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.