Finding 1151997 (2023-001)

Finding 2023-001: Late Reporting and Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of the Treasury Pass through agency: State of Alaska, Department of Commerce, Community, and Economic Development Federal Programs: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 21.027 Award Numbers: 220000183 Award Period: 2022 - 2024 Type of Finding: Material Noncompliance Criteria: 2 CFR part 200, subpart F, section 200.512 requires that the reporting package must be submitted within 30 calendar days after the report issuance or nine months after the end of the audit period (whichever is earlier). Condition and Context: Juneau Economic Development Council did not adhere to the Uniform Guidance requirement of submitting the reporting package and Form SF-SAC within the earlier of nine months plus any extensions after year end, or 30 days after the report issuance date. Cause: The pass-thru entity failed to provide the subrecipient (Juneau Economic Development Council) with their determination on whether a subrecipient relationship exists. Based on available information, management determined that they were contractors and not subrecipients. As a result of the State of Alaska’s FY24 audit, it was determined by Legislative Audit that Juneau Economic Development Council was a subrecipient and a federal compliance audit would be required. This determination was made after the deadline for reporting had passed and Juneau Economic Development Council was unable to meet the compliance requirement. Effect: Juneau Economic Development Council is not in compliance with 2 CFR part 200, subpart F, section 200.512. Questioned Costs: None. Repeat Finding: Yes, this is a repeat of Finding 2022-001, and since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend that Juneau Economic Development Council receives, in writing, the determination of whether a subrecipient relationship exists or not if Juneau Economic Development Council is involved with another organization’s federal program. Management Response: Management concurs with this finding. See Corrective Action Plan.