Financial and Compliance Audit of the Department of Human Services
From Hawaii State Auditor
The auditors from KMH LLP reported one significant deficiency in internal control over financial reporting and 14 material weaknesses and three significant deficiencies in internal control over compliance that are required to be reported under Government Auditing Standards and the Uniform Guidance.
THERE WAS ONE SIGNIFICANT DEFICIENCY in internal control over financial reporting that is required to be reported under Government Auditing Standards. There were 14 material weaknesses and three significant deficiencies in internal control over compliance that are required to be reported in accordance with the Uniform Guidance and Government Auditing Standards.
Material Weaknesses (14)
• Lack of proper documentation to support eligibility determinations and actions taken related to benefits (3);
• Lack of proper documentation to support program participant benefits;
• Lack of proper documentation to support revalidation of provider eligibility;
• Eligibility determinations were not processed or not completed in a timely manner (2);
• Failure to complete the participant’s individualized plan for employment or obtain approval;
• Inaccurate federal data reporting (2);
• Inadequate monitoring of subrecipients;
• Lack of monitoring for earmarked funds;
• Lack of proper documentation to indicate whether appropriate action was taken regarding non-cooperating participants; and
• Lack of approval of individualized plans for employment of participants to receive benefit payments.
Significant Deficiencies (4)
• DHS did not properly accrue several payable accounts;
• Lack of policies and procedures for compiling the Schedule of Expenditures of Federal Awards;
• Lack of documentation to support participant monthly benefit payments; and
• Failure to ensure contractor was not federally suspended or debarred.
Summary | Full Report