FAC Explorer

Audit 3119

FY End
2021-06-30
Total Expended
$4.96M
Findings
8
Programs
5
Organization: Bristol Bay Borough, Alaska (AK)
Year: 2021 Accepted: 2023-11-14
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1792 2021-005 Material Weakness - A
1793 2021-006 Material Weakness - L
1794 2021-005 Material Weakness - A
1795 2021-006 Material Weakness - L
578234 2021-005 Material Weakness - A
578235 2021-006 Material Weakness - L
578236 2021-005 Material Weakness - A
578237 2021-006 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.019 Coronavirus Relief Fund $2.25M Yes 2
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $1.40M - 0
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $265,150 - 0
15.226 Payments in Lieu of Taxes $161,554 - 0
97.067 Homeland Security Grant Program $44,218 - 0

Contacts

Name Title Type
N7DKJNBTYGE3 James Wilson Auditee
9072464224 Joy Merriner Auditor
No contacts on file

Notes to SEFA

Title: 4. Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Bristol Bay Borough, Alaska (the Borough) under programs of the federal government for the year ended June 30, 2021. 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 the Borough, it is not intended to and does not present the financial position, changes in net position or cash flows of the Borough. 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, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Borough has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Of the federal expenditures presented in the Schedule, Bristol Bay Borough provided federal awards to subrecipients as follows: ALN Program Name Amount 93.527 Grants for New and Expanded Services under the Health Center Program $ 1,398,324 93.224 Health Center Program 941,535 Total Provided to Camai Community Health Center $ 2,339,859
Title: 5. Assistance Listing Number 21.019 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Bristol Bay Borough, Alaska (the Borough) under programs of the federal government for the year ended June 30, 2021. 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 the Borough, it is not intended to and does not present the financial position, changes in net position or cash flows of the Borough. 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, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Borough has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Borough reported COVID-19 Coronavirus Relief Fund expenditures of $561,957 on the Schedule for the year ended June 30, 2021, which were approved during the current year fiscal year, but were incurred in the prior fiscal year.

Finding Details

Finding 2021-005
Finding 2021-005 Activities Allowed and Unallowed, Allowable Costs, Period of Performance – Material Weakness in Internal Control over Compliance and Noncompliance Agency U.S. Department of Treasury Program ALN: No. 21.019 COVID-19 Coronavirus Relief Fund Award Year 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number 20-CFR-029 Criteria or Specific Requirement 2 CFR Subtitle A Chapter II Part 200 Subpart E states that a non-Federal entity must provide for adequate documentation to support costs charged to the Federal Award. 2 CFR Subtitle A Chapter II Part 200 Subpart F section 200.516 states that the auditor must report known questioned costs when likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. Condition Testwork over a sample of nineteen nonpayroll transactions charged to the Coronavirus Relief Fund Grant identified that two transactions, totaling $4,891, lacked supporting documentation. Cause Internal controls did not ensure that proper supporting documentation was retained in accordance with 2 CFR. 105 Effect or potential effect Questioned Costs Context Repeat Finding Recommendation Views of responsible officials Testwork over nonpayroll transactions charged to the Coronavirus Relief Fund Grant identified questioned costs. $4,891 BDO tested a sample of nineteen nonpayroll transactions and identified two transactions that lacked supporting documentation. The known questioned costs extrapolated over the total population exceeded the reporting threshold of $25,000 for likely questioned costs. No. Management should ensure that purchasing policies and procedures are properly designed, implemented, and operating effectively to ensure adequate documentation is retained to sufficiently support procured goods and services charged to federal awards. Management agrees with the finding. Management is currently undergoing an upgrade in record retention policies and procedures.
Finding 2021-006
Finding 2021-006 Agency Program Reporting - Timely Submission of Financial Reports – Material Weakness in Internal Control over Compliance and Noncompliance U.S. Department of Treasury ALN: No. 21.019 COVID-19 Coronavirus Relief Fund 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number 20-CFR-029 Criteria or Specific Requirement 2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.” Condition The Federal data collection form and reporting package were not filed on time. Cause There were limited personnel resources at the Borough’s to assist in the timely completion of the Borough’s audit. Effect or potential effect Federal funds could potentially be expended on unallowable activities and for unallowed costs, and outside the period of performance. Bristol Bay Borough, Alaska Schedule of Findings and Questioned Costs, continued Year Ended June 30, 2021 106 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, 2021 was filed late. Repeat Finding No. Recommendation The Borough should evaluate resources allocated to staffing to ensure it has the capacity to adequately prepare and assist in the timely execution of the audit. Views of responsible officials Management agrees with the finding and is in the process of catching up on audits with the goal of completing the FY 2023 audit timely.
Finding 2021-005
Finding 2021-005 Activities Allowed and Unallowed, Allowable Costs, Period of Performance – Material Weakness in Internal Control over Compliance and Noncompliance Agency U.S. Department of Treasury Program ALN: No. 21.019 COVID-19 Coronavirus Relief Fund Award Year 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number 20-CFR-029 Criteria or Specific Requirement 2 CFR Subtitle A Chapter II Part 200 Subpart E states that a non-Federal entity must provide for adequate documentation to support costs charged to the Federal Award. 2 CFR Subtitle A Chapter II Part 200 Subpart F section 200.516 states that the auditor must report known questioned costs when likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. Condition Testwork over a sample of nineteen nonpayroll transactions charged to the Coronavirus Relief Fund Grant identified that two transactions, totaling $4,891, lacked supporting documentation. Cause Internal controls did not ensure that proper supporting documentation was retained in accordance with 2 CFR. 105 Effect or potential effect Questioned Costs Context Repeat Finding Recommendation Views of responsible officials Testwork over nonpayroll transactions charged to the Coronavirus Relief Fund Grant identified questioned costs. $4,891 BDO tested a sample of nineteen nonpayroll transactions and identified two transactions that lacked supporting documentation. The known questioned costs extrapolated over the total population exceeded the reporting threshold of $25,000 for likely questioned costs. No. Management should ensure that purchasing policies and procedures are properly designed, implemented, and operating effectively to ensure adequate documentation is retained to sufficiently support procured goods and services charged to federal awards. Management agrees with the finding. Management is currently undergoing an upgrade in record retention policies and procedures.
Finding 2021-006
Finding 2021-006 Agency Program Reporting - Timely Submission of Financial Reports – Material Weakness in Internal Control over Compliance and Noncompliance U.S. Department of Treasury ALN: No. 21.019 COVID-19 Coronavirus Relief Fund 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number 20-CFR-029 Criteria or Specific Requirement 2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.” Condition The Federal data collection form and reporting package were not filed on time. Cause There were limited personnel resources at the Borough’s to assist in the timely completion of the Borough’s audit. Effect or potential effect Federal funds could potentially be expended on unallowable activities and for unallowed costs, and outside the period of performance. Bristol Bay Borough, Alaska Schedule of Findings and Questioned Costs, continued Year Ended June 30, 2021 106 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, 2021 was filed late. Repeat Finding No. Recommendation The Borough should evaluate resources allocated to staffing to ensure it has the capacity to adequately prepare and assist in the timely execution of the audit. Views of responsible officials Management agrees with the finding and is in the process of catching up on audits with the goal of completing the FY 2023 audit timely.
Finding 2021-005
Finding 2021-005 Activities Allowed and Unallowed, Allowable Costs, Period of Performance – Material Weakness in Internal Control over Compliance and Noncompliance Agency U.S. Department of Treasury Program ALN: No. 21.019 COVID-19 Coronavirus Relief Fund Award Year 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number 20-CFR-029 Criteria or Specific Requirement 2 CFR Subtitle A Chapter II Part 200 Subpart E states that a non-Federal entity must provide for adequate documentation to support costs charged to the Federal Award. 2 CFR Subtitle A Chapter II Part 200 Subpart F section 200.516 states that the auditor must report known questioned costs when likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. Condition Testwork over a sample of nineteen nonpayroll transactions charged to the Coronavirus Relief Fund Grant identified that two transactions, totaling $4,891, lacked supporting documentation. Cause Internal controls did not ensure that proper supporting documentation was retained in accordance with 2 CFR. 105 Effect or potential effect Questioned Costs Context Repeat Finding Recommendation Views of responsible officials Testwork over nonpayroll transactions charged to the Coronavirus Relief Fund Grant identified questioned costs. $4,891 BDO tested a sample of nineteen nonpayroll transactions and identified two transactions that lacked supporting documentation. The known questioned costs extrapolated over the total population exceeded the reporting threshold of $25,000 for likely questioned costs. No. Management should ensure that purchasing policies and procedures are properly designed, implemented, and operating effectively to ensure adequate documentation is retained to sufficiently support procured goods and services charged to federal awards. Management agrees with the finding. Management is currently undergoing an upgrade in record retention policies and procedures.
Finding 2021-006
Finding 2021-006 Agency Program Reporting - Timely Submission of Financial Reports – Material Weakness in Internal Control over Compliance and Noncompliance U.S. Department of Treasury ALN: No. 21.019 COVID-19 Coronavirus Relief Fund 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number 20-CFR-029 Criteria or Specific Requirement 2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.” Condition The Federal data collection form and reporting package were not filed on time. Cause There were limited personnel resources at the Borough’s to assist in the timely completion of the Borough’s audit. Effect or potential effect Federal funds could potentially be expended on unallowable activities and for unallowed costs, and outside the period of performance. Bristol Bay Borough, Alaska Schedule of Findings and Questioned Costs, continued Year Ended June 30, 2021 106 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, 2021 was filed late. Repeat Finding No. Recommendation The Borough should evaluate resources allocated to staffing to ensure it has the capacity to adequately prepare and assist in the timely execution of the audit. Views of responsible officials Management agrees with the finding and is in the process of catching up on audits with the goal of completing the FY 2023 audit timely.
Finding 2021-005
Finding 2021-005 Activities Allowed and Unallowed, Allowable Costs, Period of Performance – Material Weakness in Internal Control over Compliance and Noncompliance Agency U.S. Department of Treasury Program ALN: No. 21.019 COVID-19 Coronavirus Relief Fund Award Year 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number 20-CFR-029 Criteria or Specific Requirement 2 CFR Subtitle A Chapter II Part 200 Subpart E states that a non-Federal entity must provide for adequate documentation to support costs charged to the Federal Award. 2 CFR Subtitle A Chapter II Part 200 Subpart F section 200.516 states that the auditor must report known questioned costs when likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. Condition Testwork over a sample of nineteen nonpayroll transactions charged to the Coronavirus Relief Fund Grant identified that two transactions, totaling $4,891, lacked supporting documentation. Cause Internal controls did not ensure that proper supporting documentation was retained in accordance with 2 CFR. 105 Effect or potential effect Questioned Costs Context Repeat Finding Recommendation Views of responsible officials Testwork over nonpayroll transactions charged to the Coronavirus Relief Fund Grant identified questioned costs. $4,891 BDO tested a sample of nineteen nonpayroll transactions and identified two transactions that lacked supporting documentation. The known questioned costs extrapolated over the total population exceeded the reporting threshold of $25,000 for likely questioned costs. No. Management should ensure that purchasing policies and procedures are properly designed, implemented, and operating effectively to ensure adequate documentation is retained to sufficiently support procured goods and services charged to federal awards. Management agrees with the finding. Management is currently undergoing an upgrade in record retention policies and procedures.
Finding 2021-006
Finding 2021-006 Agency Program Reporting - Timely Submission of Financial Reports – Material Weakness in Internal Control over Compliance and Noncompliance U.S. Department of Treasury ALN: No. 21.019 COVID-19 Coronavirus Relief Fund 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number 20-CFR-029 Criteria or Specific Requirement 2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.” Condition The Federal data collection form and reporting package were not filed on time. Cause There were limited personnel resources at the Borough’s to assist in the timely completion of the Borough’s audit. Effect or potential effect Federal funds could potentially be expended on unallowable activities and for unallowed costs, and outside the period of performance. Bristol Bay Borough, Alaska Schedule of Findings and Questioned Costs, continued Year Ended June 30, 2021 106 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, 2021 was filed late. Repeat Finding No. Recommendation The Borough should evaluate resources allocated to staffing to ensure it has the capacity to adequately prepare and assist in the timely execution of the audit. Views of responsible officials Management agrees with the finding and is in the process of catching up on audits with the goal of completing the FY 2023 audit timely.