Audit 370455

CASH MANAGEMENT, I NOTED THAT THE NATIVE VILLAGE OF TYONEK (NVT) HAD AN EXCESS OF EARNED GRANT REVENUES AND RESTRICTED FUND BALANCE AS COMPARED TO CASH ON HAND. TOTAL CASH ON HAND AT YEAR END WAS $8,113,152 AND TOTAL UNEARNED GRANT REVENUE WAS $8,182,093. PER 2 CFR, SECTION 200.302, THE NATIVE VILLAGE MUST COMPLY WITH THE REQUIREMENT THAT ANY AND ALL GRANT ADVANCES BE RETAINED WITHIN THE ORGANIZATION UNTIL EXPENDED ON ALLOWABLE GRANT EXPENDITURES. QUESTIONED COSTS NOT DETERMINED. IN PRIOR YEARS, THERE WAS AN OVEREXPENDITURE OF GENERAL AND ADMINISTRATIVE EXPENSES IN EXCESS OF REVENUES FOR THE YEAR. MOST OF THIS WAS BILLINGS FROM THE VILLAGES CONSULTANTS (4 AND 5 YEARS AGO) WHOSE BILLINGS WERE FAR IN EXCESS OF THE AVAILABLE UNRESTRICTED FUNDS WHICH THE VILLAGE HAD TO PAY THEM. GRANTING AGENCIES COULD REQUEST REIMBURSEMENT OF THESE UNALLOWABLE ADVANCES CAUSING FINANCIAL HARDSHIP FOR THE NVT. MANAGEMENT NEEDS TO ENSURE THAT ALL NONGRANT EXPENSES NEED TO BE KEPT TO A MINIMUM TO ENSURE THAT ADVANCED GRANT FUNDS ARE NOT SPENT ON UNALLOWABLE ITEMS. IT IS IMPORTANT THAT THE NVT TRACK THROUGHOUT THE YEAR THE NET PROFIT OR LOSS IN THE GENERAL FUND AND IMMEDIATELY TAKE CORRECTIVE STEPS IF THE GENERAL FUND IS SHOWING A LOSS. IT IS ALSO IMPORTANT THAT CONTINUING RELATIONSHIPS WITH VENDORS ARE EVALUATED THROUGHOUT THE YEAR TO ENSURE REASONABLENESS OF PAYMENTS. THIS FINDING WAS ALSO NOTED AS FINDING 2020-001

REPORTING, I DID NOT NOTE ANY OF THE REQUIRED QUARTERLY REPORTING FOR THE CARES ACT GRANT. I ALSO DID NOT NOTE ANY INTERIM OR ANNUAL REPORTS FILED FOR THE ARP GRANT. PER 2 CFR, SECTION 200.328 AND 200.329, THE NVT MUST COMPLY WITH ANY FINANCIAL AND PROGRAMMATIC REPORTING REQUIREMENTS. NO QUESTIONED COSTS. MANAGEMENT DID NOT HAVE CONTROLS IN PLACE TO ENSURE THAT ALL GRANT REPORTS WERE FILED TIMELY. I WAS NOT ABLE TO REVIEW ANY OF THE 4 QUARTERLY FINANCIAL OR NARRATIVE REPORTS FOR THE CARES ACT GRANT. I WAS ALSO NOT ABLE TO REVIEW THE ANNUAL REQUIRED REPORT FOR THE ARP GRANT. THE NVT IS DELINQUENT IN ITS REPORTING FOR THESE TWO GRANTS. MANAGEMENT NEEDS TO ENSURE THAT ALL GRANT REPORTS ARE DONE AND SUBMITTED TIMELY AND RETAINED WITHIN THE GRANT FILES OF THE NVT. THIS FINDING WAS NOTED AS FINDING 2020-002.

OTHER, THE NVT DID NOT SUBMIT THE REPORTING PACKAGE TIMELY IN ACCORDANCE WITH THE UNIFORM GUIDANCE REQUIREMENT OF SUBMITTING THE AUDIT WITHIN THE EARLIER OF 30 DAYS AFTER RECEIPT OF THE AUDIT REPORT, OR NINE MONTHS AFTER THE END OF THE AUDIT PERIOD. PER 2 CFR, SECTION 200.328 AND 200.329, THE COUNCIL MUST COMPLY WITH ANY FINANCIAL AND PROGRAMATTIC REPORTING REQUIREMENTS. PER SECTION 200.501, THE NVT MUST HAEV AN AUDIT PERFORMED AND SUBMITTED WITHIN 9 MONTHS OF YEAR END. NO QUESTIONED COSTS. MANAGEMENT DID NOT ENSURE THAT THE AUDITS WERE PERFORMED TIMELY. LATE REPORTING COULD JEOPARDIZE GRANT FUNDING. I RECOMMEND THAT THE COUNCIL ENSURE TIMELY AUDITS FOR FUTURE AUDITS. THIS FINDING WAS NOTED AS FINDING 2020-003

SPECIAL TESTS AND PROVISIONS, MANAGEMENT DID NOT HAVE WRITTEN P&P OVER THEIR CONTROLS OVER THEIR COMPLIANCE WITH THE UNIFORM GUIDANCE AS REQUIRED BY 2 CFR, SUBPART D AND E. NO QUESTIONED COSTS. LACK OF WRITTEN CONTROLS TO IDENTIFY ALLOWABLE COSTS AND SPECIAL TESTS AND PROVISIONS. COSTS MAY BE DISALLOWED AND REQUIRED TO BE REPAID TO THE GRANTING AGENCY. COMPLIANCE REQUIREMENTS SET FORTH IN THE GRANT AGREEMENTS/UNIFORM GUIDANCE WERE NOT FOLLOWED. MANAGEMENT SHOULD DEVELOP WRITTEN INTERNAL CONTROL PROCEDURES IN ACCORDANCE WITH REQUIREMENTS OF THE UNIFORM GUIDANCE. THIS WAS NOT A REPEAT FINDING.