Honolulu Community Action Program, Inc.Non-Profit

Criteria: A non-Federal entity that expends $750,000 or more in Federal awards during the year must have a single audit conducted in accordance with 2 CFR §200.514. Pursuant to 2 CFR §200.512, the audit must be completed and Form SF-SAC: Data Collection Form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report(s), or nine months after year end of the audit period. Condition: We noted that the Organization has not submitted the single audit reports required by the Uniform Guidance, including the Data Collection Form to the Federal Audit Clearinghouse for the year ended March 31, 2024, within the stipulated nine months after the end of the audit period. Cause: The Organization has not adhered to established Uniform Guidance terms and conditions regarding the submission dates of the single audit reports and Data Collection Form for the year ended March 31, 2024. Effect:The Organization is not in compliance with the Uniform Guidance terms and conditions regarding the submission dates of the single audit reports and Data Collection Form for the year ended March 31, 2024. Recommendation:We recommend that the Organization incorporate internal controls to ensure compliance with the Uniform Guidance with respect to the deadline for submission of the single audit reports to the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Action: The Organization agrees with the finding and the recommendation.Management will work diligently with its audit firm to ensure that future single audit reports are filed timely with the Federal Audit Clearinghouse.

Finding 2019-001 Program: Head Start CFDA No.: 93.600 Federal Grantor: U.S. Department of Health and Human Services Passed-through: N/A Award No. and Year: 09CH9189-04 Compliance Requirements: Equipment and Real Property Management Criteria The April 2018 Office of Management and Budget (OMB) Compliance Supplement and 2 CFR section 215.34(2)(f)(3), Equipment, requires recipients to perform a physical inventory of equipment at least once every two years and the results be reconciled with the equipment records. Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The recipient shall, in connection with the inventory, verify the existence, current utilization, and continued need for the equipment. Condition We noted the physical inventory for the year ended March 31, 2019 was not performed during the year, as required, as the most recent physical inventory was performed during the year ended March 31, 2016. Honolulu Community Action Program, Inc. (HCAP) did perform a physical inventory in July 2019 which was reconciled with its equipment records. Questioned Costs No questioned costs were identified as a result of our procedures. Context As a result of our testing procedures over equipment and real property management, we inquired as to whether a physical inventory of equipment acquired under Federal awards was taken within the last two years. At this time, HCAP had not performed a physical inventory within the last two years. Subsequent to our inquiry, HCAP performed and documented the physical inventory. Effect HCAP has not complied with equipment and real property management policies and procedures related to physical inventory. Cause HCAP did not adhere to its established equipment and real property management policies related to physical inventory. Recommendation We recommend that HCAP implement internal controls to ensure compliance with its established equipment and real property management policies and procedures related to physical inventory. Views of Responsible Officials and Planned Corrective Actions As stated by KKDLY, the Honolulu Community Action Program, Inc. (HCAP) conducted a physical inventory of Head Start assets in July 2019 once it was determined that a physical inventory was not performed for the program within the required timeframe. It is noted that KKDLY?s subsequent review of HCAP?s inventory, which included a physical review of 11 HCAP sites, found no questioned costs or deficiencies in HCAP?s physical inventory. HCAP will ensure that it conforms with federal compliance as required by OMB and 2 CFR section 215.34(2)(f)(3), Equipment, and any State of Hawaii and program specific requirements, as may be appropriate, for all of its programs. The Director of Finance shall determine which programs require an annual physical inventory as may be required pursuant to appropriate federal, state, and/or program standards.