FAC Explorer

Audit 319779

FY End
2022-06-30
Total Expended
$2.33M
Findings
6
Programs
4
Organization: Bristol Bay Borough, Alaska (AK)
Year: 2022 Accepted: 2024-09-17
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497069 2022-003 Significant Deficiency Yes L
497070 2022-004 Material Weakness - L
497071 2022-003 Significant Deficiency Yes L
1073511 2022-003 Significant Deficiency Yes L
1073512 2022-004 Material Weakness - L
1073513 2022-003 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.35M Yes 1
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $218,144 - 0
21.019 Coronavirus Relief Fund $214,808 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $81,192 - 0

Contacts

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

Notes to SEFA

Title: 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, 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 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 $214,808 on the Schedule for the year ended June 30, 2022, which were approved during the current year fiscal year, but were incurred in the prior fiscal year.

Finding Details

Finding 2022-003
Finding 2022-003 Reporting - Timely Submission of Financial Reports – Significant Deficiency in Internal Control over Compliance and Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2022 Agency U.S. Department of Treasury Program ALN: No. 21.019 COVID-19 Coronavirus Relief Fund Award Year 2022 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 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. Questioned Costs None noted. 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 Yes. Finding 2021-006 Material Weakness in Internal Control over Compliance and Noncompliance. 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 2025 audit timely.
Finding 2022-004
Finding 2022-004 Reporting – Material Weakness in Internal Control Over Compliance and Material Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2022 Criteria or Specific Requirement In accordance with 2 CFR part 170, the Borough was required to report firsttier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Condition The required reports were not submitted during the year. A control was not in place to evaluate the applicability of the reporting requirement and ensure the reports were submitted timely. Cause In prior years, subawards were determined not to be subject to this reporting requirement. However, in 2022 the Borough received funding related to the American Rescue Plan Act Funding for Health Centers (ARPA). The Borough was not aware that this requirement appears to be applicable for funds received under ARPA. Effect or potential effect The Borough did not submit the reports before the last day of the month following the month in which the subaward/subaward amendment obligation was made, resulting in the submission related to one applicable subrecipients and initial noncompliance with program reporting requirements. Questioned Costs None noted. Context The auditor performed inquiries with the Borough personnel surrounding controls and procedures related to compliance requirements outlines in the OMB Compliance Supplement. This requirement was noted in the Supplement and was determined not to have been done. Identification as a Repeat Finding Not applicable, not a repeat finding. Recommendation The Borough should implement internal control procedures to evaluate applicability of grant reporting requirements, especially when funding sources or nature of grant awards change. Views of responsible officials Management agrees with the finding. The Borough has taken corrective action for the audit finding. New controls are being put into place to ensure that all subawards over $30,000 are properly and timely reported.
Finding 2022-003
Finding 2022-003 Reporting - Timely Submission of Financial Reports – Significant Deficiency in Internal Control over Compliance and Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2022 Agency U.S. Department of Treasury Program ALN: No. 21.019 COVID-19 Coronavirus Relief Fund Award Year 2022 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 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. Questioned Costs None noted. 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 Yes. Finding 2021-006 Material Weakness in Internal Control over Compliance and Noncompliance. 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 2025 audit timely.
Finding 2022-003
Finding 2022-003 Reporting - Timely Submission of Financial Reports – Significant Deficiency in Internal Control over Compliance and Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2022 Agency U.S. Department of Treasury Program ALN: No. 21.019 COVID-19 Coronavirus Relief Fund Award Year 2022 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 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. Questioned Costs None noted. 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 Yes. Finding 2021-006 Material Weakness in Internal Control over Compliance and Noncompliance. 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 2025 audit timely.
Finding 2022-004
Finding 2022-004 Reporting – Material Weakness in Internal Control Over Compliance and Material Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2022 Criteria or Specific Requirement In accordance with 2 CFR part 170, the Borough was required to report firsttier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Condition The required reports were not submitted during the year. A control was not in place to evaluate the applicability of the reporting requirement and ensure the reports were submitted timely. Cause In prior years, subawards were determined not to be subject to this reporting requirement. However, in 2022 the Borough received funding related to the American Rescue Plan Act Funding for Health Centers (ARPA). The Borough was not aware that this requirement appears to be applicable for funds received under ARPA. Effect or potential effect The Borough did not submit the reports before the last day of the month following the month in which the subaward/subaward amendment obligation was made, resulting in the submission related to one applicable subrecipients and initial noncompliance with program reporting requirements. Questioned Costs None noted. Context The auditor performed inquiries with the Borough personnel surrounding controls and procedures related to compliance requirements outlines in the OMB Compliance Supplement. This requirement was noted in the Supplement and was determined not to have been done. Identification as a Repeat Finding Not applicable, not a repeat finding. Recommendation The Borough should implement internal control procedures to evaluate applicability of grant reporting requirements, especially when funding sources or nature of grant awards change. Views of responsible officials Management agrees with the finding. The Borough has taken corrective action for the audit finding. New controls are being put into place to ensure that all subawards over $30,000 are properly and timely reported.
Finding 2022-003
Finding 2022-003 Reporting - Timely Submission of Financial Reports – Significant Deficiency in Internal Control over Compliance and Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2022 Agency U.S. Department of Treasury Program ALN: No. 21.019 COVID-19 Coronavirus Relief Fund Award Year 2022 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 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. Questioned Costs None noted. 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 Yes. Finding 2021-006 Material Weakness in Internal Control over Compliance and Noncompliance. 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 2025 audit timely.