NA PU'UWAINon-Profit

Significant Deficiency Finding 2023-001 Reporting U.S. Department of Health and Human Services Native Hawaiian Health Systems Federal Assistance Listing No. 93.932 Criteria In accordance with 2 U.S. Code of Federal Regulations (CFR) 200.512, the Organization must submit its single audit reporting package and data collection form to the Federal Audit Clearinghouse (the FAC) within the earlier of 30 days after receipt of the auditors’ report, or nine months after the end of the audit period. Condition The Organization did not submit its single audit reporting package and data collection form (Form SF-SAC) for the year ended September 30, 2023 to the FAC by the required due date. Cause During the year, the Organization had experienced turnover with key personnel that created difficulties in the management of the financial reporting process to ensure the timely filing of the single audit reporting package and data collection form to the FAC. Effect Late filing has resulted in noncompliance with timely submission of financial information to grantor agencies. Recommendation We recommend that the Organization continue to improve its financial reporting process to ensure compliance with the reporting requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which requires that the single audit reporting package and data collection form be submitted to the FAC within the earlier of 30 days after the receipt of the auditors’ report, or nine months after the end of the audit report, unless a longer period of time is agreed to in advance by the cognizant or oversight agency for the audit. Views of Responsible Officials and Planned Corrective Action Nā Puʻuwai agrees with the Auditor's advice and as a result, in June of 2024, we began the transition process to our new accounting team, Accumulus, and are confident that moving forward, we will comply fully with timely financial reporting requirements.

Condition During our audit, we noted that the Organization did not establish written policies and procedures over procurement. Criteria Non-Federal entities other than States, including those operating Federal programs as subrecipients of States, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326, which requires those entities to use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurement procedures conform to applicable Federal statutes and the procurement requirements identified in 2 CFR part 200. Cause The Organization was unaware of the requirement to establish their own policies that conform to applicable Federal statues and the procurement requirements, identified in 2 CFR part 200. Effect Failure to establish a written policy that conforms to applicable Federal statues and the procurement requirements, identified in 2 CFR part 200 could lead to a lack of control over procurement transactions. Identification as a Repeat Finding, if applicable See finding 2020-001 included in the Status of Prior Audit Findings. Recommendation We recommend that the Organization adopt written policies which reflects applicable state, local, and Federal statues and the procurement requirements identified in 2 CFR part 200. Views of Responsible Officials and Planned Corrective Action Na Pu?uwai was in the process of finalizing our revised Procurement Policy. This policy was fully executed by November 1, 2021. As of January 18, 2022, Audit Finding 2020-001 had been satisfactorily resolved and closed with the Division of Financial Integrity at the Health Resources and Services Administration.

Condition During our audit, we noted that the Organization did not establish written policies and procedures over procurement. Criteria Non-Federal entities other than States, including those operating Federal programs as subrecipients of States, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326, which requires those entities to use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurement procedures conform to applicable Federal statutes and the procurement requirements identified in 2 CFR part 200. Cause The Organization was unaware of the requirement to establish their own policies that conform to applicable Federal statues and the procurement requirements, identified in 2 CFR part 200. Effect Failure to establish a written policy that conforms to applicable Federal statues and the procurement requirements, identified in 2 CFR part 200 could lead to a lack of control over procurement transactions. Recommendation We recommend that the Organization adopt written policies which reflects applicable state, local, and Federal statues and the procurement requirements identified in 2 CFR part 200.