Finding 1205854 (2024-003)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2026-04-02
Audit: 397597
Auditor: BRAD CAGE CPA

AI Summary

  • Core Issue: AKNWRC lacks sufficient cash on hand, with total cash at $52,267 compared to unearned grant revenue of $265,804.
  • Impacted Requirements: According to 2 CFR, Section 200.305(b), advanced funds must be spent on allowable items, and cash must exceed unearned revenue.
  • Recommended Follow-Up: AKNWRC should monitor cash flow closely to avoid losses and ensure grant funds are available for allowable expenses.

Finding Text

Cash management - I noted that the AKNWRC did not have sufficient cash on hand in excess of unearned grant revenue. Per 2 CFR, Section 200.305(b), the AKNWRC must ensure all advanced funds are spent on allowable items. No questioned costs. There was a large loss in the current year that caused cash on hand to be less than unearned grant revenue. At year end, total cash on hand was less than total unearned grant revenue. Total cash on hand was $52,267 while total unearned grant revenue was $265,804. Total unearned grant revenue related to the FVPSA 93.592 grants was $169,768 and total unearned grant revenue related to the DHHS, Covid-19, ARP Support for Survivors of Domestic Violence, 93.496 was $12,432. It is imperative that AKNWRC does not incur losses in its administrative function, to ensure that grant drawdowns are retained until spent on allowable grant expenses. This was not a repeat finding.

Corrective Action Plan

MANAGEMENT WILL ENSURE THAT ALL FUTURE GRANT DRAWDOWNS ARE RETAINED IN THE BANK UNTIL SPENT ON ALLOWABLE GRANT EXPENSES.

Categories

Cash Management

Other Findings in this Audit

  • 1205843 2024-002
    Material Weakness Repeat
  • 1205844 2024-003
    Material Weakness Repeat
  • 1205845 2024-002
    Material Weakness Repeat
  • 1205846 2024-003
    Material Weakness Repeat
  • 1205847 2024-002
    Material Weakness Repeat
  • 1205848 2024-003
    Material Weakness Repeat
  • 1205849 2024-002
    Material Weakness Repeat
  • 1205850 2024-003
    Material Weakness Repeat
  • 1205851 2024-002
    Material Weakness Repeat
  • 1205852 2024-003
    Material Weakness Repeat
  • 1205853 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.496 FAMILY VIOLENCE PREVENTION AND SERVICES/CULTURALLY SPECIFIC DOMESTIC VIOLENCE AND SEXUAL VIOLENCE SERVICES $1.03M
16.526 OVW TECHNICAL ASSISTANCE INITIATIVE $225,742
15.029 TRIBAL COURTS $140,058
16.589 RURAL DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ASSISTANCE PROGRAM $51,369
16.841 VOCA TRIBAL VICTIM SERVICES SET-ASIDE PROGRAM $49,117
16.608 TRIBAL JUSTICE SYSTEMS $13,513
93.592 FAMILY VIOLENCE PREVENTION AND SERVICES/DISCRETIONARY $8,018
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $7,817