Audit 301806

FY End
2023-06-30
Total Expended
$27.67M
Findings
4
Programs
27
Year: 2023 Accepted: 2024-04-01

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
391189 2023-003 Significant Deficiency - L
391190 2023-003 Significant Deficiency - L
967631 2023-003 Significant Deficiency - L
967632 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $3.87M - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.47M Yes 0
93.498 Provider Relief Fund $1.82M Yes 1
21.032 Local Assistance and Tribal Consistency Fund $1.32M Yes 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $1.03M Yes 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $732,657 - 0
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $172,464 - 0
93.623 Basic Center Grant $150,000 - 0
97.042 Emergency Management Performance Grants $110,559 - 0
45.164 Promotion of the Humanities_public Programs $49,541 - 0
95.001 High Intensity Drug Trafficking Areas Program $37,227 - 0
10.665 Schools and Roads - Grants to States $32,737 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $31,600 - 0
97.067 Homeland Security Grant Program $26,904 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $24,000 Yes 0
20.600 State and Community Highway Safety $23,183 - 0
15.616 Clean Vessel Act Program $19,751 - 0
15.904 Historic Preservation Fund Grants-in-Aid $18,716 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $12,300 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $7,113 - 0
20.224 Federal Lands Access Program $5,000 - 0
16.607 Bulletproof Vest Partnership Program $4,700 - 0
45.024 Promotion of the Arts_grants to Organizations and Individuals $3,925 - 0
16.710 Public Safety Partnership and Community Policing Grants $3,900 - 0
45.310 Grants to States $1,250 - 0
16.922 Equitable Sharing Program $0 - 0
21.016 Equitable Sharing $0 - 0

Contacts

Name Title Type
D3A1DKUM8X91 Sam Muse Auditee
9075865215 Karen Tarver Auditor
No contacts on file

Notes to SEFA

Title: General Accounting Policies: Basis of Accounting and Indirect Cost Rate Expenditures reported in the accompanying SEFA are presented using the modified-accrual and accrual basis of accounting, which are described in Note 1 to the City and Borough’s basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87 , Cost Principles for State, Local and Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the City and Borough of Juneau, Alaska (City and Borough). The information in the SEFA 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). Federal awards received directly from federal agencies, as well as federal financial assistance passed through the State of Alaska and other agencies, are included in the SEFA. The City and Borough's reporting entity is defined in Note 1 to the City and Borough’s basic financial statements.
Title: Basis of Accounting and Indirect Cost Rate Accounting Policies: Basis of Accounting and Indirect Cost Rate Expenditures reported in the accompanying SEFA are presented using the modified-accrual and accrual basis of accounting, which are described in Note 1 to the City and Borough’s basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87 , Cost Principles for State, Local and Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Basis of Accounting and Indirect Cost Rate Expenditures reported in the accompanying SEFA are presented using the modified-accrual and accrual basis of accounting, which are described in Note 1 to the City and Borough’s basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87 , Cost Principles for State, Local and Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior year. The following programs may report expenditures on the SEFA using reporting criteria, established by the grantor for the program, which may include prior period expenditures or another basis of satisfying grant reporting requirements: ALN 97.036 – FEMA Disaster Grants – Public Assistance Per 2 CFR Part 200 Appendix IX, non-federal entities must record expenditures on the SEFA when: (1) FEMA has approved the project, and (2) the eligible expenditures are incurred. Federal awards expended in years subsequent to the fiscal year in which the project worksheet is approved are to be recorded on the SEFA in those subsequent years. Projects reported on the SEFA include expenses incurred from 4/09/20 – 11/21/22. ALN 93.498 Provider Relief Fund (PRF) SEFA reporting amounts for this program (including both expenditures and lost revenue) are based upon the PRF report that is required to be submitted to the HRSA reporting portal. Submissions included on the SEFA are for the 36 months ended December 31, 2022. ALN 66.458 and 66.468 EPA Clean Water and Drinking Water Revolving Funds Under this program the City and Borough’s only reports project expenditures when expenditures have been incurred and reimbursement requested from the awarding agency, because it is considered a subaward, not a direct federal loan. This may result in prior period expenditures being reported on the SEFA. The loan reporting requirements of 2 CFR sections 200.502(b) or (d) do not apply when calculating the amount of federal funds expended. There were no reimbursement requests in fiscal year 2023. The City and Borough has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Relationship to Basic Financial Statements Accounting Policies: Basis of Accounting and Indirect Cost Rate Expenditures reported in the accompanying SEFA are presented using the modified-accrual and accrual basis of accounting, which are described in Note 1 to the City and Borough’s basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87 , Cost Principles for State, Local and Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Relationship to Basic Financial Statements The following is a reconciliation of federal revenues reported in the City and Borough’s basic financial statements to federal expenditures reported in the schedule of expenditures of federal awards: Federal revenues as reported in the basic financial statements: Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds $ 11,967,779 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 6,081,769 Plus: Amounts reported as federal expenditures in the schedule of expenditures of federal awards, but not reported as federal revenue in the basic financial statements: Bartlett Regional Hospital Federal Grants 4,992,847 Federal grants passed through the State of Alaska 3,452,802 Federal grant and loan sources reported as capital contributions in Juneau International Airport, Boat Harbors, and Dock enterprise funds 5,840,811 Less: Amounts reported as federal revenue in the basic financial statements but not included in the schedule of expenditures of federal awards: Harbors Pacific Cod Catch Allocation (10,960) Payments in Lieu of Taxes and National Forrest Receipts (3,387,931) Airport ARPA and ACRGP adjustment (647,780) Juneau International Airport Transportation Security (621,025) Total federal expenditures per schedule of expenditures of federal awards $ 27,668,312
Title: Donated Federal Assistance Not Included in the SEFA (Unaudited) Accounting Policies: Basis of Accounting and Indirect Cost Rate Expenditures reported in the accompanying SEFA are presented using the modified-accrual and accrual basis of accounting, which are described in Note 1 to the City and Borough’s basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87 , Cost Principles for State, Local and Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Donated Federal Assistance Not Included in the SEFA (Unaudited) None to report.

Finding Details

2023-003 Significant Deficiency in Internal Controls over Compliance and Compliance – Reporting (Bartlett Regional Hospital enterprise fund) Agency: U.S. Department of Health and Human Services, Health Resources and Services Administration Program(s) and Federal Award Listing Number(s): 93.498 Provider Relief Fund (Covid 19 – American Rescue Plan Rural Payments) New or Repeat: New Criteria: Per 2 CFR 200.303, the nonfederal entity is responsible for maintaining effective internal controls over submissions of financial reports to comply with terms and conditions of the Federal award. Condition: Internal controls were not sufficiently designed and implemented to ensure a key line item “total other Provider Relief Fund (PRF) expenses” in the PRF report for PRF Phase 4 and American Rescue Plan (ARP) expenses for payments received July 1, 2021 to December 31, 2021 was accurate. Context: The total line was reported cumulatively, for the PRF and ARP program rather than specific to the PRF Phase 4 and American Rescue Plan (ARP) funding listed in the report instructions. The line was over reported by $266,448. Effect: Costs, totaling $266,448, were already reported for the previous reporting period and therefore are considered unallowable costs. This error in reporting is considered reportable non-compliance as the amount is above the questioned cost threshold. Questioned costs: Questioned costs are $226,448 of “total other Provider Relief Fund (PRF) expenses” erroneously reported. Cause: Lack of review by an individual independent of preparation process, due to turnover and vacancies in key finance department positions, at Bartlett Regional Hospital, and a misunderstanding of reporting requirements as being cumulative, rather than funding specific. Recommendation: As the report cannot be revised and resubmitted we recommend the City and Borough follow the granting agency’s remedy for non-compliance, which is to indicate a reduction in healthcare related expenses and an increase to the lost revenue expense total that was reported, in management’s corrective action plan. View of responsible officials: Management concurs with this finding, see corrective action plan.
2023-003 Significant Deficiency in Internal Controls over Compliance and Compliance – Reporting (Bartlett Regional Hospital enterprise fund) Agency: U.S. Department of Health and Human Services, Health Resources and Services Administration Program(s) and Federal Award Listing Number(s): 93.498 Provider Relief Fund (Covid 19 – American Rescue Plan Rural Payments) New or Repeat: New Criteria: Per 2 CFR 200.303, the nonfederal entity is responsible for maintaining effective internal controls over submissions of financial reports to comply with terms and conditions of the Federal award. Condition: Internal controls were not sufficiently designed and implemented to ensure a key line item “total other Provider Relief Fund (PRF) expenses” in the PRF report for PRF Phase 4 and American Rescue Plan (ARP) expenses for payments received July 1, 2021 to December 31, 2021 was accurate. Context: The total line was reported cumulatively, for the PRF and ARP program rather than specific to the PRF Phase 4 and American Rescue Plan (ARP) funding listed in the report instructions. The line was over reported by $266,448. Effect: Costs, totaling $266,448, were already reported for the previous reporting period and therefore are considered unallowable costs. This error in reporting is considered reportable non-compliance as the amount is above the questioned cost threshold. Questioned costs: Questioned costs are $226,448 of “total other Provider Relief Fund (PRF) expenses” erroneously reported. Cause: Lack of review by an individual independent of preparation process, due to turnover and vacancies in key finance department positions, at Bartlett Regional Hospital, and a misunderstanding of reporting requirements as being cumulative, rather than funding specific. Recommendation: As the report cannot be revised and resubmitted we recommend the City and Borough follow the granting agency’s remedy for non-compliance, which is to indicate a reduction in healthcare related expenses and an increase to the lost revenue expense total that was reported, in management’s corrective action plan. View of responsible officials: Management concurs with this finding, see corrective action plan.
2023-003 Significant Deficiency in Internal Controls over Compliance and Compliance – Reporting (Bartlett Regional Hospital enterprise fund) Agency: U.S. Department of Health and Human Services, Health Resources and Services Administration Program(s) and Federal Award Listing Number(s): 93.498 Provider Relief Fund (Covid 19 – American Rescue Plan Rural Payments) New or Repeat: New Criteria: Per 2 CFR 200.303, the nonfederal entity is responsible for maintaining effective internal controls over submissions of financial reports to comply with terms and conditions of the Federal award. Condition: Internal controls were not sufficiently designed and implemented to ensure a key line item “total other Provider Relief Fund (PRF) expenses” in the PRF report for PRF Phase 4 and American Rescue Plan (ARP) expenses for payments received July 1, 2021 to December 31, 2021 was accurate. Context: The total line was reported cumulatively, for the PRF and ARP program rather than specific to the PRF Phase 4 and American Rescue Plan (ARP) funding listed in the report instructions. The line was over reported by $266,448. Effect: Costs, totaling $266,448, were already reported for the previous reporting period and therefore are considered unallowable costs. This error in reporting is considered reportable non-compliance as the amount is above the questioned cost threshold. Questioned costs: Questioned costs are $226,448 of “total other Provider Relief Fund (PRF) expenses” erroneously reported. Cause: Lack of review by an individual independent of preparation process, due to turnover and vacancies in key finance department positions, at Bartlett Regional Hospital, and a misunderstanding of reporting requirements as being cumulative, rather than funding specific. Recommendation: As the report cannot be revised and resubmitted we recommend the City and Borough follow the granting agency’s remedy for non-compliance, which is to indicate a reduction in healthcare related expenses and an increase to the lost revenue expense total that was reported, in management’s corrective action plan. View of responsible officials: Management concurs with this finding, see corrective action plan.
2023-003 Significant Deficiency in Internal Controls over Compliance and Compliance – Reporting (Bartlett Regional Hospital enterprise fund) Agency: U.S. Department of Health and Human Services, Health Resources and Services Administration Program(s) and Federal Award Listing Number(s): 93.498 Provider Relief Fund (Covid 19 – American Rescue Plan Rural Payments) New or Repeat: New Criteria: Per 2 CFR 200.303, the nonfederal entity is responsible for maintaining effective internal controls over submissions of financial reports to comply with terms and conditions of the Federal award. Condition: Internal controls were not sufficiently designed and implemented to ensure a key line item “total other Provider Relief Fund (PRF) expenses” in the PRF report for PRF Phase 4 and American Rescue Plan (ARP) expenses for payments received July 1, 2021 to December 31, 2021 was accurate. Context: The total line was reported cumulatively, for the PRF and ARP program rather than specific to the PRF Phase 4 and American Rescue Plan (ARP) funding listed in the report instructions. The line was over reported by $266,448. Effect: Costs, totaling $266,448, were already reported for the previous reporting period and therefore are considered unallowable costs. This error in reporting is considered reportable non-compliance as the amount is above the questioned cost threshold. Questioned costs: Questioned costs are $226,448 of “total other Provider Relief Fund (PRF) expenses” erroneously reported. Cause: Lack of review by an individual independent of preparation process, due to turnover and vacancies in key finance department positions, at Bartlett Regional Hospital, and a misunderstanding of reporting requirements as being cumulative, rather than funding specific. Recommendation: As the report cannot be revised and resubmitted we recommend the City and Borough follow the granting agency’s remedy for non-compliance, which is to indicate a reduction in healthcare related expenses and an increase to the lost revenue expense total that was reported, in management’s corrective action plan. View of responsible officials: Management concurs with this finding, see corrective action plan.