Finding Text
Finding No. 2021-003: Procurement U.S. Department of Housing and Urban Development Passed Through the State of Hawaii Department of Human Services Emergency Solutions Grant Program Coronavirus Federal Assistance Listing Number 14.231 Criteria - Pursuant to Title 2, Subtitle A, Chapter II, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), a non-Federal entity, including subrecipients of a State, must have and use documented procurement standards that conform to the procurement standards of §200.318 through §200.327 of the Uniform Guidance. Condition - We noted that KMNH did not adopt procurement standards compliant with sections §200.318 through §200.327 of the Uniform Guidance. Cause-Management had not updated its policies and procedures to incorporate the relevant Uniform Guidance procurement standards. Effect-The lack of the procurement standards consistent with the Uniform Guidance could result in a material misstatement of KMNH's expenditures as reported in the statement of expenditures of federal awards. Recommendation - We recommend that KMNH incorporate §200.318 through §200.327 of the Uniform Guidance procurement standards to their policies and procedures manual to ensure compliance with Federal standards.