Finding 524666 (2024-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-02-27

AI Summary

  • Core Issue: Financial transactions were not properly allocated to the correct federally funded programs, leading to potential fund commingling.
  • Impacted Requirements: This violates 2 CFR 200.302, which mandates accurate records for federally funded activities.
  • Recommended Follow-Up: Implement internal controls to ensure accurate transaction allocation and financial reporting for each federally funded program.

Finding Text

Financial Management System- (Material Weakness) Criteria: According to 2 CFR 200.302, the financial management system of each non-Federal entity must provide records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Condition: Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds. Cause: Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties. Effect: Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties. Questioned Cost: None noted Recommendation: Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties. Management's Views and Corrective Action Plan : Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost

Corrective Action Plan

We continue to review and update our procedures and process to insure that all financial transactions are properly allocated to programs/ properties funded with federal funds - Anticipated Completion Date-April 30, 2025.Responsible Contact Person-Kathleen Boyce, CFAO

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 524664 2024-001
    Material Weakness Repeat
  • 524665 2024-002
    - Repeat
  • 524667 2024-001
    Material Weakness Repeat
  • 524668 2024-002
    - Repeat
  • 524669 2024-003
    Material Weakness Repeat
  • 524670 2024-004
    - Repeat
  • 1101106 2024-001
    Material Weakness Repeat
  • 1101107 2024-002
    - Repeat
  • 1101108 2024-003
    Material Weakness Repeat
  • 1101109 2024-001
    Material Weakness Repeat
  • 1101110 2024-002
    - Repeat
  • 1101111 2024-003
    Material Weakness Repeat
  • 1101112 2024-004
    - Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $2.26M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $917,773
14.871 Section 8 Housing Choice Vouchers $338,939
10.427 Rural Rental Assistance Payments $99,305
10.769 Rural Business Enterprise Grants $60,000
10.415 Rural Rental Housing Loans $45,762