HAWAII DISABILITY RIGHTS CENTER FINANCIAL AUDITS YEARS ENDED SEPTEMBER 30, 2004 AND 2003_part2 doc

HAWAII DISABILITY RIGHTS CENTER SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2004 Federal Grantor/Pass-through Grantor/Program Title Federal CFDA Number Agency or Pass-through Number Federal Expendi- tures U.S. DEPARTMENT OF HEAL TH AND HUMAN SERVICES Protection and Advocacy for Individuals with Mental Illness 93.138 SMX 159700-04-02 $ 410,000 Traumatic Brain Injury Protection and Advocacy Grant 93.234 1 H83MCO 1563-01-00 and X82MC03928-01-00 38,857 Protection and Advocacy Systems: Help America to Vote 93.618 G-0303HIVOTP and G-0403HIVOTP 72,727 Developmental Disabilities Basic Support and Advocacy Grants 93.630 G-0401HIPA12 365,940 Total U.S. Department of Health and Human Services 887,524 U.S. DEPARTMENT OF EDUCATION Rehabilitation Services - Client Assistance Program 84.161A H161A030012 and H161A040012C 126,174 Program of Protection and Advocacy of Individual Rights 84.240A H240A040012C-04 163,236 Assistive Technology - State Grants for Protection and Advocacy 84.343A H343A020012 and H343A040012 74,653 Total U.S. Department of Education 364,063 See accompanying note to the schedule of expenditures of federal awards. 13 This is trial version www.adultpdf.com HAWAII DISABILITY RIGHTS CENTER SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - Continued Year Ended September 30,2004 Federal Grantor/Pass-through Grantor/Program Title Federal CFDA Number Agency or Pass-through Number Federal Expendi- tures SOCIAL SECURITY ADMINISTRATION Protection and Advocacy for Beneficiaries of Social Security 96.009 17-A-20014-9-03 and 17-A-20014-9-04 100,952 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 1,352,539 See accompanying note to the schedule of expenditures of federal awards. 14 This is trial version www.adultpdf.com HAWAII DISABILITY RIGHTS CENTER NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS September 30,2004 NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Hawaii Disability Rights Center and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMS Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 15 This is trial version www.adultpdf.com OTHER REPORTS AND SCHEDULES This is trial version www.adultpdf.com CGM Carr, Gouveia + Matsumoto, CPAs, Inc. REPORT 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 the Board of Directors of Hawaii Disability Rights Center We have audited the financial statements of Hawaii Disability Rights Center (a nonprofit organization) as of and for the year ended September 30, 2004, and have issued our report thereon dated March 29, 2005. We conducted our audit in accordance with 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered Hawaii Disability Rights Center's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether Hawaii Disability Rights Center's financial statements are free of 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 determination of financial statement amounts. 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. However, we noted certain matters that we reported to management of Hawaii Disability Rights Center in a separate letter dated March 29, 2005. 17 680 Iwilei Road , Suite 410 Honolulu, Hawaii 96817 Telephone: (808) 833-1183 Fax: (808) 833-0892 This is trial version www.adultpdf.com This report is intended solely for the information and use of the Board of Directors, management, and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified parties. March 29, 2005 18 This is trial version www.adultpdf.com CGM Carr, Gouveia + Matsumoto, CPAs, Inc. REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 To the Board of Directors of Hawaii Disability Rights Center Compliance We have audited the compliance of Hawaii Disability Rights Center (a nonprofit organization) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended September 30, 2004. Hawaii Disability Rights Center's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Hawaii Disability Rights Center's management. Our responsibility is to express an opinion on Hawaii Disability Rights Center's compliance based on our audit. 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; and OMS Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred . An audit includes examining, on a test basis, evidence about Hawaii Disability Rights Center's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Hawaii Disability Rights Center's compliance with those requirements. In our opinion, Hawaii Disability Rights Center complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended September 30, 2004. Internal Control Over Compliance The management of Hawaii Disability Rights Center is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered Hawaii Disability Rights Center's internal control over compliance with 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 the internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a 19 680 Iwilei Road, Suite 410 Honolulu, Hawaii 96817 Telephone: (808) 833-1183 Fax: (808) 833-0892 This is trial version www.adultpdf.com reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Board of Directors, management, and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified parties. March 29, 2005 20 This is trial version www.adultpdf.com HAWAII DISABILITY RIGHTS CENTER SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended September 30, 2004 SUMMARY OF AUDITORS' RESULTS 1. The auditors' report expresses an unqualified opinion on the financial statements of Hawaii Disability Rights Center. 2. No reportable conditions relating to the audit of the financial statements are reported in the report 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. 3. No instances of noncompliance material to the 'financial statements of Hawaii Disability Rights Center, which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit. 4. No reportable conditions relating to the audit of internal control over major federal award programs are reported in the report on compliance with requirements applicable to each major program and on internal control over compliance in accordance with OMB Circular A- 133. 5. The auditors' report on compliance for the major federal award programs for Hawaii Disability Rights Center expresses an unqualified opinion on its major federal programs. 6. There were no audit findings relative to the major federal award programs of Hawaii Disability Rights Center. 7. The programs tested as major programs were Protection and Advocacy for Individuals with Mental Illness (CFDA No. 93.138) and Protection and Advocacy for Beneficiaries of Social Security (CFDA No. 96.009). 8. The threshold used for distinguishing between Type A and B programs was $300,000. 9. Hawaii Disability Rights Center qualified as a low-risk auditee. FINDINGS - FINANCIAL STATEMENT AUDIT None FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT None 21 This is trial version www.adultpdf.com HAWAII DISABILITY RIGHTS CENTER SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS Year Ended September 30,2004 There were no prior audit findings. 22 This is trial version www.adultpdf.com . of Hawaii Disability Rights Center We have audited the financial statements of Hawaii Disability Rights Center (a nonprofit organization) as of and for the year ended September 30, 2004, and. programs for the year ended September 30, 2004. Internal Control Over Compliance The management of Hawaii Disability Rights Center is responsible for establishing and maintaining effective. HAWAII DISABILITY RIGHTS CENTER SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2004 Federal Grantor/Pass-through Grantor/Program