Finding 529129 (2024-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-20

AI Summary

  • Core Issue: The PRDH failed to report 24% of required subawards on time, violating FFATA reporting rules.
  • Impacted Requirements: Compliance with 2 CFR Part 170 mandates timely reporting of first-tier subawards of $30,000 or more to the FSRS.
  • Recommended Follow-Up: Provide training for staff on monitoring and reporting requirements to ensure timely and complete submissions to the FSRS.

Finding Text

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; B-22-DC-7201; B-23-DC-7201 (Federal Award Years 2014-2024) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CRITERIA In accordance with 2 CFR Part 170, establishes 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 24% (6 out of 25) required reports were submitted after the required due date. The summary of our tests results is: Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 25 0 6 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $732,071,556 $0 $3,387,966 $0 $0 QUESTIONED COSTS Not applicable. PERSPECTIVE INFORMATION A prior year finding related to this condition include the fact that all reports were submitted late after year end; this year we noted that 76% of the reports sample were filled on a timely manner by the program staff. STATEMENT OF CAUSE The PRDH staff have been implementing corrective actions regarding the compliance with this requirement related to the Federal Funding Accountability and Transparency Act (FFATA); however some reports related primarily to contract amendments were not filled on a timely manner. 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. 2023-002). 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.

Categories

Reporting Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 529128 2024-002
    Significant Deficiency Repeat
  • 1105570 2024-002
    Significant Deficiency Repeat
  • 1105571 2024-002
    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 $11.04M
14.267 Continuum of Care Program $916,634
21.027 Coronavirus State and Local Fiscal Recovery Funds $725,062
93.575 Child Care and Development Block Grant $208,510
10.558 Child and Adult Care Food Program $19,534