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HomeMy WebLinkAboutSingle Audit of Federal Financial Assistance Programs for Fiscal Year 2018 - 2019 COUNTY OF HAWAII STATE OF HAWAII SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS Fiscal Year Ended June 30, 2019 N&K CPAs, Inc . Accountans | Consultants AMERICAN SAVINGS BANK TOWER | 1001 BISHOP STREET,SUITE 1700 | HONOLULU, HAWAII 96813-3696 T(808) 524-2255 F (808) 523-2090 | nkcpa.com AMERICAN SAVINGS BANK TOWER 1001 BISHOP STREET,SUITE 1700 N&K CPAs, Inc. HONOLULU, HAWAII 96813-3696 ACCOUNTANTS I CONSULTANTS T(808) 524-2255 F (808) 523-2090 April 29, 2020 To the Chair and Members of the County Council County of Hawaii 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, 2019. 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 on compliance and other matters, compliance for each major federal program and internal control over compliance, and schedule of expenditures of federal awards required by the Uniform Guidance. 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, 2019, 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: 1. 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, 2019. 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 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 Independent Auditor's 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 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on 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 - 26 PART IV SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS Status Report 28 4 PART I REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS 5 AMERICAN SAVINGS BANK TOWER 1001 BISHOP STREET,SUITE 1700 N&K CPAs, Inc. HONOLULU, HAWAII 96813-3696 ACCOUNTANTS I CONSULTANTS T(808) 524-2255 IF (808) 523-2090 INDEPENDENT AUDITOR'S 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 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, 2019, 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 30, 2019. 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. 6 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. N&K CPAs, Inc. Honolulu, Hawaii December 30, 2019 7 PART II REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 8 moi AMERICAN SAVINGS BANK TOWER 1001 BISHOP STREET,SUITE 1700 N&K CPAs, Inc. HONOLULU, HAWAII 96813-3696 ACCOUNTANTS I CONSULTANTS T(808) 524-2255 IF (808) 523-2090 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 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, 2019. 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. 9 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, 2019. 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, 2019, and the related notes to the financial statements, which collectively comprise the County's basic financial statements. We issued our report thereon dated December 30, 2019, 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. N&K CPAs, Inc. Honolulu, Hawaii April 29, 2020 11 County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF AGRICULTURE Food and Nutrition Service Passed Through the State Department of Education: Summer Food Service Program for Children 10.559 N/A 1707-8 $ 57,305 $ 57,305 $ -- N/A 1707-8 46,466 23,438 -- Subtotal CFDA 10.559 80,743 -- Passed through the State Department of Health: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 7H 1430H 15 N/A 49,900 31,073 -- Forest Service N) Cooperative Forestry Assistance 10.664 18-DG-11052012-133 N/A 50,000 50,000 -- Total Department of Agriculture 161,816 -- DEPARTMENT OF COMMERCE Economic Development Administration Economic Adjustment Assistance 11.307 07-79-07463 N/A 250,000 41,799 -- National Oceanic and Atmospheric Administration Passed Through the State Department of Business,Economic Development and Tourism: Coastal Zone Management AdministrationAwards 11.419 NA17N0S4190102 N/A 398,401 108,010 -- Hawaii Coastal Zone Management Program NA18N0S4190082 N/A 411,855 281,775 -- Subtotal CFDA 11.419 389,785 -- Total Department of Commerce 431,584 -- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Office of Housing Section 8 Housing Assistance Payments Program 14.195 Kulaimano Elderly Housing HI 10 0002001 N/A 413,560 $ 261,848 $ -- The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (Continued) Community Planning and Development Community Development Block Grants/State's Program and N on-Entitiement Grants in Hawaii 14.228 B-14-DH-15-0002 N/A $ 2,677,897 $ 1,000 $ 1,000 B-15-DH-15-0002 N/A 2,465,271 235,102 Program Income N/A 50 B-16-DH-15-0002 N/A 2,491,306 741,331 201,506 Program Income N/A 50 B-17-DH-15-0002 N/A 2,524,362 701,590 148,675 Program Income N/A 31,825 W B-18-DH-15-0002 N/A 2,694,402 300,226 48,141 Program Income N/A 16,999 16,999 Subtotal CFDA 14.228 2,028,173 416,321 Passed Through the Hawaii Housing Finance and Development Corporation: Home Investment Partnerships Program 14.239 M-15-SG-15-0100 FIN 16-04 2,852,059 308,417 -- Program Income N/A 21,840 -- Subtotal CFDA 14.239 330,257 -- Public and Indian Housing Housing Vouching Cluster Section 8 Housing Choice Vouchers 14.871 HI002AF 2018 N/A 1,872,247 1,634,440 -- H 1002V 0 2018 N/A 17,162,199 9,602,793 -- H 1002A F2019 N/A 2,138,337 474,463 -- H 1002V 0 2019 N/A 19,053,151 8,926,251 -- Program Income N/A 508,438 -- Subtotal C FDA 14.871 $ 21,146,385 $ -- The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (Continued) Mainstream Vouchers 14.879 H1002DV2018 N/A $ 13,326 $ 1,278 $ -- Program Income N/A 43 -- Subtotal CFDA 14.879 1,321 -- Total Housing Voucher Cluster 21,147,706 * -- Family Self-Sufficiency Program 14.896 FSS17H 10192 N/A 66,937 48,577 -- FSS18H 12572 N/A 66,937 25,286 -- Subtotal CFDA 14.896 73,863 -- Total Department of Housing and Urban Development 23,841,847 416,321 DEPARTMENT OF THE INTERIOR Office of the Secretary Payments in Lieu of Taxes 15.226 N/A N/A 367,612 367,612 -- Fish and Wildlife Service National Wildlife Refuge Fund 15.659 N/A N/A 103,388 103,388 -- Total Department of the Interior 471,000 -- DEPARTMENT OF JUSTICE Office of Juvenile Justice and Delinquency Prevention Passed Through the State Department of Human Services: Juvenile Justice and Delinquency Prevention-Allocation to States 16.540 2017-JF-FX-0008 DHS-17-OYS-702 200,000 73,312 73,312 2018-JF-FX-0008 DHS-17-OYS-702 200,000 140,192 140,192 Subtotal CFDA 16.540 $ 213,504 $ 213,504 The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF JUSTICE(Continued) Bureau of Justice Statistics Passed Through the State Department of the Attorney General: National Criminal History Improvement Program 16.554 Delinquent Disposition Research Project 2015-RU-BX-K010 N/A $ 7,000 $ 4,607 $ -- Case Management System 2013-MU-BX-K056 2013-MU-BX-K056 36,000 36,000 -- Subtotal CFDA 16.554 40,607 -- Office for Victims of Crime Passed Through the State Department of the Attorney General: Crime Victim Assistance 16.575 2015-VA-GX-0035 15-VA-04 1,554,915 158,621 116,806 CP 2016-VA-GX-0063 16-VA-04 947,932 865,017 158,681 2016-VA-GX-0063 16-VA-09 101,745 75,177 -- Subtotal CFDA 16.575 1,098,815 275,487 Violence Against Women Office Passed Through the State Department of Attorney General: Violence Against Women Formula Grants 16.588 STOP Violence Against Women 2015-WF-AX-0024 15-WF-17 39,197 34,538 -- 2016-WF-AX-0022 16-WF-03 55,623 55,623 -- Sexual Assault Kit(SAK)Testing 2015-WF-AX-0024 15-WF-07 53,205 45,091 -- Subtotal CFDA 16.588 135,252 -- Office of Community Oriented Policing Services Public Safety Partnership and Community Policing Grants 16.710 COPS 2014ULWX0037 N/A 250,000 $ 31,781 $ -- The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF JUSTICE(Continued) Bureau of Justice Assistance Edward Byrne Memorial Justice Assistance Grant Program 16.738 2016-DJ-BX-0226 N/A $ 120,634 $ 17,918 $ -- 2015-DJ-BX-1078 N/A 92,825 92,825 -- Passed Through the State Department of Attorney General: Statewide Multi-Jurisdictional Drug Task Force(SMDTF) 2016-DJ-BX-0089 16-DJ-01 45,334 38,406 -- Subtotal CFDA 16.738 149,149 -- National Institute of Justice Passed Through the State Department of Attorney General: CT) Paul Coverdell Forensic Sciences Improvement Grant Program 16.742 2017-CD-BX-0014 17-CD-03 50,460 30,728 -- Office of Justice Programs Passed Through the State Department of Attorney General: National Sexual Assault Kit Intiative 16.833 2016-AK-BX-K005 16-AK-02 280,498 98,440 -- Criminal Division Equitable Sharing Program 16.922 Asset Forfeitures H I001013A N/A 7,391 7,391 -- H 10010000 N/A 7,060 7,060 -- Subtotal CFDA 16.922 14,451 -- Total Department of Justice $ 1,812,727 $ 488,991 The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF LABOR Employment and Training Administration Passed Through the State Department of Labor and Industrial Relations: Senior Community Service Employment Program 17.235 AD-30402-17-55-A-16 PY16-SCSEP-H-HCOA $ 359,686 $ 28,614 $ -- AD-30402-17-55-A-16 PY16-SCSEP-H-HCOA 364,464 293,768 -- Subtotal CFDA 17.235 322,382 -- WIOA Cluster WIOA Adult Program 17.258 AA-26775-16-55-A-15 WIOA-16-A&DWP-H 422,171 22,260 19,790 AA-26775-17-55-A-15 WIOA-17-A&DWP-H 402,162 146,691 -- AA-26775-18-55-A-15 WIOA-18-A&DWP-H 405,318 726 -- Subtotal CFDA 17.258 169,677 19,790 WIOA Youth Activities 17.259 AA-26775-17-55-A-15 WIOA-17-YP-H 419,607 180,058 171,499 AA-26775-18-55-A-15 WIOA-18-YP-H 414,666 216,973 142,648 Subtotal CFDA 17.259 397,031 314,147 WIOA Dislocated Worker Formula Grants 17.278 AA-26775-16-55-A-15 WIOA-16-A&DWP-H 416,431 21,274 19,180 AA-26775-17-55-A-15 WIOA-17-A&DWP-H 277,913 99,294 -- AA-26775-18-55-A-15 WIOA-18-A&DWP-H 227,675 523 -- Subtotal CFDA 17.278 121,091 19,180 Total WIOA Cluster 687,799 353,117 Total Department of Labor $ 1,010,181 $ 353,117 The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF TRANSPORTATION Federal Highway Administration Passed Through the State Department of Transportation: Highway Planning and Construction 20.205 Bridge Inspection/Appraisals BR-NBIS(055) 13003 $ 160,000 $ 21,613 $ -- Bridge Inspection/Appraisals BR-NBIS(074) 18017 160,000 12,127 -- Mamalahoa Hwy Widening, Mana Road NH-019-1(044) 12032 20,285,600 5,431,001 -- HakalauBridge North Abutment STP-0100(073) 17025 1,588,104 733,172 -- Alii Drive Culvert Replacement STP-0186(1) 97029 9,206,313 233,197 -- Kaiminani Drive Roadway Imp, Mamalahoa Hwy to Ahiahi St STP-0198(1) 11007 9,434,330 21,927 -- OD Kaiminani Drive Roadway Imp,Ahiahi St to vicinity of Ane Keohokalole Hwy STP-0198(2) 13034 12,172,305 14,225 -- Kamehameha Avenue Resurfacing,Wailoa Bridge to Ponohawai Street STP-1910(1) 05003 12,842,182 859 -- Puainako Street Extension, Komohana St to Country Club Rd STP-2000(4) 00030 26,886,000 424,572 -- Kawailani Street Improvements, Iwalani to Pohakulani Street STP-2760(2) 99021 21,469,625 7,327,918 -- Manono St Improv, Lanikaula to Kekuanaoa STP-2770(004) 11043 5,589,416 4,036 -- H ighway 132 Road Restoration ER-21(004) 19027 6,503,337 58,789 -- Subtotal CFDA 20.205 14,283,436 * -- Federal Transit Administration Passed Through the State Department of Transportation: Formula Grants for Rural Areas and Tribal Transit Program 20.509 5311 HI-2016-004 N/A 1,144,817 726,917 -- HI-2017-004 N/A 985,200 311,116 -- Subtotal CFDA 20.509 $ 1,038,033 *$ -- The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF TRANSPORTATION(Continued) National Highway Traffic Safety Administration Passed Through the State Department of Transportation: Highway Safety C luster State and Community Highway Safety 20.600 Speed Enforcement 18X9204020 SC18-06(01-H-02) $ 171,036 $ 21,943 $ -- 18X9204020 SC19-06(01-H-02) 111,960 93,147 -- Traffic Investigation Program 69A37518300004020 PT18-01(02-H-01) 80,750 17,575 -- 69A37518300004020 P T19-01(02-H-01) 105,840 6,290 -- Distracted Driving 18X9204020 DD18-10(02-H-01) 57,430 17,542 -- CO 18X9204020 DD19-10(02-H-01) 62,200 36,944 -- Subtotal CFDA 20.600 193,441 -- National Priority Safety Programs 20.616 18X920405DH117 AL18-02(03-S-01) 135,596 81,160 69A3751930000405DHIM AL19-02(3-S-01) 143,228 5,327 -- Data Grant 18X920405C TR18-03(04-H-01) 14,610 3,304 -- 18X920405C TR19-03(04-H-01) 56,520 1,449 -- Seatbelt E nforcement 69A 3751830000405B O P 18-05(01-H-02) 78,869 15,151 -- 69A 3751830000405B 0 P 19-05(01-H-02) 40,000 17,085 -- 18X920405bH 1 0 P 19-05(01-H-02) 50,000 29,888 -- Roadblock Program 18X920405DHI A L18-02(01-H-02) 65,220 9,484 -- 18X920405DHI A L19-02(01-H-02) 65,620 26,289 -- Subtotal CFDA 20.616 189,137 -- Total Highway Safety Cluster $ 382,578 $ -- The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF TRANSPORTATION(Continued) Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 Roadblock Program 18X9205464Hl AL18-02(01-H-02) $ 124,296 $ 34,716 $ -- 18X9205464H1 AL19-02(01-H-02) 123,086 83,856 -- Subtotal CFDA 20.608 118,572 -- Total Department of Transportation 15,822,619 -- DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration for Community Living Passed Through the State Executive Office on Aging: N Special Programs for the Aging-Title III,Part D-Disease O Prevention and Health Promotion Services 93.043 3D-4-2016 HA2016NO3 15,735 12,716 -- 3D-4-2017 HA2016NO3 670 670 -- Subtotal CFDA 93.043 13,386 -- Aging Cluster Special Programs for the Aging-Title III,Part B-Grants for Supportive Services and Senior Centers 93.044 3B-4-2017 HA2016NO3 457,773 59,102 -- 3B-4-2018 HA2016NO3 477,451 477,451 -- 3B-4-2019 HA2016NO3 425,477 20,142 -- Subtotal CFDA 93.044 556,695 -- Special Programs for the Aging-Title III,Part C- Nutrition Services 93.045 3C1-4-2018 HA2016NO3 312,862 119,732 -- 3C1-4-2019 HA2016NO3 315,126 145,106 -- 3C2-4-2018 HA2016NO3 164,911 63,638 -- 3C2-4-2019 HA2016NO3 174,590 70,379 -- Subtotal CFDA 93.045 $ 398,855 $ -- The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF HEALTH AND HUMAN SERVICES (Continued) Nutrition Services Incentive Program 93.053 N/A NSIP18 $ 103,387 $ 103,387 $ -- Total Aging Cluster 1,058,937 -- National Family Caregiver Support,The III, Part E 93.052 3E-4-2017 HA2016NO3 133,468 123,729 -- 3E-4-2018 H A2016N 03 159,838 123,882 -- Subtotal CFDA 93.052 247,611 -- Substance Abuse and Mental Health Services Administration Passed Through the State Department of Health: Substance Abuse and Mental Health Services Projects of Regional N and National Significance 93.243 SP020167 ASO LOG NO. 16-162 125,000 52,675 -- U79SP020167 ASO LOG NO. 16-162 100,000 69,123 -- Subtotal CFDA 93.243 121,798 -- Centers for Disease Control and Prevention Passed Through the State Department of Health: Improving the Health of Americans through Prevention and Management of Diabates and Heart Disease and Stroke 93.757 DOH Complete Streets NU58DP005502-04-00 N/A 9,700 3,544 -- Total Department of Health and Human Services 1,445,276 -- CORPORATION FOR NATIONAL AND COMMUNITY SERVICE Retired and Senior Volunteer Program 94.002 16SRPH 1002 N/A 208,762 71,840 -- 19SRPHI001 N/A 68,254 2,076 -- Subtotal CFDA 94.002 73,916 -- Total Corporation for National and Community Service $ 73,916 $ -- The accompanying notes are an integral part of this schedule. County of Hawai`i, State of Hawai`i SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Fiscal Year Ended June 30, 2019 Federal Pass-Through Federal Total Provided CFDA Entity Identifying Program Federal Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Grant Number Number Award Amount Expenditures Subrecipients DEPARTMENT OF HOMELAND SECURITY Federal Emergency Management Agency(FEMA) Passed Through the State Department of Defense: Disaster Grants-Public Assistance(Presidentially Declared Disasters) 97.036 Kiholo Earthquake FEMA-1664-DR-HI N/A $ 6,626,365 $ 3,073 $ -- Kilauea Volcanic Eruption and Earthquakes FEMA-4366-DR-HI N/A 3,693,985 3,687,529 -- Hurricane Lane FEMA-4395-DR-HI N/A 22,334 2,183 -- Subtotal CFDA 97.036 3,692,785 * -- Homeland Security Grant Program 97.067 N State Homeland Security Program EMW-2015-SS-00003 N/A 760,000 20,329 -- E M W-2016-S S-00004 N/A 140,000 514 -- E M W-2017-S S-00004 N/A 705,000 150,396 -- EMF-2018-EP-00006-S01 - EMF-2018-EP-00006-S01 N/A 200,000 200,000 -- Subtotal CFDA 97.067 371,239 -- Total Department of Homeland Security 4,064,024 -- EXECUTIVE OFFICE OF THE PRESIDENT High Intensity Drug Trafficking Areas Program 95.001 Hawai'i Impact G17HI0004A N/A 253,982 71,905 -- G 18H I0004A N/A 261,500 147,160 -- Subtotal CFDA 95.001 219,065 -- Total Executive Office of the President 219,065 -- TOTAL EXPENDITURES OF FEDERAL AWARDS $ 49,354,055 $ 1,258,429 *Audited as a major federal program for the fiscal year ended June 30, 2019. 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, 2019 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, 2019. 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, 2019 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: Unmodified Internal control over financial reporting: Material weakness(es) identified? _ yes ✓ no Significant deficiency(ies) identified? _ yes ✓ none reported Noncompliance material to financial statements noted? _ yes ✓ no Federal Awards Internal control over major federal programs: Material weakness(es) identified? _ yes ✓ no Significant deficiency(ies) identified? _ yes ✓ none reported Type of auditor's report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? _ yes ✓ no Identification of major federal programs: CFDA Number Name of Federal Program or Cluster 14.871/14.879 Housing Voucher Cluster 20.205 Highway Planning and Construction 20.509 Formula Grants for Rural Areas and Tribal Transit Program 97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters) Dollar threshold used to distinguish between Type A and Type B programs: $1,480,622 Auditee qualified as a low-risk auditee? ✓ yes _ no SECTION II - FINANCIAL STATEMENT FINDINGS No matters were reported. 25 County of Hawaii, State of Hawaii SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Fiscal Year Ended June 30, 2019 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 26 PART IV SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS (Provided by the County of Hawaii) 27 County of Hawaii, State of Hawaii STATUS REPORT Fiscal Year Ended June 30, 2019 No prior audit findings which apply under the current criteria of the Uniform Guidance were noted. 28