Finding 968057 (2023-004)

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Ref. No. Compliance and Internal Control over Compliance Findings 2023-004 Reporting - Significant Deficiency Federal agency: Department of Housing and Urban Development Programs Pass-Through Entity: N/A - Direct Program: ALN No. 14.228 Community Development Block Grants / State’s Programs and Non-Entitlement Grants in Hawaii Criteria: Section 15011 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) required that recipients of $150,000 or more of CARES Act funding submit, not later than 10 days after the end of each calendar quarter, a report containing information regarding the use and amount of CARES Act funds received; the amount of funds obligated and expended for each project or activity; a detailed list of all such projects or activities, including a description of the project or activity; and detailed information on any subcontracts or subgrants awarded by the recipient. Condition: During our testing of the reporting compliance requirement, we noted four (4) out of 4 instances where the quarterly report documenting the items required by Section 15011 of the CARES Act was not reviewed and/or submitted within 10 days after the quarter end. Cause: Lack of adherence to reporting requirements displayed by the Community Development Block Grant (CDBG) Program personnel. Effect: Without an effective internal control system, failure to timely review and submit reports as required by Section 15011 of the CARES Act could result in the misrepresentation of data and could adversely affect the program outcomes and future funding. Questioned Cost: $ -- Recommendation The County should improve their internal control process to ensure that quarterly reports required by Section 15011 of the CARES Act are completed and submitted on a timely basis. Views of Responsible Officials and Planned Corrective Action The County agrees with the finding and the recommendation. See Part IV Corrective Action Plan.