Finding 1140579 (2022-001)

U.S. Department of Treasury, Coronavirus State and Local Fiscal Recovery Fund – Assistance Listing No. 21.027; Grant period – Year ended September 30, 2022 Condition: The McGrath Native Village audited financial statements for the year ended September 30, 2022, were not submitted timely to the Federal Clearing House. Criteria: Uniform Guidance requires that organizations submit their audited financial statements to the Federal Clearing House within a nine-month period after the end of the organization’s fiscal year end. Cause: COVID restrictions and quarantines created significant delays in the prior audit period’s financial statement preparation and completion, thus delaying the current audit period from being started. Effect: Subsequent grant monies are being withheld until the audit is completed and successfully submitted. Context: The audit of the September 30, 2022, McGrath Native Village financial statements was initially due on June 30, 2023. This deadline was extended for an additional six months until December 31, 2023. The financial statements will be submitted to the Federal Clearing House after acceptance from the McGrath Native Village Council. Recommendation: McGrath Native Village should contract to have the remaining delinquent audits completed and future audits of the financial statements performed within the prescribed deadlines. Views of Responsible Official and Planned Corrective Actions: See the Corrective Action Plan.