Audit 402794

FY End
2025-06-30
Total Expended
$3.24M
Findings
3
Programs
8
Year: 2025 Accepted: 2026-06-01

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1216305 2025-002 Material Weakness Yes L
1216306 2025-002 Material Weakness Yes L
1216307 2025-002 Material Weakness Yes L

Contacts

Name Title Type
NT7HKWKL2P35 Charlanne Thomas Auditee
9072286614 Grant Todd Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Ketchikan Gateway Borough under programs of the federal government for the year ended June 30, 2025. 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 Ketchikan Gateway Borough, it is not intended to and does not present the basic financial statements of Ketchikan Gateway Borough.
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. Ketchikan Gateway Borough has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
No funding was passed through to subrecipients in the year ended June 30, 2025.
The Ketchikan Gateway Borough, 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 Ketchikan Gateway Borough as follows: The Ketchikan Gateway Borough School District The Ketchikan Gateway Borough’s basic financial statements include $3,934,264 in federal awards expended for the Ketchikan Gateway Borough School District, a component unit of the Ketchikan Gateway Borough. These monies are excluded from this schedule. Separate reports on compliance and internal control dated November 25, 2025, were issued for the Ketchikan Gateway Borough School District.

Finding Details

Finding 2025-002 Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Transportation (DOT) and Denali Commission (DC) Federal Program: Operating and Fixed Route / Paratransit (DOT) and Saxman Low-Income Housing Development Project and Trails Master Plan (DC), respectively ALN: 20.509 (DOT) and 90.100 (DC) Award Numbers: AK-2019-029, AK-2022-018, AK-2023-050, AK-2024-010, AK-2020-027 (DOT) and 01854, 01898 (DC) Award Year: 2019, 2020, 2022, 2023, 2024 (DOT) and 2023, 2024 (DC) Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance. Condition and context: The Borough did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period. Cause: The Borough was not able to provide the necessary audit documents within a timely matter. Thus, the Borough was not able to complete the audit within the Uniform Guidance reporting timeline. Effect: The Borough was not in compliance with reporting requirements. Questioned Costs: None noted. Repeat finding: This is not a repeat finding. We believe the finding to be an isolated instance and not a systemic issue. Recommendation: We recommend the Borough to seek audit prep services to ensure that the audit is completed prior to Uniform Guidance reporting deadlines. Management’s Response: Management concurs with this finding. The delay was an isolated occurrence resulting from a combination of staffing challenges and audit timing, and is not indicative of a systemic issue, as noted by the auditors. The Borough has engaged Maureen Crosby, Contract Controller, to provide audit preparation assistance to ensure timely completion of future audits within Uniform Guidance reporting deadlines. See Corrective Action Plan.