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Audit (A-09-11-01014)

Hawaii Claimed Unallowable Community Services Block Grant Costs for Hawaii County Economic Opportunity Council's Expenditures Under the Recovery Act

Executive Summary

Under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the Hawaii Department of Labor and Industrial Relations, Office of Community Services (State agency), was awarded $5 million in Community Services Block Grant (CSBG) funds for fiscal years 2009 and 2010. For the period November 5, 2009, through September 30, 2010, the State agency awarded Hawaii County Economic Opportunity Council (Council) $1.02 million in CSBG Recovery Act funds.

Of the $975,000 of CSBG costs that the State agency claimed for the Council's program expenditures, $831,000 was allowable in accordance with applicable Federal requirements. The remaining $144,000 consisted of $22,000 of fringe benefit costs that we determined was unallowable and $122,000 of salary-related and shared costs that we set aside for resolution by the Administration for Children and Families.

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