Financial and Compliance Audit of the Department of Health

From Hawaii State Auditor, April, 2019

The auditors from KMH LLP identified one material weakness and one significant deficiency in internal control over financial reporting that are required to be reported under Government Auditing Standards. They also identified four material weaknesses in internal control over compliance in accordance with the Uniform Guidance….

Summary

Findings

THERE WAS ONE MATERIAL WEAKNESS and one significant deficiency in internal control over financial reporting that are required to be reported under Government Auditing Standards.

Material Weakness • Audit adjustments were recorded to beginning net position related to clean air permit revenues.

Significant Deficiency • The Deposit Beverage Container Program is susceptible to fraud because of an overreliance on self-reporting by distributors and redemption centers.

THERE WERE FOUR MATERIAL WEAKNESSES in internal control over compliance that are required to be reported in accordance with the Uniform Guidance.

Material Weaknesses (4)

• Federal financial reports were not submitted timely.

• Failure to follow subrecipient monitoring policy to ensure subrecipient compliance with federal requirements (2).

• Federal funds were not disbursed in a timely manner to comply with federal regulations.

Link: Full Report