FAC Explorer

Audit 358074

FY End
2024-06-30
Total Expended
$28.17M
Findings
2
Programs
29
Organization: North Slope Borough (AK)
Year: 2024 Accepted: 2025-06-04
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
563859 2024-001 Material Weakness - L
1140301 2024-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $9.55M - 0
21.032 Local Assistance and Tribal Consistency Fund $4.82M Yes 1
15.225 Recreation and Visitor Services $2.50M Yes 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $995,240 Yes 0
93.441 Indian Self-Determination $604,969 - 0
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $250,000 - 0
20.205 Highway Planning and Construction $237,710 - 0
32.006 Covid-19 Telehealth Program $164,616 - 0
93.047 Special Programs for the Aging, Title Vi, Part A, Grants to Indian Tribes, Part B, Grants to Native Hawaiians $136,015 - 0
15.423 Bureau of Ocean Energy Management (boem) Environmental Studies (es) $111,590 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $105,361 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $75,389 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $71,183 - 0
15.608 Fish and Aquatic Conservation - Aquatic Invasive Species $57,626 - 0
11.439 Marine Mammal Data Program $54,419 - 0
93.054 National Family Caregiver Support, Title Vi, Part C, Grants to Indian Tribes and Native Hawaiians $47,156 - 0
93.268 Immunization Cooperative Agreements $41,322 - 0
15.244 Aquatics Resources Management $39,388 - 0
15.657 Endangered Species Recovery Implementation $27,789 - 0
11.472 Unallied Science Program $23,968 - 0
15.683 Prescott Marine Mammal Rescue Assistance $21,995 - 0
11.999 Marine Debris Program $21,979 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $14,897 - 0
11.469 Congressionally Identified Awards and Projects $10,716 - 0
15.227 Distribution of Receipts to State and Local Governments $10,544 - 0
11.478 Center for Sponsored Coastal Ocean Research Coastal Ocean Program $10,373 - 0
15.643 Alaska Migratory Bird CO-Management Council $10,153 - 0
93.210 Tribal Self-Governance Program: Ihs Compacts/funding Agreements $8,195 - 0
11.307 Economic Adjustment Assistance $8,040 - 0

Contacts

Name Title Type
C9NWKJZ37GX3 Sarah Espelin Auditee
9072404057 Anya Shcheglyuk Auditor
No contacts on file

Notes to SEFA

Title: 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. 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: The indirect cost rate used is 20% as calculated in our annual Indirect Rate Cost Proposal and approved by our cognitive agency, the FAA. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the North Slope Borough (the Borough) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations.
Title: Summary of Significant Accounting Policies 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. 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: The indirect cost rate used is 20% as calculated in our annual Indirect Rate Cost Proposal and approved by our cognitive agency, the FAA. 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.
Title: 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. 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: The indirect cost rate used is 20% as calculated in our annual Indirect Rate Cost Proposal and approved by our cognitive agency, the FAA. The Borough, for purposes of the schedule of expenditures of federal awards, includes all the funds of the primary government as defined by Governmental Accounting Standards Board Statement No. 14, The Financial Reporting Entity. It does not include the following component units of the Borough: (a) North Slope Borough School District The Borough’s basic financial statements include expenditures of $17,529,730 from federal sources for the North Slope Borough School District, a component unit of the Borough. These expenditures are excluded from the Schedule. (b) Ilisagvik College The Borough’s basic financial statements include expenditures of $4,262,332 from federal sources for the Ilisagvik College, a component unit of the Borough. These expenditures are excluded from the Schedule.The component units engaged other auditors to perform separate audits in accordance with the audit 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).
Title: Noncash Awards 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. 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: The indirect cost rate used is 20% as calculated in our annual Indirect Rate Cost Proposal and approved by our cognitive agency, the FAA. The Borough received no federal noncash awards during the year ended June 30, 2024.
Title: Loan Programs 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. 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: The indirect cost rate used is 20% as calculated in our annual Indirect Rate Cost Proposal and approved by our cognitive agency, the FAA. The Borough has not entered into any federal loan programs.
Title: 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. 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: The indirect cost rate used is 20% as calculated in our annual Indirect Rate Cost Proposal and approved by our cognitive agency, the FAA. The Borough did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Criteria: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200 502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and information provided for audit purposes is complete and accurate. Condition Found: The Borough did not have adequate internal controls related to the reporting of expenditures on the SEFA for the Local Assistance and Tribal Consistency Fund. Specifically, the Borough’s did not have a control in place to review expenditures that were incurred, but not yet reported to the grantor, to ensure proper reporting on the SEFA. As a result, $4,187,325 of Local Assistance and Tribal Consistency Fund expenditures had been excluded from the SEFA for the year ended June 30, 2024. Cause: In discussing these conditions with the Borough, they stated that the Borough consistently followed a policy to report expenditures when expenditures are reported to the grantor. Management did not have a control in place to review the unreported expenditures for proper inclusion in the SEFA, if material. Possible Asserted Effect: Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may result in inappropriate application of audit requirements. Repeat Finding: A similar finding was not reported in the prior year audit.Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the Borough establish internal controls to ensure expenditures are accurately reported on the SEFA and information provided for audit purposes is complete and accurate. Views of Responsible Officials: Management agrees with the finding. Management has implemented additional controls to ensure the completeness and accuracy of amounts reported in the schedule of federal awards.
Finding 2024-001
Criteria: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200 502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and information provided for audit purposes is complete and accurate. Condition Found: The Borough did not have adequate internal controls related to the reporting of expenditures on the SEFA for the Local Assistance and Tribal Consistency Fund. Specifically, the Borough’s did not have a control in place to review expenditures that were incurred, but not yet reported to the grantor, to ensure proper reporting on the SEFA. As a result, $4,187,325 of Local Assistance and Tribal Consistency Fund expenditures had been excluded from the SEFA for the year ended June 30, 2024. Cause: In discussing these conditions with the Borough, they stated that the Borough consistently followed a policy to report expenditures when expenditures are reported to the grantor. Management did not have a control in place to review the unreported expenditures for proper inclusion in the SEFA, if material. Possible Asserted Effect: Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may result in inappropriate application of audit requirements. Repeat Finding: A similar finding was not reported in the prior year audit.Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the Borough establish internal controls to ensure expenditures are accurately reported on the SEFA and information provided for audit purposes is complete and accurate. Views of Responsible Officials: Management agrees with the finding. Management has implemented additional controls to ensure the completeness and accuracy of amounts reported in the schedule of federal awards.