Finding 1793 (2021-006)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2023-11-14
Audit: 3119
Organization: Bristol Bay Borough, Alaska (AK)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The financial reporting package was submitted late, violating federal requirements.
  • Impacted Requirements: Compliance with 2 CFR 200.512, which mandates timely submission of audit reports.
  • Recommended Follow-Up: Assess and improve staffing resources to ensure timely audit preparation and execution.

Finding Text

Finding 2021-006 Agency Program Reporting - Timely Submission of Financial Reports – Material Weakness in Internal Control over Compliance and Noncompliance U.S. Department of Treasury ALN: No. 21.019 COVID-19 Coronavirus Relief Fund 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number 20-CFR-029 Criteria or Specific Requirement 2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.” Condition The Federal data collection form and reporting package were not filed on time. Cause There were limited personnel resources at the Borough’s to assist in the timely completion of the Borough’s audit. Effect or potential effect Federal funds could potentially be expended on unallowable activities and for unallowed costs, and outside the period of performance. Bristol Bay Borough, Alaska Schedule of Findings and Questioned Costs, continued Year Ended June 30, 2021 106 Questioned Costs None. Context The Form SF-SAC is due nine months after the fiscal year-end. The form for the fiscal year ended June 30, 2021 was filed late. Repeat Finding No. Recommendation The Borough should evaluate resources allocated to staffing to ensure it has the capacity to adequately prepare and assist in the timely execution of the audit. Views of responsible officials Management agrees with the finding and is in the process of catching up on audits with the goal of completing the FY 2023 audit timely.

Corrective Action Plan

Finding 2021-006 Reporting - Timely Submission of Financial Reports – Material Weakness in Internal Control over Compliance and Noncompliance Name of Contact Person: James Wilson, Borough Manager Corrective Action Plan: The Borough is currently in process of catching up on audits with the goal of completing the FY 2023 audit timely. Completion Date: March 2024

Categories

Period of Performance Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness Reporting

Other Findings in this Audit

  • 1792 2021-005
    Material Weakness
  • 1794 2021-005
    Material Weakness
  • 1795 2021-006
    Material Weakness
  • 578234 2021-005
    Material Weakness
  • 578235 2021-006
    Material Weakness
  • 578236 2021-005
    Material Weakness
  • 578237 2021-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $2.25M
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $1.40M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $265,150
15.226 Payments in Lieu of Taxes $161,554
97.067 Homeland Security Grant Program $44,218