FAC Explorer

Finding 624137 (2022-016)

Significant Deficiency
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2023-03-23
Audit: 40897
Organization: State of Hawaii, Department of Accounting and General Services (HI)
Auditor: Accuity LLP

AI Summary

  • Core Issue: The audit found no evaluation of subrecipients' risk of noncompliance, which is required for proper monitoring.
  • Impacted Requirements: Compliance with 2 CFR Sections 200.332(b) and (d) regarding risk assessment and monitoring of subrecipients.
  • Recommended Follow-Up: Program management should ensure staff understand grant requirements and develop procedures for evaluating subrecipients' risk of noncompliance.

Finding Text

See Schedule of Findings and Questioned Costs for chart/table. Condition During our audit, we examined a non statistical sample of six subawards and found no evidence of evaluation of any of the subrecipients? risk of noncompliance at the time of the subaward. Furthermore, the most recent Single Audit report for one of the subrecipients selected for testing was not reviewed by program personnel for any potential findings. Criteria Per 2 CFR Section 200.332(b), a pass-through entity is required to evaluate each subrecipient?s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring procedures related to the subaward. Per 2 CFR Section 200.332(d), a pass-through entity is required to monitor the activities of the subrecipient as necessary to ensure the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. Monitoring must include a review of financial performance reports, following up with the subrecipient to ensure timely and appropriate action on all deficiencies, issuing management decision for applicable audit findings, resolving audit findings, and verifying that each subrecipient is audited as required by 2 CFR 200, Subpart F. Effect Without evaluating the subrecipient?s risk of noncompliance and determining the appropriate subrecipient monitoring procedures necessary, the State may not be providing the appropriate level of monitoring over its subrecipients. Cause and View of Responsible Officials Due to changes in personnel responsibilities, there was miscommunication between the parties responsible for evaluating the risk of noncompliance. Furthermore, the Single Audit report for one of the subrecipients was not reviewed due to oversight as the program personnel was unaware that the subrecipient is separately audited. Recommendation We recommend that program management ensure that program personnel are familiar with all grant requirements, including compliance with 2 CFR Part 200 which requires the reporting of all necessary federal award information to subrecipients and risk assessments of subrecipients. Management should develop procedures that ensure the State department?s responsibilities as a pass-through entity are fulfilled, including a formal analysis of each subrecipient?s risk of noncompliance with each of the respective subaward requirements. This evaluation of risk may include consideration of such factors as the following: The subrecipient?s prior experience with the same or similar subawards; The results of previous audits including whether or not the subrecipient receives a single audit in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward was audited as a major program; Whether the subrecipient has new personnel or new or substantially changed systems; and The extent and results of Federal awarding agency monitoring (e.g., if the subrecipient also receives Federal awards directly from a Federal awarding agency).

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 39921 2022-006
    Material Weakness Repeat
  • 39922 2022-005
    Significant Deficiency
  • 39923 2022-006
    Material Weakness Repeat
  • 39924 2022-005
    Significant Deficiency
  • 39925 2022-007
    Significant Deficiency Repeat
  • 39926 2022-010
    Significant Deficiency
  • 39927 2022-009
    Significant Deficiency
  • 39928 2022-008
    Significant Deficiency
  • 39929 2022-012
    Significant Deficiency
  • 39930 2022-011
    Significant Deficiency
  • 47692 2022-014
    Material Weakness
  • 47693 2022-015
    Significant Deficiency
  • 47694 2022-013
    Material Weakness
  • 47695 2022-016
    Significant Deficiency
  • 616363 2022-006
    Material Weakness Repeat
  • 616364 2022-005
    Significant Deficiency
  • 616365 2022-006
    Material Weakness Repeat
  • 616366 2022-005
    Significant Deficiency
  • 616367 2022-007
    Significant Deficiency Repeat
  • 616368 2022-010
    Significant Deficiency
  • 616369 2022-009
    Significant Deficiency
  • 616370 2022-008
    Significant Deficiency
  • 616371 2022-012
    Significant Deficiency
  • 616372 2022-011
    Significant Deficiency
  • 624134 2022-014
    Material Weakness
  • 624135 2022-015
    Significant Deficiency
  • 624136 2022-013
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.34B
17.225 Unemployment Insurance $680.40M
21.023 Emergency Rental Assistance Program $166.99M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $100.82M
21.026 Homeowner Assistance Fund $49.98M
12.401 National Guard Military Operations and Maintenance (o&m) Projects $22.54M
64.005 Grants to States for Construction of State Home Facilities $18.82M
84.425C Education Stabilization Fund $12.80M
20.500 Federal Transit_capital Investment Grants $8.20M
12.404 National Guard Challenge Program $5.14M
64.203 State Cemetery Grants $4.41M
10.569 Emergency Food Assistance Program (food Commodities) $4.22M
97.067 Homeland Security Grant Program $4.21M
97.042 Emergency Management Performance Grants $3.61M
15.611 Wildlife Restoration and Basic Hunter Education $3.26M
17.207 Employment Service/wagner-Peyser Funded Activities $2.77M
17.259 Wia Youth Activities $2.71M
15.605 Sport Fish Restoration Program $2.69M
11.419 Coastal Zone Management Administration Awards $2.59M
17.258 Wia Adult Program $2.33M
97.047 Pre-Disaster Mitigation $2.30M
15.615 Cooperative Endangered Species Conservation Fund $2.13M
97.050 Presidential Declared Disaster Assistance to Individuals and Households - Other Needs $1.70M
93.569 Community Services Block Grant $1.63M
15.634 State Wildlife Grants $1.60M
17.278 Wia Dislocated Worker Formula Grants $1.58M
10.565 Commodity Supplemental Food Program $1.46M
17.277 Workforce Investment Act (wia) National Emergency Grants $1.44M
90.404 2018 Hava Election Security Grants $1.40M
45.025 Promotion of the Arts_partnership Agreements $1.40M
17.503 Occupational Safety and Health_state Program $1.36M
11.307 Economic Adjustment Assistance $1.27M
93.558 Temporary Assistance for Needy Families $1.25M
10.664 Cooperative Forestry Assistance $1.16M
17.235 Senior Community Service Employment Program $1.09M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.03M
97.056 Port Security Grant Program $1.02M
11.611 Manufacturing Extension Partnership $856,904
39.003 Donation of Federal Surplus Personal Property $834,139
20.205 Highway Planning and Construction $751,429
15.614 Coastal Wetlands Planning, Protection and Restoration Program $729,205
11.482 Coral Reef Conservation Program $711,410
97.012 Boating Safety Financial Assistance $692,899
10.568 Emergency Food Assistance Program (administrative Costs) $668,841
81.041 State Energy Program $654,716
12.617 Economic Adjustment Assistance for State Governments $634,949
12.114 Collaborative Research and Development $621,184
15.916 Outdoor Recreation_acquisition, Development and Planning $606,984
59.061 State Trade and Export Promotion Pilot Grant Program $595,813
11.472 Unallied Science Program $517,002
11.437 Pacific Fisheries Data Program $483,887
15.904 Historic Preservation Fund Grants-in-Aid $469,244
10.170 Specialty Crop Block Grant Program - Farm Bill $462,455
17.285 Apprenticeship USA Grants $440,286
10.576 Senior Farmers Market Nutrition Program $426,996
17.504 Consultation Agreements $425,311
11.473 Office for Coastal Management $424,790
10.680 Forest Health Protection $401,901
17.801 Jobs for Veterans State Grants $396,935
17.005 Compensation and Working Conditions $382,740
81.087 Renewable Energy Research and Development $377,651
17.245 Trade Adjustment Assistance $336,722
93.568 Low-Income Home Energy Assistance $318,696
16.575 Crime Victim Assistance $316,991
15.657 Endangered Species Conservation ? Recovery Implementation Funds $311,556
11.467 Meteorologic and Hydrologic Modernization Development $297,340
10.525 Farm and Ranch Stress Assistance Network Competitive Grants Program (b) $287,131
93.779 Centers for Medicare and Medicaid Services (cms) Research, Demonstrations and Evaluations $278,779
81.042 Weatherization Assistance for Low-Income Persons $275,023
11.429 Marine Sanctuary Program $261,053
17.002 Labor Force Statistics $247,599
15.670 Adaptive Science $247,028
15.875 Economic, Social, and Political Development of the Territories $218,527
66.605 Performance Partnership Grants $209,061
93.103 Food and Drug Administration_research $198,221
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $195,775
66.460 Nonpoint Source Implementation Grants $188,376
16.034 Coronavirus Emergency Supplemental Funding Program $182,107
17.268 H-1b Job Training Grants $172,833
15.660 Endangered Species - Candidate Conservation Action Funds $155,747
97.132 Financial Assistance for Countering Violent Extremism $155,151
17.271 Work Opportunity Tax Credit Program (wotc) $152,978
30.002 Employment Discrimination State and Local Fair Employment Practices Agency Contracts $151,177
10.676 Forest Legacy Program $139,854
10.675 Urban and Community Forestry Program $136,856
16.606 State Criminal Alien Assistance Program $127,023
10.025 Plant and Animal Disease, Pest Control, and Animal Care $126,736
66.461 Regional Wetland Program Development Grants $124,204
17.804 Local Veterans' Employment Representative Program $122,414
14.401 Fair Housing Assistance Program_state and Local $120,419
97.045 Cooperating Technical Partners $107,135
10.555 National School Lunch Program $104,483
66.001 Air Pollution Control Program Support $99,895
16.839 Stop School Violence $88,643
97.041 National Dam Safety Program $85,289
16.593 Residential Substance Abuse Treatment for State Prisoners $80,356
17.273 Temporary Labor Certification for Foreign Workers $72,728
10.678 Forest Stewardship Program $69,750
11.U01 National Oceanic and Atmosphere Administration Management Support for Hawaiian Islands Humpback Whale, Joint Enforcement Agreement $62,364
84.048A Career and Technical Education Basic Grants to States $59,180
97.023 Community Assistance Program State Support Services Element (cap-Ssse) $58,353
10.553 School Breakfast Program $57,333
90.401 Help America Vote Act Requirements Payments $49,376
11.407 Interjurisdictional Fisheries Act of 1986 $48,000
10.179 Micro-Grants for Food Security Program $43,668
15.608 Fish and Wildlife Management Assistance $42,336
16.738 Edward Byrne Memorial Justice Assistance Grant Program $33,664
11.999 Marine Debris Program $32,984
93.566 Refugee and Entrant Assistance_state Administered Programs $31,837
97.082 Earthquake Consortium $30,641
15.623 North American Wetlands Conservation Fund $30,000
11.452 Unallied Industry Projects $28,450
59.058 Federal and State Technology Partnership Program $28,253
15.944 Natural Resource Stewardship $27,005
10.351 Rural Business Development Grant $26,080
21.016 Equitable Sharing $23,394
10.674 Wood Utilization Assistance $19,446
15.631 Partners for Fish and Wildlife $16,792
16.751 Edward Byrne Memorial Competitive Grant Program $16,734
16.922 Equitable Sharing Program $14,518
10.934 Feral Swine Eradication and Control Pilot Program (c, Z) $12,824
81.119 State Energy Program Special Projects $11,030
10.163 Market Protection and Promotion $6,000
10.162 Inspection Grading and Standardization $5,886
97.008 Non-Profit Security Program $4,805
11.413 Fishery Products Inspection and Certification $4,246
12.400 Military Construction, National Guard $2,042