrition-Technology Innovation Grant $66,027
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $62,221
84.368 Grants for Enhanced Assessment Instruments $60,993
10.579 Child Nutrition Discretionary Grants Limited Availability $57,926
10.559 Summer Food Service Program for Children $53,822
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $25,000
84.365 Asian American and Pacific Islander Data Disaggregation Initiative $20,110
10.645 Farm to School State Formula Grant $15,674
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $3,799