FAC Explorer

Finding 540509 (2024-005)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-03-28
Audit: 350263
Organization: State of Hawaii, Department of Accounting and General Services (HI)
Auditor: Accuity LLP

AI Summary

  • Core Issue: The State took too long to disburse federal funds, with delays ranging from 48 to 137 days, violating federal cash management requirements.
  • Impacted Requirements: 31 CFR Section 205.33 mandates that disbursement of federal funds should occur as soon as administratively feasible, ideally within 25 days.
  • Recommended Follow-Up: Implement better monitoring controls, train staff on federal requirements, and ensure adequate staffing to improve compliance.

Finding Text

Questioned Cost $- Finding No. 2024‐005: Cash Management (Material Weakness) State Agency: Department of Agriculture Federal Agency: Department of Agriculture AL Number and Title: 10.179 – Micro-Grants for Food Security Program Award Number and Award Year: AM200100XXXXG132 2020 21MGFSPHI1003-00 2021 AM22MGFSPHI1007-04 2022 23MGFSPHI1011-00 2023 Repeat Finding? No Condition During our audit, we examined 25 haphazardly selected drawdowns and identified 25 instances totaling approximately $55,000 in which the time elapsing between the receipt of federal award and the disbursement was greater than 25 days, ranging from 48 to 137 days. While the expenditures were allowable costs under the grant, it does not appear the State disbursed these federal advances as soon as administratively feasible. Criteria 31 CFR Section 205.33 requires the State to minimize the time between the receipt of federal funds from the federal government and the State’s disbursement of the funds for federal program purposes. Therefore, the timing and amount of funds being requested and received must be as close as administratively feasible to the State’s actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs. Based on our testing, we determined 25 days to be a reasonable period of time to disburse cash after receipt from the federal government. Effect Without minimizing time between the drawdown and disbursement of federal funds, the State is not in compliance with federal requirements. Cause and View of Responsible Officials The lag in disbursing funds was due to the limited personnel assigned to this program in comparison to the volume of disbursements to beneficiaries. Recommendation The State department should design and implement controls over monitoring cash management timeliness requirements, ensure program personnel are aware of all federal program requirements, and ensure there is adequate staffing for the program to comply with federal requirements.

Corrective Action Plan

Finding No: 2024 005 ALN No.: 10.179 Program Title: Micro Grants for Food Security Program Grant Award No.: AM200100XXXXG132 2020 21MGFSPHI1003-00 2021 AM22MGFSPHI1007-04 2022 23MGFSPHI1011-00 2023 Condition The audit identified 25 instances totaling $55,000 where grantee disbursements were not made as soon as administratively possible after the drawdown of Federal Funds. Audit staff determined 25 days to be a reasonable period to disburse cash after drawdown from the Federal Government. Corrective Action Plan Concur. The Hawaii Department of Agriculture (HDOA) will change administrative procedures for disbursement of Federal funds under the Micro Grants for Food Security Program. Going forward, HDOA will process the grant contracts and payments in batches of roughly 100 micro grants per month. Federal Drawdown will not occur until the full batch of 100 contracts have been executed. HDOA fiscal staff will then expedite the payment process to ensure conformity with the 25 day disbursement timeline. Person Responsible Brendan Akamu, Market Development Branch Manager Anticipated Date of Completion The updated work process will be implemented in April 2025. The first batch of grant contracts and payments for the 2023 Fiscal year awards are scheduled for April 2025.

Categories

Cash Management Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 540510 2024-006
    Material Weakness
  • 540511 2024-007
    Material Weakness Repeat
  • 540512 2024-007
    Material Weakness Repeat
  • 540513 2024-008
    Significant Deficiency Repeat
  • 540514 2024-008
    Significant Deficiency Repeat
  • 540515 2024-008
    Significant Deficiency Repeat
  • 1116951 2024-005
    Material Weakness
  • 1116952 2024-006
    Material Weakness
  • 1116953 2024-007
    Material Weakness Repeat
  • 1116954 2024-007
    Material Weakness Repeat
  • 1116955 2024-008
    Significant Deficiency Repeat
  • 1116956 2024-008
    Significant Deficiency Repeat
  • 1116957 2024-008
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $260.52M
21.027 Coronavirus State and Local Fiscal Recovery Funds $31.50M
12.401 National Guard Military Operations and Maintenance (o&m) Projects $22.56M
21.026 Homeowner Assistance Fund $16.43M
17.258 Wioa Adult Program $11.12M
97.067 Homeland Security Grant Program $9.70M
10.569 Emergency Food Assistance Program (food Commodities) $7.44M
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $6.84M
15.615 Cooperative Endangered Species Conservation Fund $6.32M
15.611 Wildlife Restoration and Basic Hunter Education and Safety $4.78M
12.404 National Guard Challenge Program $4.66M
17.259 Wioa Youth Activities $3.39M
21.029 Coronavirus Capital Projects Fund $3.38M
15.657 Endangered Species Recovery Implementation $3.07M
10.179 Micro-Grants for Food Security Program $2.99M
15.605 Sport Fish Restoration $2.85M
97.042 Emergency Management Performance Grants $2.67M
64.005 Grants to States for Construction of State Home Facilities $2.66M
15.634 State Wildlife Grants $2.50M
11.419 Coastal Zone Management Administration Awards $2.28M
21.031 State Small Business Credit Initiative Technical Assistance Grant Program $2.21M
12.400 Military Construction, National Guard $2.20M
17.278 Wioa Dislocated Worker Formula Grants $2.10M
17.207 Employment Service/wagner-Peyser Funded Activities $1.77M
17.225 Unemployment Insurance $1.63M
64.203 Veterans Cemetery Grants Program $1.62M
10.565 Commodity Supplemental Food Program $1.50M
17.503 Occupational Safety and Health State Program $1.32M
11.307 Economic Adjustment Assistance $1.26M
39.003 Donation of Federal Surplus Personal Property $1.22M
10.664 Cooperative Forestry Assistance $1.04M
11.611 Manufacturing Extension Partnership $1.02M
17.235 Senior Community Service Employment Program $998,688
10.912 Environmental Quality Incentives Program $950,911
45.025 Promotion of the Arts Partnership Agreements $927,484
97.012 Boating Safety Financial Assistance $881,516
15.614 Coastal Wetlands Planning, Protection and Restoration $873,225
81.041 State Energy Program $868,670
15.916 Outdoor Recreation Acquisition, Development and Planning $802,140
12.017 Readiness and Environmental Protection Integration (repi) Program $745,302
17.002 Labor Force Statistics $736,448
17.504 Consultation Agreements $733,248
20.219 Recreational Trails Program $692,112
81.042 Weatherization Assistance for Low-Income Persons $647,930
12.114 Collaborative Research and Development $645,311
11.482 Coral Reef Conservation Program $638,134
93.558 Temporary Assistance for Needy Families $621,587
15.904 Historic Preservation Fund Grants-in-Aid $614,605
17.801 Jobs for Veterans State Grants $589,996
10.576 Senior Farmers Market Nutrition Program $574,456
11.469 Congressionally Identified Awards and Projects $564,584
11.472 Unallied Science Program $562,460
10.568 Emergency Food Assistance Program (administrative Costs) $523,986
11.035 Broadband Equity, Access, and Deployment Program $499,756
59.061 State Trade Expansion $494,846
11.473 Office for Coastal Management $475,401
97.039 Hazard Mitigation Grant $474,845
84.425 Education Stabilization Fund $474,345
10.170 Specialty Crop Block Grant Program - Farm Bill $455,870
11.467 Meteorologic and Hydrologic Modernization Development $441,491
10.698 State & Private Forestry Cooperative Fire Assistance $420,964
93.423 1332 State Innovation Waivers $409,364
11.032 State Digital Equity Planning and Capacity Grant $398,167
11.437 Pacific Fisheries Data Program $396,128
10.025 Plant and Animal Disease, Pest Control, and Animal Care $389,912
97.132 Financial Assistance for Targeted Violence and Terrorism Prevention $368,110
93.568 Low-Income Home Energy Assistance $365,066
93.569 Community Services Block Grant $355,123
21.023 Emergency Rental Assistance Program $334,243
81.087 Renewable Energy Research and Development $328,163
15.875 Economic, Social, and Political Development of the Territories $327,914
66.605 Performance Partnership Grants $317,733
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $300,932
16.753 Congressionally Recommended Awards $273,000
66.046 Climate Pollution Reduction Grants $251,589
10.680 Forest Health Protection $249,284
97.137 State and Local Cybersecurity Grant Program Tribal Cybersecurity Grant Program $248,766
97.041 National Dam Safety Program $240,008
97.056 Port Security Grant Program $225,994
17.271 Work Opportunity Tax Credit Program (wotc) $223,145
20.500 Federal Transit Capital Investment Grants $198,457
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $197,958
11.407 Interjurisdictional Fisheries Act of 1986 $197,267
10.934 Feral Swine Eradication and Control Pilot Program $194,592
15.660 Candidate Species Conservation $193,187
10.676 Forest Legacy Program $191,816
15.669 Cooperative Landscape Conservation $186,947
12.632 Legacy Resource Management Program $184,924
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $181,764
16.922 Equitable Sharing Program $177,132
30.002 Employment Discrimination_state and Local Fair Employment Practices Agency Contracts $176,366
11.429 Marine Sanctuary Program $168,200
10.675 Urban and Community Forestry Program $159,483
10.553 School Breakfast Program $151,802
15.630 Coastal $147,300
17.285 Registered Apprenticeship $143,506
16.593 Residential Substance Abuse Treatment for State Prisoners $142,996
93.103 Food and Drug Administration Research $138,184
20.205 Highway Planning and Construction $137,821
97.045 Cooperating Technical Partners $127,530
16.737 Gang Resistance Education and Training $122,576
16.575 Crime Victim Assistance $121,486
12.617 Economic Adjustment Assistance for State Governments $110,168
66.461 Regional Wetland Program Development Grants $107,826
10.678 Forest Stewardship Program $98,164
97.008 Non-Profit Security Program $94,355
84.048 Career and Technical Education -- Basic Grants to States $92,000
97.111 Regional Catastrophic Preparedness Grant Program (rcpgp) $90,807
10.525 Farm and Ranch Stress Assistance Network Competitive Grants Program $81,132
90.401 Help America Vote Act Requirements Payments $80,187
66.460 Nonpoint Source Implementation Grants $72,147
17.245 Trade Adjustment Assistance $71,489
15.608 Fish and Aquatic Conservation - Aquatic Invasive Species $70,828
14.401 Fair Housing Assistance Program $68,128
59.079 Cybersecurity for Small Business Pilot Program $66,500
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $55,992
11.463 Habitat Conservation $49,140
81.254 Grid Infrastructure Deployment and Resilience $47,140
93.136 Injury Prevention and Control Research and State and Community Based Programs $40,644
90.404 Hava Election Security Grants $39,117
17.273 Temporary Labor Certification for Foreign Workers $36,414
11.U01 National Oceanic and Atmosphere Administration – Management Support for Hawaiian Islands Humpback Whale, Joint Enforcement Agreement $34,070
15.663 Nfwf-Usfws Conservation Partnership $32,136
32.011 Affordable Connectivity Outreach Grant Program $25,741
15.944 Natural Resource Stewardship $23,572
10.674 Wood Utilization Assistance $22,579
12.300 Basic and Applied Scientific Research $20,975
97.047 Bric: Building Resilient Infrastructure and Communities $17,633
17.289 Community Project Funding/congressionally Directed Spending $14,819
10.162 Inspection Grading and Standardization $13,765
11.452 Unallied Industry Projects $10,700
15.623 North American Wetlands Conservation Fund $10,513
15.554 Cooperative Watershed Management $7,875
10.163 Market Protection and Promotion $7,800
16.606 State Criminal Alien Assistance Program $4,279
11.439 Marine Mammal Data Program $4,208
15.507 Watersmart (sustain and Manage America’s Resources for Tomorrow) $3,539
11.454 Unallied Management Projects $3,310
10.727 Inflation Reduction Act Urban & Community Forestry Program $2,227
17.270 Reentry Employment Opportunities $196