Audit 351964

FY End
2024-06-30
Total Expended
$2.08M
Findings
4
Programs
8
Year: 2024 Accepted: 2025-03-31

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
548621 2024-001 Significant Deficiency - L
548622 2024-001 Significant Deficiency - L
1125063 2024-001 Significant Deficiency - L
1125064 2024-001 Significant Deficiency - L

Contacts

Name Title Type
X9BGKCFEV966 Sarah Espelin Auditee
9074422500 Donald Hanni Auditor
No contacts on file

Notes to SEFA

Title: (1) Basis of Presentation Accounting Policies: 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 De Minimis Rate Used: N Rate Explanation: Northwest Arctic Borough, Alaska has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Northwest Arctic Borough, Alaska under programs of the federal government for the year ended June 30, 2024. 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 Northwest Arctic Borough, Alaska, it is not intended to and does not present the basic financial statements of Northwest Arctic Borough, Alaska.
Title: (3) Indirect Cost Rate Accounting Policies: 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 De Minimis Rate Used: N Rate Explanation: Northwest Arctic Borough, Alaska has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Northwest Arctic Borough, Alaska has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: (4) Subrecipients Accounting Policies: 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 De Minimis Rate Used: N Rate Explanation: Northwest Arctic Borough, Alaska has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Borough did not pass any federal funds through to subrecipients during the year ended June 30, 2024.
Title: (5) Reporting Entity Accounting Policies: 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 De Minimis Rate Used: N Rate Explanation: Northwest Arctic Borough, Alaska has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Northwest Arctic Borough, Alaska, 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 the Northwest Arctic Borough, Alaska as follows: The Northwest Arctic Borough School District The Northwest Arctic Borough, Alaska’s basic financial statements include $32,222,309 in federal awards expended for the Northwest Arctic Borough School District, a component unit of the Northwest Arctic Borough, Alaska. These monies are excluded from this schedule. Separate reports on compliance and internal control dated October 17, 2024, were issued for the Northwest Arctic Borough School District.
Title: (6) Reconciliation of Schedule to the Financial Statements Accounting Policies: 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 De Minimis Rate Used: N Rate Explanation: Northwest Arctic Borough, Alaska has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The following program is reported as Intergovernmental-Federal revenues, however, is not subject to compliance in accordance with the Uniform Guidance and OMB Compliance Supplement: Total Schedule of Expenditures of Federal Awards $ 2,076,599 Payment in lieu of taxes 1,389,739 Total Federal Financial Assistance $ 3,466,338

Finding Details

Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: 22-LGLR-26/SLRFP4346 Award Year: 2022 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: In accordance with 2 CFR part 200, subpart D, section 200.328 / 31 CFR section 35.4(c), the recipients are to report annually and quarterly on a timely basis to the U.S. Department of Treasury. Condition and context: The annual report was submitted late, after the deadline. The quarterly report submission dates could not be substantiated. Cause: Due to high amounts of turnover, the Borough was not able to complete the reports within the time requirement. Effect: Late submission of grant progress reports may result in delaying the issuance of funds, or continuation of the award. Questioned Costs: None noted. Repeat finding: This is not a repeat finding and due to the turnover it is considered an isolated instance. Recommendation: We recommend that the client implements a stronger set of internal controls that would ensure proper and timely reporting. Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: 22-LGLR-26/SLRFP4346 Award Year: 2022 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: In accordance with 2 CFR part 200, subpart D, section 200.328 / 31 CFR section 35.4(c), the recipients are to report annually and quarterly on a timely basis to the U.S. Department of Treasury. Condition and context: The annual report was submitted late, after the deadline. The quarterly report submission dates could not be substantiated. Cause: Due to high amounts of turnover, the Borough was not able to complete the reports within the time requirement. Effect: Late submission of grant progress reports may result in delaying the issuance of funds, or continuation of the award. Questioned Costs: None noted. Repeat finding: This is not a repeat finding and due to the turnover it is considered an isolated instance. Recommendation: We recommend that the client implements a stronger set of internal controls that would ensure proper and timely reporting. Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: 22-LGLR-26/SLRFP4346 Award Year: 2022 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: In accordance with 2 CFR part 200, subpart D, section 200.328 / 31 CFR section 35.4(c), the recipients are to report annually and quarterly on a timely basis to the U.S. Department of Treasury. Condition and context: The annual report was submitted late, after the deadline. The quarterly report submission dates could not be substantiated. Cause: Due to high amounts of turnover, the Borough was not able to complete the reports within the time requirement. Effect: Late submission of grant progress reports may result in delaying the issuance of funds, or continuation of the award. Questioned Costs: None noted. Repeat finding: This is not a repeat finding and due to the turnover it is considered an isolated instance. Recommendation: We recommend that the client implements a stronger set of internal controls that would ensure proper and timely reporting. Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: 22-LGLR-26/SLRFP4346 Award Year: 2022 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: In accordance with 2 CFR part 200, subpart D, section 200.328 / 31 CFR section 35.4(c), the recipients are to report annually and quarterly on a timely basis to the U.S. Department of Treasury. Condition and context: The annual report was submitted late, after the deadline. The quarterly report submission dates could not be substantiated. Cause: Due to high amounts of turnover, the Borough was not able to complete the reports within the time requirement. Effect: Late submission of grant progress reports may result in delaying the issuance of funds, or continuation of the award. Questioned Costs: None noted. Repeat finding: This is not a repeat finding and due to the turnover it is considered an isolated instance. Recommendation: We recommend that the client implements a stronger set of internal controls that would ensure proper and timely reporting. Management’s Response: Management concurs with the finding. See Corrective Action Plan.