FAC Explorer

Audit 302003

FY End
2023-06-30
Total Expended
$3.62M
Findings
4
Programs
12
Organization: City of Kenai, Alaska (AK)
Year: 2023 Accepted: 2024-04-01
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391512 2023-001 Significant Deficiency - F
391513 2023-001 Significant Deficiency - F
967954 2023-001 Significant Deficiency - F
967955 2023-001 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $1.91M Yes 1
97.067 Homeland Security Grant Program $210,041 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $158,715 - 0
10.723 Community Project Funds - Congressionally Directed Spending $30,070 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $25,630 - 0
93.053 Nutrition Services Incentive Program $22,022 - 0
45.310 Grants to States $11,484 - 0
10.664 Cooperative Forestry Assistance $5,898 - 0
16.543 Missing Children's Assistance $5,000 - 0
16.607 Bulletproof Vest Partnership Program $2,558 - 0
97.023 Community Assistance Program State Support Services Element (cap-Ssse) $1,086 - 0
20.616 National Priority Safety Programs $373 - 0

Contacts

Name Title Type
L4H9C2QZ6M31 Dave Swarner Auditee
9072838227 Joy Merriner Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of City of Kenai, Alaska under programs of the federal government for the year ended June 30, 2023. 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 City of Kenai, Alaska, it is not intended to and does not present the net position, changes in net position or cash flows of City of Kenai, Alaska. Expenditures 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. De Minimis Rate Used: N Rate Explanation: City of Kenai, Alaska has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001 Equipment and Real Property Management - Significant Deficiency in Internal Controls over Compliance Agency Department of Transportation ALN and Program Name 20.106 – Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs Criteria or Specific Requirement The regulations in 2 CFR Sections 200.313(d)(1) notes equipment and real property records must be maintained that include ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition During the year, the City disposed of an asset related to the airport that had been purchased with federal funding and applied the proceeds towards eligible grant expenditures. However, the disposal was not initially recorded in the accounting system and inventory records. Cause The City did not have an appropriate control in place to ensure timely maintenance of records for disposals of federal equipment and real property. Effect or Potential Effect The City was not in compliance with Equipment and Real Property requirements outlined in 2 CRF Sections 200.313, which could affect future awards. Questioned costs Not applicable. Context There was only one disposal during the year. The asset original cost was $259,140; net book value at the time of the disposal was $25,914. The proceeds from the sale of $8,100 were properly recorded in the books and records. Identification as a repeat finding Not a repeat finding. Recommendation We recommend the City reconcile disposals against sales at least annually and continue to conduct asset inventory procedures at least biannually. Views of Responsible Officials Management agrees with the finding and plans to complete and review an annual reconciliation of disposals against sales of assets.
Finding 2023-001
Finding 2023-001 Equipment and Real Property Management - Significant Deficiency in Internal Controls over Compliance Agency Department of Transportation ALN and Program Name 20.106 – Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs Criteria or Specific Requirement The regulations in 2 CFR Sections 200.313(d)(1) notes equipment and real property records must be maintained that include ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition During the year, the City disposed of an asset related to the airport that had been purchased with federal funding and applied the proceeds towards eligible grant expenditures. However, the disposal was not initially recorded in the accounting system and inventory records. Cause The City did not have an appropriate control in place to ensure timely maintenance of records for disposals of federal equipment and real property. Effect or Potential Effect The City was not in compliance with Equipment and Real Property requirements outlined in 2 CRF Sections 200.313, which could affect future awards. Questioned costs Not applicable. Context There was only one disposal during the year. The asset original cost was $259,140; net book value at the time of the disposal was $25,914. The proceeds from the sale of $8,100 were properly recorded in the books and records. Identification as a repeat finding Not a repeat finding. Recommendation We recommend the City reconcile disposals against sales at least annually and continue to conduct asset inventory procedures at least biannually. Views of Responsible Officials Management agrees with the finding and plans to complete and review an annual reconciliation of disposals against sales of assets.
Finding 2023-001
Finding 2023-001 Equipment and Real Property Management - Significant Deficiency in Internal Controls over Compliance Agency Department of Transportation ALN and Program Name 20.106 – Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs Criteria or Specific Requirement The regulations in 2 CFR Sections 200.313(d)(1) notes equipment and real property records must be maintained that include ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition During the year, the City disposed of an asset related to the airport that had been purchased with federal funding and applied the proceeds towards eligible grant expenditures. However, the disposal was not initially recorded in the accounting system and inventory records. Cause The City did not have an appropriate control in place to ensure timely maintenance of records for disposals of federal equipment and real property. Effect or Potential Effect The City was not in compliance with Equipment and Real Property requirements outlined in 2 CRF Sections 200.313, which could affect future awards. Questioned costs Not applicable. Context There was only one disposal during the year. The asset original cost was $259,140; net book value at the time of the disposal was $25,914. The proceeds from the sale of $8,100 were properly recorded in the books and records. Identification as a repeat finding Not a repeat finding. Recommendation We recommend the City reconcile disposals against sales at least annually and continue to conduct asset inventory procedures at least biannually. Views of Responsible Officials Management agrees with the finding and plans to complete and review an annual reconciliation of disposals against sales of assets.
Finding 2023-001
Finding 2023-001 Equipment and Real Property Management - Significant Deficiency in Internal Controls over Compliance Agency Department of Transportation ALN and Program Name 20.106 – Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs Criteria or Specific Requirement The regulations in 2 CFR Sections 200.313(d)(1) notes equipment and real property records must be maintained that include ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition During the year, the City disposed of an asset related to the airport that had been purchased with federal funding and applied the proceeds towards eligible grant expenditures. However, the disposal was not initially recorded in the accounting system and inventory records. Cause The City did not have an appropriate control in place to ensure timely maintenance of records for disposals of federal equipment and real property. Effect or Potential Effect The City was not in compliance with Equipment and Real Property requirements outlined in 2 CRF Sections 200.313, which could affect future awards. Questioned costs Not applicable. Context There was only one disposal during the year. The asset original cost was $259,140; net book value at the time of the disposal was $25,914. The proceeds from the sale of $8,100 were properly recorded in the books and records. Identification as a repeat finding Not a repeat finding. Recommendation We recommend the City reconcile disposals against sales at least annually and continue to conduct asset inventory procedures at least biannually. Views of Responsible Officials Management agrees with the finding and plans to complete and review an annual reconciliation of disposals against sales of assets.