FAC Explorer

Finding 1216307 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-01
Audit: 402794
Organization: Ketchikan Gateway Borough, Alaska (AK)
Auditor: ALTMAN ROGERS & CO

AI Summary

  • Core Issue: The Borough failed to submit the required reporting package on time, violating federal reporting guidelines.
  • Impacted Requirements: Noncompliance with 2 CFR part 200, which mandates submission within nine months or 30 days post-audit report.
  • Recommended Follow-Up: Engage audit preparation services to ensure timely completion of future audits and compliance with reporting deadlines.

Finding Text

Finding 2025-002 Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Transportation (DOT) and Denali Commission (DC) Federal Program: Operating and Fixed Route / Paratransit (DOT) and Saxman Low-Income Housing Development Project and Trails Master Plan (DC), respectively ALN: 20.509 (DOT) and 90.100 (DC) Award Numbers: AK-2019-029, AK-2022-018, AK-2023-050, AK-2024-010, AK-2020-027 (DOT) and 01854, 01898 (DC) Award Year: 2019, 2020, 2022, 2023, 2024 (DOT) and 2023, 2024 (DC) Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance. Condition and context: The Borough did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period. Cause: The Borough was not able to provide the necessary audit documents within a timely matter. Thus, the Borough was not able to complete the audit within the Uniform Guidance reporting timeline. Effect: The Borough was not in compliance with reporting requirements. Questioned Costs: None noted. Repeat finding: This is not a repeat finding. We believe the finding to be an isolated instance and not a systemic issue. Recommendation: We recommend the Borough to seek audit prep services to ensure that the audit is completed prior to Uniform Guidance reporting deadlines. Management’s Response: Management concurs with this finding. The delay was an isolated occurrence resulting from a combination of staffing challenges and audit timing, and is not indicative of a systemic issue, as noted by the auditors. The Borough has engaged Maureen Crosby, Contract Controller, to provide audit preparation assistance to ensure timely completion of future audits within Uniform Guidance reporting deadlines. See Corrective Action Plan.

Corrective Action Plan

Finding 2025-002 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Charlanne Thomas, Finance Director Corrective Action Plan: The delay in completing the FY 2025 audit was an isolated occurrence resulting from a combination of staffing challenges and an audit timeline that did not align with the Borough's established accounting close cycle. The Borough has engaged Maureen Crosby, Contract Controller, to provide audit preparation services to ensure that the books are closed and all necessary documentation is available to auditors in a timely manner. The FY 2026 audit has been scheduled in accordance with the Borough's normal close cycle, with fieldwork beginning in the August and on-site work the last week of October, to ensure completion well in advance of the nine-month Uniform Guidance reporting deadline. Proposed Completion Date: May 31, 2026

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 1216305 2025-002
    Material Weakness Repeat
  • 1216306 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $710,366
90.100 DENALI COMMISSION PROGRAM $330,000
11.477 FISHERIES DISASTER RELIEF $155,288
66.202 CONGRESSIONALLY MANDATED PROJECTS $58,234
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $49,364
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $26,800
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $20,000
14.149 RENT SUPPLEMENTS RENTAL HOUSING FOR LOWER INCOME FAMILIES $14,069