FAC Explorer

Audit 31987

FY End
2022-06-30
Total Expended
$2.31M
Findings
2
Programs
8
Organization: Kodiak Island Borough (AK)
Year: 2022 Accepted: 2023-01-16
Auditor: Altman Rogers & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35099 2022-001 Significant Deficiency - M
611541 2022-001 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
15.226 Payments in Lieu of Taxes $1.64M - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $513,946 Yes 1
11.022 Bipartisan Budget Act of 2018 $76,082 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $29,512 - 0
14.867 Indian Housing Block Grants $19,083 - 0
14.881 Moving to Work Demonstration Program $17,471 - 0
15.611 Wildlife Restoration and Basic Hunter Education $6,385 - 0
10.664 Cooperative Forestry Assistance $4,171 - 0

Contacts

Name Title Type
WT6NU1MLXNW7 Dora Cross Auditee
9074869320 Grant R. Todd Auditor
No contacts on file

Notes to SEFA

Title: Note 3. Reporting Entity Accounting Policies: Note 1. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Kodiak Island 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 Kodiak Island Borough, it is not intended to and does not present the basic financial statements of Kodiak Island Borough.Note 2. Summary of Significant Accounting PoliciesExpenditures 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. Kodiak Island Borough has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Kodiak Island Borough, for purposes of the supplementary schedule of expenditures of federal awards includes all the funds of the primary government. It does not include the component unit of Kodiak Island Borough as follows: The Kodiak Island Borough School District The Kodiak Island Boroughs basic financial statements include $9,658,157 in federal awards expended for the Kodiak Island Borough School District, a component unit of the Kodiak Island Borough. These monies are excluded from this schedule. Separate reports on compliance and internal control dated November 15, 2022, were issued for the Kodiak Island Borough School District.
Title: Note 4. Subrecipients Accounting Policies: Note 1. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Kodiak Island 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 Kodiak Island Borough, it is not intended to and does not present the basic financial statements of Kodiak Island Borough.Note 2. Summary of Significant Accounting PoliciesExpenditures 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. Kodiak Island Borough has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following amounts from ALN #93.323 were passed through to subrecipients during the year ended June 30, 2022: Kodiak Community Health Center $256,973 Kodiak Area Native Association 256,973 Total $513,946

Finding Details

Finding 2022-001
Finding 2022-001 Lack of Internal Control and Noncompliance over Subrecipient Monitoring Federal Agency: U.S. Department of Health and Human Services passed through the State of Alaska, Department of Health and Social Services Federal Program: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases ALN: 93.323 Award Number: C0621-570-EE Award Year: 2021 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: The Borough passed these funds through to two local healthcare organizations. The Borough?s agreement with the subrecipients required monthly reports and invoices be supplied to the Borough. Condition and Context: During our compliance testing of 3 out of a possible 18 monthly reports that were remitted from the subrecipients to the Borough during fiscal year 2022, it was determined that one of the subrecipients was not reporting on a monthly basis as required in the subrecipient agreement. Cause: Lack of internal controls over subrecipient monitoring. Effect: Failure to properly monitor subrecipients could result in a number of unintended consequences, from unallowed costs being incurred or report deadlines being missed due to lack of adequate information from the subrecipients. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding and we consider this an isolated instance. Recommendation: We recommend that management enforces subrecipient agreements and follows-up anytime deadlines are missed to ensure compliance with grant requirements. Management?s Response: Management concurs with this finding, see corrective action plan.
Finding 2022-001
Finding 2022-001 Lack of Internal Control and Noncompliance over Subrecipient Monitoring Federal Agency: U.S. Department of Health and Human Services passed through the State of Alaska, Department of Health and Social Services Federal Program: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases ALN: 93.323 Award Number: C0621-570-EE Award Year: 2021 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: The Borough passed these funds through to two local healthcare organizations. The Borough?s agreement with the subrecipients required monthly reports and invoices be supplied to the Borough. Condition and Context: During our compliance testing of 3 out of a possible 18 monthly reports that were remitted from the subrecipients to the Borough during fiscal year 2022, it was determined that one of the subrecipients was not reporting on a monthly basis as required in the subrecipient agreement. Cause: Lack of internal controls over subrecipient monitoring. Effect: Failure to properly monitor subrecipients could result in a number of unintended consequences, from unallowed costs being incurred or report deadlines being missed due to lack of adequate information from the subrecipients. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding and we consider this an isolated instance. Recommendation: We recommend that management enforces subrecipient agreements and follows-up anytime deadlines are missed to ensure compliance with grant requirements. Management?s Response: Management concurs with this finding, see corrective action plan.