Finding 43195 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-07-30

AI Summary

  • Core Issue: PRDH failed to submit the required Data Collection Form and Reporting Package on time for the fiscal year ending June 30, 2022.
  • Impacted Requirements: This non-compliance affects PRDH's eligibility for Federal funds and its classification as a low-risk auditee for the next two fiscal years.
  • Recommended Follow-Up: PRDH should improve its accounting systems and internal controls to ensure timely preparation and submission of financial statements and supporting documents.

Finding Text

2 CFR ? 200.512 Report Submission, (a) (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. STATEMENT OF CONDITION PRDH did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2022 during the required period. QUESTIONED COSTS None PERSPECTIVE INFORMATION PRDH was unable to provide timely financial statements and related supporting documentation in order to apply required audit procedures. STATEMENT OF CAUSE PRDH did not have an effective accounting system and procedures to assure that the required financial statements and supporting documentation was made available for audit purposes within the required period established to comply with the Federal regulations. POSSIBLE ASSERTED EFFECT PRDH did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. In addition, for the next two (2) fiscal years PRDH cannot be considered by the auditor as a low risk auditee. IDENTIFICATION AS A REPEAT FINDING This is not a repeat finding. RECOMMENDATION We recommend the PRDH maintain adequate accounting records related to the non-Federal and Federal funds in order to properly prepare the financial statements accurately and in a timely manner. In addition, PRDH needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available on a timely manner.

Corrective Action Plan

For the fiscal year ended June 30, 2021, the PRDH was able to complete and issue the single audit report (SAR) by December 30, 2022, three months before the extended expiration date of March 31, 2023. The delay in the issuance of the 2021 SAR was mostly due to the COVID-19 pandemic.The delay in the issuance of the 2021 SAR resulted in the delay of the 2022 SAR. Soon after the issuance of the SAR for 2021, we contracted the services for the single audit of FY 2022. We plan to complete the audit and issue the 2022 SAR by July 31, 2023 and expect to fully comply with the Single Audit for fiscal year 2023. IMPLEMENTATION DATE Single Audit for fiscal year 2022-2023 Assistance Secretary for Finance and Administration

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43196 2022-002
    Significant Deficiency Repeat
  • 43197 2022-001
    Material Weakness
  • 43198 2022-002
    Significant Deficiency Repeat
  • 619637 2022-001
    Material Weakness
  • 619638 2022-002
    Significant Deficiency Repeat
  • 619639 2022-001
    Material Weakness
  • 619640 2022-002
    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 $2.15M
14.267 Continuum of Care Program $911,020
21.027 Coronavirus State and Local Fiscal Recovery Funds $560,000
10.558 Child and Adult Care Food Program $25,678