Finding Text
In the current year, the auditor expressed an unmodified opinion on the compliance for the major federal award programs of CCH. However, the following instance of noncompliance in accordance with the Uniform Guidance and a significant deficiency of internal control over compliance are described below in Finding 2024-001. Finding 2024-001: Coronavirus State and Local Fiscal Recovery Funds (AL No. 21.027) Criteria – In accordance with Code of Federal Regulations §200.510, Schedule of Expenditures of Federal Awards (SEFA), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements that includes the total Federal awards expended. Condition – During our review of the contracts and the source of funding of the Coronavirus State and Local Fiscal Recovery Funds (AL No. 21.027), it was noted that one of the contracts and the related expenditures included on the SEFA was from State of Hawaii funds and not Federal funds. Cause – CCH receives both Federal and State contracts passed through the State of Hawaii, Department of Human Services, Homeless Programs Office (HPO). The $600,000 of expenditures from contract DHS-25-HPO-0075 was incorrectly included on the SEFA as expenditures of Federal awards. Effect – After discovering this issue during the audit, the SEFA was revised by CCH to remove expenditures related to contract DHS-25-HPO-0075. The auditor revised the single audit testing after receiving the revised SEFA to exclude expenditures related to this contract. Question Costs – There were no questioned costs associated with this finding as no unallowable expenditures were noted. Recommendation – CCH should implement a control to ensure that the SEFA is accurate and complete, and only includes expenditures of Federal funds, prior to the start of the audit. Responsible Official’s Response and Corrective Action – Refer to the Corrective Action Plan.