HomeMy WebLinkAbout2024-COH Single Audit of Federal Financial Assistance Programs
County of Hawai‘i
State of Hawai‘i
Single Audit of Federal Financial Assistance Programs
June 30, 2024
County of Hawai‘i, State of Hawai‘i
Index
Year Ended June 30, 2024
Page(s)
PART 1 – Introduction
PART 2 – Compliance and Internal Control Over Financial Reporting
Report of Independent Auditors 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
Report of Independent Auditors on Compliance for Each Major Program, Internal Control Over
Compliance, and the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
Schedule of Expenditures of Federal Awards .......................................................................................................... 8–12
Notes to Schedule of Expenditures of Federal Awards ............................................................................................... 13
PART 3 – Schedule of Findings and Questioned Costs
Section I – Summary of Auditors’ Results .............................................................................................................. 14–15
Section II – Financial Statement Findings .............................................................................................................. 16–18
Section III – Federal Award Findings and Questioned Costs ........................................................................................ 19
Summary Schedule of Prior Audit Findings
PART 1
INTRODUCTION
July 18, 2025
To the Chair and Members of the County Council
County of Hawai‘i, State of Hawai‘i
We have completed our financial audit of the basic financial statements of the County of Hawai‘i, State of
Hawai‘i (the “County”), as of and for the year ended June 30, 2024. Our report containing our opinion on
those basic financial statements is included in the County’s Annual Comprehensive Financial Report. We
have also audited the County’s compliance with requirements applicable to its major federal financial
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 the schedule of findings and
questioned costs in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”).
The audit objectives and scope of our audit were as follows:
Audit Objectives
1. To provide an opinion on the fair presentation of the County’s basic financial statements and the
schedule of expenditures of federal awards as of and for the year ended June 30, 2024 in accordance
with accounting principles generally accepted in the United States of America.
2. To consider the County’s internal control over financial reporting in order to design our auditing
procedures for the purpose of expressing our opinions on the financial statements.
3. To perform tests of the County’s compliance with certain provisions of laws, regulations, contracts
and grant agreements that could have a direct and material effect on the determination of financial
statement amounts.
4. To consider the County’s internal control over compliance with the requirements that could have a
direct and material effect on a major federal program in order to determine our auditing procedures
for the purpose of expressing our opinion on compliance and to test and report on internal control
over compliance in accordance with the Uniform Guidance.
Scope of Audit
We performed an audit of the County’s basic financial statements and schedule of expenditures of federal
awards as of and for the year ended June 30, 2024, 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 provisions of the
Uniform Guidance.
Our report on the basic financial statements of the County as of and for the year ended June 30, 2024 is
included under a separate cover.
We would like to take this opportunity to express our appreciation to the personnel of the County of
Hawai‘i, State of Hawai‘i 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,
KM/LKC
PART 2
COMPLIANCE AND INTERNAL CONTROL
OVER FINANCIAL REPORTING
Report of Independent Auditors 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 Management and the Chair and Members of the County Council
County of Hawai‘i, State of Hawai‘i
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 (“Government Auditing Standards”), the financial statements
of the governmental activities, the business-type activities, the aggregate discretely presented component
unit, each major fund, and the aggregate remaining fund information of the County of Hawai‘i, State of Hawai‘i
(the “County”), as of and for the year ended June 30, 2024, and the related notes to the financial statements,
which collectively comprise the County’s basic financial statements and have issued our report thereon
dated July 18, 2025.
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”) as a basis for designing 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 County’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.
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 and therefore, material weaknesses or significant deficiencies may exist that were
not identified. We identified certain deficiencies in internal control, described in the accompanying schedule
of findings and questioned costs as Findings No. 2024-001 and 2024-002 that we consider to be material
weaknesses.
Report on 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
financial statements. 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.
County’s Response to Findings
Government Auditing Standards requires auditors to perform limited procedures on the County’s response
to the findings identified in our audit and described in the accompanying corrective action plan. The County’s
response was not subjected to the auditing procedures applied in the audit of the financial statements and,
accordingly, we express no opinion on the response.
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 result of that testing, and not to provide an opinion on the effectiveness of the County’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 County’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Honolulu, Hawai‘i
July 18, 2025
Report of Independent Auditors on Compliance for Each Major Program,
Internal Control Over Compliance, and the Schedule of Expenditures
of Federal Awards Required by the Uniform Guidance
To the Chair and Members of the County Council
County of Hawai‘i, State of Hawai‘i
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the County of Hawai‘i, State of Hawai‘i’s (the “County”) compliance with the types of
compliance requirements identified as subject to audit in the OMB Compliance Supplement that could
have a direct and material effect on each of the County’s major federal programs for the year ended
June 30, 2024. The County’s major federal programs are identified in the summary of auditors’ results
section of the accompanying schedule of findings and questioned costs.
In our opinion, the County complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year
ended June 30, 2024.
Basis for Opinion on Each Major Federal Program
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 (“Government Auditing Standards”); 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 (the “Uniform Guidance”). Our responsibilities
under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities
for the Audit of Compliance section of our report.
We are required to be independent of the County and to meet our other ethical responsibilities,
in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal determination of the County’s compliance with
the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the County’s
federal programs.
Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the County’s compliance based on our audit. Reasonable assurance is a high level of assurance but is
not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will
always detect material noncompliance when it exists. The risk of not detecting material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the
compliance requirements referred to above is considered material if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the report
on compliance about the County’s compliance with the requirements of each major federal program as a
whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the County’s compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the County’s internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances 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 the County’s internal control over compliance. Accordingly, no such
opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on 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 a 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
Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
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
aggregate discretely presented component unit, each major fund, and the aggregate remaining fund
information of the County as of and for the year ended June 30, 2024, and the related notes to the financial
statements, which collectively comprise the County’s basic financial statements. We issued our report
thereon dated July 18, 2025, 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 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. As described in Note 2 to the schedule of expenditures of federal
awards, the accompanying schedule of expenditures of federal awards was prepared on the cash basis of
accounting, which is a comprehensive basis of accounting other than accounting principles generally
accepted in the United States of America. 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 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
July 18, 2025
County of Hawai‘i, State of Hawai‘i
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal Amount
Assistance Listing Pass-through Entity Provided to Federal
Number Identifying Number Subrecipients ExpendituresFederal Grantor/Program/Grant
See accompanying report of independent auditors and
notes to schedule of expenditures of federal awards.
8
U.S. Department of Agriculture
Food and Nutrition Service
Passed Through the State Department of Education
Summer Food Service Program for Children (Child Nutrition Cluster) 10.559 1707-8 -$ 65,880$
Passed Through the State Department of Health
SNAP 23-04 #00272977;
Supplemental Nutrition Assistance Education Program (“SNAP-Ed”) (SNAP Cluster) 10.561 SNAP 24-01 #00285657 - 49,984
Forest Service
Cooperative Forestry Assistance 10.664 - 717,074
Rural Business Cooperative Service
Rural Development Cooperative Agreement Program 10.890 - 77,390
Total U.S. Department of Agriculture - 910,328
U.S. Department of Commerce
Economic Development Administration
Economic Adjustment Assistance (Economic Development Cluster) 11.307 - 799,842
National Oceanic and Atmospheric Administration
Passed Through the State Department of Business, Economic
Development and Tourism
Coastal Zone Management Administration Awards
Hawaii Coastal Zone Management Program 11.419 70127 - 158,895
Hawaii Coastal Zone Management Program 11.419 SPP 6 & 7 - 128,744
Hawaii Coastal Zone Management Program 11.419 72032 - 1,306
Hawaii Coastal Zone Management Program 11.419 CZM Program FY22-23 - 13,916
Hawaii Coastal Zone Management Program 11.419 CZM Program FY23-24 - 322,132
Total Coastal Zone Management Administration Awards
Hawaii Coastal Zone Management Program - 624,993
Total U.S. Department of Commerce - 1,424,835
U.S. Department of Housing and Urban Development
Office of Housing
Section 8 ‒ Housing Assistance Payments Program ‒ Special Allocations
Kulaimano Elderly Housing (Project-Based Cluster) 14.195 - 396,005
Community Planning and Development
Community Development Block Grant (“CDBG”)/State’s Program and
Non-Entitlement Grants in Hawaii 14.228 671,188 2,955,229
COVID-19 ‒ CARES CDBG/State’s Program Non-Entitlement Grants 14.228 - 432,330
Total CDBG ‒ Community Development Block Grant/State’s Program
and Non-Entitlement Grants in Hawaii 671,188 3,387,559
CDBG ‒ Entitlement Grants 14.218 - 5,866,154
Passed Through the Hawaii Housing Finance and Development Corporation
HOME Investment Partnerships Program 14.239 FIN 19-11 1,340,807 1,437,216
HOME Investment Partnerships Program 14.239 FIN 22-07 - 50,000
Total HOME Investment Partnerships Program 1,340,807 1,487,216
Passed Through the Hawaii Housing Finance and Development Corporation
Housing Trust Fund Program 14.275 FIN 19-12 1,215,000 1,215,000
Housing Trust Fund Program 14.275 FIN 22-05 - 67,962
Total Housing Trust Fund Program 1,215,000 1,282,962
Public and Indian Housing
Housing Voucher Cluster
Section 8 ‒ Housing Choice Vouchers 14.871 - 30,775,660
COVID-19 ‒ ARP ‒ Emergency Housing Vouchers 14.871 - 1,573,002
Foster Youth to Independence 14.871 - 32,779
Mainstream Vouchers Program 14.879 - 1,052,130
Total Housing Voucher Cluster - 33,433,571
Family Self-Sufficiency Program 14.896 - 106,413
Total U.S. Department of Housing and Urban Development 3,226,995 45,959,880
(continued)
County of Hawai‘i, State of Hawai‘i
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal Amount
Assistance Listing Pass-through Entity Provided to Federal
Number Identifying Number Subrecipients ExpendituresFederal Grantor/Program/Grant
See accompanying report of independent auditors and
notes to schedule of expenditures of federal awards.
9
Department of the Interior
Office of Budget
National Park In Lieu of Taxes 15.226 - 568,498
U.S. Fish and Wildlife Service
National Wildlife Refuge Fund 15.659 - 95,031
Total Department of the Interior - 663,529
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 DHS-21-OYS-101 176,093 176,093
Office of Justice Programs
Passed Through the State Department of Attorney General
National Criminal History Improvement Program (“NCHIP”) 16.554 NCHIP23 - 285,548
Office for Victims of Crime
Passed Through the State Department of the Attorney General
Crime Victim Assistance 16.575 20-V2-04 50,000 78,075
Crime Victim Assistance 16.575 20-V2-04(Supp #1) 18,000 225,464
Crime Victim Assistance 16.575 21-V2-04 34,734 485,852
Total Crime Victim Assistance 102,734 789,391
Violence Against Women Office
Passed Through the State Department of Attorney General
Violence Against Woman Formula Grants
STOP Violence Against Women 16.588 22-WF-03 - 53,368
SAFE/SANE Coordination and Training 16.588 22-WF-07 46,450 46,450
Total Violence Against Woman Formula Grants 46,450 99,818
Bureau of Justice Assistance
Edward Byrne Memorial Justice Assistance Grant Program 16.738 - 10,908
Physical Readiness Equipment & Mini First Aid Kits (“M-FAK”) 16.738 - 987
Passed Through the State Department of Attorney General
Edward Byrne Memorial Justice Assistance Grant Program
Statewide Multi-Jurisdictional Drug Task Force (“SMDTF”) 16.738 21-DJ-01 - 8,648
Total Edward Byrne Memorial Justice Assistance Grant Program - 20,543
National Institute of Justice
Passed Through the State Department of Attorney General
Paul Coverdell Forensic Sciences Improvement Grant Program 16.742 20-CD-01 - 11,126
Paul Coverdell Forensic Sciences Improvement Grant Program 16.742 21-CD-01 - 28,270
Paul Coverdell Forensic Sciences Improvement Grant Program 16.742 22-CD-01 - 86,529
Total Paul Coverdell Forensic Sciences Improvement Grant Program - 125,925
Office of Justice Programs
Passed Through the State Department of Attorney General
NICS Act Record Improvement Program 16.813 2020-NS-BX-K004 - 83,661
NICS Act Record Improvement Program 16.813 15PBJS23GK02358NARI - 8,895
Smart Prosecution Initiative 16.825 - 126,966
National Sexual Assault Kit Initiative 16.833 - 73,503
Total Department of Justice 325,277 1,790,343
Department of Labor
Employment and Training Administration
Passed Through the State Department of Labor and Industrial Relations
Workforce Innovation and Opportunity Act (“WIOA”) Cluster
WIOA Adult Program 17.258 WIOA-21-A&DWP-H 39,343 39,343
WIOA Adult Program 17.258 WIOA-22-A&DWP-H 354,103 423,832
Total WIOA Adult Program 393,446 463,175
(continued)
County of Hawai‘i, State of Hawai‘i
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal Amount
Assistance Listing Pass-through Entity Provided to Federal
Number Identifying Number Subrecipients ExpendituresFederal Grantor/Program/Grant
See accompanying report of independent auditors and
notes to schedule of expenditures of federal awards.
10
WIOA Youth Activities 17.259 WIOA-21-YP-H 30,043 30,043
WIOA Youth Activities 17.259 WIOA-22-YP-H 240,918 287,561
Total WIOA Youth Activities 270,961 317,604
WIOA Dislocated Worker Formula Grants 17.278 WIOA-21-A&DWP-H 30,831 30,831
WIOA Dislocated Worker Formula Grants 17.278 WIOA-22-A&DWP-H 167,214 200,675
Total WIOA Dislocated Worker Formula Grants 198,045 231,506
Total WIOA Cluster 862,452 1,012,285
WIOA Quality Jobs, Equity, Strategy and Training Dislocated Worker Grant 17.277 DW392112260A15 - 47,663
Total Department of Labor 862,452 1,059,948
Department of Transportation
Federal Highway Administration
Passed Through the State Department of Transportation
Highway Planning and Construction
Kaiwiliahilahi Stream Bridge & Honolii Stream Bridge 20.205 20025 - 34,875
Waianuenue Ave Rehabilitation, Kaiulani Street to Rainbow Drive 20.205 21024 - 486,496
Kilauea Avenue and Keawe Street Rehabilitation, Ponahawai to Waianuenue 20.205 22045 - 7,767,617
Mamalahoa Highway Resurfacing, Kamalani Street to Kalamauka Road 20.205 23062 - 193,946
Waikoloa Road Rehabilitation, Mamalahoa Hwy to Queen Kaahumanu Hwy 20.205 22055 - 9,698,031
Kilauea Avenue, Wailoa Bridge to Puainako Street 20.205 20005 - 18,064
Lanikaula Street Rehabilitation From Kilauea Avenue to Manono Street 20.205 23048 - 246,949
Expansion of Hawaii Island Bikeshare Project 20.205 21051 70,065 70,065
Hilo Bayfront Trails Phase 2A 20.205 22047 - 586,120
Safe Routes to School Program Coordinator 20.205 23023 - 24,661
State Planning & Research Part I 20.205 SPR0010A(50) - 163,530
HI County Trek the Trails 20.205 TAP-0100(092) - 94,400
Total Highway Planning and Construction 70,065 19,384,754
Federal Transit Administration
Passed Through the State Department of Transportation
Formula Grants for Rural Areas
Formula Grants for Rural Areas 20.509 1623-2022-7 - 78,249
ARP Formula Grants for Rural Areas 20.509 H1-2021-006 - 800,270
Total Formula Grants for Rural Areas - 878,519
Federal Transit Cluster
Passed Through the State Department of Transportation
Busses and Bus Facilities Formula, Competitive and Low or
No Emissions Programs 20.526 1623-2017-2; 1623-2018-2; - 2,233,975
1623-2019-5; 1623-2021-11
National Highway Traffic Safety Administration
Highway Safety Cluster
Passed Through the State Department of Transportation
State and Community Highway Safety Program
Seatbelt Enforcement 20.600 OP23-H-03 - 23,744
Seatbelt Enforcement 20.600 OP-24-H-01 - 86,227
STEP 20.600 PT23-H-02 - 171,816
STEP 20.600 PT24-H-01 - 370,704
Total State and Community Highway Safety Program - 652,491
National Priority Safety Programs
Passed Through the State Department of Transportation
National Priority Safety Programs 20.616 AL23-H-02 - 28,504
National Priority Safety Programs 20.616 AL24-H-01 - 57,433
National Priority Safety Programs 20.616 AL23-S-07 - 9,003
Data Grant 20.616 TR23-H-03 - 47,616
Total National Priority Safety Programs - 142,556
Total Highway Safety Cluster - 795,047
(continued)
County of Hawai‘i, State of Hawai‘i
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal Amount
Assistance Listing Pass-through Entity Provided to Federal
Number Identifying Number Subrecipients ExpendituresFederal Grantor/Program/Grant
See accompanying report of independent auditors and
notes to schedule of expenditures of federal awards.
11
Alcohol Open Container Requirements
Passed Through the State Department of Transportation
Road Block Program 20.607 AL24-H-01 - 165,489
Alcohol Open Container Requirements 20.607 AL24-H-02 - 10,153
Total Alcohol Open Container Requirements - 175,642
Minimum Penalties for Repeat Offenders for Driving While Intoxicated
Passed Through the State Department of Transportation
Road Block Program 20.608 AL23-H-02 - 86,774
Total Department of Transportation 70,065 23,554,711
Department of Treasury
COVID-19 ‒ Emergency Rental Assistance Program 21.023 2,870,365 3,088,806
Passed through the State of Hawaii Department of Budget & Finance
COVID-19 ‒ Emergency Rental Assistance Program 21.023 ERA0173 9,432 9,432
Total Emergency Rental Assistance Program 2,879,797 3,098,238
Passed through the State of Hawaii Department of Budget & Finance
COVID-19 ‒ Homeowner Assistance Fund 21.026 HAF0002 5,516,137 5,523,382
COVID-19 ‒ Coronavirus State and Local Fiscal Recovery Funds 21.027 320,000 2,400,578
Total Department of the Treasury 8,715,934 11,022,198
National Endowment for the Arts
Promotion of the Arts Grants to Organizations & Individuals
Our Town 45.024 - 36,740
Total National Endowment for the Arts - 36,740
Environmental Protection Agency
Passed through the State of Hawaii Department of Land and Natural Resources
Climate Pollution Reduction Grants 66.046 98767001 - 40,481
Water Quality Management Planning 66.454 CWB604B2023-1 - 3,241
Total Environmental Protection Agency - 43,722
Department of Health and Human Services
Administration for Community Living
Passed Through the State Executive Office on Aging
Special Programs for the Aging
Title III, Part D ‒ Disease Prevention and Health Promotion Services 93.043 ASO LOG 21-192 - 17,881
Aging Cluster
Special Programs for the Aging ‒ Title III, Part B ‒ Grants for
Supportive Services and Senior Centers 93.044 ASO LOG-21-192 - 168,363
Special Programs for the Aging ‒ Title III, Part B ‒ Grants for
Supportive Services and Senior Centers 93.044 ASO LOG-20-198 - 204,120
COVID-19 ‒ Special Programs for the Aging ‒ Title III, Part B ‒ Grants for
Supportive Services and Senior Centers 93.044 ASO LOG-20-198 - 16,461
Total Special Programs for the Aging ‒ Title III, Part B ‒ Grants for
Supportive Services and Senior Centers - 388,944
Special Programs for the Aging ‒ Title III, Part C ‒ Nutrition Services
Home Delivered Meals 93.045 ASO LOG 21-192 - 248,417
Special Programs for the Aging ‒ Title III, Part C ‒ Nutrition Services -
Congregate Meals 93.045 ASO LOG 20-198 - 134,407
Total Special Programs for the Aging ‒ Title III, Part C ‒ Nutrition Services - 382,824
Nutrition Services Incentive Program 93.053 NSIP22 - 58,190
Nutrition Services Incentive Program 93.053 NSIP23 - 16,294
Nutrition Services Incentive Program 93.053 NSIP24 - 57,697
Total Nutrition Services Incentive Program - 132,181
Total Aging Cluster - 903,949
(continued)
County of Hawai‘i, State of Hawai‘i
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal Amount
Assistance Listing Pass-through Entity Provided to Federal
Number Identifying Number Subrecipients ExpendituresFederal Grantor/Program/Grant
See accompanying report of independent auditors and
notes to schedule of expenditures of federal awards.
12
Passed Through the State Executive Office on Aging
Special Programs for the Aging
National Family Caregiver Support, Title III, Part E 93.052 ASO LOG 21-192 - 140,181
National Family Caregiver Support, Title III, Part E 93.052 ASO LOG 20-198 - 83,324
Total National Family Caregiver Support, Title III, Part E - 223,505
Substance Abuse and Mental Health Services Administration
Passed Through the State Department of Health
Substance Abuse and Mental Health Services
Projects of Regional and National Significance 93.243 ASO LOG NO. 23-077 - 3,989
Substance Abuse and Mental Health Services Administration
Passed Through the State Department of Health
Block Grants for Substance Use Prevention, Treatment and Recovery Services 93.959 ASO LOG NO. 23-077 - 13,607
Total Department of Health and Human Services - 1,162,931
Corporation for National and Community Service
Retired and Senior Volunteer Program 94.002 - 65,924
Total Corporation for National and Community Service - 65,924
Executive Office of the President
High Intensity Drug Trafficking Areas Program
Hawai‘i Impact 95.001 - 614,005
Total Executive Office of the President - 614,005
Department of Homeland Security
Passed through the State Department of Defense
Disaster Grants ‒ Public Assistance (Presidentially Declared Disasters)
Kilauea Volcanic Eruption and Earthquakes 97.036 FEMA-4366-DR-HI - 1,222,936
Hurricane Lane 97.036 FEMA-4395-DR-HI - 1,117,254
Hawaii Wildfires 97.036 FEMA-4724-DR-HI - 527,759
COVID-19 ‒ Disaster Grants ‒ Public Assistance (Presidentially Declared Disasters) 97.036 PA-09HL-4510 - 1,832,959
Total Disaster Grants ‒ Public Assistance (Presidentially Declared Disasters) - 4,700,908
Passed through the Hawaii Emergency Management Agency
Hazard Mitigation Grant 97.039 FEMA-4366-15-07R - 127,885
Hazard Mitigation Grant 97.039 HMGP #4366-03-05 - 25,944
Hazard Mitigation Grant 97.039 DR-4366-HI - 176,555
Total Hazard Mitigation Grant - 330,384
Emergency Management Performance Grants 97.042 EMF-2022-EP-00006-04 - 48,687
Emergency Management Performance Grants 97.042 EMF-2023-EP-00002-04 - 128,073
Total Emergency Management Performance Grants - 176,760
Federal Emergency Management Agency
Assistance to Firefighters Grant 97.044 - 334,745
Passed through the State Department of Defense
Homeland Security Grant Program (“HSGP”) 97.067 EMW-2020-SS-00022 - 209,135
Homeland Security Grant Program (“HSGP”) 97.067 EMW-2021-SS-00030 - 14,510
Homeland Security Grant Program (“HSGP”) 97.067 EMW-2022-SS-00026 - 151,059
Total Homeland Security Grant Program (“HSGP”)- 374,704
Staffing for Adequate Fire and Emergency Response (“SAFER”) 97.083 - 1,408,679
Total Department of Homeland Security - 7,326,180
Total Expenditures of Federal Awards 13,200,723$ 95,635,274$
(concluded)
County of Hawai‘i, State of Hawai‘i
Notes to Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
See accompanying report of independent auditors.
13
1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant
activity of the County of Hawai‘i, State of Hawai‘i (the “County”) under programs of the federal government
for the year ended June 30, 2024. The information in the 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 (the “Uniform Guidance”). Because the Schedule
presents only a selected portion of the operations of the County, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the County.
2. Summary of Significant Accounting Policies
Expenditures reported in the Schedule are reported on the cash basis of accounting. Such expenditures
are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The pass-through entity identifying
numbers are presented where available.
3. Indirect Cost Rate
The County has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs,
as allowed under the Uniform Guidance.
PART 3
SCHEDULE OF
FINDINGS AND QUESTIONED COSTS
County of Hawai‘i, State of Hawai‘i
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
14
Financial Statements
Type of auditors’ report issued
Internal control over financial reporting
• Material weaknesses identified? X yes no
• Significant deficiencies identified? yes X none reported
Noncompliance material to financial statements noted? yes X no
Federal Awards
Internal control over major programs
• Material weaknesses identified? yes X no
• Significant deficiencies identified? yes X none reported
Type of auditors’ report issued on compliance for major programs
Any audit findings disclosed that are required to be reported in
accordance with the Uniform Guidance? yes X no
Dollar threshold used to distinguish between type A and type B program
Auditee qualified as low-risk auditee? yes X no
Section I – Summary of Auditors’ Results
Unmodified
Unmodified
$2,869,058
County of Hawai‘i, State of Hawai‘i
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
15
Identification of Major Programs
Name of Federal Program or Cluster
COVID-19 ‒ Emergency Rental Assistance Program
COVID-19 ‒ Homeowner Assistance Fund
COVID-19 ‒ Coronavirus State and Local Fiscal Recovery Funds
CDBG ‒ Community Development Block Grant/State’s Program and Non-Entitlement Grants in Hawaii
Community Development Block Grant/State’s Program and Non-Entitlement Grants in Hawaii
COVID-19 ‒ CARES CDBG/State’s Program Non-Entitlement Grants
Housing Voucher Cluster
Section 8 ‒ Housing Choice Vouchers
COVID-19 ‒ ARP ‒ Emergency Housing Vouchers
Foster Youth to Independence
Mainstream Vouchers Program
14.228
Assistance
Number
Listing
21.023
14.228
21.027
21.026
14.871
14.879
14.871
14.871
FINANCIAL STATEMENT FINDINGS
County of Hawai‘i, State of Hawai‘i
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
16
Section II – Financial Statement Findings
Finding No. 2024-001: Financial Statement Reporting (Material Weakness)
Condition
The County of Hawai‘i reports on a cash basis throughout the fiscal year and only prepares accrual basis financial
statements for its annual report as of and for the fiscal year ended June 30. Accordingly, in preparing accrual basis
financial statements, there should be written procedures to clearly define the reporting and closing procedures,
the timing of such procedures, and the review and approval process involved. Included in the reporting and closing
procedures should be the timely preparation of account reconciliations, and recording adjustments to properly
present accrual basis financial statements. There should be clear procedures and supporting schedules to reconcile
information that is reporting in the County of Hawai‘i’s annual comprehensive financial report (“ACFR”). This process
ensures the accuracy, validity and timeliness of financial information provided.
A similar finding was reported as a material weakness in the prior year as Finding No. 2023-001.
Criteria
Management is responsible for establishing and maintaining internal control over financial reporting to permit the
preparation of the County of Hawai‘i’s financial statements in conformity with accounting principles generally
accepted in the United States of America. These accounting principles require financial statements to be prepared
using the economic resources measurement focus and accrual basis of accounting. Effective internal control
supports timely and accurate financial reporting.
Cause
We noted that the accuracy and delay of the preparation of the ACFR, including accrual basis financial statements,
report support schedules, account reconciliations, and the trial balance were affected by the following:
Scheduled requested items were not provided timely;
Numerous schedules were inaccurate or did not reconcile to the financial statements;
Responses to follow-up questions were not provided timely;
Several proposed audit adjustments were made, including the following significant entries: decreasing
governmental activities claims and judgment liability and related expenses by approximately $34 million;
reclassifying approximately $19 million of equipment from construction work in progress; reclassifying
approximately $54 million of bonds payable from current to noncurrent; increasing general fund revenues by
approximately $3 million; increasing general fund accrued liabilities and related expenditures for pending
temporary hazard pay settlements by approximately $70 million; and transferring approximately $53 million of
restricted cash from the general fund to the capital projects fund; and
Insufficient or appropriate resources devoted to timely closing process.
Effect
The preceding issues resulted in significant delays in receiving the trial balance and accrual basis financial
statements that captured all valid journal entries and accruals, resulting in a delayed audit process and the issuance
of the audited financial statements.
County of Hawai‘i, State of Hawai‘i
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
17
Recommendation
We recommend that management re-evaluate its annual closing and financial reporting process to clearly define
financial reporting and closing procedures, the timing of such reporting, and the review and approval process
involved. These written procedures should also document the process to ensure the trial balance and financial
statement preparation process, including preparing the ACFR, captures all valid journal entries and accruals, and
that the year-end trial balance is complete and accurate. An evaluation should be made by management to determine
if additional resources are needed to perform these procedures in a timely manner.
County of Hawai‘i, State of Hawai‘i
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
18
Finding No. 2024-002: Timely Financial Statement Reporting – Department of Water Supply
(Material Weakness)
Condition
In preparing the Department of Water Supply’s accrual basis financial statements, there should be written procedures
to clearly define the reporting and closing procedures, the timing of such procedures, and the review and approval
process involved. Reporting and closing procedures should include preparing timely account reconciliations and
recording adjustments to properly present accrual basis financial statements. This process ensures the accuracy,
validity and timeliness of financial information provided.
Criteria
Management is responsible for establishing and maintaining internal control over financial reporting to permit the
preparation of the Department of Water Supply’s financial statements in conformity with accounting principles
generally accepted in the United States of America. These accounting principles require financial statements to be
prepared using the economic resources measurement focus and accrual basis of accounting. Effective internal
control supports timely and accurate financial reporting.
Cause
We noted that the accuracy and delay of the preparation of the accrual basis financial statements and the trial
balance were affected by the following:
Scheduled requested items were not provided timely;
Numerous audit and client adjustments were proposed after receipt of the initial trial balance;
Responses to follow-up questions were not provided timely;
Numerous versions and revisions to the financial statements, including the statement of cash flows; and
Insufficient or appropriate resources devoted to timely closing process.
Effect
The preceding issues resulted in significant delays in receiving the trial balance and accrual basis financial
statements that captured all valid journal entries and accruals, resulting in a delayed audit process and issuance of
the audited financial statements.
Recommendation
We recommend that management re-evaluate its annual closing process to clearly define financial reporting and
closing procedures, the timing of such reporting and the review and approval process involved. These written
procedures should also document the process to ensure the trial balance and financial statement preparation
process captures all valid journal entries and accruals, and that the year-end trial balance is complete and accurate.
Management should also consider performing adjustments, prior to fiscal year-end closing, either on a quarterly or
semi-annual basis, or at the end of the third quarter of the fiscal year. An evaluation should be made by
management to determine if additional resources are needed to perform these procedures in a timely manner.
FEDERAL AWARD FINDINGS AND
QUESTIONED COSTS
County of Hawai‘i, State of Hawai‘i
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
19
Section III – Federal Award Findings and Questioned Costs
None noted.
SUMMARY SCHEDULE OF
PRIOR AUDIT FINDINGS
County of Hawai‘i, State of Hawai‘i
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2024
Finding Current Year
No. Description Classification Resolved Unresolved Finding No.
2023-001 Untimely Financial Statement Material X 2024-001
Reporting for County of Hawai‘i ACFR Weakness
2023-002 Department of Water Supply –Material X
Accounting for Water Deposits Weakness
Status
County of Hawai‘i, State of Hawai‘i
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2024
Corrective Actions Taken for Unresolved Finding
Finding No. 2023-001: Untimely Financial Statement Reporting for County of Hawaii ACFR
Corrective actions were taken in fiscal year 2024 to mitigate a number of the previously reported deficiencies;
however, additional deficiencies were noted. Corrective action is still ongoing. As a current year finding (Finding
No. 2024-001) is reported, Finding No. 2023-001 will not be carried forward.