FAC Explorer

Finding 540510 (2024-006)

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: HTDC delayed disbursing federal funds, taking 229 days instead of the required 45 days.
  • Impacted Requirements: This delay violates National Guard cash management regulations, which mandate timely disbursement of funds.
  • Recommended Follow-Up: HTDC should establish internal controls and train staff on cash management requirements to prevent future delays.

Finding Text

Questioned Cost $- Finding No. 2024‐006: Cash Management (Material Weakness) State Agency: Hawaii Technology Development Corporation (HTDC) Federal Agency: Department of Defense AL Number and Title: 12.400 – Military Construction, National Guard Award Number and Award Year: W912J6-23-2-2102 2023 Repeat Finding? No Condition During our audit, we examined four haphazardly selected cash disbursements and identified an instance totaling approximately $60,000 in which the time elapsing between the receipt of the federal cash draw and the disbursement to vendor was greater than 45 days. For this instance, the time elapsed was 229 days. While the expenditures were allowable costs under the master cooperative agreement, the State did not disburse these federal advances within National Guard Bureau requirements. Criteria National Guard Regulations 5-1, National Guard Grants and Cooperative Agreements Chapter 11-5: Advance Payment Method, requires the State to minimize the time elapsing between the transfer of funds from the federal government and its disbursement to no more than 45 days. Effect The delay in disbursing advances of federal funding results in the State not complying with federal cash management requirements. Cause and View of Responsible Officials The delay was attributed to the draw down of federal funds by the State Department of Defense and transferring the funds to HTDC for disbursement to contractors. Recommendation We recommend that HTDC design and implement internal controls over the monitoring of cash management and ensure personnel are aware of cash management requirements.

Corrective Action Plan

Finding No: 2024-006 ALN No.: 12.400 Program Title: Military Construction, National Guard Grant Award No.: W912J6-23-2-2101 2023 Condition During our audit, we examined four haphazardly selected cash disbursements and identified an instance totaling approximately $60,000 in which the time elapsing between the receipt of the federal cash draw and the disbursement to vendor was greater than 45 days. For this instance, the time elapsed was 229 days. While the expenditures were allowable costs under the master cooperative agreement, the State did not disburse these federal advances within National Guard Bureau requirements. Corrective Action Plan HCATT will continue in the management, validation, and process of invoices in close coordination with the 154th Wing, United States Property and Fiscal Office, and contractors as directed by NGR 5-1. HCATT had previously established internal procedures which included regularly scheduled meetings with the 154th Wing in which all parties ensured invoiced tasks were completed per contract, that disbursements were made from the appropriate agreement, and federal cash management process were initiated. We will continue with those procedures. As mentioned in the finding, the draw was done by the State Department of Defense and then transferred to HTDC. HCATT will work with the State Department of Defense on synchronizing our efforts with the National Guard Bureau. Person Responsible David Molinaro, HCATT Manager Anticipated Date of Completion March 17, 2025

Categories

Cash Management

Other Findings in this Audit

  • 540509 2024-005
    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