Finding Text
FINDING REFERENCE NUMBER 2023-001
FEDERAL PROGRAM (ALN – 14.228) COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII
(ALN – 14.228) COVID19 – COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AWARD NUMBERS B-14-DC-7201 ~ B-19-DC-72-0001; B-17-DM-7201; B-18-DP-7201; B-20-DW-72-0001 (Federal Award Years 2014-2023)
COMPLIANCE REQUIREMENT REPORTING
TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS
CRITERIA 2 CFR § 200.512 Report Submission, (a) (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.
STATEMENT OF CONDITION PRDH did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2023 during the required period.
QUESTIONED COSTS None
PERSPECTIVE INFORMATION PRDH was unable to provide timely financial statements and related supporting documentation in order to apply required audit procedures.
STATEMENT OF CAUSE PRDH did not have an effective accounting system and procedures to assure that the required financial statements and supporting documentation was made available for audit purposes within the required period established to comply with the Federal regulations.
POSSIBLE ASSERTED EFFECT PRDH did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. In addition, for the next two (2) fiscal years PRDH cannot be considered by the auditor as a low risk auditee.
IDENTIFICATION AS A REPEAT FINDING This is a repeat finding (Finding Reference No. 2022-001).
RECOMMENDATION We recommend the PRDH maintain adequate accounting records related to the non-Federal and Federal funds in order to properly prepare the financial statements accurately and in a timely manner. In addition, PRDH needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available in a timely manner.