FAC Explorer

Finding 1056077 (2022-009)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2024-07-30
Audit: 316214
Organization: Municipality of Anchorage, Alaska (AK)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: Subrecipient agreements lack clear identification of federal program requirements, leading to potential noncompliance.
  • Impacted Requirements: Non-adherence to 2 CFR 200.332 and 200.501 regarding subrecipient monitoring and audit verification.
  • Recommended Follow-up: Implement policies to ensure subawards meet federal requirements and establish procedures for monitoring subrecipient compliance.

Finding Text

Finding 2022-009 Subrecipient Monitoring – Material Noncompliance and Material Weakness in Internal Controls Over Compliance Agency/Pass-through Grantor Department of the Treasury, Department of Health and Human Services passed through the State of Alaska Department of Health and Social Services ALN and Program Name 21.027 - Coronavirus State and Local Fiscal Recovery Funds – COVID 19 21.023 – Emergency Rental Assistance Program – COVID 19 93.323 – COVID-19-Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Award # 21.027 – 1505-0271 21.023 – ERA-2101060120 (ERA 1); ERA2-0469 (ERA 2) 93.323 – C0621-570-BB Award Year 21.027 – 2022 21.023 - 2022 93.323 – 3/15/2021-6/30/2022 Criteria or Specific Requirement 2 CFR 200.332 requires pass-through entities to ensure that subrecipients comply with the terms and conditions of 2 CFR 200.501 related to audit requirements. This includes ensuring that every subaward is (1) clearly identified to the subrecipient as a subaward; (2) includes the necessary information at the time of the subaward for subrecipient reporting on federal awards (2 CFR 200.332) and (3) includes requirement to follow 2 CFR 200.501 if expenditure thresholds are met. This also includes verifying that every subrecipient is audited as required by 2 CFR Subpart F if the subrecipient’s Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in 2 CFR 200.501. Condition During our testing of subrecipient monitoring, we noted all 18 of the subrecipient agreements tested did not include language clearly identifying the federal program from which the subaward originated, or the applicable requirements from 2 CFR 300.332 and Subpart F. We also noted for all 18 subrecipients tested that the Municipality did not verify whether subrecipients were audited in accordance with 2 CFR 200.501 where applicable. Cause The issuance of subrecipient agreements for these grants related to new funding streams in response to the COVID-19 pandemic. Significant amounts of funding were provided in a short period of time, and systems to distribute these monies were newly created and implemented. The standard award agreements were not reviewed in advance to ensure adherence to federal requirements. Staff were not fully trained on the informational requirements and monitoring responsibilities related to audit requirements. Effect or Potential Effect Subrecipients may be unaware and not in compliance with the requirements of 2 CFR Part 200. Questioned Costs Not applicable. Context For ALN 21.027 - Coronavirus State and Local Fiscal Recovery Funds, we tested a sample of 10 subawards totaling to $28,079,600 from a population of 37 totaling to $37,052,621. For ALN 21.023 - Emergency Rental Assistance Program, we tested all 3 subawards within the population totaling to $10,900,177. For ALN 93.323 – COVID-19-Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), we tested all 5 subawards within the population totaling to $5,086,923. As noted in the condition, we identified exceptions for 18 subrecipient agreements tested. All samples tested were selected using nonstatistical sampling methods and were not statistically valid samples. Identification as a Repeat Finding Yes. This finding was reported as Finding 2021-002 in the prior audit. Recommendation Management should establish policies to ensure subawards contain required federal award information. In addition, procedures should be established to monitor subrecipient compliance with audit requirements of 2 CFR 200.501. Views of Responsible Officials Management concurs with the finding and will adhere to the corrective action plan included in this report. Management plans to revise policies and procedures related to subrecipient monitoring.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 479622 2022-008
    Material Weakness
  • 479623 2022-008
    Material Weakness
  • 479624 2022-008
    Material Weakness
  • 479625 2022-008
    Material Weakness
  • 479626 2022-008
    Material Weakness
  • 479627 2022-008
    Material Weakness
  • 479628 2022-008
    Material Weakness
  • 479629 2022-008
    Material Weakness
  • 479630 2022-008
    Material Weakness
  • 479631 2022-008
    Material Weakness
  • 479632 2022-008
    Material Weakness
  • 479633 2022-008
    Material Weakness
  • 479634 2022-009
    Material Weakness Repeat
  • 479635 2022-009
    Material Weakness Repeat
  • 479636 2022-009
    Material Weakness Repeat
  • 479637 2022-010
    Significant Deficiency Repeat
  • 479638 2022-010
    Significant Deficiency Repeat
  • 479639 2022-010
    Significant Deficiency Repeat
  • 479640 2022-010
    Significant Deficiency Repeat
  • 479641 2022-010
    Significant Deficiency Repeat
  • 479642 2022-010
    Significant Deficiency Repeat
  • 479643 2022-010
    Significant Deficiency Repeat
  • 479644 2022-010
    Significant Deficiency Repeat
  • 479645 2022-011
    Material Weakness
  • 479646 2022-012
    Significant Deficiency
  • 479647 2022-012
    Significant Deficiency
  • 479648 2022-013
    Significant Deficiency
  • 479649 2022-013
    Significant Deficiency
  • 479650 2022-013
    Significant Deficiency
  • 1056064 2022-008
    Material Weakness
  • 1056065 2022-008
    Material Weakness
  • 1056066 2022-008
    Material Weakness
  • 1056067 2022-008
    Material Weakness
  • 1056068 2022-008
    Material Weakness
  • 1056069 2022-008
    Material Weakness
  • 1056070 2022-008
    Material Weakness
  • 1056071 2022-008
    Material Weakness
  • 1056072 2022-008
    Material Weakness
  • 1056073 2022-008
    Material Weakness
  • 1056074 2022-008
    Material Weakness
  • 1056075 2022-008
    Material Weakness
  • 1056076 2022-009
    Material Weakness Repeat
  • 1056078 2022-009
    Material Weakness Repeat
  • 1056079 2022-010
    Significant Deficiency Repeat
  • 1056080 2022-010
    Significant Deficiency Repeat
  • 1056081 2022-010
    Significant Deficiency Repeat
  • 1056082 2022-010
    Significant Deficiency Repeat
  • 1056083 2022-010
    Significant Deficiency Repeat
  • 1056084 2022-010
    Significant Deficiency Repeat
  • 1056085 2022-010
    Significant Deficiency Repeat
  • 1056086 2022-010
    Significant Deficiency Repeat
  • 1056087 2022-011
    Material Weakness
  • 1056088 2022-012
    Significant Deficiency
  • 1056089 2022-012
    Significant Deficiency
  • 1056090 2022-013
    Significant Deficiency
  • 1056091 2022-013
    Significant Deficiency
  • 1056092 2022-013
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $42.92M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $35.89M
21.023 Emergency Rental Assistance Program $10.90M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $6.53M
20.507 Federal Transit_formula Grants $5.06M
20.106 Airport Improvement Program $4.56M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $3.79M
20.933 National Infrastructure Investments $3.65M
20.823 Port Infrastructure Development Program (b) $2.23M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.98M
93.575 Child Care and Development Block Grant $1.57M
20.616 National Priority Safety Programs $1.38M
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1.27M
14.218 Community Development Block Grants/entitlement Grants $960,959
14.275 Housing Trust Fund $689,977
14.239 Home Investment Partnerships Program $651,483
16.738 Edward Byrne Memorial Justice Assistance Grant Program $599,460
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $595,741
16.034 Coronavirus Emergency Supplemental Funding Program $561,990
20.205 Highway Planning and Construction $449,945
16.543 Missing Children's Assistance $409,551
95.001 High Intensity Drug Trafficking Areas Program $400,000
97.067 Homeland Security Grant Program $320,227
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $303,988
20.600 State and Community Highway Safety $297,921
97.042 Emergency Management Performance Grants $258,822
97.056 Port Security Grant Program $256,125
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $251,632
20.500 Federal Transit_capital Investment Grants $251,172
93.069 Public Health Emergency Preparedness $243,830
93.889 National Bioterrorism Hospital Preparedness Program $227,394
93.778 Medical Assistance Program $221,352
30.001 Employment Discrimination_title Vii of the Civil Rights Act of 1964 $173,207
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $171,372
15.916 Outdoor Recreation_acquisition, Development and Planning $165,117
15.808 U.s. Geological Survey_ Research and Data Collection $162,876
45.310 Grants to States $141,384
93.558 Temporary Assistance for Needy Families $134,595
93.940 Hiv Prevention Activities_health Department Based $108,923
16.922 Equitable Sharing Program $87,249
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $79,167
10.665 Schools and Roads - Grants to States $75,655
93.136 Injury Prevention and Control Research and State and Community Based Programs $69,373
97.044 Assistance to Firefighters Grant $68,487
14.881 Moving to Work Demonstration Program $59,532
14.195 Section 8 Housing Assistance Payments Program $59,532
10.664 Cooperative Forestry Assistance $55,551
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $52,055
10.935 Urban Agriculture and Innovative Production $31,390
93.103 Food and Drug Administration_research $27,679
14.231 Emergency Solutions Grant Program $23,899
16.607 Bulletproof Vest Partnership Program $23,188
97.039 Hazard Mitigation Grant $13,515
81.086 Conservation Research and Development $10,236
16.320 Services for Trafficking Victims $8,827
15.904 Historic Preservation Fund Grants-in-Aid $3,018
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $2,092