Finding 478072 (2020-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2020
Accepted
2024-07-10
Audit: 314786
Organization: La'i'opua 2020 (HI)

AI Summary

  • Issue: There are significant gaps in internal controls related to financial reporting for the Native Hawaiian Education Act Program and Covid Relief Funds.
  • Trend: This lack of control can lead to inaccuracies in financial statements and increased risk of mismanagement of funds.
  • Recommendation: Implement stronger internal controls and regular audits to ensure compliance and accurate reporting for both programs.

Finding Text

Lack of Internal Control over Financial Reporting, Native Hawaiian Education Act Program, Award Listing 84.362A and Covid Relief Funds, Award Listing 21.019

Corrective Action Plan

In response to the negative finding of the 2020 audit, immediate actions have been taken by L2020 to address the issues and prevent reoccurrence in the future. The individuals who were previously responsible for financial reporting and cash management during the audit are no longer employed at L2020. Going forward, Rebecca “Kawehi” Inaba, appointed as the Executive Director in late 2021, will take charge of ensuring that L2020 remains compliant with all financial requirements, including conducting audits in a timely manner. The organization expresses confidence in her ability to keep L2020 up to date with all financial obligations. In an effort to enhance control and oversight, L2020 will be instituting a quality control review process for all forthcoming report submissions. This measure aims to identify any discrepancies or delays in submissions, enabling corrective actions to be taken promptly. L2020 remains dedicated to upholding transparency and accountability in their financial practices. These proactive steps are crucial in enhancing processes and performance. The organization appreciates understanding and support as they strive for improved financial management practices at L2020.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 478073 2020-001
    Material Weakness
  • 1054514 2020-001
    Material Weakness Repeat
  • 1054515 2020-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $955,544
84.362 Native Hawaiian Education $620,178