Finding 1150517 (2024-001)

Material Weakness
Requirement
M
Questioned Costs
-
Year
2024
Accepted
2025-08-20
Audit: 364645
Organization: City of Palmer, Alaska (AK)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The City failed to provide subrecipients with necessary Federal award information and compliance requirements.
  • Impacted Requirements: Noncompliance with 2CFR Part 200 Subpart D regarding subrecipient agreements and communication of relevant requirements.
  • Recommended Follow-Up: Establish internal controls to ensure proper grant requirement evaluation and timely issuance of subaward agreements for future funding.

Finding Text

Finding 2024-001 Subrecipient Monitoring – Material Weakness in Internal Control over Compliance and Material Noncompliance Agency Department of Justice Assistance Listing Number (ALN) 16.838 Program Name Comprehensive Opioid, Stimulant, and Substance Use Program Award Year 2024 Criteria In accordance with 2CFR Part 200 Subpart D, the City was required to clearly identify a subaward to the recipient with federal award identification information and requirements for compliance with Federal statutes, regulations and the terms and conditions of the Federal award. The City was further required to communicate to its subrecipients the relevant requirements to determine suitability of certain individuals interacting with minors and have written procedures in place to respond in the event of an actual or imminent breach of personal identifiable information. Condition Subrecipient agreements were not issued with required Federal award information. Further, relevant compliance requirements were not communicated to the subrecipients. Cause The program was new for the City and was managed by a department that was not familiar with subrecipient disclosure requirements. Effect or potential effect Sub awardees and the Federal government did not receive complete award information and were not informed of relevant grant-specific compliance requirements. Context There were three subrecipients under the program. In 2024, subrecipient expenditures totaled $196,880. Identification as a repeat finding N/A Recommendation The City should implement internal control procedures to evaluate applicability of grant requirements, especially when funding sources or nature of grant awards change. Subrecipients should receive correct Federal award information and be reported as required under FFATA. Views of Responsible Official and Planned Corrective Action Management agrees with the finding. Subaward agreements will be issued to organizations that received COSSUP funding during the terms of the grant over $30,000. Future internal controls will include review by the Finance Director and the Controller to evaluate grant requirements.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 574075 2024-001
    Material Weakness
  • 574076 2024-002
    Material Weakness
  • 1150518 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.22M
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $377,903
97.067 Homeland Security Grant Program $104,517
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $32,000
16.710 Public Safety Partnership and Community Policing Grants $12,633
20.616 National Priority Safety Programs $11,107
16.922 Equitable Sharing Program $8,241
10.664 Cooperative Forestry Assistance $7,000
16.607 Bulletproof Vest Partnership Program $1,200
20.600 State and Community Highway Safety $1,097