Finding 504516 (2023-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-11-04

AI Summary

  • Answer: There is a significant discrepancy of $14,966,519 between the grants reported in the Administrative and Performance Reports and those in the Schedule of Expenditures and Federal Awards.
  • Trend: This lack of reconciliation indicates a potential issue in financial reporting processes that could affect future audits.
  • List: Follow up by investigating the source of the discrepancy, ensuring accurate reporting, and implementing reconciliation procedures.

Finding Text

We compared the amount of grants awarded as per the Administrative and Performance Reports submitted to the PRDOH with the amount reported in the Schedule of Expenditures and Federal Awards and noted a difference of $14,966,519 that was not reconciled.

Corrective Action Plan

Management agrees with the facts presented by the auditors. The EDB, as Subrecipient, performs the closings of CDBG-DR SBF Grants and enters each transaction’s information in a system provided by the CDBG-DR SBF Recipient and its Consultants. The Administrative and Performance Reports, referred to by the auditor, are automatically generated by the Award Management system and other systems provided by the Recipient to us. The difference reflected between the Bank’s records and the Administrative and Performance Reports results from a system’s bug that is solely under the control of the Recipient and its Consultants. The differences herein indicated were informed to the Recipient and its Consultants to be corrected.

Categories

Reporting

Other Findings in this Audit

  • 504517 2023-003
    Significant Deficiency Repeat
  • 504518 2023-004
    Significant Deficiency Repeat
  • 504519 2023-005
    Significant Deficiency
  • 504520 2023-006
    Material Weakness Repeat
  • 504521 2023-007
    Significant Deficiency Repeat
  • 1080958 2023-002
    Material Weakness Repeat
  • 1080959 2023-003
    Significant Deficiency Repeat
  • 1080960 2023-004
    Significant Deficiency Repeat
  • 1080961 2023-005
    Significant Deficiency
  • 1080962 2023-006
    Material Weakness Repeat
  • 1080963 2023-007
    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 $82.69M