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HomeMy WebLinkAboutSingle Audit of Federal Financial Assistance Programs for Fiscal Year 2017 - 2018COUNTY OF HAWAII STATE OF HAWAII SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS Fiscal Year Ended June 30, 2018 N" &K C PAs, Inc. r,ac/wake HItA1v1I''", AMERICAN SAVINGS BANK TOWER 11001 BISHOP STREET, SUITE 17001 HONOLULU, HAWAII 96813-3696 T (808) 524-2255 F (808) 523-2090 1 nkcpa.com log I F N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS March 28, 2019 To the Chair and Members of the County Council County of Hawaii AMERICAN SAVINGS BANK TOWER 1001 BISHOP STREET, SUITE 1700 HONOLULU, HAWAII 96813-3696 T (808) 524-2255 F (808) 523-2090 We have completed our financial audit of the basic financial statements and other supplementary information of the County of Hawaii, State of Hawaii (the County), as of and for the fiscal year ended June 30, 2018. Our report containing our opinions on those basic financial statements is included in the County's Comprehensive Annual Financial Report. We submit herein our reports on the County's internal control over financial reporting and compliance, the County's compliance with requirements that could have a direct and material effect on each of its major federal programs and internal control over compliance, and our report on the schedule of expenditures of federal awards. OBJECTIVES OF THE AUDITS The primary purpose of our audits was to form opinions on the fairness of the presentation of the County's basic financial statements as of and for the fiscal year ended June 30, 2018, and to comply with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), which establishes audit requirements for state and local governments that receive federal financial assistance. More specifically, the objectives of the audits were as follows: To provide a basis for an opinion on the fairness of the presentation of the County's basic financial statements. 2. To report on internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts in accordance with Government Auditing Standards. 3. To report on internal control over compliance related to each major federal program and an opinion on compliance with federal statutes, regulations, and the terms and conditions of federal awards that could have a direct and material effect on each major federal program in accordance with the Single Audit Act Amendments of 1996 and the Uniform Guidance. 2 N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS SCOPE OF THE AUDIT Our audit was performed in accordance with auditing standards generally accepted in the United States of America as prescribed by the American Institute of Certified Public Accountants; Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of the Uniform Guidance. The scope of our audits included an examination of the transactions and accounting records of the County for the fiscal year ended June 30, 2018. ORGANIZATION OF THE REPORT This report is presented in four parts as follows: • Part I - Our report on internal control over financial reporting and on compliance and other matters. • Part II - Our report on compliance for each major federal program; report on internal control over compliance; and report on the schedule of expenditures of federal awards required by the Uniform Guidance. • Part III - The schedule of findings and questioned costs. • Part IV - The summary schedule of prior audit findings. We wish to express our sincere appreciation for the excellent cooperation and assistance extended by the staff of the County. Sincerely, N&K CPAs, INC. 3 COUNTY OF HAWAII, STATE OF HAWAII TABLE OF CONTENTS Page PART I REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 6-7 PART II REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 9-11 Schedule of Expenditures of Federal Awards 12-22 Notes to Schedule of Expenditures of Federal Awards 23 PART III SCHEDULE OF FINDINGS AND QUESTIONED COSTS Schedule of Findings and Questioned Costs 25 PART IV SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS Status Report 27 12 PART I REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS AMERICAN SAVINGS BANK TOWER 1001 BISHOP STREET, SUITE 1700 HONOLULU, HAWAII 96813-3696 T (808) 524-2255 F (808) 523-2090 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT To the Chair and Members of the County Council County of Hawaii We have audited, in accordance with the 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, the financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County of Hawai°i, State of Hawaii (the County), as of and for the fiscal year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated December 28, 2018. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 0 N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, 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 or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Honolulu, Hawaii December 28, 2018 7 PART II REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 0 N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS AMERICAN SAVINGS BANK TOWER 1001 BISHOP STREET, SUITE 1700 HONOLULU, HAWAII 96813-3696 T (808) 524-2255 F (808) 523-2090 REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE INDEPENDENT AUDITOR'S REPORT To the Chair and Members of the County Council County of Hawaii Report on Compliance for Each Major Federal Program We have audited the County of Hawaii, State of Hawai`i's (the County) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the County's major federal programs for the fiscal year ended June 30, 2018. The County's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the County's major federal programs based on our audit of the types of compliance requirements referred to above. 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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. D N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the County's compliance. Opinion on Each Major Federal Program In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the fiscal year ended June 30, 2018. Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 10 N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business - type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County as of and for the fiscal year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the County's basic financial statements. We issued our report thereon dated December 28, 2018, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Honolulu, Hawaii March 28, 2019 11 County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Fiscal Year Ended June 30, 2018 Federal Pass -Through Federal Total Provided CFDA Entity Identifying Program Federal Through to ass -Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients iepartment of Education: 'rogram for Children nt of Agriculture heric Administration iepartment of Business, Economic ,nt Administration Awards Management Program nt of Commerce URBAN DEVELOPMENT Istance Payments Program ousing 10.559 11.419 14.195 NIA NA16NOS4190093 NA17NOS4190102 Hl 10 0002001 1707-8 $ 42,375 $ 42,375 $ 42,375 NIA 374,716 17,497 NIA 398,401 248,362 265,859 265,859 NIA 360,836 $ 224.921 $ The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 ass -Through Grantor/Program or Cluster Title Federal CFDA Number Grant Number Pass -Through Entity Identifying Number Federal Program Award Amount Total Federal Expenditures Provided Through to Subrecipients URBAN DEVELOPMENT (Continued) elopment it Block Grants/State's Program rants in Hawaii 14.228 B -14 -DH -15-0002 NIA $ 2,677,897 $ 378,796 $ 242,708 B -15 -DH -15-0002 NIA 2,465,271 622,327 230,580 B -16 -DH -15-0002 NIA 2,491,306 1,027,882 981,823 Program Income NIA 6,575 6,575 B -17 -DH -15-0002 NIA 2,524,362 1,011,378 957,560 Program Income NIA 205,722 42,644 28 3,252,680 2,461,890 Housing Finance and Development srships Program 14.239 M -14 -SG -15-0100 FIN 16-02 452,684 43,478 43,478 M -15 -SG -15-0100 FIN 16-04 2,852,059 631,536 209,752 Program Income 46,146 39 721,160 253,230 ;e Vouchers 14.871 H1002AF 2017 NIA 1,949,059 1,777,650 H1002VO 2017 NIA 17,658,595 9,193,051 H1002AF2018 NIA 1,794,095 237,807 H1002VO 2018 NIA 16,556,706 7,555,227 Program Income 1,470,448 71 $ 20,234,183 * $ The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 ass -Through Grantor/Program or Cluster Title URBAN DEVELOPMENT (Continued) 'rogram nt of Housing and Urban Development Fund nt of the Interior Delinquency Prevention apartment of Human Services: inquency Prevention - Allocation to States e Department of the Attorney General: ,tory Improvement Program Federal CFDA Number Grant Number Pass -Through Entity Identifying Number Federal Program Award Amount Total Federal Expenditures Provided Through to Subrecipients 14.896 H1002FSH18OA014 2017 NIA $ 66,204 $ 29,826 $ H1002FSH18OA014 2018 NIA 66,937 18,360 48,186 24,481,130 2,715,120 15.226 NIA NIA 334,504 334,504 15.659 NIA NIA 68,393 68,393 402,897 16.540 2016 -JF -FX -0022 DHS-17-OYS-702 16.554 2015-RU-BX-KO10 NIA 2013-MU-BX-KO56 2013-MU-BX-KO56 The accompanying notes are an integral part of this schedule. 400,000 202,556 202,556 15,000 4,231 36,000 36,000 $ 40,231 $ County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 Federal CFDA ass -Through Grantor/Program or Cluster Title Number Grant Number inued) =partment of the Attorney General: =partment of Attorney General: i Formula Grants nst Women SANE Coordinator M) Testing 6.588 Policing Services d Community Policing Grants Pass -Through Federal Total Provided Entity Identifying Program Federal Through to Number Award Amount Expenditures Subrecipients 16.575 2014-VA-GX-0035 14 -VA -04 $ 355,093 $ 37,680 $ 24,324 2015-VA-GX-0035 15 -VA -04 1,649,397 810,451 166,302 2016-VA-GX-0063 16 -VA -07 101,745 26,568 874,699 190,626 16.588 2015 -WF -AX -0024 15 -WF -03 54,137 54,137 2014 -WF -AX -0019 14 -WF -07 53,586 49,698 2015 -WF -AX -0024 15 -WF -07 53,205 8,113 111,948 16.710 2014ULWX0037 NIA 250,000 $ 89,478 $ The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 ass -Through Grantor/Program or Cluster Title inued) tice Assistance Grant Program =partment of Attorney General: ional Drug Task Force (SMDTF) sault Unit orce =partment of Attorney General: Sciences Improvement Grant Program nt of Justice Federal Pass -Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Number Grant Number Number Award Amount Expenditures Subrecipients 16.738 2016 -DJ -BX -0089 16 -DJ -01 $ 45,334 $ 6,500 $ 2014 -DJ -BX -0910 14 -DJ -01 272,923 56,618 2015 -DJ -BX -0342 15 -DJ -08 55,695 55,695 2015 -DJ -BX -0342 15 -DJ -03 44,162 36,617 155,430 16.742 2017 -CD -BX -0014 17 -CD -03 50,460 19,282 16.922 H1001013A NIA 374 374 H10010000 NIA 521 521 895 $ 1,494,519 $ 393,182 The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 ass -Through Grantor/Program or Cluster Title Federal CFDA Number Grant Number Pass -Through Entity Identifying Number Federal Program Award Amount Total Federal Expenditures Provided Through to Subrecipients ninistration =partment of Labor and Industrial Relations: ce Employment Program 17.235 AD -30402-17-55-A-15 PY16-SCSEP-H-HCOA $ 327,726 $ 24,877 $ AD -30402-17-55-A-16 PY16-SCSEP-H-HCOA 359,686 301,923 35 326,800 17.258 AA -26775-15-55-A-15 WIOA-15-A&DWP-H 387,934 35,967 35,967 AA -26775-16-55-A-15 WIOA-16-A&DWP-H 422,171 321,750 251,922 AA -26775-17-55-A-15 WIOA-17-A&DWP-H 400,146 7,498 3,886 7.258 365,215 291,775 17.259 AA -26775-16-55-A-15 WIOA-16-YP-H 289,333 178,242 174,112 AA -26775-17-55-A-15 WIOA-17-YP-H 417,471 282,880 192,831 7.259 461,122 366,943 r Formula Grants 17.278 AA -26775-15-55-A-15 WIOA-15-A&DWP-H 353,926 19,002 19,002 AA -26775-16-55-A-15 WIOA-16-A&DWP-H 416,431 193,346 155,669 AA -26775-17-55-A-15 WIOA-17-A&DWP-H 276,518 6,004 2,653 7.278 218,352 177,324 iter 1,044,689 * 836,042 nt of Labor $ 1,371,489 $ 836,042 The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 ass -Through Grantor/Program or Cluster Title TION )n =partment of Transportation: ;onstruction: �praisals �praisals Jening, Mana Road h Abutment placement dway Imp, Mamalahoa Hwy to Ahiahi St dway Imp, Ahiahi St to Ane Keohokalole Hwy ae Resurfacing, Wailoa Bridge to Ponohawai St. ;nsion, Komohana St to Country Club Rd p, Rainbow Dr to Akolea Rd rovements, Iwalani to Pohakulani Street .anikaula to Kekuanaoa '.0.205 =partment of Transportation: nvestment Grants Federal CFDA Number 20.205 20.500 Grant Number BR-NBIS(55) BR-NBIS(67) NH -019-1(044) RS -0187(1) RS -0187(4) STP -0100(073) STP -0186(1) STP -0198(1) STP -0198(2) STP -1910(1) STP -2000(4) STP -2720(001) STP -2760(2) STP -2770(004) HI -2016-004 Pass -Through Federal Total Provided Entity Identifying Program Federal Through to Number Award Amount Expenditures Subrecipients 13003 $ 160,000 $ 25,345 $ 16002 160,800 101,619 12032 20,285,600 644,772 00014 3,127,200 85 10010 6,564,594 85 17025 1,588,104 423,464 97029 462,885 13,228 11007 9,434,330 1,498 13034 16,126,147 3,846 05003 12, 842,182 1,481 00030 26,886,000 564 13019 1,000,000 -7,140 99021 21,469,625 6,352,354 11043 5,589,416 111,071 7,672,272 NIA 1,119,817 $ 392,638 $ The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 ass -Through Grantor/Program or Cluster Title Federal CFDA Number Grant Number Pass -Through Entity Identifying Number Federal Program Award Amount Total Provided Federal Through to Expenditures Subrecipients TION (Continued) ry Administration =partment of Transportation: ghway Safety 20.600 18X9204020 SC17-06(01-H-02) $ 103,068 $ 49,586 $ 18X9204020 SC18-06(01-H-02) 171,036 111,296 Program 18X9204020 PT17-01(02-H-01) 53,250 10,004 69A37518300004020 PT18-01(02-H-01) 80,750 24,700 18X9204020 DD17-10(02-H-01) 57,430 15,435 18X9204020 DD18-10(02-H-01) 57,430 31,655 1.0.600 242,676 'rograms 20.616 18X920405DH117 AL1 8-02(03-S-01) 135,596 5,762 18X920405C TR17-03(04-H-01) 135,680 122,883 18X920405C TR18-03(04-H-01) 14,610 1,697 it 18X920405B OP17-05(01-H-02) 78,843 20,179 69A3751830000405B OP18-05(01-H-02) 78,869 30,446 18X920405D AL17-02(01-H-02) 52,655 10,076 18X920405D AL18-02(01-H-02) 65,220 21,323 1.0.616 212,366 afety Cluster $ 455,042 $ The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 ass -Through Grantor/Program or Cluster Title Federal CFDA Number TION (Continued) Provided Requirements 20.607 '.epeat Offenders for Driving While Intoxicated 20.608 f nt of Transportation Award Amount MAN SERVICES Subrecipients i Living cecutive Office on Aging: 453,953 Aging - Title 111, Part D - Disease HA2016NO3 th Promotion Services 93.043 Aging - Title 111, Part B - Grants HA2016NO3 ;es and Senior Centers 93.044 13.044 Aging - Title 111, Part C - 93.045 13.045 Pass -Through Federal Total Provided Entity Identifying Program Federal Through to Grant Number Number Award Amount Expenditures Subrecipients 18X9205464 AL17-02(01-H-02) $ 153,305 $ 41,193 $ 69A37518300004020 AL18-02(01-H-02) 124,296 72,281 8,633,426 3D-4-2016 HA2016NO3 15,735 3,019 3B-4-2016 HA2016NO3 492,169 55,281 3B-4-2017 HA2016NO3 457,773 398,672 453,953 3C14-2017 HA2016NO3 280,706 104,083 3C14-2018 HA2016NO3 364,862 193,130 3C2-4-2016 HA2016NO3 204,394 18,484 3C2-4-2017 HA2016NO3 122,733 64,497 3C2-4-2018 HA2016NO3 220,911 101,273 $ 481,467 $ The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 Federal CFDA ass -Through Grantor/Program or Cluster Title Number MAN SERVICES (Continued) ive Program 93.053 ter sr Support, Title III, Part E 93.052 13.052 Health Services Administration =partment of Health: lental Health Services Projects of Regional ance 13.243 id Prevention =partment of Health: lealth Actions to Prevent Obesity, Diabetes, Heart (PPHF) 13.757 nt of Health and Human Services 93.243 Grant Number Pass -Through Entity Identifying Number Federal Program Award Amount Total Provided Federal Through to Expenditures Subrecipients NIA NSIP17 $ 89,114 $ 89,114 $ 1,024,534 3E-4-2015 HA2015NO3 115,636 35,545 3E-4-2016 HA2016NO3 133,637 133,637 3E-4-2017 HA2016NO3 133,468 9,739 178,921 SP020167 SP020167 93.757 6NU58DP005502-02-02 NU58DP005502-04-00 ASO LOG NO. 16-162 ASO LOG NO. 16-162 110,000 25,409 125,000 72,325 97,734 NIA 24,500 20,401 NIA 9,700 6,156 26,557 $ 1,330,765 $ The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2018 Federal CFDA ass -Through Grantor/Program or Cluster Title Number kND COMMUNITY SERVICE steer Program 94.002 Din for National and Community Service CURITY nent Agency (FEMA) =partment of Defense: Pass -Through Federal Total Provided Entity Identifying Program Federal Through to Grant Number Number Award Amount Expenditures Subrecipients 16SRPH1002 NIA $ 208,262 $ 65,913 $ 65,913 Assistance (Presidentially Declared Disasters) 97.036 FEMA -1664 -DR -HI s Grant 97.044 EMW-2015-FO-02101 it Program 97.067 EMW-2015-SS-00003 nt of Homeland Security NTROL POLICY 07.000 G16HI0004A G17HI0004A G18HI0004A '.000 Vational Drug Control Policy RAL AWARDS deral program for the fiscal year ended June 30, 2018. NIA 6,629,030 21,780 NIA 1,369,493 120,137 NIA 760,000 649,784 791,701 NIA 225,585 31,857 NIA 252,527 152,417 NIA 170,800 10,682 194,956 194,956 $ 39,075,030 $ 3,944,344 The accompanying notes are an integral part of this schedule. County of Hawaii, State of Hawaii NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Fiscal Year Ended June 30, 2018 NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activities of the County of Hawaii and its discretely presented component unit, the Department of Water Supply, under programs of the federal government for the fiscal year ended June 30, 2018. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the County of Hawaii , it is not intended to, and does not present the financial position, changes in financial position, or cash flows of the County of Hawaii. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE C - INDIRECT COST RATE The County of Hawaii has elected not to use the 10 -percent de minimis indirect cost rate allowed under the Uniform Guidance. 23 PART III SCHEDULE OF FINDINGS AND QUESTIONED COSTS 24 County of Hawaii, State of Hawaii SCHEDULE OF FINDINGS AND QUESTIONED COSTS Fiscal Year Ended June 30, 2018 SECTION I - SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified? Noncompliance material to financial statements noted? Federal Awards Internal control over major federal programs: Material weakness(es) identified? Significant deficiency(ies) identified? Type of auditor's report issued on compliance for major federal programs: Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Identification of major federal programs: CFDA Number 14.871 17.258/17.259/17.278 Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as a low-risk auditee? SECTION II - FINANCIAL STATEMENT FINDINGS No matters were reported. Unmodified yes ✓ no yes ✓ none reported yes ✓ no yes ✓ no yes ✓ none reported Unmodified yes ✓ no Name of Federal Program or Cluster Section 8 Housing Choice Vouchers WIOA Cluster $1,172,251 ✓ yes _ no SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 25 PART IV SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS (Provided by the County of Hawaii) 26 County of Hawaii, State of Hawaii STATUS REPORT Fiscal Year Ended June 30, 2018 No prior audit findings which apply under the current criteria of the Uniform Guidance were noted. 27