Finding 399402 (2023-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-06-03

AI Summary

  • Core Issue: PRDH failed to report subawards over $30,000 on time to the FSRS, violating FFATA requirements.
  • Impacted Requirements: Non-compliance with 2 CFR Part 170 and repeat finding from the previous year.
  • Recommended Follow-Up: Provide training for staff on FFATA reporting requirements and establish a tracking system for timely submissions.

Finding Text

FINDING REFERENCE NUMBER 2023-002 FEDERAL PROGRAM (ALN – 14.228) COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (ALN – 14.228) COVID19 – COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AWARD NUMBERS B-14-DC-7201 ~ B-19-DC-72-0001; B-17-DM-7201; B-18-DP-7201; B-20-DW-72-0001; B-21-DZ-72-0001 (Federal Award Years 2014-2023) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CRITERIA In accordance with 2 CFR Part 170, establish that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION The audit revealed that the PRDH did not adhere to the FFATA reporting procedures during the fiscal year. We found that all required reports were submitted after fiscal year end. The summary of our tests results is: SubawardSubawardTransactionsSubaward NotReport NotAmountMissing KeyTestedReportedTimelyIncorrectElements2502500Dollar Amount ofSubawardSubawardTestedSubaward NotReport NotAmountMissing KeyTransactionsReportedTimelyIncorrectElements$270,191,453$0$270,191,453$0$0 QUESTIONED COSTS Not applicable. PERSPECTIVE INFORMATION The PRDH did provide a detail of those awards or contracts subject to the FFATA requirements, totaled about 136 contracts with a grant total of $1,629,865,755.12. Although they acquired the necessary knowledge later in the fiscal year, the reports were still submitted after the 2022-2023 fiscal year. STATEMENT OF CAUSE The PRDH staff were unaware of the requirements related to the Federal Funding Accountability and Transparency Act (FFATA) applicable to the CDGB funds they manage. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2022-002). RECOMMENDATIONS We recommend that the PRDH provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.

Corrective Action Plan

VIEWS OF RESPONSIBLE OFFICIALS We implemented the procedures to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) on July 13, 2023. Accordingly, we expect to be in full compliance with the Single Audit for the fiscal year 2024. IMPLEMENTATION DATE Single Audit for fiscal year 2023-24 RESPONSIBLE PERSON Félix Hernández Cabán Director of Disaster Recovery for CDBG-DR and Juan R. Rivera Carrillo Assistance Secretary for Finance and Administration

Categories

Subrecipient Monitoring Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 399400 2023-001
    Material Weakness Repeat
  • 399401 2023-001
    Material Weakness Repeat
  • 399403 2023-002
    Significant Deficiency Repeat
  • 975842 2023-001
    Material Weakness Repeat
  • 975843 2023-001
    Material Weakness Repeat
  • 975844 2023-002
    Significant Deficiency Repeat
  • 975845 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $9.52M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.39M
14.267 Continuum of Care Program $981,553
10.558 Child and Adult Care Food Program $34,178