Finding 634395 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-21
Audit: 56118
Auditor: N&k CPAS INC

AI Summary

  • Core Issue: Quarterly MOE Expenditure Reports were submitted late, violating the required 30-day deadline.
  • Impacted Requirements: Compliance with Uniform Guidance 2 CFR 200.329(c)(1) and the sub-recipient agreement with the State of Hawaii.
  • Recommended Follow-Up: Enhance internal processes to ensure timely submission of required reports to avoid data misrepresentation and funding issues.

Finding Text

Ref. No. Compliance and Internal Control over Compliance Findings 2022-001 Reporting - Significant Deficiency Federal Agency: Department of Health and Human Services Pass-Through Entity: State of Hawaii Department of Human Services Assistance Listing No.: 93.558 Program: Temporary Assistance for Needy Families (TANF) Criteria: Uniform Guidance 2 CFR 200.329(c)(1) states that the non-Federal entity must submit performance repots at the interval required by the Federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity. The sub-recipient agreement entered into with the State of Hawaii Department of Human Services required that a quarterly Maintenance of Effort (MOE) Expenditure Report be submitted no later than thirty (3) calendar days following the end of each quarter. Condition: During our audit, we noted two (2) quarters reviewed where the quarterly MOE was submitted more than 30 days after the quarter end. Cause: Lack of adherence to reporting requirements exhibited by key accounting personnel. Effect: Without an effective internal control system, untimely reporting could result in the misrepresentation of data and could adversely affect program outcomes and future funding. Recommendation The Organization should improve processes and procedures to ensure that quarterly reports required by the pass-through entity are completed and submitted on a timely basis. Views of Responsible Officials and Planned Corrective Action The Organization agrees with the finding and the recommendation. See Part IV Correction Action Plan.

Categories

Subrecipient Monitoring Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 57953 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $2.81M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $443,266
17.259 Wia Youth Activities $120,122
17.278 Wia Dislocated Worker Formula Grants $85,938
17.258 Wia Adult Program $71,560
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $53,205