EIN: 990354676
UEI: JL93KBW4CAN1
Audited by: Verity CPAs
Oversight agency: 10 [Department of Agriculture]
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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 February 7, 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 August 7, 2025 (392 days ago).
What is a management decision? →FAC accepted this audit on October 10, 2024 — management decision was due April 10, 2025.
The Organization is aware of the need for written policies and procedures over accounting, grants management, and financial reporting areas to ensure compliance with federal laws, regulations and grant agreements. However, the Organization did not have written policies and procedures with references to current regulations as required by 2 CFR §200. Cause: The Organization did not update its procedures manual to reflect the current references as required by 2 CFR §200. Effect: Without established polices and continuously updated written procedures required by 2 CFR §200, the Organization has insufficient internal controls over compliance with federal laws, regulations and grant agreements related to the federal awards it receives and expends.
Show full finding ▾Hide full finding ▴Criteria: 2 CFR §200 requires written policies and procedures in various matters such as cash management, personnel compensation, and determination of allowability of costs in accordance with cost principles and terms of the federal awards, not all inclusive. Condition: The Organization is aware of the need for written policies and procedures over accounting, grants management, and financial reporting areas to ensure compliance with federal laws, regulations and grant agreements. However, the Organization did not have written policies and procedures with references to current regulations as required by 2 CFR §200. Cause: The Organization did not update its procedures manual to reflect the current references as required by 2 CFR §200. Effect: Without established polices and continuously updated written procedures required by 2 CFR §200, the Organization has insufficient internal controls over compliance with federal laws, regulations and grant agreements related to the federal awards it receives and expends.
We are in the process of reviewing all aspects of the department’s policies and procedures. The updated policies and procedures will provide guidelines for the day-to-day operations to ensure compliance with the federal awards and with 2 CFR 200 guidelines. The procedures will include sufficient information to permit an individual who is unfamiliar with the guidelines to perform the necessary transactions. Each employee will document the policies and procedures for their respective processes. We will then consolidate these documents into one user manual that will be available to all staff members. Revisions to the user’s manual will be made as needed to ensure the manual is current at all times. Employees will be familiar with the applicable policies, procedures and will conduct The Kohala Center Inc’s business in accordance with them.
During our testing of the audit of activities allowed or unallowed and allowable costs/cost principles requirements, we noted two instances of a lack of supporting documentation for gas and mileage reimbursements. Upon further investigation, we noted that all requests and payments for gas and mileage reimbursements lacked the receipts, purpose, and requests for reimbursement. Cause: Program personnel did not adhere to the policies and procedures in maintaining supporting documentation and/or program personnel were not knowledgeable of the Organization’s policies and procedures and the requirements of 2 CFR §200.302. Effect: The Organization failed to maintain the supporting documentation necessary to validate the expense reimbursements and whether the expenditures were in compliance with 2 CFR §200.302.
Show full finding ▾Hide full finding ▴Criteria: According to 2 CFR §200.302, the financial management system of each non-Federal entity must provide for records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Internal controls over financial reporting and compliance involve procedures and mechanisms designed to ensure the accuracy, reliability and integrity of an Organization’s financial reporting and its adherence to laws and regulations. Condition: During our testing of the audit of activities allowed or unallowed and allowable costs/cost principles requirements, we noted two instances of a lack of supporting documentation for gas and mileage reimbursements. Upon further investigation, we noted that all requests and payments for gas and mileage reimbursements lacked the receipts, purpose, and requests for reimbursement. Cause: Program personnel did not adhere to the policies and procedures in maintaining supporting documentation and/or program personnel were not knowledgeable of the Organization’s policies and procedures and the requirements of 2 CFR §200.302. Effect: The Organization failed to maintain the supporting documentation necessary to validate the expense reimbursements and whether the expenditures were in compliance with 2 CFR §200.302.
We are in the process of reviewing all aspects of the department’s policies and procedures. The Kohala Center will provide training to adhere to the updated policies and procedures as it relates to the appropriate guidelines to ensure compliance with the requirements in accordance with 2 CFR 200, Subparts D and E. The Kohala Center has already began providing training to enhance the knowledge of Federal requirement as it relates to programs. We are improving our procedures related to the validation of expenses to ensure all cost have the proper supporting documentation before being allocated and paid.
FAC accepted this audit on May 18, 2020 — management decision was due November 18, 2020.
FAC accepted this audit on February 2, 2019 — management decision was due August 2, 2019.
FAC accepted this audit on March 25, 2018 — management decision was due September 25, 2018.
FAC accepted this audit on November 16, 2016 — management decision was due May 16, 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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