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HomeMy WebLinkAboutCOM 0574.000 2002-2004 JM<Y O! y,~ 40•' l ~ ry y~Aid. AL KONISHI ~ ' CONSTANCG R. KIRIU ('ouwr (7rrk Le,¢isla[ive Auditor JAY MENDG Deputy Com~(c (jerk a N County of Kawai `i Office of the County Clerk pn l5 flupunf .l'tree[ C'-~.. ~ llflu, lln ivuii J6T20 G rr, l~elephane_ (YOH/ 9</-H3_.i lis~sinuie- BOSI I<l-H)12 - N Apri] 2, 2004 c0 0 f0: Council Members - FROM: ConstanceKiriuj~-(,~_, Legislative Auditor RE: Single Audit Report for Fiscal Year Ending June 3Q 2003 A copy of the Single Audit Report n(the Coantr ojl/nuvi'i /or Fiseul Year Ending Jtme 30, ?003, is distributed for your information and review. The Single Audit Re/~ort was prepared by KPMG LLP as part of the Council's overall audit contract and is not required by the Flawai'i County Charter. The Sing/e Audit Report is prepared for federal awarded programs to meet reporting and auditing requirements. Specifically, sub-recipients in receipt of a minimum threshold amount of funds are audited for [he purpose of identifying material weakness of internal controls and testing compliance with certain provisions of Taws, regulations, contracts and grants, which could have a direct and material effect on the financial statement amounts. A list of all county programs that have received federal funds can be found on pages R-18 ("Schedule of Expendiwres of Federal Awardv'). Another separate memorandum received on March 29, 2004 from the Controller Deanna Sako submitting a "Summary Schedule of Prior Audit Findings" is included with the Single Audi! Report. In Section 1[I, Compliance and In[emal Control Over Federal Awards, the auditors found [hat, the County complied in all material respects with the requirements applicable to each of its major federal programs for [he year ended .tune 30, 2003. Further, there were no matters involving internal control over compliance and its operation that were considered to be material weaknesses. The external auditors will be scheduled at a future Finance Committee meeting [o answer any questions you may have. Enclosures Comm. No. s 7~ Ref. To: Ref. Uate l~`l' COUNTY OF HAWAII STATE OF HAWAII Single Audit of Federal Financial Assistance Programs Year ended June 30, 2003 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS Department of Labor Workforce Investment Act Finding O1-Ol: We recommend that the County perform subrecipient monitoring procedures to determine whether or not there is compliance with provisions of the Workforce Investment Act and applicable laws and regulations similar to those performed on its other subrecipients. Corrected: Procedures have been implemented to improve monitoring activities of subrecipient agreements. All subrecipients were monitored during the current year. Monitoring will continue on an ongoing basis. No such instances were noted in the current year. The comment is no longer applicable. Contact person: Edwin S. Taira Housing Administrator Department of Housing and Urban Development Section 8 -Housing Choice Vouchers Finding 02-O1: While performing the calendar year 2003 utility allowance rates analysis, the County reviewed and included adequate supporting documentation to verify that the 2002 utility allowance rates used were appropriate. We also noted that the 2003 analysis included adequate supporting documentation. We recommend that the County continue to include adequate supporting documentation in its files. Corrected: Procedures have been implemented to ensure that proper documentation and records are maintained to substantiate future determinations of the utility allowance rates analysis. No such instances were noted in the current year. The comment is no longer applicable. Contact person: Edwin S. Taira Housing Administrator Department of Labor Workforce Investment Act Cluster Finding 02-02: Subsequent to July 2001, the County implemented monitoring procedures over all its subrecipients. We recommend that the County review the two subrecipient expenditure registers and corresponding reimbursement requests described above and continue to monitor all subrecipients to ensure compliance with laws and regulations. Corrected: Monitoring procedures of all subrecipient expenditure reports and payment requests have been implemented. In addition, on-site reviews of administrative and financial activities related to the Workforce Investment Act are performed annually. We will continue to monitor sub-recipient expenditure reports and payment requests on an ongoing basis. No such instances were noted in [he current year. The comment is no longer applicable. Contact persons: Edwin S. Taira Housing Administrator COUNTY OF HAWAII STATE OF HAWAII Single Audit of Federal Financial Assistance Programs Year ended June 30, 2003 Table of Contents Page I. INTRODUCTION Audi[ Objectives 1 Scope of Audit 2 Organization of Report 2 II. COMPLIANCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4 III. COMPLIANCE AND INTERNAL CONTROL OVER FEDERAL AWARDS Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 6 Schedule of Expenditures of Federal Awards 8 Notes to Schedule of Expenditures of Federal Awards 19 Schedule of Findings and Questioned Costs 20 SECTION I -INTRODUCTION P 0. Box 4150 Honolulu, HI 96812-4150 March 19, 2004 To the Members of the County Council of Hawaii County of Hawaii Hilo, Hawaii: We have completed our audit of the basic financial statements of the County of Hawaii, State of Hawaii (County), as of and for the year ended June 30, 2003. We have also audited the County's compliance with requirements applicable to its major federal financial assistance programs. We submit herewith our reports on compliance and on internal control over financial reporting and over federal awards, a schedule of expenditures of federal awards, and a schedule of findings and questioned costs. The audit objectives and scope of the audit were as follows: AUDIT OBJECTIVES I. To provide a basis for an opinion on the fairness of the County's basic financial statements. 2. To review the County's compliance with those provisions of laws, regulations, contracts, and grants which could have a direct and material effect on the determination of financial statement amounts. 3. To review the County's system of internal control over financing reporting. 4. To opine on the County's compliance with applicable Taws, regulations, contracts, and grants that could have a direct and material effect on each major federal financial assistance program. 5. To review internal control over compliance with requirements of regulations, contracts, and grants that could have a direct and material effect on each major federal financial assistance program. 6. To determine [he current status of the audit recommendations included in the prior year's management letter and independent auditors' report on compliance and on internal control over financial reporting. 1 a nen:.I P Kf'MG l l i ~aineli~i Ietl IiaOiliAy.p .l OsYiip u ire o~ KVM(i I ~ i,tl n tiw Members of the County Council of Hawaii County of Hawaii Hilo, Hawaii March 19, 2004 SCOPE OF AUDIT 1. We performed an audit of the County's basic financial statements as of and for the year ended June 30, 2003 in accordance with auditing standards generally accepted in the United States of America, as adopted by [he American Institute of Certified Public Accountants, and the standards applicable to governmental financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 2. As part of the audit of the County's basic financial statements, we performed tests of the County's compliance with certain provisions of laws, regulations, contracts, and grants. We also considered the County's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements. 3. We performed an audit of [he County's federal financial assistance programs for the year ended June 30, 2003 in accordance with auditing standards generally accepted in the United States of America, as adopted by the American Institute of Certified Public Accountants, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, certain provisions of OMB Circular A-133 and the applicable sections described in the OMB's CircularA-133 Compliance Supplement. ORGANIZATION OF REPORT Our report is organized into three sections as follows: 1. Section I, entitled "Introduction," describes [he objectives and scope of our audit and the organization and contents of this report. 2. Section II, entitled "Compliance and Internal Control Over Financial Reporting," contains our report on [he County's compliance and internal control over financial reporting based upon our audit of the County's basic financial statements. 3. Section lll, entitled "Compliance and Internal Control Over Federal Awards," contains our report on the County's compliance and internal control over federal awards in accordance with OMB Circular A-133, a schedule of expenditures of federal awards, and a schedule of findings and questioned costs. 2 Members of the County Council of Hawaii County of Hawaii Hilo, Hawaii March 19, 2004 Our report on the basic financial statements of the County as of and for the year ended June 30, 2003 is included under a separate cover. A separate letter containing our observations regarding the County's system of internal control dated March 19, 2004 has also been issued to the County Council. We would like to take this opportunity to express our appreciation to the personnel of the County of Hawaii for the cooperation and assistance extended to us during our audit. We will be pleased to discuss any questions that you or your associates may have regarding our recommendations. Very truly yours, K~''w(G LLB 3 SECTION ll -COMPLIANCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING P. O. Box 4150 Honolulu, HI 96812-4150 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Members of the County Council of Hawaii County of Hawaii Hilo, Hawaii: We have audited the basic financial statements of the County of Hawaii, State of Hawaii (County), as of and for the year ended June 30, 2003, and have issued our report thereon dated March 19, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the County's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was no[ an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control over Financial Reporting In planning and performing our audit, we considered [he County's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the basic financial statements and not to provide assurance on intemal control over financial reporting. Our consideration of internal control over financial reporting would no[ necessarily disclose all matters in internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving intemal control over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters involving internal control over financial reporting, which we have reported to management of [he County in a separate letter dated March 19, 2004. 4 K~MO LLY KYMG LLV aUS LrmWtl LeWLry Vartnc.eM1iOu M1 n! KL'MG IIILr1I1~Iip~l.l1, a Swiss asSOastio~ This report is intended solely for the information and use of the County Council, the County Administration, federal awarding agencies, and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. (~Piv(G LCP March 19, 2004 5 SECTION 111 -COMPLIANCE AND INTERNAL CONTROL OVER FEDERAL AWARDS P. O. Box 4150 Honolulu, HI 96812-4150 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 To the Members of the County Council of Hawaii CounTy of Hawaii Hilo, Hawaii: Compliance We have audited the compliance of the CounTy of Hawaii, State of Hawaii (County), with the Types of compliance requirements described in the US. Oj~ce of Management and Budget (OMB) CircularA-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2003. The County's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the County's management. Our responsibility is to express an opinion on the County's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the County's compliance with those requirements. In our opinion, the County complied, in al] material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2003. Internal Control over Compliance The management of the County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the County's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. 6 a meG I i l' KPMG I I f' a V 5 i.i i~a~ iia0i itv M. dial rs~i0. is m~er of K~M6 ~ntei nanonz.e5wie,a o i~ Our consideration of internal control over compliance would not necessarily disclose all matters in internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving internal control over compliance and its operation that we consider to be material weaknesses. Schedule of Expeuditures of Federal Awards We have audited the basic financial statements of the County as of and for the year ended June 30, 2003, and have issued our report thereon dated March 19, 2004. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the County Council, the County Administration, federal awarding agencies, and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. K`~'?~(G LLB March 19, 2004 7 COUNTY OF HAWAII STATE OF HAWAII Schedule of Expenditures of Federal Awards Year ended June 30, 2003 Federal Program CFDA Award Federal Federal Grantor/Pass-Through Grantor/Program Title Number Grant Number Amount Expenditures DEPARTMENT OF AGRICULTURE Rural Housing Service Rura] Housing Preservation Grants: 10.433 Housing Preservation Grant 2001 N/A $ 50,000 $ 10,449 Housing Preservation Grant Program Income Program Income - 32,838 Subtotal CFDA 10.433 43,287 Community Facilities Loans and Grants 10.766 N/A 747,500 250,000 Food and Nutrition Service Passed through the State Department of Education: Summer Food Service Program for Children 10.559 N/A 14,722 14,722 Passed through the State Executive Office on Aging: Nutrition Program for the Elderly (Commodities) ] 0570 N/A 142,672 142,672 Forest Service Passed through the State Department of Land and Natural Resources: Cooperative Forestry Assistance 10.664 Ol-DG-11052000-177 50,000 50,000 Rural Utilities Service Water and Waste Disposal Systems for Rural Communities: Happy Homes Subdivision Waterline Replacement 10.760 N/A 777,500 414,492 Natural Resources Conservation Service Watershed Protection and Flood Prevention: 10.904 Waiakea Stream at Kupulau Street -Bank Protection HII,O-2001-02 210,000 163,416 Waiakea Stream at Pubau Street -Bank Protection HII,O-2001-03 73,000 49,977 Waiakea Stream at Kawailani Street -Bank Protection HII,O-2001-04 154,500 33,814 Palai Stream at Olu Street -Bank Protection HILO-2001-OS 39,472 29,251 Komomala Stream at Komomala Street -Bank Protection HII,O-2001-09 358,823 331,007 Subtotal CFDA 10.904 607,465 Tota! Department of Agriculture 1,522,638 8 (Continued) COUNTY OF HAWAII STATE OF HAWAII Schedule of Expenditures of Federal Awazds Yeaz ended June 30, 2003 Federal Program CFDA Award Federal Federal Grantor/Pass-Through Gran[or/Program Title Number Grant Number Amount Expenditures DEPARTMENT OF COMMERCE Economic Development Administration Economic Adjustment Assistance 11.303 07-69-55004 $ 200,000 $ 34,938 National Oceanic and Atmospheric Administration Passed through the State Department of Business, Economic Development and Tourism: Coastal Zone Management Administration Awazds: Hawaii Coastal Zone Management Program 11.419 NA170Z2333 218,685 178,583 Total Department of Commerce 213,521 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Office of Housing Section 8 -Housing Assistance Payments Program Special Allocations: Kulaimano Elderly Housing 14.195 HI10-0002001 181,200 147,997 Community Planning and Development Community Development Block GranUSmall Cities Program 14.219 B-99-DH-]5-0002 2,177,000 33,601 B-00-DH-1S-0002 2,295,000 2,153,776 B-O1-DH-1S-0002 2,304,000 690,917 Program Income - 54,246 Subtotal CFDA 14.219 2,932,540 Passed through the Housing and Community Development Corporation of Hawaii: HOME Investment Partnership Program 14.239 M97-SG 150102 963,000 91,702 M98-SG 150102 963,000 5]7,338 M00-SG 150102 963,000 50,103 Program Income - 24,545 Subtotal CFDA 14.239 683,688 9 (Continued) COUNTY OF HAWAII STATE OF HAWAII Schedule of Expenditures of Federal Awazds Year ended June 3Q, 2003 Federal Program CFDA Award Federal Federal Grantor/Pass-Through Grantor/Program Title Number Grant Number Amount Expenditures Public and Indian Housing Passed through the Housing and Community Development Corporation of Hawaii: Public and Indian Housing Drug Elimination Program 14.854 RSS O]-13 $ 50,000 $ 32,117 Section 8 -Housing Choice Vouchers 14.871 HI08-V002 12,672,859 10,067,044 Total Department of Housing and Urban Development 13,863,386 DEPARTMENT OF JUSTICE Office of Justice Programs Passed through State Department of Defense: State Domestic Prepazedness Equipment Support Program 16.007 2000-TE-CX-0169 151,333 116,344 Passed through State Department of Public Safety Serious and Violent Offender Re-entry Initia5ve 16.586 02-RE-CX-0032 50,000 3,870 Office of Juvenile Justice and Delinquency Prevention Passed through State Department of Human Services: Juvenile Accountability Incentive Block Grant 16.523 DHS-OI-OYS-9187 352,701 125,508 DHS-02-OYS-1161 185,106 147,960 Subtotal CFDA 16.523 273,468 Enforcing Underage Drinking Laws Program 16.727 2001-AH-FX-1004 298,000 168,937 Office of Vic[ims of Crime Passed through State Department of the Attorney General: Crime Victim Assistance 16.575 99-VA1l 252,469 15,905 00-VA4 51],200 304,746 01-VAS 253,449 80,678 Subtotal CFDA 16.575 40],329 10 (Continued) COUNTY OF HAWAII STATE OF HAWAII Schedule of Expenditures of Federal Awards Yeaz ended June 30, 2003 Federal Program CFDA Award Federal Federal GrantorlPass-Through Grantor/Program Title Number Gran[ Number Amount Expenditures Bureau of Justice Assistance Passed through State Department of the Attomey General: Byrne Formula Grant Program: 16.579 Community Oriented Prosecufion O]-DB-01 $ 190,425 $ 117,345 Community Oriented Prosecution 02-DB-13 178,041 50,906 Sex Crimes Unit 01-DB-13 128,722 51,172 Sex Crimes Unit 02-DB-9 130,041 68,551 Hawaii Nazcotics Task Force 01-DB-5 64,500 27,524 Hawaii Narcotics Task Force 02-DB-7 55,500 24,139 Statewide Marijuana Eradication OI-DB-18 151,500 150,033 Clandestine Drug Lab 00-DB-20 145,235 51,361 Subtotal CFDA 16.579 541,031 Edwazd Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Program: Community Empowerment Organization 16.580 2001-DD-BX-0029 150,000 94,264 Local Law Enforcement Block Grants Program 16.592 2000-LB-BX-2673 83,868 54.133 2001-LB-BX-3631 109,994 15,260 Subtotal CFDA 16.592 69,393 Gun Prosecution Grant 16.609 2002-GP-CX-0058 240,000 54,109 Violence Against Women Office Passed through State Department of the Attomey General: Violence Against Woman Formula Grants: 16.588 Stop Violence Against Women 00-WF-9 56,000 24,837 Stop Violence Against Women 01-WF-8 47,700 47,700 Sexual Assault Nurse Examiner 00-WF-2 59,904 10,627 Sexual Assault Forensic Examiner OI-WF-06 51,500 ],670 Domestic Violence/Sex Crime Unit 00-WF-3 33,346 11,407 Victim Service Coordinator O]-WF-03 34,000 2,151 Subtotal CFDA 16.588 98,392 11 (Continued) COUNTY OF ILIWAI'I STATE OF IIAWAI'I Schedule of Expenditures of Federal Awards Yeaz ended June 30, 2003 Federal Program CFDA Award Federal Federal Grantor/Pass-Through Grantor/Program Tile Number Grant Number Amount Expenditures Office of Community Oriented Policing Services Public Safety Partnership and Community Policing Grants: COPS Ahead Program 16.710 95-CC-WX-0415 $ 1,875,000 $ 116,990 COPS More 2001-CL-WX-0028 818,306 291,538 Subtotal CFDA 16.710 408,528 Drug Enforcement Administration Mazijuana Eradication 2002 N/A 2002-47 267,000 223,645 Mazijuana Eradication 2003 2003118 266,000 48,239 Subtotal for Marijuana Eradication 271,884 Total Department of Justice 2,501,549 DEPARTMENT OF Ir1BOR Employment and Training Administration Passed through the State Department of Labor and and Industrial Relations: Senior Community Service Employment Program 17.235 PY-00-SCSEP-H-HCOA 280,730 277,071 PY-Ol-SCSEP-H-HCOA 279,044 86 Subtotal CFDA 17.235 277,157 Worldorce Investment Act Cluster: WIAAdultProgram 17.258 AA-11247.01-50 1,407,668 238,217 AA-11247.02-50 1,089,292 904,926 Subtotal CFDA 17.258 1,143,143 WIAYouthActivities 17.259 AA-11247.01-50 1,479,445 699,609 AA-] 1247.02-50 1,359,472 396,304 Subtotal CFDA 17.259 1,095,913 WIA Dislocated Workers 17.260 AA-11247.01-50 846,724 204,955 AA-11247.02-50 832,367 688,776 Subtotal CFDA 17.260 893,731 12 (Continued) COUNTY OF HAWAII STATE OF HAWAII Schedule of Expenditures of Federal Awards Year ended June 30, 2003 Federal Program CFDA Award Federal Federal Granfor/Pass-Through Grantor/Program Title Nnmber Grant Number Amount Expenditures Employment and Training Administration, Continued Passed through the State Department of Labor and and Industrial Relations: Workforce Investment Act Cluster, continued: Subtotal Workforce Investment Act Cluster $ 3,132,787 Total Department of Labor 3,409,944 DEPARTMENT OF TRANSPORTATION Federal Highway Administration Passed through the State Department of Transportation: Highway Planning and Construction: 20.205 Old Mamalahoa Highway at Kalopa Bridge BR-0100(45) 130,400 3,576 Reeds Island Bridge on Kaiulani St. in Hilo BR-0100(47) 2,044,000 884 Old Mamalahoa Highway at Inoino Gulch Bridge inKalopa BR-0100(48) 1,063,471 97,797 Oshiro Road, Kalopa/Aliipali Stream, Kaumoali Stream Bridge Replacement BR-0100(49) 2,680,750 1,322,863 Onomea Camp Road Bridge Replacement BR-0100(54) 506,637 11,190 Honomu/Iviamalahoa Bridge Replacement BR-0100(55) 2,176,628 17,574 Manienie UII/Kaiwiki Bridge Replacement BR-0100(56) 1,632,000 683 Bridge Inspection/Appraisals BR-NBIS(24) 80,000 17,686 Flood Damage Emergency Repairs at Vazious County of Hawaii Locations ER-12(9) 1,406,393 592,768 Flood Damage Repairs at Akolea Road Bridge ER-12(12) 65,984 3,252 A]iiDriveROW RS-0187(1) 3,127,200 406,333 Alii Dtive Design/Archaeological RS-1087(4) 6,441,250 124,180 Hilo Traffic Circulation and Improvement Study SPR-0100(24) 100,000 19,638 Waimea Trails and Greenways STP-0100(51) 313,644 22,533 Traffic Signal Upgrade, South Hilo STP-0100(60) 2,018,737 60,816 Kuakini Highway Improvements, Palani to Hualalal STP-0110(1) 800,000 103,502 Alii Drive Improvements - Hualalai to Walua STP-O] 86(2) 240,000 4,041 13 (Continued) COUNTY OF HAWAII STATE OF HAWAII Schedule of Expenditures of Federal Awards Year ended June 3Q, 2003 Federal Program CFDA Award Federal Federal Grantor/Pass-Through Grantor/Program Title Number Grant Number Amount Expenditures Federal Highway Administration, Continued Passed through the State DepaRment of Transportation: Highway Planning and Construction, continued: Kilauea Corridor Traffic Signal Upgrade STP-1920(4) $ 40.000 $ 1;306 Puainako Street Extension, Kilauea Avenue to Upper KaumanaDrive STP-2000(3) 494,880 2,197 Puainako Street Extension, Komohana Street to Country Club Road STP-2000(4) 28,730,980 10,671,924 Kawailani Street Improvements Iwalani to Pohakulani Sheet STP-2760(2) 440,000 122,238 Route 2760: Kawailaru Street at Waiakea Stream STP-2760(3) 480,000 45,784 Manono Street Traffic Signals at Lanikaula Street STP-2770(3) 2,921,225 58,019 Route 2790: Mohouli Street Extension STP-2790(1) 9,336,355 316,433 Subtotal CFDA 20.205 14,027,217 Federal Transit Administration Passed through the State Department of Transportation: Formula Grants for Ofher Than Urbanized Areas 20.509 HI-18-21 1,100,400 377,970 National Highway Traffic Safely Administration State and Community Highway Safety Program: 20.600 Seatbelt Innovative Demonstration Program -East Hawaii DTNFI22-O1-G-55299 100,000 32,316 Seatbelt Innovative Demonstration Program -West Hawaii DTNH22-O1-G-55299 50,000 32,425 Passed through the State Department of Transportation: Sobriety Checkpoint 2001-2002 AL02-02(01-H-02) 53,140 27,057 Sobriety Checkpoint 2002-03 AL03-02(01-H-02) 87,560 41,498 Youth Deterrence Grant AL02-02(09-H-Ol) 26,260 6,950 In-Car Video Equipment AL02-02(01-H-01) 37,618 36,602 EquipmenUTrainingProgram AL03-02(02-H-01) 6,245 440 Occupant Protection Program 157(b)OPOI-95(01-H-02) 58,718 2,558 Occupant Protection Program OP02-05(01-H-02) 103,300 69,238 Speed Enforcement SC02-06(01-H-02) 33,375 9,472 Speed Enforcement SC03-06(01-H-02) 50,740 18,732 Data Transmission Upgrade TROT-03(01-H-02) 69,000 2,426 14 (Continued) COUNTY OF HAWAII STATE OF HAWAII Schedule of Expenditures of Federal Awazds Yeaz ended June 30, 2003 Federal Program CFDA Award Federal Federal Grantor/Pass-Through Grantor/Program Title Number Grant Number Amount Expenditures National Highway Traffic Safety Administration, Continued State and Community Highway Safety Program: Passed through the State Department of Transportation, continued: Pedestrian Safety -Walking Bus PS02-09(04-H-O]) $ 792 $ 536 Alcohol Reconstructionist PT02-01(01-H-Ol) 24,000 8,000 Alcohol Reconstructionist PT03-01(02-H-O1) 24,000 3,387 Subtotal CFDA 20.600 291,637 Research and Special Programs Administration Passed through the State Deparhment of Defense: Interagency Hazazdous Materials Public Sector Training and Planning Grants 20.703 N/A 12,800 12,800 Total Departrnent of Transportation 14,709,624 ENVII2ONMENTAL PROTECTION AGENCY Office of Ground Water and Drinking Water Passed through the State Department of Health: Capitalization Grants for Drinking Water State Revolving Funds: 66.468 Kukuihaele Well "A" DWI33-0001 2,671,606 37,681 Kaieie Mauka DW107-0001 1,785,666 94,810 Makapala Well DW 139-0001 1,952, ] 42 146,639 Pahala Well "B" DW109-0001 2,051,908 SQ,902 Saddle Road DW101-0001 1,717,380 196,061 Subtotal CFDA 66.468 556,093 Surveys, Studies, Investigations and Special Purpose Grants: Waste Reduction and Recycling Project 66.606 X-97917701-0 400,000 179,935 Office of Solid W aste and Emergency Response Passed through the State Department of Health: CEPP Technical Assistance Grants Program 66.810 82568101-2 10,000 3,247 Total Environmental Protection Agency 739,275 15 (Continued) COi1NTY OF HAWAII STATE OF HAWAII Schedule of Expenditures of Federal Awazds Yeaz ended June 30, 2003 Federal Program CFDA Award Federal Federal Grantor/Pass-Through Grantor/Program Tile Number Grant Number Amount Expenditures DEPARTMENT OF ENERGY Passed through the State Department of Business, Economic Development and Tourism: State Energy Program: Energy Conservation Program 81.041 DE-FG5I-OOR021040 $ 57,144 $ 54,668 State Energy Program Special Projects: Rebuild America 81.119 DE-FG51-99R-020976 17,150 7,233 Total Department of Energy 61,901 FEDERAL EMERGENCY MANAGEMENT AGENCY Passed through the State Department of Defense: Public Assistance Grants -November 2000 Flood 83.544 FEMA-1348-DR-HI 2,286,903 288,549 Emergency Management Performance Grants 83.552 EMF-2003-GR-0304 111,224 67,823 EMF-2002-GR-0205 111,224 18,294 Subtotal CFDA 83.552 86,117 Flood Mitigation Assistance Planning Grant 83.536 EMF-2002-GR-0224 35,400 32,000 Project Impact -Building Disaster Resistant Communities 83.551 EMF-1999-GR-9021 500,000 99-714 Assistance to Firefighters Grant 83.554 EMW-2002-FG-07643 152,948 103,822 Total Federal Emergency Maztagement Agency 610,202 16 (Continued) COUNTY OF HAWAII STATE OF HAWAII Schedule of Expenditures of Federal Awazds Yeaz ended June 3Q, 2003 Federal Program CFDA Award Federal Federal Grantor/Pass-Through Grantor/Program Title Number Grant Number Amount Expenditures DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration on Aging Passed through the State Executive Office on Aging: Special Programs for the Aging: Title Ill, Part D -Disease Prevention and Health Promotion Services 93.043 3D-0-2002 $ 16,639 $ 12,064 Tite III, Paz[ B - Crrants for Supportive Services and Senior Centers 93.044 3B-4-2002 380,062 131,162 3B-4-2003 464,945 220,191 Subtotal CFDA 93.044 351,353 Title III, Part C -Nutrition Services 93.045 3C1-4-2002 229,243 ] 02,638 3C1-0-2003 ]89,572 92,322 3C211-2002 154,679 97,507 3C2-4-2003 111,299 45,087 Subtotal CFDA 93.045 337,554 National Family Caregiver Support 93.052 3E-4-2001 96,721 44,18] 3E~-2002 110,4]8 83,955 Subtotal CFDA 93.052 128,136 Administration for Children and Families Passed through the State Child Support Enforcement Agency: Child Support Enforcement 93.563 0304HI4004 593,488 593,488 Total Department of Health and Human Services 1,422,595 17 (Continued) COUNTY OF HAWAII STATE OF HAWAII Schedule of Expenditwes of Federal Awazds Year ended June 30, 2003 Federal Program CFDA Award Federal Federal Grantor/Pass-Through Grantor/Program Tile Number Grant Number Amount Expenditures CORPORATION FOR NATIONAL AND COMMUNITY SERVICE Retired and Senior Volunteer Program 94.002 OISRPHI086 $ 79,325 $ 79325 U. S. OFFICE OF NATIONAL DRUG CONTROL POLICY Hawaii Impact N/A 12PHIP504 230,900 143,037 Total expenditures of federal a«~azds $ 39,276,997 Denotes major federal program as defined by OMB Circular A-133. See accompanying notes to schedule of expenditures of federal awards and report on compliance with requirements applicable to each major program and on internal control over compliance in accordance with OMB Circular A-133. 18 COUNTY OF HAWAII STATE OF HAWAII Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2003 (1) Basis of Presentation The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of the County of Hawaii, State of Hawaii (County). Such schedule is presented on the modified accrual basis of accounting, which is described in note 1 to the County's basic financial statements. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Not-Profit Organizations. (2) Subrecipients Of the federal expenditures presented in this schedule, the County provided federal awards to Subrecipients as follows: Amount CFDA Provided to Program Title Number Subrecipients Rural Housing Preservation Grans 10.433 $ 42,476 Community Development Block GranUSmall Cities Program 14.219 247,897 HOME Investment Partnership Program 14.239 625,483 Crime Victim Assistance 16.575 75,019 Workforce Investment Act (W IA): WIA Adult Program ] 7.258 1,017,965 WIA Youth Activities ]7.259 912,313 WIA Dislocated Workers 17.260 792,900 Waste Reduction and Recycling Project 66.606 169,935 19 COUNTY OF HAWAII STATE OF HAWAII Schedule of Findings and Questioned Coss Year ended June 30, 2003 (1) Summary of Auditors' Results (a) The type of report issued on the basic financial statements: Unqualified opinion (b) Reportable conditions in internal control were disclosed by the audit of the basic financial statements: None noted Material weaknesses: None noted (c) Noncompliance which is material to the basic financial statements: None noted (d) Reportable conditions in internal control over major programs: None noted Material weaknesses: None noted (e) The type of report issued on compliance for major programs: Unqualified opinion (t) Any audit findings which are required to be reported under Section .510(a) of OMB Circular A-133: No (g) Major programs: Department of Housing and Urban Development: 14.219 -Community Development Block GranUSmall Cities Program Department of Labor: Workforce Investment Act (WIA) Cluster: 17.258 -WIA Adult Program 17.259 -WIA Youth Activities 17.260 -WIA Dislocated Workers Department of Transportation: 20.205 -Highway Planning and Construction (h) Dollar threshold used to distinguish between Type A and Type B programs: 3% of total federal awards expended or $1,178,310 (i) Auditee qualified as a low-risk auditee under Section .530 of OMB Circular A-133: No 20