EIN: 990169973
UEI: ZWS4KHNAEEM8
Data as of August 26, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 27, 2023. 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 March 27, 2024 (882 days ago).
What is a management decision? →For 8 of 12 semi-annual Federal Financial Reports tested, the reported cash disbursements did not reconcile to the expenditures recorded in the general ledger. Unreconciled differences ranged from $30 to $104,174 and totaled approximately $199,000. Cause: Internal controls over the recording and classification of expenditures in the general ledger were inadequate to permit the accurate reporting of expenditures within the required 30-day period. Effect or Potential Effect: Financial reports provided to the Department of Commerce could be materially misstated. Identification as a Repeat Finding: See Finding #2021-002 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC continue to improve the necessary internal controls to ensure expenditures are timely and accurately recorded and classified in the general ledger. These controls should provide for the timely reconciliation of cash disbursements reported on the Federal Financial Reports to expenditures recorded for each federal award in the general ledger.
Show full finding ▾Hide full finding ▴Finding #2022-001: Reporting Federal Program: U.S. Department of Commerce, Regional Fishery Management Councils CFDA 11.441 Criteria: WPRFMC is required to submit Form SF-425 (Federal Financial Report) for each of its federal awards on a semi-annual basis for the periods ending March 31 and September 30. These reports are due no later than 30 calendar days following the end of each reporting period. Internal controls should provide for these reports to contain accurate, current, and complete financial results (2 CFR ?200.302(b)(2)). Condition: For 8 of 12 semi-annual Federal Financial Reports tested, the reported cash disbursements did not reconcile to the expenditures recorded in the general ledger. Unreconciled differences ranged from $30 to $104,174 and totaled approximately $199,000. Cause: Internal controls over the recording and classification of expenditures in the general ledger were inadequate to permit the accurate reporting of expenditures within the required 30-day period. Effect or Potential Effect: Financial reports provided to the Department of Commerce could be materially misstated. Identification as a Repeat Finding: See Finding #2021-002 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC continue to improve the necessary internal controls to ensure expenditures are timely and accurately recorded and classified in the general ledger. These controls should provide for the timely reconciliation of cash disbursements reported on the Federal Financial Reports to expenditures recorded for each federal award in the general ledger.
AUDIT FINDING #2022-001 Condition: For 8 of 12 semi-annual Federal Financial Reports tested, the reported cash disbursements did not reconcile to the expenditures recorded in the general ledger. Unreconciled differences ranged from $30 to $104,174 and totaled approximately $199,000. CORRECTIVE ACTION Upon transmittal, revenue and total expenses matched the profit and loss reports for the 12 Federal Financial Reports referenced above. The 8 Federal Financial Reports noted above occurred in periods prior to the 2021-002 audit finding that was implemented in October 2022. The Council will continue to follow the 2021-002 corrective action finding. In addition, accruals for expenses paid in the current year for the previous year will be done on a monthly basis with the reversals being done on the first day of each following month. All entries and accruals will be completed prior to the filing of the Federal Financial Reports.
2021-002
During our audit, we noted draw downs from the Sustainable Fisheries Fund XII award were on hand in excess of thirty days during the periods April through July 2022 and October through December 2022. Funds from the Sustainable Fisheries Fund XIII award were on hand in excess of thirty days from September through December 2022. The excess funds on hand for these awards ranged from approximately $4,000 to $16,000. Cause: Internal controls over cash management were inadequate to ensure Federal draws did not exceed related expenditures. The untimely reconciliation of award expenditures could have resulted in improper drawdowns of Federal funds. Effect or Potential Effect: Inadequate controls over cash management increases the risk of noncompliance with Federal cash management requirements and with other Federal statutes and regulations related to financial management. Recommendation: We recommend WPRFMC enhance internal controls over cash management to minimize the time elapsing between the drawdown of Federal funds and the related disbursement.
Show full finding ▾Hide full finding ▴Federal Program: U.S. Department of Commerce, Regional Fishery Management Councils CFDA 11.441 Criteria: WPRFMC should minimize the time between the drawdown of Federal funds from the Federal government and their disbursement for Federal program purposes pursuant to 2 CFR 200.305(b). The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements for direct program or project costs. In accordance with the Department of Commerce Financial Assistance Standard Terms and Conditions dated November 2020, B.02(b)(1), advance payment requests should be timed such that Federal funds are on hand for a maximum of thirty calendar days before being disbursed. Condition: During our audit, we noted draw downs from the Sustainable Fisheries Fund XII award were on hand in excess of thirty days during the periods April through July 2022 and October through December 2022. Funds from the Sustainable Fisheries Fund XIII award were on hand in excess of thirty days from September through December 2022. The excess funds on hand for these awards ranged from approximately $4,000 to $16,000. Cause: Internal controls over cash management were inadequate to ensure Federal draws did not exceed related expenditures. The untimely reconciliation of award expenditures could have resulted in improper drawdowns of Federal funds. Effect or Potential Effect: Inadequate controls over cash management increases the risk of noncompliance with Federal cash management requirements and with other Federal statutes and regulations related to financial management. Recommendation: We recommend WPRFMC enhance internal controls over cash management to minimize the time elapsing between the drawdown of Federal funds and the related disbursement.
AUDIT FINDING 2022-002 Cash Management Condition: During our audit, we noted draw downs from the Sustainable Fisheries Fund XII award were on hand in excess of thirty days during the periods April through July 2022 and October through December 2022. Funds from the Sustainable Fisheries Fund XIII award were on hand in excess of thirty days from September through December 2022. The excess funds on hand for these awards ranged from approximately $4,000 to $16,000. CORRECTIVE ACTION Regarding the SFF XII award, per GMD requirements related to the annual closure of the asap.gov site a draw down for estimated expenses was made in September 2022. No additional drawdowns were made. Regarding SFF XIII award, a drawdown for expenses was made in August 2022. A journal entry was made to balance the 2021 trial balance in quickbooks. This was done to match the end of year auditor?s trial balance in September 2022. No additional drawdowns were made. Cash on hand and existing expenses will be reviewed by the Fiscal Officer prior to the 15th and end of month payables. Draw down of funds will be made based on existing cash on hand and expenses entered for the applicable period. Funds will be expensed in a timely manner.
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
For 6 of 15 semi-annual Federal Financial Reports tested, the reported cash disbursements did not reconcile to the expenditures recorded in the general ledger. Three of the six exceptions, which amounted to approximately $90,000 in unreconciled differences, occurred subsequent to WPRFMC?s stated implementation date of the prior year?s corrective action plan. Cause: Internal controls over the recording and classification of expenditures in the general ledger were inadequate to permit the accurate reporting of expenditures within the required 30-day period. Effect or Potential Effect: Financial reports provided to the Department of Commerce could be materially misstated. Identification as a Repeat Finding: See Finding #2020-002 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC continue to improve the necessary internal controls to ensure expenditures are timely and accurately recorded and classified in the general ledger. These controls should provide for the timely reconciliation of cash disbursements reported on the Federal Financial Reports to expenditures recorded for each federal award in the general ledger.
Show full finding ▾Hide full finding ▴Criteria: WPRFMC is required to submit Form SF-425 (Federal Financial Report) for each of its federal awards on a semi-annual basis for the periods ending March 31 and September 30. These reports are due no later than 30 calendar days following the end of each reporting period. Internal controls should provide for these reports to contain accurate, current, and complete financial results (2 CFR ?200.302(b)(2)). Condition: For 6 of 15 semi-annual Federal Financial Reports tested, the reported cash disbursements did not reconcile to the expenditures recorded in the general ledger. Three of the six exceptions, which amounted to approximately $90,000 in unreconciled differences, occurred subsequent to WPRFMC?s stated implementation date of the prior year?s corrective action plan. Cause: Internal controls over the recording and classification of expenditures in the general ledger were inadequate to permit the accurate reporting of expenditures within the required 30-day period. Effect or Potential Effect: Financial reports provided to the Department of Commerce could be materially misstated. Identification as a Repeat Finding: See Finding #2020-002 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC continue to improve the necessary internal controls to ensure expenditures are timely and accurately recorded and classified in the general ledger. These controls should provide for the timely reconciliation of cash disbursements reported on the Federal Financial Reports to expenditures recorded for each federal award in the general ledger.
Corrective Action- Federal reports will be filed in a timely manner in accordance with 2 CFR 200.302(b)(2). Profit and loss reports will be reconciled to expenses prior to filing the annual financial report (SF-425). For the period in question, adjustments for expenses to the appropriate awards were made in November 2021. If adjusting entries are required, they will be completed within the 30 day reporting period. Implementation Date- October 2022 Responding Official- Randy Holmen
2020-002
WPRFMC?s payroll periods are semi-monthly ending on the 15th and last day of each month. WPRFMC uses a third-party service to compute payroll withholdings, make payments to employees, and prepare filings. Under this arrangement, WPRFMC retains responsibility for remitting payments for taxes and employee benefit plans. During our audit of the year ended December 31, 2021, we noted income taxes and retirement contributions withheld from paychecks were not timely paid. State taxes withheld amounting to $5,811 and retirement contributions amounting to $9,572 were paid several months after the respective pay period. Employee contributions to the defined contribution retirement plan were remitted to the plan custodian more than 7 business days after the pay date for six other pay periods in 2021. Payroll-related obligations which arose in 2020 amounting to approximately $53,000 were previously reported as questioned costs in the schedule of findings and questioned costs for the year ended December 31, 2020. These amounts remained unpaid as of December 31, 2021 and were paid after fiscal year end. Cause: On each payroll date, taxes were recorded as an uncleared disbursement rather than an unpaid obligation on the general ledger. These inappropriate accounting entries did not permit the timely identification of the unpaid obligations. Effect or Potential Effect: WPRFMC could be subject to interest and penalties for failure to timely deposit withheld taxes and employee retirement contributions under 26 USC ?6656, HRS ?231-39, and 29 USC ?1132(i) and (l). Questioned Costs: $15,383 Identification as a Repeat Finding: See Finding #2020-003 included in the Summary Schedule of Prior Audit Findings.Recommendation: We recommend WPRFMC continue to improve the necessary controls to ensure income taxes, employment taxes, and pension contributions are properly recorded on the general ledger and timely remitted to taxing authorities and the plan custodian.
Show full finding ▾Hide full finding ▴Criteria: WPRFMC, as an employer, is required to withhold income tax and employment taxes and timely remit payments to taxing authorities under 26 U.S. Code (USC) ?3403 and Hawaii Revised Statutes (HRS) ?235-62. Payments are considered timely if they are made by specific days following the pay date, but in all cases within one week of the pay date. (26 CFR ?31.6302-1(c)(2) and HRS ?235-62(f)). WPRFMC is also required to timely remit employees? contributions to pension benefit plans. Payments are considered timely if they are made by the 7th business day following the payroll pay date (29 CFR ?2510.3-102(a)(2)). Condition: WPRFMC?s payroll periods are semi-monthly ending on the 15th and last day of each month. WPRFMC uses a third-party service to compute payroll withholdings, make payments to employees, and prepare filings. Under this arrangement, WPRFMC retains responsibility for remitting payments for taxes and employee benefit plans. During our audit of the year ended December 31, 2021, we noted income taxes and retirement contributions withheld from paychecks were not timely paid. State taxes withheld amounting to $5,811 and retirement contributions amounting to $9,572 were paid several months after the respective pay period. Employee contributions to the defined contribution retirement plan were remitted to the plan custodian more than 7 business days after the pay date for six other pay periods in 2021. Payroll-related obligations which arose in 2020 amounting to approximately $53,000 were previously reported as questioned costs in the schedule of findings and questioned costs for the year ended December 31, 2020. These amounts remained unpaid as of December 31, 2021 and were paid after fiscal year end. Cause: On each payroll date, taxes were recorded as an uncleared disbursement rather than an unpaid obligation on the general ledger. These inappropriate accounting entries did not permit the timely identification of the unpaid obligations. Effect or Potential Effect: WPRFMC could be subject to interest and penalties for failure to timely deposit withheld taxes and employee retirement contributions under 26 USC ?6656, HRS ?231-39, and 29 USC ?1132(i) and (l). Questioned Costs: $15,383 Identification as a Repeat Finding: See Finding #2020-003 included in the Summary Schedule of Prior Audit Findings.Recommendation: We recommend WPRFMC continue to improve the necessary controls to ensure income taxes, employment taxes, and pension contributions are properly recorded on the general ledger and timely remitted to taxing authorities and the plan custodian.
Corrective Action- All payroll related liabilities have been paid as of September 22, 2022. Employee contributions to the defined retirement contribution plans will be made on or before the seventh business day following the payroll payable date. Beginning in 2022, the Council has engaged an outside payroll provider that calculates, files and makes payment for all payroll related liabilities. Implementation Date- September 2022 Responding Official- Randy Holmen
2020-003
FAC accepted this audit on October 19, 2021 — management decision was due April 19, 2022.
For 9 of 17 semi-annual Federal Financial Reports tested, the reported cash disbursements did not reconcile to the expenditures recorded in the general ledger. The discrepancies range from an unreconciled overstatement of expenditures of $375,518 to an understatement of expenditures of $70,319. Cause: Internal controls over the recording and classification of expenditures in the general ledger were inadequate to permit the accurate reporting of expenditures within the required 30-day period. Effect or Potential Effect: Financial reports provided to the Department of Commerce could be materially misstated. Identification as a Repeat Finding: See Finding #2019-003 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC design and implement the necessary internal controls to ensure expenditures are timely and accurately recorded and classified in the general ledger. These controls should provide for the timely reconciliation of cash disbursements reported on the Federal Financial Reports to expenditures recorded for each federal award in the general ledger.
Show full finding ▾Hide full finding ▴Federal Program: U.S. Department of Commerce, Regional Fishery Management Councils CFDA 11.441 Criteria: WPRFMC is required to submit Form SF-425 (Federal Financial Report) for each of its federal awards on a semi-annual basis for the periods ending March 31 and September 30. These reports are due no later than 30 calendar days following the end of each reporting period. Internal controls should provide for these reports to contain accurate, current, and complete financial results (2 CFR ?200.302(b)(2)). Condition: For 9 of 17 semi-annual Federal Financial Reports tested, the reported cash disbursements did not reconcile to the expenditures recorded in the general ledger. The discrepancies range from an unreconciled overstatement of expenditures of $375,518 to an understatement of expenditures of $70,319. Cause: Internal controls over the recording and classification of expenditures in the general ledger were inadequate to permit the accurate reporting of expenditures within the required 30-day period. Effect or Potential Effect: Financial reports provided to the Department of Commerce could be materially misstated. Identification as a Repeat Finding: See Finding #2019-003 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC design and implement the necessary internal controls to ensure expenditures are timely and accurately recorded and classified in the general ledger. These controls should provide for the timely reconciliation of cash disbursements reported on the Federal Financial Reports to expenditures recorded for each federal award in the general ledger.
Corrective Action- Federal reports will be filed in accordance with 2 CFR 200.302(b)(2). Federal financial reports along with associated profit and loss report will be given to the Administrative Officer for review and approval prior to uploading. Any reallocation entries needed after submission of the federal reports will be made during the current period. These adjusting journal entries will be reviewed and approved by the Administrative Officer prior to posting. This finding was a prior audit finding and implementation date was June 2021. Implementation Date- June 2021 Responding Official- Randy Holmen
2019-003
WPRFMC?s payroll periods are semi-monthly ending on the 15th and last day of each month. WPRFMC uses a third-party service to compute payroll withholdings, make payments to employees, and prepare filings. Under this arrangement, WPRFMC retains responsibility for remitting payments for taxes and employee benefit plans. During our audit of the year ended December 31, 2020, we noted income taxes and retirement contributions were not timely paid. All 24 pay periods of State withholdings for 2020 totaling $116,771 were not paid until March 2021. In addition, for 2 pay periods evidence was unavailable to support payment of Federal withholdings and payroll taxes amounting to $33,531. Employee contributions to the defined contribution retirement plan for one pay period of 2020 was not paid to the plan custodian until one year after the pay date. In addition, contributions were made more than 7 business days after the pay date for 15 other pay periods in 2020. Cause: On each payroll date, taxes were recorded as an uncleared disbursement rather than an unpaid obligation on the general ledger. These inappropriate accounting entries did not permit the timely identification of the unpaid obligations. Effect or Potential Effect: WPRFMC could be subject to interest and penalties for failure to timely deposit withheld taxes and employee retirement contributions under 26 USC ?6656, HRS ?231-39, and 29 USC ?1132(i) and (l). Questioned Costs: $154,658 Identification as a Repeat Finding: See Finding #2019-004 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC design and implement the necessary controls to ensure income taxes, employment taxes, and pension contributions are properly recorded on the general ledger and timely remitted to taxing authorities and the plan custodian.
Show full finding ▾Hide full finding ▴Federal Program: U.S. Department of Commerce, Regional Fishery Management Councils CFDA 11.441 Criteria: WPRFMC, as an employer, is required to withhold income tax and employment taxes and timely remit payments to taxing authorities under 26 U.S. Code (USC) ?3403 and Hawaii Revised Statutes (HRS) ?235-62. Payments are considered timely if they are made by specific days following the pay date, but in all cases within one week of the pay date. (26 CFR ?31.6302-1(c)(2) and HRS ?235-62(f)). WPRFMC is also required to timely remit employees? contributions to pension benefit plans. Payments are considered timely if they are made by the 7th business day following the payroll pay date (29 CFR ?2510.3-102(a)(2)). Condition: WPRFMC?s payroll periods are semi-monthly ending on the 15th and last day of each month. WPRFMC uses a third-party service to compute payroll withholdings, make payments to employees, and prepare filings. Under this arrangement, WPRFMC retains responsibility for remitting payments for taxes and employee benefit plans. During our audit of the year ended December 31, 2020, we noted income taxes and retirement contributions were not timely paid. All 24 pay periods of State withholdings for 2020 totaling $116,771 were not paid until March 2021. In addition, for 2 pay periods evidence was unavailable to support payment of Federal withholdings and payroll taxes amounting to $33,531. Employee contributions to the defined contribution retirement plan for one pay period of 2020 was not paid to the plan custodian until one year after the pay date. In addition, contributions were made more than 7 business days after the pay date for 15 other pay periods in 2020. Cause: On each payroll date, taxes were recorded as an uncleared disbursement rather than an unpaid obligation on the general ledger. These inappropriate accounting entries did not permit the timely identification of the unpaid obligations. Effect or Potential Effect: WPRFMC could be subject to interest and penalties for failure to timely deposit withheld taxes and employee retirement contributions under 26 USC ?6656, HRS ?231-39, and 29 USC ?1132(i) and (l). Questioned Costs: $154,658 Identification as a Repeat Finding: See Finding #2019-004 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC design and implement the necessary controls to ensure income taxes, employment taxes, and pension contributions are properly recorded on the general ledger and timely remitted to taxing authorities and the plan custodian.
Corrective Action- The COVID-19 pandemic and the stay-at-home work order impacted the Council?s daily operations. State tax withholding payments will be made in accordance with rules and regulations of the Hawaii Department of Taxation and pension contributions will be prior to the 7th business day. Confirmation of submittals and payments will be reviewed and verified by the Administrative Officer and Fiscal Officer. This was addressed in the prior audit with an implementation date of June 2021. Implementation Date- June 2021 Responding Official- Randy Holmen
2019-004
FAC accepted this audit on May 31, 2021 — management decision was due December 1, 2021.
The Protected Species award had excess Federal funds on hand from August 2019 through December 2019. The Sustainable Fisheries Fund X award had excess Federal funds on hand from September 2019 through December 2019. Deferred revenue of $93,784 at December 31, 2019 was recorded representing these excess funds on hand. Cause: Internal controls over cash management were inadequate to ensure Federal draws did not exceed related expenditures. The untimely reconciliation of award expenditures could have resulted in improper drawdowns of Federal funds. Questioned Costs: $93,784 Effect or Potential Effect: Failure to maintain proper controls over cash management could result in errors or noncompliance with Federal requirements, and it could result in a change to WPRFMC?s draws to reimbursement-only payments. Identification as a Repeat Finding: See Finding #2018-003 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC enhance internal controls over cash management to minimize the time elapsing between the drawdown of Federal funds and the related disbursement.
Show full finding ▾Hide full finding ▴Finding #2019-002: Cash Management Federal Program: U.S. Department of Commerce, Regional Fishery Management Councils CFDA 11.441 Criteria: WPRFMC should minimize the time between the drawdown of Federal funds from the Federal government and their disbursement for Federal program purposes (2 CFR ?200.305(b)). Department of Commerce terms require advance payment requests to be timed such that Federal funds are on hand for a maximum of three calendar days before being disbursed. In no case should advances exceed the amount of cash required for a 30-day period. Condition: The Protected Species award had excess Federal funds on hand from August 2019 through December 2019. The Sustainable Fisheries Fund X award had excess Federal funds on hand from September 2019 through December 2019. Deferred revenue of $93,784 at December 31, 2019 was recorded representing these excess funds on hand. Cause: Internal controls over cash management were inadequate to ensure Federal draws did not exceed related expenditures. The untimely reconciliation of award expenditures could have resulted in improper drawdowns of Federal funds. Questioned Costs: $93,784 Effect or Potential Effect: Failure to maintain proper controls over cash management could result in errors or noncompliance with Federal requirements, and it could result in a change to WPRFMC?s draws to reimbursement-only payments. Identification as a Repeat Finding: See Finding #2018-003 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC enhance internal controls over cash management to minimize the time elapsing between the drawdown of Federal funds and the related disbursement.
Corrective Action- Initial drawdown will be done no more than two days before payroll post date to ensure funds are available. Subsequent drawdowns will be initiated once expenses are recorded and checks are cut, typically the 15th and last working day of the month. Drawdown report along with the profit and loss statement will be printed and given to Administrative Officer to review for accuracy and approval. An estimated drawdown based on anticipated expenses at the end of September will continue to be made. This estimated drawdown is based on the fiscal year closure of ASAP which occurs at the end of September through the first part of October. Implementation Date- June 2021 Responding Official- Randy Holmen
2018-003
For 8 of 11 semi-annual Federal Financial Reports submitted, the reported cash disbursements did not equal the expenditures recorded in the general ledger. The discrepancies range from an overstatement of expenditures of $17,906 to an understatement of expenditures of $186,963. Cause: Internal controls over the recording of cash disbursements were inadequate to permit the accurate reporting of expenditures within the required 30-day period. Effect or Potential Effect: Financial reports provided to the Department of Commerce could be materially misstated. Recommendation: We recommend WPRFMC design and implement the necessary internal controls to ensure cash disbursements are timely and accurately recorded in the general ledger. These controls should provide for the timely review of expenditures reported on the Federal Financial Reports.
Show full finding ▾Hide full finding ▴Finding #2019-003: Reporting Federal Program: U.S. Department of Commerce, Regional Fishery Management Councils CFDA 11.441 Criteria: WPRFMC is required to submit Form SF-425 (Federal Financial Report) on a semi-annual basis for the periods ending March 31 and September 30. These reports are due no later than 30 calendar days following the end of each reporting period. Internal controls should provide for these reports to contain accurate, current, and complete financial results (2 CFR ?200.302(b)(2)). Condition: For 8 of 11 semi-annual Federal Financial Reports submitted, the reported cash disbursements did not equal the expenditures recorded in the general ledger. The discrepancies range from an overstatement of expenditures of $17,906 to an understatement of expenditures of $186,963. Cause: Internal controls over the recording of cash disbursements were inadequate to permit the accurate reporting of expenditures within the required 30-day period. Effect or Potential Effect: Financial reports provided to the Department of Commerce could be materially misstated. Recommendation: We recommend WPRFMC design and implement the necessary internal controls to ensure cash disbursements are timely and accurately recorded in the general ledger. These controls should provide for the timely review of expenditures reported on the Federal Financial Reports.
Corrective Action- Federal reports will be filed in accordance with 2 CFR 200.302(b)(2). Federal financial reports along with associated profit and loss report will be given to the Administrative Officer for review and approval prior to uploading. Any reallocation entries needed after submission of the federal reports will be made during the current period. These adjusting journal entries will be reviewed and approved by the Administrative Officer prior to posting. Implementation Date- June 2021 Responding Official- Randy Holmen
WPRFMC?s payroll periods are semi-monthly ending on the 15th and last day of each month. WPRFMC uses a third-party service to compute payroll withholdings, make payments to employees, and prepare filings. Under this arrangement, WPRFMC retains responsibility for remitting payments for taxes and employee benefit plans. During our audit of the year ended December 31, 2019, we noted 7 total instances in which withholding taxes were not timely paid. In 2 instances, Federal withholdings and payroll taxes amounting to $44,359 were paid approximately 20 weeks after the pay date. In 5 instances, State withholdings amounting to $23,454 were paid between 64 and 73 weeks after the pay date. Cause: On each payroll date, taxes were recorded as an uncleared disbursement rather than an unpaid obligation on the general ledger. These inappropriate accounting entries did not permit the timely identification of the unpaid obligation. Effect or Potential Effect: WPRFMC could be subject to interest and penalties for failure to deposit withheld taxes timely under 26 USC ?6656 and HRS ?231-39. Questioned Costs: $67,813 Recommendation: We recommend WPRFMC design and implement the necessary controls to ensure income taxes and employment taxes are properly recorded on the general ledger and timely remitted to taxing authorities.
Show full finding ▾Hide full finding ▴Finding #2019-004: Payroll Tax Remittances Federal Program: U.S. Department of Commerce, Regional Fishery Management Councils CFDA 11.441 Criteria: WPRFMC, as an employer, is required to withhold income tax and employment taxes and timely remit payments to taxing authorities under 26 U.S. Code (USC) ?3403 and Hawaii Revised Statutes (HRS) ?235-62. Payments are considered timely if they are made by specific days following the pay date, but in all cases within one week of the pay date. (26 CFR ?31.6302-1(c)(2) and HRS ?235-62(f)). Condition: WPRFMC?s payroll periods are semi-monthly ending on the 15th and last day of each month. WPRFMC uses a third-party service to compute payroll withholdings, make payments to employees, and prepare filings. Under this arrangement, WPRFMC retains responsibility for remitting payments for taxes and employee benefit plans. During our audit of the year ended December 31, 2019, we noted 7 total instances in which withholding taxes were not timely paid. In 2 instances, Federal withholdings and payroll taxes amounting to $44,359 were paid approximately 20 weeks after the pay date. In 5 instances, State withholdings amounting to $23,454 were paid between 64 and 73 weeks after the pay date. Cause: On each payroll date, taxes were recorded as an uncleared disbursement rather than an unpaid obligation on the general ledger. These inappropriate accounting entries did not permit the timely identification of the unpaid obligation. Effect or Potential Effect: WPRFMC could be subject to interest and penalties for failure to deposit withheld taxes timely under 26 USC ?6656 and HRS ?231-39. Questioned Costs: $67,813 Recommendation: We recommend WPRFMC design and implement the necessary controls to ensure income taxes and employment taxes are properly recorded on the general ledger and timely remitted to taxing authorities.
Federal income tax payments will be made within the 3 business day requirement. Confirmation of payment will be reviewed and verified by the Administrative Officer and Fiscal Officer. State tax withholding payments will be made in accordance with rules and regulations of the Hawaii Department of Taxation. Confirmation of payment will be reviewed and verified by the Administrative Officer and Fiscal Officer. Implementation Date- June 2021 Responding Official- Randy Holmen
FAC accepted this audit on September 26, 2019 — management decision was due March 26, 2020.
GSA_MIGRATION
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GSA_MIGRATION
2017-003
FAC accepted this audit on September 23, 2018 — management decision was due March 23, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2016-001
GSA_MIGRATION
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GSA_MIGRATION
2016-004
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on September 28, 2017 — management decision was due March 28, 2018.
GSA_MIGRATION
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GSA_MIGRATION
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