Audit 30167

Finding 2022-004 Noncompliance and Significant Deficiency in Internal Control ? Subrecipient Monitoring Agency Department of the Treasury Pass-through Entity State of Alaska Department of Commerce, Community and Economic Development Assistance Listing 21.019 Program Coronavirus Relief Fund ? COVID-19 Award Year FY 2022 Criteria Management is responsible to ensure that subrecipients comply with the terms and conditions of 2 CFR Part 200, Subpart F. This includes ensuring that every subaward is clearly identified to the subrecipient as a subaward and include the necessary information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. This also includes verifying that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold. Condition We noted that management did not fully identify and comply with all subrecipient monitoring requirements applicable to the program. Cause Internal controls were not in place throughout the entire fiscal year to ensure that all required subrecipient monitoring responsibilities took place. Effect or potential effect Subrecipients may be unaware and not in compliance with the requirements of 2 CFR Part 200. Questioned costs None Context Subrecipient monitoring testing identified 1 out of 1 subawards that did not have the support to verify notification and monitoring of subrecipient compliance in accordance with 2 CFR Part 200, Subpart F. Identification as a repeat finding Yes, see prior year finding number 2021-005 Recommendation Management should establish policies to address the monitoring of subrecipient compliance with 2 CFR Part 200, Subpart F. Views of responsible officials Management concurs with the finding and will establish policies to ensure that timely monitoring activity takes place and subrecipients are aware of compliance requirements applicable to subawards from issued by the Borough.

Finding 2022-005 Deadline for Federal Single Audit - Noncompliance and Internal Control over Compliance ? Significant Deficiency Agency Department of the Treasury Pass-through Entity State of Alaska Department of Commerce, Community and Economic Development Assistance Listing 21.019 Program Coronavirus Relief Fund ? COVID-19 Award Year FY 2022 Criteria The Borough is required to submit the single audit report and Form SF-SAC within nine months of the fiscal year end. Condition The Form SF-SAC for the fiscal year ended June 30, 2022 was not filed on time. Cause The audit was not completed in time to file the form, due to a delay in closing the books and records. Effect or potential effect The Schedule of Expenditures of Federal Awards were not available in a timely manner in order to allow for timely submission of Form SF-SAC. Questioned costs None Context The Form SF-SAC is due nine months after the fiscal year end. The form for the fiscal year ended June 30, 2022 was filed late. Identification as a repeat finding No Recommendation We recommend the Form SF-SAC is filed timely in the future. Views of responsible officials Management concurs with the finding and will submit the Form SF-SAC on time in the future

Finding 2022-004 Noncompliance and Significant Deficiency in Internal Control ? Subrecipient Monitoring Agency Department of the Treasury Pass-through Entity State of Alaska Department of Commerce, Community and Economic Development Assistance Listing 21.019 Program Coronavirus Relief Fund ? COVID-19 Award Year FY 2022 Criteria Management is responsible to ensure that subrecipients comply with the terms and conditions of 2 CFR Part 200, Subpart F. This includes ensuring that every subaward is clearly identified to the subrecipient as a subaward and include the necessary information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. This also includes verifying that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold. Condition We noted that management did not fully identify and comply with all subrecipient monitoring requirements applicable to the program. Cause Internal controls were not in place throughout the entire fiscal year to ensure that all required subrecipient monitoring responsibilities took place. Effect or potential effect Subrecipients may be unaware and not in compliance with the requirements of 2 CFR Part 200. Questioned costs None Context Subrecipient monitoring testing identified 1 out of 1 subawards that did not have the support to verify notification and monitoring of subrecipient compliance in accordance with 2 CFR Part 200, Subpart F. Identification as a repeat finding Yes, see prior year finding number 2021-005 Recommendation Management should establish policies to address the monitoring of subrecipient compliance with 2 CFR Part 200, Subpart F. Views of responsible officials Management concurs with the finding and will establish policies to ensure that timely monitoring activity takes place and subrecipients are aware of compliance requirements applicable to subawards from issued by the Borough.

Finding 2022-005 Deadline for Federal Single Audit - Noncompliance and Internal Control over Compliance ? Significant Deficiency Agency Department of the Treasury Pass-through Entity State of Alaska Department of Commerce, Community and Economic Development Assistance Listing 21.019 Program Coronavirus Relief Fund ? COVID-19 Award Year FY 2022 Criteria The Borough is required to submit the single audit report and Form SF-SAC within nine months of the fiscal year end. Condition The Form SF-SAC for the fiscal year ended June 30, 2022 was not filed on time. Cause The audit was not completed in time to file the form, due to a delay in closing the books and records. Effect or potential effect The Schedule of Expenditures of Federal Awards were not available in a timely manner in order to allow for timely submission of Form SF-SAC. Questioned costs None Context The Form SF-SAC is due nine months after the fiscal year end. The form for the fiscal year ended June 30, 2022 was filed late. Identification as a repeat finding No Recommendation We recommend the Form SF-SAC is filed timely in the future. Views of responsible officials Management concurs with the finding and will submit the Form SF-SAC on time in the future