FAC Explorer

Finding 540443 (2024-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-28
Audit: 350255
Organization: City and County of Honolulu (HI)
Auditor: Kmh LLP

AI Summary

  • Issue: The City failed to pay subrecipients within 30 days for allowable costs, violating 24 CFR section 576.203.
  • Impact: Out of 18 payments tested, 10 were late, leading to noncompliance with federal requirements.
  • Recommendation: The City should improve diligence in reviewing invoices to ensure timely payments and compliance.

Finding Text

Criteria: In accordance with 24 CFR section 576.203, the recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: The City did not pay subrecipient for allowable costs within 30 days as required by 24 CFR section 576.203. Context: We selected 18 subrecipient payments for testing and noted 10 were not paid within 30 days. Cause: Based on discussions with City personnel, it was noted that the delay in payments was due to a lack of diligence in completing timely reviews of invoices. Effect: Failure to make timely payments resulted in noncompliance with the special tests and provisions requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: N/A Recommendation: We recommend that the City be diligent in completing timely reviews to ensure that it complies with the requirement. Views of Responsible Officials: Client agrees with finding, and the unabridged version of their response can be found in the Corrective Action Plan. Please see the Corrective Action Plan issued by the City.

Corrective Action Plan

Finding No. 2024-003: Special Test and Provisions (Material Noncompliance and Material Weakness – Federal Awards) Federal Award: 14.231 – Emergency Solutions Grant Program Audit Recommendation: We recommend that the City be diligent in completing timely reviews to ensure that it complies with the requirements. Administration’s Comment: The City will follow review procedures diligently to ensure timely payments of subrecipients. Anticipated Completion Date: January 2024 Contact Person(s): Steven Hayama, Department of Budget and Fiscal Services, Fiscal Officer II

Categories

Special Tests & Provisions Subrecipient Monitoring Allowable Costs / Cost Principles

Other Findings in this Audit

  • 540441 2024-002
    Significant Deficiency Repeat
  • 540442 2024-002
    Significant Deficiency Repeat
  • 540444 2024-003
    Material Weakness
  • 1116883 2024-002
    Significant Deficiency Repeat
  • 1116884 2024-002
    Significant Deficiency Repeat
  • 1116885 2024-003
    Material Weakness
  • 1116886 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.500 Federal Transit Capital Investment Grants $188.75M
21.027 Coronavirus State and Local Fiscal Recovery Funds $73.61M
20.507 Federal Transit Formula Grants $58.88M
66.458 Clean Water State Revolving Fund $22.45M
14.218 Community Development Block Grants/entitlement Grants $9.83M
14.871 Section 8 Housing Choice Vouchers $7.15M
14.239 Home Investment Partnerships Program $4.42M
97.067 Homeland Security Grant Program $3.78M
14.879 Mainstream Vouchers $1.68M
95.001 High Intensity Drug Trafficking Areas Program $1.44M
16.575 Crime Victim Assistance $1.42M
17.258 Wioa Adult Program $1.08M
17.259 Wioa Youth Activities $1.02M
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $975,445
20.205 Highway Planning and Construction $968,620
14.231 Emergency Solutions Grant Program $933,457
93.558 Temporary Assistance for Needy Families $930,457
17.278 Wioa Dislocated Worker Formula Grants $573,592
14.241 Housing Opportunities for Persons with Aids $534,659
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $522,740
97.044 Assistance to Firefighters Grant $510,374
20.616 National Priority Safety Programs $471,631
97.045 Cooperating Technical Partners $462,468
20.600 State and Community Highway Safety $419,322
16.741 Dna Backlog Reduction Program $394,320
93.053 Nutrition Services Incentive Program $362,236
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $335,385
97.042 Emergency Management Performance Grants $334,555
10.559 Summer Food Service Program for Children $290,005
20.607 Alcohol Open Container Requirements $282,404
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $222,907
14.896 Family Self-Sufficiency Program $222,595
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $208,382
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $166,958
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $166,685
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $152,380
97.039 Hazard Mitigation Grant $151,808
16.922 Equitable Sharing Program $147,611
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $147,202
16.710 Public Safety Partnership and Community Policing Grants $133,173
93.136 Injury Prevention and Control Research and State and Community Based Programs $127,231
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $124,183
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $121,737
10.723 Community Project Funds - Congressionally Directed Spending $116,250
16.738 Edward Byrne Memorial Justice Assistance Grant Program $106,002
93.052 National Family Caregiver Support, Title Iii, Part E $89,981
10.935 Urban Agriculture and Innovative Production $80,000
16.588 Violence Against Women Formula Grants $78,015
17.274 Youthbuild $75,848
16.825 Smart Prosecution Initiative $70,000
16.320 Services for Trafficking Victims $51,686
66.046 Climate Pollution Reduction Grants $33,693
84.287 Twenty-First Century Community Learning Centers $32,189
21.023 Emergency Rental Assistance Program $28,288
16.034 Coronavirus Emergency Supplemental Funding Program $27,496
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $22,995
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $6,552
21.016 Equitable Sharing $5,215
10.575 Farm to School Grant Program $3,261