HomeMy WebLinkAboutCOM 0051.000 1998-2000 - Mt +, y• �f
ALAN S. KONISHI DONALD IKEDA
County Clerk „ (ILA__ neputy,C'ourc[, Clerk
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OFFICE OF THE COUNTY CLERK' I ‘j ' C�
County of Hawaii CC'_ N i CLERK
Haman County Building COUNTY OF HAWAII
25 Aupuait Street
Hilo, Hawaii 96720
December 17, 1998
TO: Council Members
FROM: Connie Kiriu �✓
Legislative Auditor
RE: Single Audit Report for Fiscal Year Ending June 30, 1998
A copy of the Single Audit Report of the County of Hawaii for Fiscal Year Ending June 30,
1998, is distributed for your information and review. The Single Audit Report was prepared by
KPMG Peat Marwick as part of the Council's overall audit contract.
The Single Audit Report is prepared for federal awarded programs to meet reporting and auditing
requirements. Specifically, subrecipients in receipt of a minimum threshold amount of funds are
audited for the purpose of identifying material weakness of internal controls and testing
compliance with certain provisions of laws, 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 7 -15 ( "Schedule of Expenditures of Federal
Awards "). Another separate memorandum dated December 8, 1998, from Controller Dixie
Kaetsu submitting a "Corrective Action Plan" and a "Summary Schedule of Prior Audit
Findings" should be kept with the Single Audit Report.
The auditors found that their testing disclosed no instances of noncompliance that are required to
be reported under Government Auditing Standards. The auditors also noted no matters involving
the internal control over financial reporting and its operation that would be considered to be
material weaknesses. Additionally, the auditors found that the County complied, in all material
respects, with the audit requirements applicable to each of its major federal programs.
Should you have any questions, please feel free to contact me.
Enc.
Note: Report is on file in the Clerk's Office. Conn. N .
File No. A L C)
Ref. To:
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�•VS - .D , ZY OF N ••
; ;• Harry A Takahashi
Stephen K Yamashiro `�
�'• . • Director
Mayor '� �t t;, ' 1L • •
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S. K Schutte
•F J :• • Y r� Deputy
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County of jOabuaii
DEPARTMENT OF FINANCE
25 Aupum Street, Room 118 • Hilo, Hewett 96720 -4252
(808) 961-8234 • Fax (808) 961 -8248
December 8, 1998
Re: Single Audit for Fiscal Year Ended June 30, 1998
Corrective Action Plan
Summary Schedule of Prior Audit Findings
As required by OMB Circular A -133, the County has prepared a Corrective Action Plan
and a Summary Schedule of Prior Audit Findings. These two documents contain the
County's response to current and prior year findings contained in the Single Audit report.
Please keep these documents with your copy of the Single Audit report.
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Dixie Kaetsu
Controller
Attachments
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CORRECTIVE ACTION PLAN
Department of Housing and Urban Development
Community Development Block Grant/Small Cities Program
Finding 98 -01 Requests for Reimbursements
Recommendation: All requests for reimbursements should be processed after actual costs
are paid by the program.
Administration's Comment: The County disagrees with this finding and recommendation.
Part 85.21c of the Federal Register, Administrative Requirements for Grants and
Cooperative Agreements to State, Local and Federally Recognized Indian Tribal
Governments, allows advances as long as procedures are maintained to minimize the time
elapsing between the transfer of funds and their disbursement. 31 CFR Part 205.7 states that
the County shall request funds not more than three business days prior to the day on which it
makes a disbursement of CDBG funds. The HOME Program requires HOME funds to be
disbursed within fifteen days of receipt from the US Treasury.
Anticipated Completion Date: Not applicable.
Contact Person: Edwin S. Taira, Assistant Housing Administrator
Office of Housing and Community Development
Finding 98 -02 Procurement
Recommendation: We recommend that the County exercise greater care in ensuring that all
procurement documentation is properly maintained.
Administration's Comment: The County has complied and will continue to comply with the
State of Hawaii Procurement Code. In the incident cited in this finding, the Department of
Parks and Recreation asked that the Office of Housing and Community Development
(OHCD) execute a design contract for a block grant project. In accordance with the legal
requirements of the procurement code, a design consultant was selected by the Department of
Public Works. Unfortunately, the OHCD was informed that the consultant selection
documentation was misplaced during the transfer of documents between County
departments. The chair of the selection committee has signed an affidavit certifying that the
selection process was conducted in compliance with the procurement code. The County
realizes that proper documentation is essential, and will work to ensure that such
documentation is included in all files.
Anticipated Completion Date: This will continue to be an ongoing effort.
Contact Person: Edwin S. Taira, Assistant Housing Administrator
Office of Housing and Community Development
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Finding 98 -03 Personnel Activity Reports
Recommendation: We recommend that the County print hard copies of personnel activity
reports and implement a policy to have employees sign the personnel activity reports.
Administration's Comment: Employees have been printing hard copies of their personnel
activity reports. Effective immediately, employees will be required to sign the hard copy to
evidence their approval of actual time worked on federal programs. In addition, each
employee has signed and verified the personnel activity reports for the audit period.
Anticipated Completion Date: The change in procedure has already been implemented.
Contact Person: Edwin S. Taira, Assistant Housing Administrator
Office of Housing and Community Development
Department of Housing and Urban Development
HOME Investment Partnership Program
Finding 98 -04 Personnel Activity Reports
Recommendation: We recommend that the County print hard copies of personnel activity
reports and implement a policy to have employees sign the personnel activity reports.
Administration's Comment: Employees have been printing hard copies of their personnel
activity reports. Effective immediately, employees will be required to sign the hard copy to
evidence their approval of actual time worked on federal programs. In addition, each
employee has signed and verified the personnel activity reports for the audit period.
Anticipated Completion Date: The change in procedure has already been implemented.
Contact Person: Edwin S. Taira, Assistant Housing Administrator
Office of Housing and Community Development
Environmental Protection Agency
Capitalization Grants for State Revolving Funds
Finding 98 -05 Davis -Bacon Act
Recommendation: We recommend that the Division monitor the contractor's compliance
with the Davis -Bacon Act (and other labor requirements) and ensure that adequate
documentation is maintained. The Division should require that it be provided with a copy of
the appropriate certification(s) as part of the proper monthly progress billing.
Administration's Comment: The Division is of the opinion that the current practice of
having the construction management consultants (CM) for each project maintain the required
paperwork is adequate. The CM provides an affidavit each month that the certified payroll
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records are in its possession. The CM serves as the County's agent and holds all records
during the course of the project. At the end of the job, all records are physically transferred
to the County. During the upcoming year, the Division will periodically inspect the payroll
records in the CM's possession to ensure compliance.
Anticipated Completion Date: Periodic inspections of records in the possession of the CM
will begin during the 1998 -99 fiscal year.
Contact Person: Peter Boucher
Wastewater Division Chief
Department of Housing and Urban Development
Section 8 Rental Voucher Program
Finding 98 -06 Housing Assistance Payments
Recommendation: We recommend that the rental assistance amount be corrected on the
contract and that the county exercise greater care in monitoring and reviewing contracts.
Administration's Comment: The contract with the incorrect rental assistance amount has
been corrected as of August 10, 1998. In spite of the incorrect amount recorded in the
contract, payments to the landlord were correct during the entire time that the error in the
contract was not corrected. Staff have been reminded of the importance of accuracy in
preparation of contracts.
Anticipated Completion Date: Correction has been made as of August 10, 1998.
Contact Person: Edwin S. Taira, Assistant Housing Administrator
Office of Housing and Community Development
Finding 98 -07 Overpayment of Housing Assistance Payment
Recommendation: We recommend that the County take immediate action to recover the
identified housing assistance overpayment.
Administration's Comment: The tenant has signed a promissory note and will be repaying
the overpayment in monthly installments.
Anticipated Completion Date: Repayment will be completed in October, 2000.
Contact Person: Edwin S. Taira, Assistant Housing Administrator
Office of Housing and Community Development
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SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Department of Housing and Urban Development
Section 8 Rental Voucher Program
Finding 97 -1: Out of 45 files that the auditors examined for the County's Housing
Voucher Program, eight files contained documentation or computational errors.
Corrective action taken: Section 8 supervisors are continuing to audit, on a test basis,
case files prepared by case managers to assure the accuracy of the documentation.
No similar errors were included in the current year findings.
Contact Person: Edwin S. Taira, Assistant Housing Administrator
Office of Housing and Community Development
Environmental Protection Agency
Capitalization Grants for State Revolving Funds
Finding 97 -2: Requests for reimbursements for the SRF wastewater projects are
prepared prior to the actual payments being disbursed to contractors. Also, the
Wastewater Division does not monitor that the funds are at least disbursed before
the requested funds from the federal government are received.
Corrective action taken: Upon consultation with the State Department of Health
(DOH), it was determined that under the terms of the loan agreements with the
DOH, the County is permitted to request reimbursement prior to actual
disbursement of funds to contractors. No further action has been or will be taken.
Contact Person: Peter Boucher, Division Chief
Wastewater Division
Environmental Protection Agency
Capitalization Grants for State Revolving Funds
And
Department of Agriculture
Water/Wastewater Disposal System for Rural Communities
Finding 97 -3: The payroll certifications regarding compliance with the Davis -Bacon Act
requirements are not consistently maintained by the County.
Corrective action taken: The Division continues to rely on the monthly affidavits
prepared by the County's agent, the construction management consultant (CM)
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for each project. The Davis -Bacon payroll certifications are maintained by the
CM while the project is under construction. See response to Finding 98 -06 in
current year Corrective Action Plan. The Division will commence periodic
inspections of the payroll records in the possession of the construction
management consultant.
Date corrective action to be completed: Periodic inspections of records in the
possession of the CM will begin during the 1998 -99 fiscal year.
Contact Person: Peter Boucher, Division Chief
Wastewater Division
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COUNTY OF HAWAII
STATE OF HAWAII
Single Audit of Federal Financial Assistance Programs
Year ended Tune 30, 1998
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COUNTY OF HAWAII
STATE OF HAWAII
Single Audit of Federal Financial Assistance Programs
Year ended June 30, 1998
Table of Contents
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I. INTRODUCTION
Audit Objectives 1
Scope of Audit 2
Organization of Report 7
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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
l Standards 3
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III. COMPLIANCE AND INTERNAL CONTROL OVER FEDERAL AWARDS
Report on Compliance with Requirements Applicable to Each Major Program and Internal
Control Over Compliance in Accordance with OMB Circular A -133 5
Schedule of Expenditures of Federal Awards 7
Notes to Schedule of Expenditures of Federal Awards 16
Schedule of Findings and Questioned Costs 17
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KPMG Peat Marwick LLP
L P 0 Box 4150 Telephone 808 531 7286 Telefax 808 541 9321
Honolulu, HI 96812 -4150 Telex 7238615
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t� October 23, 1998
To the Members of the
L. County Council of Hawaii
County of Hawaii
r Hilo, Hawaii:
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— We have completed our financial audit of the general purpose financial statements of the County of
Hawaii, State of Hawaii (County), as of and for the year ended June 30, 1998. We have also audited the
County's compliance with requirements applicable to its major federal financial assistance programs. We
submit herein our reports on compliance and internal control over financial reporting and over federal
awards, the schedule of expenditures of federal awards and a schedule of findings and questioned costs.
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The audit objectives and scope of the financial audit, as defined in our contract with the County, are as
I� follows:
AUDIT OBJECTIVES
II 1. To provide a basis for an opinion on presentation of the financial statements of the County and
J all its agencies, including the Department of Water Supply, and of operations for which the
County is responsible.
U 2. To ascertain whether or not expenditures and other disbursements have been made, and all
revenues, receipts and receivables to which the County is entitled or is responsible for having
collected and accounted for in accordance with the laws, rules and regulations, and policies
and procedures of the County, the State of Hawaii and the federal government (where
applicable) have been satisfied.
3. To evaluate the accuracy, effectiveness, and efficiency of the systems and procedures for
financial accounting, internal and operational controls of the County and of operations for
which the County is responsible.
f 4. To ensure that: (1) the funds appropriated to the agencies have been expended in accordance
(_ with the purposes for which they were appropriated and in accordance with applicable laws,
ordinances and regulations; (2) adequate accounting systems and procedures have been
established to safeguard the public funds and property; (3) accurate and reliable fiscal records
have been maintained; and (4) there has been efficiency in operations.
5. To test, study, examine, evaluate and report on financial statements, internal accounting and
r other control systems, and other compliance requirements for federal financial assistance
L programs in accordance with the provisions of the Single Audit Act of 1984, the Single Audit
Act Amendments of 1996, as may be amended, and U.S. Office of Management and Budget
— (OMB) Circular No. A -133.
6. To recommend improvements to the internal control, reporting and accounting systems and
— procedures of the County's agencies as appropriate.
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r SCOPE OF AUDIT
1. We performed an audit of the general purpose financial statements as of and for the year
ended June 30, 1998 in accordance with generally accepted auditing standards, as adopted by
r the American Institute of Certified Public Accountants, and the standards applicable to
t governmental financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
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2. As part of the audit of the County's financial statements, we performed tests of the County's
compliance with certain provisions of laws, regulations, contracts and grants. We also
r evaluated the County's internal control over financial reporting, which included an assessment
of the extent to which the internal control structure can be relied upon to ensure accurate
information, to ensure compliance with laws and regulations, to provide for efficient and
effective operations, and to ensure integrity in the County's receipt and expenditure of public
funds.
3. We performed an audit of the County's federal financial assistance programs for the year
ended June 30, 1998 in accordance with generally accepted auditing standards, 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:
I. Section I, entitled "Introduction," describes the objectives and scope of our financial audit
and the organization and contents of this report.
2. Section II, entitled "Compliance and Internal Control Over Financial Reporting," contains our
r . report on the County's compliance and internal control over financial reporting based upon
our audit of the County's financial statements.
3. Section II1, entitled "Compliance and Internal Control Over Federal Awards." contains our
f 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.
Our report on the general purpose financial statements of the County as of and for the year ended June 30,
t_ 1998 are included under a separate cover. A separate management letter dated October 23, 1998 has also
been issued.
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,
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1 SECTION 11— COMPLIANCE AND INTERNAL CONTROL
_ OVER FINANCIAL REPORTING
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K PMG Peat Marwick LLP
P O Box 4150
� - ^ Honolulu, HI 96812 -4150
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Report on Compliance and on Internal Control
Over Financial Reporting Based on an
Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
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To the Members of the
County Council of Hawaii
County of Hawaii
D Hilo, Hawaii
We have audited the general purpose financial statements of the County of Hawaii, State of Hawaii
(County), as of and for the year ended June 30, 1998, and have issued our report thereon dated October 23,
1998. We conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
rl General of the United States.
Compliance
r As part of obtaining reasonable assurance about whether the County's general purpose 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 not 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. However, noted certain immaterial instances of noncompliance,
which we have reported to management of the County in a separate letter dated October 23, 1998.
Internal Control Over Financial Reporting
In planning and performing our audit, we 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 general
purpose financial statements and not to provide assurance on the internal control over financial reporting.
Our consideration of the intemal control over financial reporting would not necessarily disclose all matters
in the 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 of the internal control components does not
reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to
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the general purpose 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 the internal control over financial reporting and its operation that we consider to be material
weaknesses. However, we noted other matters involving the internal control over financial reporting,
which we have reported to management of the County in a separate letter dated October 23, 1998.
r This report is intended solely for the information and use of the County Administration, County Council
and federal awarding agencies and is not intended to be and should not be used by anyone other than these
specified parties.
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Honolulu, Hawaii
r October 23, 1998
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SECTION III - COMPLIANCE AND INTERNAL CONTROL
OVER FEDERAL AWARDS
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�� PMG Peat Marwick ALP
P 0 Box 4150
Honolulu, HI 96812 -4150
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Report on Compliance with Requirements
Applicable to Each Major Program
and 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. Office 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, 1998. The County's major federal programs are identified in the summary of auditor's results
t- 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
D the responsibility of the County's management. Our responsibility is to express an opinion on the
County's compliance based on our audit.
r We conducted our audit of compliance in accordance with generally accepted auditing standards; 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 Or 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 all material respects, with the requirements referred to above that
are applicable to each of its major federal programs for the year ended June 30, 1998. However, the
results of our auditing procedures disclosed instances of noncompliance with those requirements, which
are required to be reported in accordance with OMB Circular A -133 and which are described in the
accompanying schedule of findings and questioned costs as items 98 -01 to 98 -07.
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Internal Control Over Compliance
The management of the County is responsible for establishing and maintaining effective internal control
over compliance with 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 the internal control over compliance in accordance with OMB Circular A -133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the
r internal control that might be material weaknesses. A material weakness is a condition in which the
design or operation of one or more of the internal control components does not reduce to a relatively low
ti 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 the internal control over compliance and its operation that we consider to be
material weaknesses.
Schedule of Expenditures of Federal Awards
r- We have audited the general purpose financial statements of the County of Hawaii as of and for the year
ended June 30, 1998, and have issued our report thereon dated October 23. 1998. Our audit was
performed for the purpose of forming an opinion on the general purpose financial statements taken as a
r 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 general purpose
financial statements. Such information has been subjected to the auditing procedures applied in the audit
of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the general purpose financial statements taken as a whole.
This report is intended solely for the information and use of the County Administration. County Council
and federal awarding agencies and is not intended to be and should not be used by anyone other than these
specified parties.
.ate-'atie At?
Honolulu, Hawaii
a October 23, 1998
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COUNTY OF HAWAII
STATE OF HAWAII a
Schedule of Expenditures of Federal Awards
Ycar ended June 30, 1998
Federal
Program
CFDA Award Federal
Federal Grantor /Pass- Through Grantor /Program Title Number Grant Number Amount Expenditures O
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Housing Preservation Grants: 10.433
Housing Preservation Grant in 1995 N/A $ 94,730 $ 41,180
Housing Preservation Grant in 1996 N/A 75,000 75,000
Housing Preservation Grant in 1997 N/A 50,000 48,535
Housing Preservation Grant Program Income N/A 2,500
Subtotal CFDA 10.433 167,215
Food and Nutrition Service
Passed through the State Executive Office on Aging:
Nutrition Program for the Elderly 10.570 7E8128 Am. 1234 105,187 103,332
Forest Service
Cooperative Forestry Assistance 10.664 G- 5 -97 -20 -021 17,700 13,340
G- 5 -97 -20 -043 43,000 43,000
Subtotal CFDA 10.664 56,340
Rural Utilities Service
Water and Waste Disposal Systems for Rural Communities: 10.760 0
Papaikou Sewage System N/A 1,575,000 263,272
Ookala Water System N/A 381,650 23,650
Subtotal CFDA 10.760 286,922
Total Department of Agriculture $ 613,809
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COUNTY OF HAWAII
STATE OF HAWAII
Schedule of Expenditures of Federal Awards
Year ended June 30, 1998
Federal
Program
CFDA Award Federal
Federal Grantor /Pass- Through Grantor /Program Title Number Grant Number Amount Expenditures O
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
Passed through the State Office of Planning:
Coastal Zone Management Administration Awards: 11.419
I Iawaii Coastal Zone Management Program 96 -97 NA670Z0249 $ 103,327 $ 20,016
Hawaii Coastal Zone Management Program 97 -98 NA77OZ0185 93,475 91,091
Total Department of Commerce 1 1 1,107
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Section 8 - New Construction and Substantial Rehabilitation -
Kulaimano Elderly (lousing 14.182 1 1110- 0002 -001 181.200 153,327 '
Community Planning and Development
Community Development Block Grant /Sinall Cities Program 14.219 B- 91 -DH -I5 -0002 1,159,000 22,500
B- 92- DI4 -15 -0002 1,245,000 210,876
B- 93- DI -1 -15 -0002 1,580,000 543,213
B- 94 -DH -15 -0002 1,762,000 200,392
I3 -95- DIi -15 -0002 2.257,000 1,253,679
13- 96 -DH -15 -0002 2. 212,000 1,291.454
B- 97 -DH -15 -0002 2.193,1)00 2.000
Program Income — 182,918
Subtotal CFDA 14.219 3,707,032 *
Community Development 13Iock Grant /Special Purpose Grant 14.227 I-I108 -SPG -501 1,600,000 38,160
Passed through the I Iawan Housing Authority
Emergency Shelter Grants Program 14.231 S- 96 -DC -15 -01)01 41,814 34,952
S- 97 -DC -15 -0001 42,140 37,601
Subtotal CFDA 14.231 $ 72,553
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COUNT'' OF HAWAII
STATE OF HAWAII '
Schedule of Expenditures of Federal Awards
Year ended June 31). 1998
Federal
Program
CFDA Award Federal
Federal Grantor /Pass - Through Grantor /Program Title Number Grant Number Amount Expenditures O
Passed through the State 1 lousing Finance & Development
Corporation.
HOME Investment Partnership Program 14.239 M93 -SG 150102 $ 963,000 $ 546.446
M94 -SG 150102 963,000 784,032
M95 -SG 150102 963,000 355,844
M96 -SG 150102 963,000 365,680
M97 -SG 150102 963,000 29,607
Subtotal CFDA 14.239 2,081,609 *
Public and Indian Housing
Public Housing Drug Elimination Program 14.854 RSP fI98 -03 70,900 27,698
H 108DEP00195 75,000 74,580
Subtotal CFDA 14 854 102,278
Section 8 - Rental Voucher Program 14.855 1- 1108 -V002 -012 -023 1,619,930 1,619,930 *
Section 8 - Rental Certificate Program 14.857 1- 11 08 -E002 -006 -022 6,408,074 5,801,812 *
Total Department of 1- lousing and t Irban Development 13,576,701
DEPARTMENT OF JUSTICE
Office of Juvenile Justice and Delinquency Prevention
Passed through State Department of Human Services:
Title V - Delinquency Prevention Program 16.548 97 -JP -FX -0015 40,000 31,884
Office of Victims of Crime
Passed through State Department or the Attorney General:
Crime Victim Assistance 16.575 96 -VA -4 157,529 101,075
97 -VA -4 368,407 48,010
Subtotal CFDA 16.575 $ 149,085
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COUNTY OF HAWAII
STATE OF HAWAII
Schedule of Expenditures of Federal Awards
Year ended June 30, 1998
Federal
Program
CFDA Award Federal •
Federal Grantor /Pass- Through Grantor /Program Title Number Grant Number Amount Expenditures O
Bureau of Justice Assistance
Byrne Formula Grant Program: 16.579
Marijuana Eradication 97 97 -39 $ 245,000 $ 169,178
Marijuana Eradication 98 98 -39 245,000 106,976
Passed through State Department of the Attorney General:
Domestic and Family Violence 96 -DB -20 241,500 177,614
Violence Against Children 96 -DB -6 35.250 15,691
Violence Against Children 97 -DB -7 202.000 143,613
Violence Against Children 97 -DB -13 35,250 17,390
Statewide Narcotics Task Force 96 -DB -12 43,875 22,635
Statewide Marijuana Eradication Task Force 96 -08 -13 108.294 1,198
Subtotal CFDA 16.579 654,295 *
Local Law Enforcement Block Grant 16.592 96 -LB -VX -3395 90,593 77,142
Office of Community Oriented Policing Services
Public Safety Partnership and Community Policing Grants: 16.710
Police Hiring Supplement Program 94 -DM -CX -0161 375,000 18,174
COPS Ahead Program 95 -CC -WX -0415 1,350,000 216.863
COPS Combat Domestic Violence 96-D V - W X -0205 146,498 10,045
Passed through State Department of the Attorney General:
Community Policing 95 -DB -14 70,845 14,315
Subtotal CFDA 16.710 259,397
Drug Enforcement Administration
Organized Crime Drug Enforcement Task Force 16.N W -HI -028 NW-III-028 17,000 10,283
Total Department oflustice $ 1,182,086
10 (Continued)
I I C I r i 1 F r r n i r I C I 1 I I( i r l r 1 1 i M I I J
COUNTY OF HAWAII
STATE OF HAWAII 0.
Schedule of Expenditures of Federal Awards
Year ended June 30, 1998
Federal
Program
CFDA Award Federal
Federal Grantor /Pass - Through Grantor /Program Title Number Grant Number Amount Expenditures O
DEPARTMENT OF LABOR
Passed through the State Department of Labor and Industrial Relations:
Senior Community Service Employment Program 17 235 D- 6089- 7- 00- 81 -55(H) $ 277,165 $ 276,624
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Passed through the State Department o Transportation:
I lighway Planning and Construction: 20 205
Old Mamalahoa Highway /Waikaalulu
Bridge Replacement BR- 0100(43) 142,400 20.452
Old Mamalahoa Highway at Kaahakini Bridge 13R- 0100(44) 114,400 1,570
Old Mamalahoa Highway at Kalopa Bridge IIR- 0100(45) 130,400 19,832
Seismic Retrofit BR- 0100(46) 240,000 30,688
Reeds Island Bridge Replacement on Kaiulani Street BIR- 0100(47) 2,044,000 3.206
Old Mamalahoa Highway at lnoino Gulch Bridge in Kalopa BR- 0100(48) 94,400 19,743
Oshiro Road, Kalopa/Aliipali Stream, Kaumoali Stream
Bridge Replacement BR- 0100(49) 1,741,600 32,908
Kalaoa /Mamalahoa Bridge Replacement BR- 0100(52) 108,000 1,134 O
Opea/Mamalahoa Bridge Replacement BR- 0100(53) 84,000 969
Onomea Camp Road Bridge Replacement BR- 0100(54) 60.000 37,605
Honomu /Mamalahoa Bridge Replacement 13R -0100(55) 124,000 580
Bridge Inspection /Appraisals BR- N13IS(19) 48,000 10.460
Alii Drive Design /Archaeological RS- 1087(4) 2,493,160 530
Kona Road Improvements, Phase I STP- 0100(35) 926,488 88,035
Hilo Road Improvements, Phase 11 STP - 0100(37) 2,406,585 314,911
Kona Road Improvements, Phase 11 STP-0l 00(39) 3,146,003 571,944
Lindsey Road Improvements STP- 0100(42) 28,868 6,469
South Hilo Various Roads, Phase 111 STP - 0100(50) 65,984 21,349
Kona Road Improvements, Phase III STP- 01 80(7) 120,000 15,684
Alii Drive Culvert Replacement STP - 0186(1) 240,000 650
Waikoloa Road Shoulder Improvements, Mamalahoa
Highway to Paniolo Avenue STP - 0191(2) 40,000 24,180
11 (Continued)
1 1 1 1 ( 1 FM 1 I ( D L 1 b ( I 4 I t I ( 7 F 1
COUNTY OF HAWAII
STATE OF HAWAII
Schedule of Expenditures of Federal Awards
Year ended June 30, 1998
Federal
Program
CFDA Award Federal
Federal Grantor /Pass- Through Grantor /Program Title Number Grant Number Amount Expenditures O
Passed through the State Department of Transportation:
•
Highway Planning and Construction:
Mamalahoa Highway Improvements, Kamamalu to
Lindsey Road STP- 0191(24) $ 5,131,543 $ 51,789
Komohana Street Bridge at Alenaio Stream STP - 1940(6) 250,400 60.507
Subtotal CFDA 20.205 1.335,195
Federal Transit Administration
Passed through the State Department of Transportation.
Federal Transit Capital Improvement Grants 20.500 HI -18 -X0012 530,323 51,775
1-11 -18 -X0013 1,148,721 20.260
Subtotal CFDA 20.500 72,035
National Highway Traffic Safety Administration
Passed through the State Department of Transportation:
State and Community Highway Safety: 20.600
Mohouli/Komohana Traffic Signals STP - 1940(4) 476,023 23,689
Komohana/Ponohawai'fraff'c Signals STP - 1940(5) 515,000 4,000
Kaumana/Ainako Traffic Signals STP - 1950(2) 387,991 279,066
Sobriety Checkpoint Expansion 96 -97 AL97- 02(01 -11-02) 55.500 11,237
Sobriety Checkpoint Expansion 97 -98 AL98- 02(01 -H -02) 35,000 22,817
Hawaii Seatbelt Enforcement Expansion 96 -97 OP97- 05(01- 1 -1 -02) 7,000 451
Hawaii Seatbelt Enforcement Expansion 97 -98 0P98- 05(01 -H -02) 19,178 11,793
Speed Enforcement PT98- 01(01 -11 -021 61.500 18,838
Mobile Video Recorder 97- J7(03 -H -01) 22,500 19,596
Subtotal CFDA 20.600 391,487
Total Department of Transportation $ 1,798,717
12 (Continued)
I 1 I 1 CD d 1 1 1 t ( 1 � O ( J 1 1 Cl f 1 (=i 1 )
COUNTY OF HAWAII
STATE OF HAWAII
Schedule of Expenditures of Federal Awards
Year ended June 30, 1998
Federal
Program
CFDA Award Federal
Federal Grantor /Pass- Through Grantor /Program Title Number Grant Number Amount Expenditures O
ENVIRONMENTAL PROTECTION AGENCY
Office of Water
Passed through the State Department of Health:
Capitalization Grants for State Revolving Funds: 66.458
Waiaha Sewage Pump Station C150080 -09 $ 3,069,251 $ 220,136
Alii Drive Interceptor Sewers and Force Main, Phase 11 C150080 -10 3,150,000 145,806
Holualoa Bay Sewage Pump Station C150080 -I 1 3,080,000 985,470
Total Environmental Protection Agency 1,351,412 *
DEPARTMENT OF ENERGY
Passed through the State Department of Business, Economic
Development and Tourism:
State Energy Program: 81.041
Energy Conservation Program DE- FG51- 96R020759 54,312 50,815
Rebuild America DE- FG51- 97R020881 10,000 3,794
Total Department of Energy 54,609
FEDERAL EMERGENCY MANAGEMENT AGENCY O
Passed through the State Department of Defense
Hurricane Program 83.520 N/A 12,388 12,388
Emergency Management - State and Local Assistance 83.534 EMF -97 -PA -0004 106,215 38,819
EMF -98 -PA -9004 108,065 108,065
Subtotal CFDA 83.534 146,884
Total Federal Emergency Management Agency 159,272
DEPARTMENT OF EDUCATION
Passed through the State Department of I luman Services:
Safe and Drug -Free Schools and Communities 84 186 DHS- 98 -OYS -6337 10,700 $ 506
13 (Continued)
r ) r 1 C 1 a C nn C3 r) 1.____J 1 1 r r n( r r a t 1 r a C i r j r
COUNTY OF HAWAII
STATE OF HAWAII ek
Schedule of Expenditures of Federal Awards
Year ended June 30, 1998
Federal
Program
CFDA Award Federal
Federal Grantor /Pass- Through Grantor /Program Title Number Grant Number Amount Expenditures O
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration on Aging
Passed through the State Executive Office on Aging:
Special Programs for the Aging:
Title III, Part F - Disease Prevention and Health Promotion
Services 93.043 3F -4 -97 $ 12,684 $ 3,552
3F -4 -98 9,513 9,513
Subtotal CFDA 93.043 13,065
Title III, Part B - Grants for Supportive Services and Senior
Centers 93.044 3B -4 -97 341,722 121,807
313-4 -98 256,292 187,233
Subtotal CFDA 93.044 309,040
Title III, Part C - Nutrition Services 93.045 30 -4 -97 223,276 62,144
3C2 -4 -97 95,623 26,063
3C1 -4 -98 167,457 161,132
3C2 -4 -98 71,717 69,560 O
Suhtotal CFDA 93.045 318.899
Title III, Part D - In home Services for Frail Older Individuals 93.046 3D-4-97 8,083 2,264
3D -4 -98 6,062 6,062
Suhtotal ['FDA 93.046 8
Title IV - - Raining, Research and Discretionary Projects and
Programs 93.048 IIA- IIIA- 98 -3(N) 6,000 $ 50
14 (Continued)
C 1 1 1 o J o C() L i r`fl L) CD C IJ L_J 1 1 1 1 c r i ca
COUNTY OF HAWAII
STATE OF HAWAII •
Schedule of Expenditures of Federal Awards
Year ended June 30, 1998
Federal
Program
CFDA Award Federal
Federal Grantor /Pass- Through Grantor /Program Title Number Grant Number Amount Expenditures
Passed through the State Child Support Enforcement Agency:
Child Support Enforcement 93.563 G- 97 -04 -HI -4004 S 638,947 $ 638,947 *
Passed through the State Department of Human Services:
Child Care and Development Block Grant 93.575 G95 BIHICARE 60,000 59,156
Total Department of Health and I Inman Services 1,347,483
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
Retired and Senior Volunteer Program 94.002 440- P086/17 44,440 44,440
Total Expenditures of Federal Awards $ 20,516,766
( *) Denotes major federal program as defined by OMB Circular A -133.
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15
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COUNTY OF HAWAII
STATE OF HAWAII
Notes to Schedule of Expenditures of Federal Awards
Year ended June 30, 1998
(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), and is presented on the modified accrual basis
of accounting, which is described in Note 1 to the County's general purpose financial statements. The
information in this schedule is presented in accordance with the requirements of OMB Circular A -133,
u Audits of States, Local Governments, and Not - Profit Organizations. Therefore, some amounts presented in
this schedule may differ from amounts presented in, or used in the preparation of, the general- purpose
financial statements.
(2) Subrecipients
Of the federal expenditures presented in this schedule, the County provided federal awards to subrecipients
as follows:
r
Amount
CFDA Provided to
Program Title Number Subrecipients
D Housing Preservation Grant 1995 10.433 $ 39,617
Housing Preservation Grant 1996 10.433 72,500
Housing Preservation Grant 1997 10.433 47,500
(1 Housing Preservation Grant Program Income 10.433 2.500
u Ookala Water System 10.760 23,650
Community Development Block Grant/Small Cities Program 14.219 1,190,877
r Community Development Block Grant/Special Purpose
Grant 14.227 30,732
Emergency Shelter Grants Program 14.231 72,553
HOME Investment Partnership Program 14.239 1,366,885
Title V - Delinquency Prevention Program 16.548 31,884
Crime Victim Assistance 16.575 61,417
O Title III, Part F - Disease Prevention and Health Promotion
Services 93.043 13,065
Title III, Part B - Grants for Supportive Services and Senior
r - Centers 93.044 214,591
Title III, Part D - In Home Services for Frail Older
Individuals 93.046 8,326
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•
COUNTY OF HAWAII
STATE OF HAWAII
Schedule of Findings and Questioned Costs
v
Year ended June 30, 1998
(1) Summary of Auditor's Results
(a) The type of report issued on the general purpose financial statements: Unqualified opinion
(b) Reportable conditions in internal control were disclosed by the audit of the financial statements: No
material weaknesses: No
(c) Noncompliance which is material to the general purpose financial statements: No
r
(d) Reportable conditions in internal control over major programs: No material weaknesses: No
(e) The type of report issued on compliance for major programs: Unqualified opinion
(f) Any audit findings which are required to reported under section. 510(a) of OMB Circular A -133:
Yes
(g) Major programs:
J Department of Housing and Urban Development:
J 14.219 — Community Development Block Grant/Small Cities Program
14.239 — HOME Investment Partnership Program
Section 8 Cluster:
J 14.182 — Section 8 — New Construction and Substantial Rehabilitation
rl 14.855 — Section 8 — Rental Voucher Program
„J 14.857 — Section 8 — Rental Certificate Program
C Department of Justice - 16.579 — Byrne Formula Grant Program
Department of Transportation - 20.205 — Highway Planning and Construction
Environmental Protection Agency - 66.458 — Capitalization Grants for State Revolving Funds
Department of Health and Human Services:
O Special Programs for the Aging Cluster:
93.044 — Title III, Part B - Grants for Supportive Services and Senior Centers
93.045 — Title I11, Part C - Nutrition Services
1✓
93.563 — Child Support Enforcement
r
(h) Dollar threshold used to distinguish between Type A and Type B programs: 3% of total federal
awards expended or $615,503
(i) Auditee qualified as a low -risk auditee under Section .530 of OMB Circular A -133: No
17 (Continued)
0 0
COUNTY OF HAWAII
STATE OF HAWAII
Schedule of Findings and Questioned Costs
u
Year ended June 30, 1998
J
(2) Findings Relating to the Financial Statements Reported in Accordance with Government Auditing
Standards:
None
(3) Findings and Questioned Costs relating to Federal Awards:
Department of Housing and Urban Development
Community Development Block Grant /Small Cities Program
CFDA No. 14.219
r Federal Award No. B- 91 -DH -15 -0002 to B- 97 -DH -15 -0002
Finding 98 -01 Requests for Reimbursements
Conditions: During our testwork of 25 selected contract files, we noted three instances where the request
for reimbursement from the federal government occurred prior to the actual payment of the program cost
by the County Office of Housing and Community Development.
r
Criteria: OMB Circular A -133 Compliance Supplement 3 -C -1 states that grantees funded on a
reimbursement basis must pay for program costs before reimbursements are requested from the federal
government.
t— Effects: Three requests for reimbursements totaling $73,255 were made for costs that had not been paid by
9 the County.
9 Cause: The requests for reimbursements were prepared and processed prior to the actual payment of costs.
r Questioned Costs: $0
Recommendation: All requests for reimbursements should be processed after actual costs paid by the
program.
Finding 98 -02 Procurement
r
Conditions: During our testwork of 25 selected contract files, we noted one instance where the contract
file did not have procurement documentation to verify that the contract was procured in accordance with
Hawaii Procurement Code, Hawaii Revised Statutes (HRS), Sec. 103D.
Criteria: The County is responsible for procuring goods and /or services in accordance with Hawaii
Procurement Code, HRS, Sec. 103D.
r
Effects: The contract file in question did not have documentation of the procurement process which
includes the contractor evaluation and selection for $43,225 in expenditures.
Cause: We were informed by management that the procurement documentation was misplaced.
18 (Continued)
0 0
COUNTY OF HAWAII
STATE OF HAWAII
Schedule of Findings and Questioned Costs
Year ended June 30, 1998
r
Questioned Costs: $43,255
Recommendation: We recommend that the County exercise greater care in ensuring that all procurement
documentation is properly maintained.
Finding 98 -03- Personnel Activity Reports
Conditions: During our testwork of administrative costs incurred by the CDBG program relating to time
spent by County employees on the federal program, we noted that personnel activity reports distributing
r
actual time spent by employees to the CDBG program were not signed by employees.
Criteria: OMB Circular A -87, Cost Principles for State, Local, and Indian Tribe Governments, states that
all personnel activity reports that distribute the actual time of an employee must be signed by the
employee.
J Effects: Personnel activity reports were not signed by County employees to evidence their approval of
o actual time worked on this federal program.
Cause: Personnel activity reports are maintained via electronic media and hard copies are not printed for
employees to sign.
Questioned Costs: $273,023
Recommendation: We recommend that the County print hard copies of personnel activity reports and
implement a policy to have employees sign the personnel activity reports.
Department of Housing and Urban Development
HOME Investment Partnership Program
CFDA No. 14.239
0 Federal Awards No. M93 -SG 150102 to M97 -SG 150102
Finding 98 -04 Personnel Activity Reports
r
Conditions: During our testwork of administrative costs incurred by the HOME program relating to time
spent by County employees on the federal program, we noted that personnel activity reports distributing
actual time spent by employees to the HOME program were not signed by employees.
Criteria: OMB Circular A -87, Cost Principles for State, Local, and Indian Tribe Governments, states that
all personnel activity reports that distribute the actual time of an employee must be signed by the
r- employee.
Effects: Personnel activity reports were not signed by County employees to evidence their approval of
actual time worked on this federal program.
19 (Continued)
o o
lJ COUNTY OF HAWAII
STATE OF HAWAII
Schedule of Findings and Questioned Costs
Year ended June 30, 1998
r
J
Cause: Personnel activity reports are maintained via electronic media and hard copies of time are not
printed for employees to sign.
Questioned Costs: $93,264
Recommendation: We recommend that the County print hard copies of personnel activity reports and
implement a policy to have employees sign the personnel activity reports.
Environmental Protection Agency
Capitalization Grants for State Revolving Funds
CFDA No. 66.458
Federal Awards No. C150080 -09 to C150080 -11
Finding 98 -05 Davis -Bacon Act
J Conditions: In our follow up to a prior year finding and during our testwork of compliance with the
Davis -Bacon Act, we noted that the County's Wastewater Division (Division) relies on the project's
construction management consultant to maintain documents relating to the certification of payroll.
However, the Division does not monitor contractor compliance on a periodic basis.
Criteria: The Davis -Bacon Act states that the grantee should maintain records documenting contractor
compliance with the Davis -Bacon Act.
Effects: The Division was unable to provide records documenting that the contractors were in compliance
with the Davis -Bacon Act requirements or records evidencing that it had monitored their compliance
requirements throughout the year. During our audit, we requested and received a letter from the
construction management consultant indicating that documents relating to the certification of payroll was
maintained for the entire year in question.
Cause: The Division continues to rely on the project's construction management consultant to maintain
documents relating to the certification of payroll and does not monitor the contractor's compliance on a
periodic basis.
Questioned Costs: $0
Recommendation: We recommend that the Division monitor the contractor's compliance with the Davis-
Bacon Act (and other labor requirements) and ensure that adequate documentation is maintained. The
Division should require that it be provided with a copy of the appropriate certification(s) as part of the
proper monthly progress billing.
r
20 (Continued)
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= o 0
COUNTY OF HAWAII
STATE OF HAWAII
Schedule of Findings and Questioned Costs
Year ended June 30, 1998
Department of Housing and Urban Development
_ Section 8 Rental Voucher Program
CFDA No. 14.855
r Federal Award No. HI08 -V002 -011 -019
Finding 98 -06 Housing Assistance Payment
Conditions: While following up on prior year findings, we noted that the Housing Assistance Payment
contract was not corrected to state the proper rental assistance amount.
Criteria: Complete and accurate files should be maintained for each tenant to comply with County and
Federal requirements.
Effects: The Housing Assistance Payment contract is incorrect. Although the housing assistance portion
stated on the contract was incorrect, the tenant actual payment to the landlord was proper.
Cause: Files and contracts are not adequately monitored and reviewed.
Questioned Costs: $0
Recommendation: We recommend that the rental assistance amount he corrected on the contract and that
the County exercise greater care in monitoring and reviewing contracts.
21 (Continued)
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0 0
COUNTY OF HAWAII
STATE OF HAWAII
i
Schedule of Findings and Questioned Costs
Year ended June 30, 1998
Finding 98 -07 Overpayment of Housing Assistance Payment
Conditions: While following up on a prior year finding, we noted that no action was taken by the County
to recover an overpayment of housing assistance payments paid to an eligible tenant.
Criteria: Complete and accurate files should be maintained for each tenant in accordance with County and
Federal requirements.
Effects: The tenant received $490 during the period of August 25 to November 30, 1996 and $750 during
the period of December 1, 1996 to April 15, 1997 of excess in housing assistance payments.
Cause: Files and contracts are not adequately monitored and reviewed.
Questioned Costs: $1,240
Context: This applies to one prior year finding that was not corrected.
Recommendation: We recommend that the County take immediate action to recover the identified
housing assistance overpayment.
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