FAC Explorer

Finding 1213847 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-05-05
Audit: 400685
Organization: City of Bethel, Alaska (AK)
Auditor: ALTMAN ROGERS & CO

AI Summary

  • Core Issue: The City failed to submit the required reporting package on time, violating federal guidelines.
  • Impacted Requirements: Noncompliance with Uniform Guidance, specifically 2 CFR Section 200.512, which mandates timely reporting.
  • Recommended Follow-Up: Implement stronger internal controls to ensure compliance with reporting deadlines and address this systemic issue.

Finding Text

Finding 2024-002 Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number: AK0016-N Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance Criteria: Uniform Guidance requires that the reporting package must be submitted within the earlier of nine months after year end or 30 days after the report issuance in accordance with the provisions of 2 CFR Section 200, subpart F, section 200.512. 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 after the audit period. Cause: Lack of internal control over Uniform Guidance reporting requirements. Effect: The City was not in compliance with reporting requirements. Questioned Costs: None. Repeat Finding: Yes, this is a repeat of Finding 2023-004. Since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend that the City comply with Uniform Guidance reporting requirements. Management’s Response: Management concurs with this finding. See corrective action plan

Corrective Action Plan

Finding 2024-002 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Cindy Sharp, Deputy Finance Director Corrective Action Plan: Management has hired a new finance director with governmental accounting experience, as well as an accountant (a licensed CPA in Colorado) with a long history of governmental auditing and accounting experience. Management, together with experienced accounting staff, will review reporting deadlines and work diligently toward timely report submissions in the future. Management and accounting staff will also carefully review reporting requirements and ensure that requirements are adhered to. This includes the following program(s): Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) / ARPA Non-Profit Recovery Funds (NPRF) (ALN 21.027). Proposed Completion Date: Fiscal year 2025.

Categories

Reporting Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.70M
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $551,933
97.067 HOMELAND SECURITY GRANT PROGRAM $274,868
66.202 CONGRESSIONALLY MANDATED PROJECTS $179,883
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $41,667
16.039 RURAL VIOLENT CRIME INITIATIVE $12,041