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Hawaii Claimed Unallowable Community Services Block Grant Costs for Administrative Expenditures Under the Recovery Act

06-20-2012 | Audit (A-09-12-01000) | Complete Report

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.

The State agency complied with Federal requirements when distributing the entirety of the $5 million in CSBG Recovery Act funds to four community action agencies (CAA). However, the State agency returned to the Federal Government only $973,000 of the $1.08 million of funds not spent by the CAAs. The State agency claimed the remaining $35,000 as administrative expenditures. These costs were unallowable under the CSBG Recovery Act award.

Filed under: Administration for Children and Families