Finding 371303 (2021-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-02-29
Audit: 292985
Organization: City of Bethel, Alaska (AK)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The City failed to submit the required audit reporting package to the Federal Audit Clearinghouse by the deadline.
  • Impacted Requirements: This noncompliance violates 2 CFR 200.512, risking potential funding reductions from federal agencies.
  • Recommended Follow-Up: Implement controls to ensure timely audit completion and reporting package submission to meet deadlines.

Finding Text

Finding 2021-005 Deadline for Federal Single Audit – Reporting - Noncompliance and Material Weakness in Internal Control Over Compliance Agency U.S. Department of the Treasury and Environmental Protection Agency Assistance Listing Numbers (ALN) 21.019 66.202 Program Name COVID-19 - Coronavirus Relief Fund Congressionally Mandated Projects Award Year FY 2021 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development, State of Alaska Department of Environmental Conservation Pass-Through Entity Identifying Number 20-CRF-024, 18EQ57, 20ER77, 21ES93 Criteria or Specific Requirement 2 CFR 200.512, Report Submission, establishes that the audit shall be completed and the data collection form and reporting package submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receipt of the auditor's report or 9 months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit, and any extensions granted by the Office of Management and Budget. Condition The City did not comply with the required submission date of the data collection form and reporting package to the FAC for the fiscal year ended June 30, 2021. Cause The City did not have controls in place to ensure the audit was completed timely so that the reporting package could be submitted to the FAC within the required timeframe. Effect or Potential Effect The City is not compliant with 2 CFR 200.512. The City could be exposed to a reduction or elimination of funds by the Federal awarding agencies. Questioned costs Not applicable. Context This is a condition identified per review of the City's compliance with the specified requirements. Identification as a repeat finding Not a repeat finding. Recommendation We recommend the City establish controls to ensure the audit is completed timely and the reporting package is submitted to the FAC within the required timeframe. Views of Responsible Officials Management concurs with this finding. Management will ensure beginning balance reconciliations and year-end adjustments will be complete by September, and will work with external auditors to have a financial statement draft prior to their fieldwork.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness Reporting

Other Findings in this Audit

  • 371302 2021-005
    Material Weakness
  • 371304 2021-006
    Material Weakness Repeat
  • 371305 2021-007
    Significant Deficiency
  • 371306 2021-008
    Material Weakness
  • 371307 2021-009
    Material Weakness
  • 371308 2021-010
    Material Weakness
  • 371309 2021-011
    Material Weakness
  • 371310 2021-012
    Material Weakness
  • 371311 2021-013
    Material Weakness
  • 947744 2021-005
    Material Weakness
  • 947745 2021-005
    Material Weakness
  • 947746 2021-006
    Material Weakness Repeat
  • 947747 2021-007
    Significant Deficiency
  • 947748 2021-008
    Material Weakness
  • 947749 2021-009
    Material Weakness
  • 947750 2021-010
    Material Weakness
  • 947751 2021-011
    Material Weakness
  • 947752 2021-012
    Material Weakness
  • 947753 2021-013
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $7.57M
66.202 Congressionally Mandated Projects $1.10M
66.458 Capitalization Grants for Clean Water State Revolving Funds $89,940
97.067 Homeland Security Grant Program $21,930