FAC Explorer

Finding 388432 (2023-010)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 300162
Organization: State of Hawaii, Department of Accounting and General Services (HI)
Auditor: Accuity LLP

AI Summary

  • Core Issue: The State agency failed to meet the minimum case and timeliness requirements for unemployment claims, leading to a material weakness in the system.
  • Impacted Requirements: The BAM system mandates specific minimum cases and timeliness percentages for both paid (480 cases) and denied claims (450 cases), which were not achieved.
  • Recommended Follow-Up: Address staffing shortages and create new policies to manage increased claims while adhering to existing claim handling requirements.

Finding Text

Questioned Cost $- Finding No. 2023‐010: Special Tests and Provisions (Material Weakness) State Agency: DLIR Federal Agency: Department of Labor AL Number and Title: 17.225 – Unemployment Insurance COVID‐19 – 17.225 – COVID‐19 – Unemployment Insurance Award Number and Award Year: UI‐39318‐23‐55‐A‐15 2023 Repeat Finding? Yes Condition During our audit, we examined the Benefit Accuracy Measurement (BAM) summary report and identified that minimum cases and timeliness requirements were not met for paid and denied claims. Criteria Pursuant to 20 CFR Part 602, the BAM system requires the State department to complete a minimum number of unemployment cases timely in order to maintain a current database. The required number of cases and the timeliness percentages for completing paid and denied claims are as follows: Paid Claims -Minimum cases: 480 paid cases -Timeliness percentages: Complete 70% within 60 days, 95% within 90 days, and 98% within 120 days Denied Claims -Minimum cases: 450 denied cases (150 cases for each category: monetary, separation and non‐separation) -Timeliness percentages: Complete 60% within 60 days, 85% within 90 days, and 98% within 120 days Effect Failure to meet timeliness requirements prevents the granting agency from maintaining a current database. Cause and View of Responsible Officials Due to the COVID‐19 pandemic, the department experienced a staffing shortage and was unable to process the minimum number of cases and/or investigate cases within a timely manner. Recommendation We recommend that the State department address staffing shortages and develop new policies and procedures to handle the increase in unemployment claims and follow existing policies and procedures established to comply with claim handling requirements, as necessary.

Corrective Action Plan

Finding No. 2023‐010 – Special Tests and Provisions (Material Weakness) State Department of Labor and Industrial Relations AL Number: 17.225 Program Title: Unemployment Insurance Condition Both and/or either the minimum number of cases and timeliness percentages for paid and denied claims including monetary, separation, and nonseparation, were not met. Current Status of Corrective Action Plan Concur. -The BAM unit was short staffed an investigator from March 2022. The vacancy was filled on January 17, 2023. -The number of paid and denied claims were increased and the BAM supervisor was assigned denied cases. -The unit anticipates to meet the minimum number of 480 paid and 450 denied cases effective FY 23‐24 which began in July 2023. -The unit has made great strides and is currently meeting the denied timeliness requirements. -The unit has brought on an experienced adjudicator to fill a vacancy and learn BAM methodology. He is in the probationary period and is expected to continue to progress to the level where he will be able to function independently on simple to difficult and complex cases. The unit has worked cohesively to assist colleagues with investigative tasks. The TPS individual contributes to this effort by assisting with the assembly of new case files for the BAM investigators. This collective effort allows the unit to make progress to our goals. The BAM supervisor continues to help and monitor case completion and timeliness to ensure the unit works toward achieving the BAM requirements. Person Responsible Sheryl Maligro, UI Program Supervisor Anticipated Date of Completion June 2025

Categories

Special Tests & Provisions Material Weakness

Other Findings in this Audit

  • 388426 2023-005
    Significant Deficiency
  • 388427 2023-006
    Significant Deficiency
  • 388428 2023-007
    Significant Deficiency
  • 388429 2023-008
    Significant Deficiency
  • 388430 2023-009
    Significant Deficiency Repeat
  • 388431 2023-009
    Significant Deficiency Repeat
  • 388433 2023-010
    Material Weakness Repeat
  • 388434 2023-011
    Significant Deficiency
  • 388435 2023-011
    Significant Deficiency
  • 388436 2023-011
    Significant Deficiency
  • 388437 2023-012
    Material Weakness
  • 388438 2023-012
    Material Weakness
  • 388439 2023-012
    Material Weakness
  • 388440 2023-013
    Material Weakness
  • 388441 2023-013
    Material Weakness
  • 388442 2023-013
    Material Weakness
  • 388443 2023-014
    Significant Deficiency
  • 964868 2023-005
    Significant Deficiency
  • 964869 2023-006
    Significant Deficiency
  • 964870 2023-007
    Significant Deficiency
  • 964871 2023-008
    Significant Deficiency
  • 964872 2023-009
    Significant Deficiency Repeat
  • 964873 2023-009
    Significant Deficiency Repeat
  • 964874 2023-010
    Material Weakness Repeat
  • 964875 2023-010
    Material Weakness Repeat
  • 964876 2023-011
    Significant Deficiency
  • 964877 2023-011
    Significant Deficiency
  • 964878 2023-011
    Significant Deficiency
  • 964879 2023-012
    Material Weakness
  • 964880 2023-012
    Material Weakness
  • 964881 2023-012
    Material Weakness
  • 964882 2023-013
    Material Weakness
  • 964883 2023-013
    Material Weakness
  • 964884 2023-013
    Material Weakness
  • 964885 2023-014
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $383.04M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $54.58M
64.005 Grants to States for Construction of State Home Facilities $21.00M
12.401 National Guard Military Operations and Maintenance (o&m) Projects $20.01M
21.023 Emergency Rental Assistance Program $13.63M
17.259 Wia Youth Activities $5.96M
64.203 State Cemetery Grants $5.07M
97.067 Homeland Security Grant Program $4.86M
97.042 Emergency Management Performance Grants $4.79M
10.569 Emergency Food Assistance Program (food Commodities) $4.61M
12.404 National Guard Challenge Program $4.50M
15.615 Cooperative Endangered Species Conservation Fund $3.74M
15.611 Wildlife Restoration and Basic Hunter Education $3.70M
17.225 Unemployment Insurance $3.59M
20.500 Federal Transit_capital Investment Grants $2.97M
21.031 State Small Business Credit Initiative Technical Assistance Grant Program $2.83M
15.605 Sport Fish Restoration Program $2.80M
11.419 Coastal Zone Management Administration Awards $2.40M
15.634 State Wildlife Grants $2.10M
17.207 Employment Service/wagner-Peyser Funded Activities $1.93M
10.179 Micro-Grants for Food Security Program $1.84M
17.503 Occupational Safety and Health_state Program $1.71M
11.307 Economic Adjustment Assistance $1.65M
39.003 Donation of Federal Surplus Personal Property $1.62M
10.565 Commodity Supplemental Food Program $1.53M
15.614 Coastal Wetlands Planning, Protection and Restoration Program $1.46M
90.404 2018 Hava Election Security Grants $1.46M
17.277 Workforce Investment Act (wia) National Emergency Grants $1.16M
93.569 Community Services Block Grant $1.15M
15.657 Endangered Species Conservation Ð Recovery Implementation Funds $1.04M
17.235 Senior Community Service Employment Program $972,124
93.558 Temporary Assistance for Needy Families $949,604
45.025 Promotion of the Arts_partnership Agreements $833,203
11.611 Manufacturing Extension Partnership $813,472
17.002 Labor Force Statistics $760,790
11.482 Coral Reef Conservation Program $749,420
81.041 State Energy Program $734,192
11.467 Meteorologic and Hydrologic Modernization Development $682,988
10.664 Cooperative Forestry Assistance $616,484
20.205 Highway Planning and Construction $606,278
59.061 State Trade and Export Promotion Pilot Grant Program $601,223
97.012 Boating Safety Financial Assistance $544,644
10.568 Emergency Food Assistance Program (administrative Costs) $542,666
15.904 Historic Preservation Fund Grants-in-Aid $534,319
90.401 Help America Vote Act Requirements Payments $533,380
17.504 Consultation Agreements $532,220
81.042 Weatherization Assistance for Low-Income Persons $513,558
11.473 Office for Coastal Management $511,265
66.605 Performance Partnership Grants $471,896
11.472 Unallied Science Program $463,845
10.680 Forest Health Protection $456,780
17.801 Jobs for Veterans State Grants $456,478
93.568 Low-Income Home Energy Assistance $451,326
93.423 1332 State Innovation Waivers $433,368
10.576 Senior Farmers Market Nutrition Program $412,475
11.437 Pacific Fisheries Data Program $409,661
10.170 Specialty Crop Block Grant Program - Farm Bill $401,710
12.617 Economic Adjustment Assistance for State Governments $394,157
97.056 Port Security Grant Program $386,278
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $369,633
15.916 Outdoor Recreation_acquisition, Development and Planning $352,960
16.922 Equitable Sharing Program $349,404
97.047 Pre-Disaster Mitigation $328,846
10.675 Urban and Community Forestry Program $303,066
97.041 National Dam Safety Program $302,851
15.660 Endangered Species - Candidate Conservation Action Funds $299,464
93.136 Injury Prevention and Control Research and State and Community Based Programs $296,894
12.114 Collaborative Research and Development $294,915
15.875 Economic, Social, and Political Development of the Territories $294,372
21.029 Coronavirus Capital Projects Fund Program $289,274
66.460 Nonpoint Source Implementation Grants $283,656
97.008 Non-Profit Security Program $264,508
12.632 Legacy Resource Management Program $254,826
97.111 Regional Catastrophic Preparedness Grant Program (rcpgp) $241,116
10.676 Forest Legacy Program $229,353
97.132 Financial Assistance for Countering Violent Extremism $210,478
10.181 Ams - Pandemic Response and Safety Grants Program/ Ams - Farmworker and Meatpacking Worker Relief Grant Program $200,000
93.103 Food and Drug Administration_research $197,435
30.002 Employment Discrimination – State and Local Fair Employment Practices Agency Contracts $173,841
10.698 State & Private Forestry Cooperative Fire Assistance $167,234
16.606 State Criminal Alien Assistance Program $163,317
11.429 Marine Sanctuary Program $147,308
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $145,513
16.575 Crime Victim Assistance $145,469
66.461 Regional Wetland Program Development Grants $142,715
11.469 Congressionally Identified Awards and Projects $140,014
84.048 Career and Technical Education -- Basic Grants to States $134,234
10.025 Plant and Animal Disease, Pest Control, and Animal Care $133,727
10.934 Feral Swine Eradication and Control Pilot Program (c, Z) $130,941
93.566 Refugee and Entrant Assistance_state Administered Programs $125,301
15.608 Fish and Wildlife Management Assistance $120,840
10.525 Farm and Ranch Stress Assistance Network Competitive Grants Program (b) $118,672
11.032 State Digital Equity Planning and Capacity Grant $118,203
17.273 Temporary Labor Certification for Foreign Workers $99,817
97.045 Cooperating Technical Partners $99,391
17.258 Wia Adult Program $94,517
21.016 Equitable Sharing $93,822
81.087 Renewable Energy Research and Development $93,067
10.555 National School Lunch Program $91,497
16.593 Residential Substance Abuse Treatment for State Prisoners $89,211
10.678 Forest Stewardship Program $88,921
17.271 Work Opportunity Tax Credit Program (wotc) $84,172
17.278 Wia Dislocated Worker Formula Grants $81,319
10.674 Wood Utilization Assistance $80,870
16.839 Stop School Violence $78,130
16.034 Coronavirus Emergency Supplemental Funding Program $77,964
17.245 Trade Adjustment Assistance $71,501
14.401 Fair Housing Assistance Program_state and Local $69,337
15.670 Adaptive Science $64,782
12.017 Readiness and Environmental Protection Integration (repi) Program $50,214
11.407 Interjurisdictional Fisheries Act of 1986 $48,951
10.553 School Breakfast Program $48,445
11.U01 Management Support for Hawaiian Islands Humpback Whale, Joint Enforcement Agreement $44,551
15.623 North American Wetlands Conservation Fund $44,487
11.452 Unallied Industry Projects $43,450
16.738 Edward Byrne Memorial Justice Assistance Grant Program $40,134
11.999 Marine Debris Program $40,097
15.630 Coastal Program $39,997
11.454 Unallied Management Projects $35,000
15.944 Natural Resource Stewardship $34,181
97.082 Earthquake Consortium $30,248
11.439 Marine Mammal Data Program $13,655
11.035 Broadband Equity, Access and Deployment Program $10,982
10.163 Market Protection and Promotion $7,800
10.162 Inspection Grading and Standardization $7,536
11.413 Fishery Products Inspection and Certification $4,816
15.631 Partners for Fish and Wildlife $1,551
17.270 Reintegration of Ex-Offenders $217