FAC Explorer

Audit 24685

FY End
2022-09-30
Total Expended
$2.56M
Findings
2
Programs
13
Organization: Arctic Village Tribal Council (AK)
Year: 2022 Accepted: 2023-06-27
Auditor: Altman Rogers & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35182 2022-001 Material Weakness Yes C
611624 2022-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
16.841 Voca Tribal Victim Services Set-Aside Program $892,220 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $441,601 Yes 1
21.019 Coronavirus Relief Fund $279,401 - 0
20.205 Highway Planning and Construction $204,406 - 0
15.020 Aid to Tribal Governments $177,071 - 0
14.862 Indian Community Development Block Grant Program $98,585 - 0
66.926 Indian Environmental General Assistance Program (gap) $96,135 - 0
14.867 Indian Housing Block Grants $74,366 - 0
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $70,041 - 0
15.030 Indian Law Enforcement $40,100 - 0
15.024 Indian Self-Determination Contract Support $35,784 - 0
15.144 Indian Child Welfare Act_title II Grants $31,423 - 0
15.108 Indian Employment Assistance $1,858 - 0

Contacts

Name Title Type
KDVHTG8REW17 Kim Good Auditee
9075908042 Grant R. Todd Auditor
No contacts on file

Notes to SEFA

Title: Note 3. Passed Through Awards Accounting Policies: Note 1. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Arctic Village Tribal Council under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Arctic Village Tribal Council, it is not intended to and does not present the basic financial statements of Arctic Village Tribal Council. Note 2. Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Arctic Village Tribal Council has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform guidance. De Minimis Rate Used: N Rate Explanation: Arctic Village Tribal Council has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform guidance. No amounts were passed through to subrecipients.

Finding Details

Finding 2022-001
Finding 2022-001 Lack of Internal Control Over Cash Management Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Award Numbers: SLFRP3171/4774 Award Year: 2021 Type of Finding: Material weakness in internal control over compliance and material noncompliance Criteria: The requirement for cash management as contained in 2 CFR 200.305, states advanced cash payments must be used only for applicable grant programs. Condition and Context: Procedures related to cash management were inadequate to ensure that funds drawn down were not used for other grant expenditures. The Village?s cash balances for all governmental funds amounted to $6,020,657 at September 30, 2022. The unearned revenues were $6,488,378 which resulted in a shortfall of $467,721. The unearned revenue for the CSLFRF was $6,281,497. Cause: Lack of internal controls over cash management. Effect: The Village requested and received advances for various federal programs to cover expenditures. Deposits were used to fund other programs of the Council. Repeat Finding: This is a repeat of Finding 2021-001, and since it is a repeat Finding we believe this to be a systemic issue. Recommendation: We recommend that the Village monitor grant budgets and drawdowns throughout the year and ensure that program funds are not being lent or borrowed between programs in an effort to ensure that unearned revenue balances do not exceed total cash and investments. Management?s Response: Management concurs with this finding. See corrective action plan. Questioned Costs: $467,721, which is the shortfall between cash and the unearned revenue balances across all government funds.
Finding 2022-001
Finding 2022-001 Lack of Internal Control Over Cash Management Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Award Numbers: SLFRP3171/4774 Award Year: 2021 Type of Finding: Material weakness in internal control over compliance and material noncompliance Criteria: The requirement for cash management as contained in 2 CFR 200.305, states advanced cash payments must be used only for applicable grant programs. Condition and Context: Procedures related to cash management were inadequate to ensure that funds drawn down were not used for other grant expenditures. The Village?s cash balances for all governmental funds amounted to $6,020,657 at September 30, 2022. The unearned revenues were $6,488,378 which resulted in a shortfall of $467,721. The unearned revenue for the CSLFRF was $6,281,497. Cause: Lack of internal controls over cash management. Effect: The Village requested and received advances for various federal programs to cover expenditures. Deposits were used to fund other programs of the Council. Repeat Finding: This is a repeat of Finding 2021-001, and since it is a repeat Finding we believe this to be a systemic issue. Recommendation: We recommend that the Village monitor grant budgets and drawdowns throughout the year and ensure that program funds are not being lent or borrowed between programs in an effort to ensure that unearned revenue balances do not exceed total cash and investments. Management?s Response: Management concurs with this finding. See corrective action plan. Questioned Costs: $467,721, which is the shortfall between cash and the unearned revenue balances across all government funds.