FAC Explorer

Audit 359858

FY End
2024-12-31
Total Expended
$951,326
Findings
2
Programs
7
Organization: City of North Pole, Alaska (AK)
Year: 2024 Accepted: 2025-06-25
Auditor: Elgee Rehfeld LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
566994 2024-002 Significant Deficiency - I
1143436 2024-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $240,598 Yes 1
97.067 Homeland Security Grant Program $169,330 - 0
15.507 Watersmart (sustain and Manage America’s Resources for Tomorrow) $164,471 Yes 0
12.632 Legacy Resource Management Program $58,816 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $39,077 - 0
97.137 State and Local Cybersecurity Grant Program Tribal Cybersecurity Grant Program $31,460 - 0
97.042 Emergency Management Performance Grants $2,201 - 0

Contacts

Name Title Type
WFLFBAZG5SN9 Tricia Fogarty Auditee
9074888594 Karen Tarver Auditor
No contacts on file

Notes to SEFA

Title: General Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the City of North Pole (the City) for the year ended December 31, 2024. The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. The City’s reporting entity is defined in Note 1 to the financial statements. Basis of Accounting Expenditures reported on the accompanying SEFA are presented using the modified-accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited to reimbursement. The City has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the City of North Pole (the City) for the year ended December 31, 2024. The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. The City’s reporting entity is defined in Note 1 to the financial statements.
Title: Basis of Accounting Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the City of North Pole (the City) for the year ended December 31, 2024. The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. The City’s reporting entity is defined in Note 1 to the financial statements. Basis of Accounting Expenditures reported on the accompanying SEFA are presented using the modified-accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited to reimbursement. The City has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the accompanying SEFA are presented using the modified-accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited to reimbursement. The City has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Relationship to Basic Financial Statements Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the City of North Pole (the City) for the year ended December 31, 2024. The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. The City’s reporting entity is defined in Note 1 to the financial statements. Basis of Accounting Expenditures reported on the accompanying SEFA are presented using the modified-accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited to reimbursement. The City has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is a reconciliation of intergovernmental revenues reported in the City’s basic financial statements to federal expenditures reported in the SEFA. Intergovernmental revenues as reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) – Governmental Funds $ 1,047,144 Add: Federal and state grant revenues as reported in Statement of Revenues, Expenses and Change in Net Position – Water and Sewer Enterprise Fund 195,931 Add: Capital contributions as reported in Statement of Revenues, Expenses and Change in Net Position – Water and Sewer Enterprise Fund 44,518 Add: Federal grant revenue recorded as other revenue in the basic financial statements 8,751 Add: Moose Creek cooperative agreement adjustment to reflect total project expenditures 14,298 Less: Contract revenue recorded as intergovernmental revenue in the basic financial statements for governmental funds (86,678) Less: State and local grant revenue recorded as intergovernmental revenue in the basic financial statements for governmental funds (272,638) Federal share of expenditures as reported on the SEFA $ 951,326

Finding Details

Finding 2024-002
2024-002 Significant Deficiency in Internal Controls over Compliance and Compliance – Procurement – Suspension and Debarment Agency: U.S. Department of the Treasury Program(s) and Federal Award Listing Number(s): COVID-19 - Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 FAIN: None New or Repeat: New Criteria: The regulations in 2 CFR part 180 restrict making subawards and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Management is responsible for ensuring it has designed and implemented internal controls over compliance for this requirement as it applies to its federally funded programs. Condition: Upon request the City was unable to provide documentation to support whether the required suspended/debarred certification was completed within a timely manner or was received from the vendor when the contract was signed. Although the City, upon our request, checked and found there to be no issues, there was no documentation to indicate a suspended/disbarred verification check was completed prior to entering the contract with the sole vendor used for this program. Cause: Inconsistent implementation of documentation retention controls and staff turnover contributed to the inability to retrieve or verify the required suspended/debarred verification was completed in a timely manner for the contract. Context: Only one vendor was paid by contract and subject to the suspended/debarred procurement requirement in this program. Effect: Lack of consistent implementation of documentation retention controls is considered a control weakness and is reportable as a significant deficiency. As the required verification was completed, although not timely, the noncompliance is considered not material to the program and therefore is reported as an other matter. Recommendation: Management should ensure controls over retaining documentation of compliance with procurement requirements are followed consistently. This should include maintaining evidence of required approvals or reviews and assigning responsibility for recordkeeping, especially during periods of staff transition. View of responsible officials: Management concurs with this finding, see corrective action plan.
Finding 2024-002
2024-002 Significant Deficiency in Internal Controls over Compliance and Compliance – Procurement – Suspension and Debarment Agency: U.S. Department of the Treasury Program(s) and Federal Award Listing Number(s): COVID-19 - Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 FAIN: None New or Repeat: New Criteria: The regulations in 2 CFR part 180 restrict making subawards and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Management is responsible for ensuring it has designed and implemented internal controls over compliance for this requirement as it applies to its federally funded programs. Condition: Upon request the City was unable to provide documentation to support whether the required suspended/debarred certification was completed within a timely manner or was received from the vendor when the contract was signed. Although the City, upon our request, checked and found there to be no issues, there was no documentation to indicate a suspended/disbarred verification check was completed prior to entering the contract with the sole vendor used for this program. Cause: Inconsistent implementation of documentation retention controls and staff turnover contributed to the inability to retrieve or verify the required suspended/debarred verification was completed in a timely manner for the contract. Context: Only one vendor was paid by contract and subject to the suspended/debarred procurement requirement in this program. Effect: Lack of consistent implementation of documentation retention controls is considered a control weakness and is reportable as a significant deficiency. As the required verification was completed, although not timely, the noncompliance is considered not material to the program and therefore is reported as an other matter. Recommendation: Management should ensure controls over retaining documentation of compliance with procurement requirements are followed consistently. This should include maintaining evidence of required approvals or reviews and assigning responsibility for recordkeeping, especially during periods of staff transition. View of responsible officials: Management concurs with this finding, see corrective action plan.