Audit 17489

Finding 2022-001 Significant Deficiency in Internal Control Over Compliance, Noncompliance - Reporting Agency Department of the Treasury ALN 21.027 Program Name Coronavirus State and Local Fiscal Recovery Funds Award Year Reporting period was for March 03, 2021 ? March 30, 2022 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number NEU AK0100 Criteria Recipients of federal awards must establish verifiable controls over reports that are prepared and submitted. Condition Report submitted within the year had significant errors, including the improper reporting of contract agreements as subrecipient awards and reporting the incorrect total expenditures that occurred within the reporting period. In addition, there were insufficient controls in place to prevent the identified reporting errors. Cause The City?s internal controls over reporting were not designed appropriately to ensure timely and accurate reporting. Effect or Potential Effect Information submitted to the granting agency might be incomplete or inaccurate. Questioned costs None Context A sample of one annual report was tested specific to the major program. This report included significant errors in the initial submission and no amended report had been filed within FY 2022. Identification as a repeat finding No Recommendation Review process should also be established to ensure accurate reporting. A policy should be established and enforced to ensure that grant reports contain accurate data prior to submission, and to ensure evidence of controls performed over applicable compliance requirements is maintained. Views of Responsible Officials Management agrees with this finding. All grant reporting is to be reviewed for accuracy by the Finance Director or the Controller prior to submittal.

Finding 2022-001 Significant Deficiency in Internal Control Over Compliance, Noncompliance - Reporting Agency Department of the Treasury ALN 21.027 Program Name Coronavirus State and Local Fiscal Recovery Funds Award Year Reporting period was for March 03, 2021 ? March 30, 2022 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number NEU AK0100 Criteria Recipients of federal awards must establish verifiable controls over reports that are prepared and submitted. Condition Report submitted within the year had significant errors, including the improper reporting of contract agreements as subrecipient awards and reporting the incorrect total expenditures that occurred within the reporting period. In addition, there were insufficient controls in place to prevent the identified reporting errors. Cause The City?s internal controls over reporting were not designed appropriately to ensure timely and accurate reporting. Effect or Potential Effect Information submitted to the granting agency might be incomplete or inaccurate. Questioned costs None Context A sample of one annual report was tested specific to the major program. This report included significant errors in the initial submission and no amended report had been filed within FY 2022. Identification as a repeat finding No Recommendation Review process should also be established to ensure accurate reporting. A policy should be established and enforced to ensure that grant reports contain accurate data prior to submission, and to ensure evidence of controls performed over applicable compliance requirements is maintained. Views of Responsible Officials Management agrees with this finding. All grant reporting is to be reviewed for accuracy by the Finance Director or the Controller prior to submittal.