FAC Explorer

Finding 38392 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-05-14
Audit: 30171
Organization: Denali Borough (AK)
Auditor: Alliance CPAS LLC

AI Summary

  • Issue: The Borough missed the deadline for submitting the Form SF-SAC for the fiscal year ended June 30, 2022, which was due by March 31, 2023.
  • Impact: Delays were caused by staff turnover and issues with third-party accounting, preventing timely completion of the audit.
  • Follow-up: Ensure the Form SF-SAC is filed on time in the future by addressing staffing and accounting process challenges.

Finding Text

Criteria: The Borough is required to submit the single audit report package and Form SFSAC within nine months of the fiscal year end. For the fiscal year ended June 30, 2022 the due date for timely submittal of the single audit reporting package and Form SF-FAC was March 31, 2023. Condition: The Form SF-SAC for the fiscal year ended June 30, 2022 was not filed on time. Cause: The audit was not completed in time to file the form. Due to turnover of Borough staff and third party accounting consultants there was a delay in the closing of the books and records. Effect: The Schedule of Expenditures of Federal Awards was not available in a timely manner in order to allow for timely submission of the Form SF-SAC. Questioned Costs: No questioned costs were identified. Context: The fiscal year 2022 Form SF-SAC was due by March 31, 2023. The June 30, 2022 Form SF-SAC has not yet been filed. Recommendation: We recommend the Form SF-SAC be filed timely in the future. Views of responsible officials and planned corrective actions: See the corrective action plan.

Corrective Action Plan

Name of Contact Person: Mayor, J. Clay Walker Corrective Action: The Denali Borough will provide increased staff training and request assistance from third party support services for assistance in preparation and review of reporting federal awards in order to file and submit the Schedule of Expenditures of Federal Awards and Form SF-SAC in a timely manner. Borough staff have attended a three-day federal grants management training course that covers topics including financial reporting for grants and the Federal Single Audit process. This is the first time this training opportunity has been experienced by staff. In addition to continuing professional development, the borough plans to request assistance from third party support services to provide accounting expertise in reporting. Proposed Completion Date: The borough has a commitment to ongoing professional development and borough staff will continue to attend related federal grant training opportunities as they become available. For the purpose of remedying this finding, the completion date is May 30, 2023. The borough will have sufficiently trained staff and the necessary professional support in place to ensure a timely and compliant filing of Form SF-SAC.

Categories

Reporting

Other Findings in this Audit

  • 38391 2022-001
    Significant Deficiency
  • 614833 2022-001
    Significant Deficiency
  • 614834 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
15.226 Payments in Lieu of Taxes $405,240
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $213,969
21.019 Coronavirus Relief Fund $203,659
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $103,950
97.042 Emergency Management Performance Grants $20,300
10.664 Cooperative Forestry Assistance $20,000
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $4,812