FAC Explorer

Audit 360863

FY End
2024-09-30
Total Expended
$2.17M
Findings
2
Programs
12
Organization: Skagway Traditional Council (AK)
Year: 2024 Accepted: 2025-06-30
Auditor: Porter & Allison INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
569375 2024-002 Material Weakness - B
1145817 2024-002 Material Weakness - B

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.53M Yes 1
15.020 Aid to Tribal Governments $133,628 - 0
66.926 Indian Environmental General Assistance Program (gap) $127,461 - 0
10.766 Community Facilities Loans and Grants $78,372 - 0
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $70,062 - 0
15.021 Consolidated Tribal Government $66,416 - 0
15.024 Indian Self-Determination Contract Support $50,116 - 0
66.472 Beach Monitoring and Notification Program Implementation Grants $44,100 - 0
15.144 Indian Child Welfare Act Title II Grants $29,247 - 0
66.605 Performance Partnership Grants $22,331 - 0
20.205 Highway Planning and Construction $9,928 - 0
14.862 Indian Community Development Block Grant Program $4,556 - 0

Contacts

Name Title Type
FJPPEFYMTZU9 Sara Kinjo-Hischer Auditee
9079834068 Ben Allison Auditor
No contacts on file

Notes to SEFA

Title: Federal Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Skagway Traditional Council under programs of the federal government for the year ended September 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 Skagway Traditional Council, it is not intended to and does not present the financial position, or changes in net position of Skagway Traditional Council. 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: Y Rate Explanation: Skagway Traditional Council uses the indirect rates as assigned by the federal agencies. Indirect rates are the 10% de minimus or up to 30% depending on the federal agency. The federal community facilities loans and grants program listed subsequently are administered directly by Skagway Traditional Council, and balances and transactions relating to these programs are included in Skagway Traditional Council's basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at September 30, 2024 consists of: Outstanding balance at September 30, 2024 Assistance Listing Number 10.766 Program Name Community Facilities Loans and Grants $ 72,127
Title: Reconciliation to Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Skagway Traditional Council under programs of the federal government for the year ended September 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 Skagway Traditional Council, it is not intended to and does not present the financial position, or changes in net position of Skagway Traditional Council. 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: Y Rate Explanation: Skagway Traditional Council uses the indirect rates as assigned by the federal agencies. Indirect rates are the 10% de minimus or up to 30% depending on the federal agency. The following is a reconciliation of the Schedule of Expenditures of Federal Awards to the Basic Financial Statements for the year ended September 30, 2024:Schedule of Expenditures of Federal Awards (Exhibit E-1) - total federal expenditures: $ 2,167,797 Less: Community Facilities Loans and Grants (78,372) Statement of Revenues, Expenditures and Changes in Fund Balances (Exhibit B-3) - total federal sources $ 2,089,425

Finding Details

Finding 2024-002
2024-002 – Material Weakness in Internal Control over Compliance and Noncompliance – Allowable Costs/Cost Principles: Indirect Costs Identification of federal program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Uniform Guidance 2 C.F.R. § 200.414(f): Any non-federal entity that does not have a current negotiated cost rate may elect to charge a de minimis rate of 10% of modified total direct costs (MTDC) which may be used indefinitely. As described in § 200.403, costs must be consistently charged as either indirect or direct costs, but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all federal awards until such time as a nonfederal entity chooses to negotiate for a rate, which the non-federal entity may apply to do at any time. Condition: As defined by the Uniform Guidance, the determination of MTDC excludes equipment and capital expenditures, in addition to various other categories of expenditures. The Council properly elected to utilize the 10% de minimis rate, however, improperly included amounts related to capital expenditures in their determination of the MTDC base. Cause: The Council was aware of the proper method to be used in calculations but the inclusion of capital expenditures was overlooked in error. Effect or potential effect: The Council charged indirect costs to the federal program that exceeded 10% of the MTDC. The overage that was charged to the federal program does not exceed 5% of the total program expenditures over the lifetime of the award. Questioned Costs: $121,838 Context: Over the lifetime of the award, the Council had various capital expenditure purchases totaling approximately $1,350,520 that were improperly included in the calculation of the MTDC. Identification of Repeat Finding: Not applicable. Recommendations: We recommend that the Council works to improve processes and controls over the calculation of, and monitoring of, indirect costs charged to federal programs. We also recommend that training be provided to ensure that all parties are aware of the proper methodology and processes. Views of Responsible Officials: See Corrective Action Plan.
Finding 2024-002
2024-002 – Material Weakness in Internal Control over Compliance and Noncompliance – Allowable Costs/Cost Principles: Indirect Costs Identification of federal program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Uniform Guidance 2 C.F.R. § 200.414(f): Any non-federal entity that does not have a current negotiated cost rate may elect to charge a de minimis rate of 10% of modified total direct costs (MTDC) which may be used indefinitely. As described in § 200.403, costs must be consistently charged as either indirect or direct costs, but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all federal awards until such time as a nonfederal entity chooses to negotiate for a rate, which the non-federal entity may apply to do at any time. Condition: As defined by the Uniform Guidance, the determination of MTDC excludes equipment and capital expenditures, in addition to various other categories of expenditures. The Council properly elected to utilize the 10% de minimis rate, however, improperly included amounts related to capital expenditures in their determination of the MTDC base. Cause: The Council was aware of the proper method to be used in calculations but the inclusion of capital expenditures was overlooked in error. Effect or potential effect: The Council charged indirect costs to the federal program that exceeded 10% of the MTDC. The overage that was charged to the federal program does not exceed 5% of the total program expenditures over the lifetime of the award. Questioned Costs: $121,838 Context: Over the lifetime of the award, the Council had various capital expenditure purchases totaling approximately $1,350,520 that were improperly included in the calculation of the MTDC. Identification of Repeat Finding: Not applicable. Recommendations: We recommend that the Council works to improve processes and controls over the calculation of, and monitoring of, indirect costs charged to federal programs. We also recommend that training be provided to ensure that all parties are aware of the proper methodology and processes. Views of Responsible Officials: See Corrective Action Plan.