EIN: 946000537
UEI: E7U2NV7AKAH7
Audited by: Smith & Newell CPAs
Oversight agency: 93 [Department of Health and Human Services]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 19, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 19, 2025 (259 days ago).
What is a management decision? →Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Program Income. Criteria - Proper grant compliance requires that CDBG loans be monitored for compliance with the loan provisions regarding default. Condition - During our test of six loan recipients, we noted that the County had not verified that the loan recipients were still owners of the homes secured by the loan or still lived in the homes for one tested and insurance was not maintained for two tested. Cause - There was not adequate monitoring of loans receivable to ensure compliance with loan provisions for two loan recipients. Effect -The County did not monitor two CDBG loans for compliance with the loan provisions reguarding default. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - We randomly selected six loan recipients to test loan monitoring procedures. Sampling wa a statistically valid sample. We noted two of the six recipents were not in compliance with the CDBG loan agreements Repeat Finding - This is a repeat of prior year finding 2023-001. Recommendation - We recommend that the County develop a program to monitor compliance with the loan provisions in accordance with the County Loan Servicing Policies and Procedures. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Show full finding ▾Hide full finding ▴Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Program Income. Criteria - Proper grant compliance requires that CDBG loans be monitored for compliance with the loan provisions regarding default. Condition - During our test of six loan recipients, we noted that the County had not verified that the loan recipients were still owners of the homes secured by the loan or still lived in the homes for one tested and insurance was not maintained for two tested. Cause - There was not adequate monitoring of loans receivable to ensure compliance with loan provisions for two loan recipients. Effect -The County did not monitor two CDBG loans for compliance with the loan provisions reguarding default. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - We randomly selected six loan recipients to test loan monitoring procedures. Sampling wa a statistically valid sample. We noted two of the six recipents were not in compliance with the CDBG loan agreements Repeat Finding - This is a repeat of prior year finding 2023-001. Recommendation - We recommend that the County develop a program to monitor compliance with the loan provisions in accordance with the County Loan Servicing Policies and Procedures. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
2024-001 Community Development Block Grants/State's Program and Non-Entitlement in Hawaii. We recommend that the County develop a program to monitor compliance with the loan providison in accordance with the County Loan Servicing Policies and Procedures. Management's Response: The County Concurs with the finding. Responsible Individual: Lisa Flagg, Administrative Services Manager. Corrective Action Plan: The County is working on closing the CDBG loan accounts that are uncollectable which will lower the number of files that need to be monitored. There are six loan files that are active. Staffing in the department remains an issue. Within the next six months, the department will develop a better method of monitoring the loan files in order to be compliant with the County Loan Servicing Policies and Procedures. Anticipated Completion Date: November 1, 2025.
2023-001
Name: Temporary Assistance for Needy Families; Elder Abuse Prevention Interventions Program; Medical Assistance Program ALN: 93.558; 93.747; 73.778. Federal Grantor: U.S. Department of Health and Human Services. Pass-Through Entity: State Department of Social Services; State Department of Health Care Services. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that individual County departments provide accurate Federal expenditure information to the County Auditor in a timely manner. Condition - Expenditure included in the SEFA provided at the beginning of the audit were greater than the actual expenditures for the following programs: Temporary Assistance for Needy Families (ALN 93.558) $368,846; Elder Abuse Prevention Interventions Program (ALN 93.747) $266,756; Medical Assistance Program (ALN 93.778) $991,417. Cause - The County departments did not provide accurate information to include on the SEFA that was provided to us at the beginning of the audit. Effect -The SEFA provided at the beginning of audit fieldwork was not materially correct and adjustments were needed to accurately reflect all Federal expendituers. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reporting over the programs. Repeat Finding - This is not a repeat of a prior year finding. Recommendation - We recommend that the County departments provide the County Auditor with accurate Federal expenditure information prior to the beginning of audit fieldwork. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Show full finding ▾Hide full finding ▴Name: Temporary Assistance for Needy Families; Elder Abuse Prevention Interventions Program; Medical Assistance Program ALN: 93.558; 93.747; 73.778. Federal Grantor: U.S. Department of Health and Human Services. Pass-Through Entity: State Department of Social Services; State Department of Health Care Services. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that individual County departments provide accurate Federal expenditure information to the County Auditor in a timely manner. Condition - Expenditure included in the SEFA provided at the beginning of the audit were greater than the actual expenditures for the following programs: Temporary Assistance for Needy Families (ALN 93.558) $368,846; Elder Abuse Prevention Interventions Program (ALN 93.747) $266,756; Medical Assistance Program (ALN 93.778) $991,417. Cause - The County departments did not provide accurate information to include on the SEFA that was provided to us at the beginning of the audit. Effect -The SEFA provided at the beginning of audit fieldwork was not materially correct and adjustments were needed to accurately reflect all Federal expendituers. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reporting over the programs. Repeat Finding - This is not a repeat of a prior year finding. Recommendation - We recommend that the County departments provide the County Auditor with accurate Federal expenditure information prior to the beginning of audit fieldwork. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Schedule of Expenditures of Federal Awards (Material Weakness). We recommend that the County departments provide the County Auditor with accurate Federal expnditure information prior ot the beginning of audit fieldwork. Management's Response: The County Concurs with the finding. Responsible Individual: Kirk Hendricks, Deputy Director Admin Services, Social Services. Corrective Action Plan: Social Services is working on a better method to track their federally funded programs. Before submitting the figures for the esingle audit, upper management will double-check the calculations for accuracy. Anticipated Completion Date: June 30, 2025.
FAC accepted this audit on June 5, 2024 — management decision was due December 5, 2024.
Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2022/2023. Compliance Requirement: Program Income. Criteria - Proper grant compliance requires that CDBG loans be monitored for compliance with the loan provisions regarding default. Condition - During our test of six loan recipients, we noted that the County had not verified that the loan recipients were still owners of the homes secured by the loan or still lived in the homes for two tested and insurance was not maintained for one tested. Cause - There was not adequate monitoring of loans receivable to ensure compliance with loan provisions for two loan recipients. Effect -The County did not monitor two CDBG loans for compliance with the loan provisions reguarding default. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - We randomly selected six loan recipients to test loan monitoring procedures. Sampling wa a statistically valid sample. We noted two of the six recipents were not in compliance with the CDBG loan agreements Repeat Finding - This is a repeat of prior year finding 2022-001. Recommendation - We recommend that the County develop a program to monitor compliance with the loan provisions in accordance with the County Loan Servicing Policies and Procedures. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Show full finding ▾Hide full finding ▴Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2022/2023. Compliance Requirement: Program Income. Criteria - Proper grant compliance requires that CDBG loans be monitored for compliance with the loan provisions regarding default. Condition - During our test of six loan recipients, we noted that the County had not verified that the loan recipients were still owners of the homes secured by the loan or still lived in the homes for two tested and insurance was not maintained for one tested. Cause - There was not adequate monitoring of loans receivable to ensure compliance with loan provisions for two loan recipients. Effect -The County did not monitor two CDBG loans for compliance with the loan provisions reguarding default. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - We randomly selected six loan recipients to test loan monitoring procedures. Sampling wa a statistically valid sample. We noted two of the six recipents were not in compliance with the CDBG loan agreements Repeat Finding - This is a repeat of prior year finding 2022-001. Recommendation - We recommend that the County develop a program to monitor compliance with the loan provisions in accordance with the County Loan Servicing Policies and Procedures. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
2023-001 Community Development Block Grants/State's Program and Non-Entitlement in Hawaii We recommend that the County develop a program to monitor compliance with the loan provisions in accordance with the County Loan Servicing Policies and Procedures. Management's Response: The County concurs with the finding. Responsible Individual: Kristen Lackey, Project Coordinator. Corrective Action Plan: We will implement a process to review loan documents. Anticipated Completion Date: June 30, 2024
2022-001
FAC accepted this audit on August 22, 2023 — management decision was due February 22, 2024.
2022-001 Name: Community Development Block Grants/State?s Program and Non-Entitlement Grants in Hawaii Assistance Listing #: 14.228 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria Proper grant compliance requires that CDBG loan be monitored for compliance with the loan provisions regarding default. Condition During our test of nine loan recipients, we noted that the County had not verified that the loan recipients carried insurance for one tested. Cause There was not adequate monitoring of loans receivable to ensure compliance with loan provisions for one loan recipient. Effect The County did not monitor one CDBG loan for compliance with the loan provisions regarding default. Questioned Cost No questioned costs were identified as a result of our procedures. Context We randomly selected nine loan recipients to test loan monitoring procedures. Sampling was a statistically valid sample. We noted one of the nine recipients were not in compliance with the CDBG loan agreements. Repeat Finding This is not a repeat finding. Recommendation We recommend that the County develop a program to monitor compliance with the loan provisions in accordance with the County Loan Servicing Policies and Procedures. Views of Responsible Officials and Planned Corrective Action Refer to separate Management?s Corrective Action Plan for views of responsible officials and management?s responses.
Show full finding ▾Hide full finding ▴2022-001 Name: Community Development Block Grants/State?s Program and Non-Entitlement Grants in Hawaii Assistance Listing #: 14.228 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria Proper grant compliance requires that CDBG loan be monitored for compliance with the loan provisions regarding default. Condition During our test of nine loan recipients, we noted that the County had not verified that the loan recipients carried insurance for one tested. Cause There was not adequate monitoring of loans receivable to ensure compliance with loan provisions for one loan recipient. Effect The County did not monitor one CDBG loan for compliance with the loan provisions regarding default. Questioned Cost No questioned costs were identified as a result of our procedures. Context We randomly selected nine loan recipients to test loan monitoring procedures. Sampling was a statistically valid sample. We noted one of the nine recipients were not in compliance with the CDBG loan agreements. Repeat Finding This is not a repeat finding. Recommendation We recommend that the County develop a program to monitor compliance with the loan provisions in accordance with the County Loan Servicing Policies and Procedures. Views of Responsible Officials and Planned Corrective Action Refer to separate Management?s Corrective Action Plan for views of responsible officials and management?s responses.
2022-001 Community Development Block Grants/State?s Program and Non-Entitlement in Hawaii We recommend that the County develop a program to monitor compliance with the loan provisions in accordance with the County Loan Servicing Policies and Procedures. Management?s Response: The County concurs with the recommendation. Responsible Individual: Diane Olson, Auditor-Controller Corrective Action Plan: We will implement a process to review loan documents. Anticipated Completion Date: June 30, 2023
2022-002 Name: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing #: 9.959 Federal Grantor: U.S. Department of Health and Human Services Pass Through Entity: State Department of Alcohol and Drug Programs Award No.: SABG Year: 2021/2022 Compliance Requirement: Allowable Costs/Cost Principles Criteria Indirect costs allocated to federal programs should be calculated bsed on the actual indirect cost rate provided by the County Auditor-Controller. Condition During our testing of major programs, we noted that the Department did not calculate the indirect costs allocated to the SABG program correctly. Cause The Department did not calculate the indirect cost applied to the program correctly. Effect The Department overcharged the SABG program for indirect costs. Questioned Cost The County charged the program approximately $18,194 more than the correct charge. Context The condition noted above was identified during our procedures related to reporting over the programs. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Department review the calculation used to allocate indirect costs to the program and verify that it is calculated correctly. Views of Responsible Officials and Planned Corrective Action Refer to separate Management?s Corrective Action Plan for views of responsible officials and management?s responses.
Show full finding ▾Hide full finding ▴2022-002 Name: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing #: 9.959 Federal Grantor: U.S. Department of Health and Human Services Pass Through Entity: State Department of Alcohol and Drug Programs Award No.: SABG Year: 2021/2022 Compliance Requirement: Allowable Costs/Cost Principles Criteria Indirect costs allocated to federal programs should be calculated bsed on the actual indirect cost rate provided by the County Auditor-Controller. Condition During our testing of major programs, we noted that the Department did not calculate the indirect costs allocated to the SABG program correctly. Cause The Department did not calculate the indirect cost applied to the program correctly. Effect The Department overcharged the SABG program for indirect costs. Questioned Cost The County charged the program approximately $18,194 more than the correct charge. Context The condition noted above was identified during our procedures related to reporting over the programs. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Department review the calculation used to allocate indirect costs to the program and verify that it is calculated correctly. Views of Responsible Officials and Planned Corrective Action Refer to separate Management?s Corrective Action Plan for views of responsible officials and management?s responses.
2022-002 Block Grants for Prevention and Treatment of Substance Abuse We recommend that the Department review the calculation used to allocate indirect costs to the program and verify that it is calculated correctly. Management?s Response: The County concurs with the recommendation. Responsible Individual: Kristen Lackey, Project Coordinator Corrective Action Plan: We will review the indirect cost allocation process. Anticipated Completion Date: June 30, 2023
FAC accepted this audit on September 21, 2022 — management decision was due March 21, 2023.
FAC accepted this audit on April 13, 2023 — management decision was due October 13, 2023.
FAC accepted this audit on March 14, 2021 — management decision was due September 14, 2021.
FAC accepted this audit on March 28, 2020 — management decision was due September 28, 2020.
FAC accepted this audit on March 27, 2019 — management decision was due September 27, 2019.
FAC accepted this audit on March 14, 2018 — management decision was due September 14, 2018.
FAC accepted this audit on March 28, 2017 — management decision was due September 28, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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