Finding 1096475 (2022-004)

Finding 2022-004: Late Reporting and Noncompliance with Reporting Requirements Federal Agency: Denali Commission Pass through agency: None Federal Programs: Biomass District Heating System Assistance Listing Numbers: 90.100 Award Numbers: 1672-00 Award Period: 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Condition and Context: The City did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after receipt of the audit report, or nine months plus any extensions after the end of the audit period, (i.e. the FAC Report was not submitted timely.) Criteria: The Uniform Guidance requires that the reporting package be submitted within the earlier of nine months plus any extensions after year end or 30 days after the report issuance in accordance with the provisions of 2 CFR part 200, subpart F, section 200.512. Cause: Due to staff turnover the City was unable to complete the annual audit within the required timeframe. Effect: The City is not in compliance with Uniform Guidance requirements. Questioned Costs: None. Repeat Finding: This is not a repeat finding, but is considered a systematic problem. Recommendation: The City should implement policies and procedures to ensure timely financial reporting and completion of federal single audits within the required time frame. Management Response: Management concurs with this finding. See Corrective Action Plan.