Finding 1228043 (2023-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-08-26
Audit: 409787
Organization: City of Nenana (AK)

AI Summary

  • Core Issue: The City failed to submit the required reporting package on time, violating Uniform Guidance regulations.
  • Impacted Requirements: Reporting must be completed within 30 days post-audit report or nine months after the audit period, as per 2 CFR part 200.
  • Recommended Follow-Up: The City should establish new policies to ensure timely financial reporting and compliance with federal audit deadlines.

Finding Text

Finding 2023-006: Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Transportation Pass through agency: None Federal Programs: Airport Improvement Program Assistance Listing Number: 20.106 Award Numbers: 30201910212022 and 30201910182021 Award Period: 2022 and 2021 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance 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 plus any extensions after the end of the audit period, (i.e. the FAC Report was not submitted timely.) Criteria: The Uniform Guidance requires that the reporting package be submitted within the earlier of nine months plus any extensions after year end or 30 days after the report issuance in accordance with the provisions of 2 CFR part 200, subpart F, section 200.512. Cause: Due to staff turnover the City was unable to complete the annual audit within the required timeframe. Effect: The City is not in compliance with Uniform Guidance requirements. Questioned Costs: None. Repeat Finding: This is a repeat of Finding number 2022-004. This appears to be a systemic issue. Recommendation: The City should implement policies and procedures to ensure timely financial reporting and completion of federal single audits within the required time frame. Management Response: Management concurs with this finding. See Corrective Action Plan.

Corrective Action Plan

Finding 2023-006: Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Josh Verhagen, Patricia Jirsa Corrective Action Plan: This issue will be resolved as the City now has greater capacity to spread out the workload and keep up with things as a much more streamlined tracking, reporting and approval process has been implemented. Proposed Completion Date: December 2026.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 1228044 2023-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $1.54M
10.379 RURAL ENERGY PILOT PROGRAM GRANT $572,799
10.708 COMMUNITY WOOD ENERGY AND WOOD INNOVATION PROGRAM $563,690
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $24,422
90.100 DENALI COMMISSION PROGRAM $16,182
10.674 WOOD UTILIZATION ASSISTANCE $27