Finding 383797 (2022-001)

Finding 2022-001: Late Reporting and Noncompliance with Reporting Requirements: Federal Agency: U.S. Department of Treasury Pass through agency: State of Alaska Department of Commerce Community and Economic Development Federal Programs: Coronavirus Relief Fund ALN 21.019, Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 Grant Numbers: 20-CFR-052, 22-LGLR-07, AK0031 Award Period: 2022 Type of Finding: Material Weakness/Material Noncompliance Opinion: Qualified Condition: 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.) This is a repeat finding and appears to be a systemic problem. 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. Context: The FAC report was not submitted within the required time period. Cause: Due to staff turnover the City was unable to have their annual audit completed with the required timeframe, and subsequently were also late in submission of the FAC Report. Effect: The City is not in compliance with Uniform Guidance requirements. Questioned Costs: None. Recommendation: The City needs to work on getting financial information more timely (i.e. submit the reporting package with the guidelines of Uniform Guidance). Management Response: Management concurs with this finding. See Corrective Action Plan.