Finding 45832 (2022-003)

Requirement

Questioned Costs

Year

2022

Accepted

2023-08-21

Audit: 41397

Organization: City of North Pole, Alaska (AK)

Auditor: Alliance CPAS LLC

AI Summary

Core Issue: Monthly grant reports were not submitted on time and did not match the general ledger totals.
Impacted Requirements: Task 1.3 of the Cooperative Agreement mandates timely monthly status reports on funds expended.
Recommended Follow-Up: Review and reconcile reports with the general ledger, and adjust cumulative costs as necessary.

Finding Text

SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS U.S. Department of Defense Cooperative Agreement -Water Supply and Distribution Design, Moose Creek, Alaska, and Cooperative Agreement-Remedial Action Construction Phase One North Loop Supply and Distribution System, Moose Creek, Alaska 2022-003 Grant reports were not filed timely or reconciled to the general ledger: Condition: Several monthly reports were not filed on a timely basis, and the December total project costs were less than balances reported in the general ledger. Criteria: Task 1.3 of the Cooperative Agreement requires monthly status reports that include funds expended during the reporting period and cumulative to date. Context: The City had personnel changes during the year, affecting the management of the public works department, which caused reporting issues. Cause: The lapse in reporting was due to change in personnel. Effect: The reports for the year ended December 31, 2022 do not reconcile with the yearend general ledger. Recommendation: We recommend the reports be reviewed and reconciled with the general ledger. Adjustments to cumulative cost to date in the report should then be made. Grantee response: See corrective action plan.

Corrective Action Plan

Finding Number 2022-003 Responsible Individual: Jeffrey J. Jacobson City of North Pole Corrective Action Plan Status: As of today July 25, 2023, necessary corrective actions have been made to the general ledger with the appropriate account balances. The total compensation committee will meet this year on July 28th, August 11th, and 25th 2023 to review current staffing levels responsibility skills and training requirements and any compensation adjustments. This will possible include contracting with Altman and Rogers in the interim to provide training and support to the city employees to monitor grant requirement compliance and reporting to provide an accurate Schedule of Expenditures of Federal Awards (SEFA). The administration and city council will consider adjusting job descriptions responsibilities for 2024 to full fill grant management and monitoring oversight and to enhance separation of fiscal responsibility and to expand checks and balances. In addition, the administration and the city council will consider hiring a CPA mid-year 2024 to assist current financial staff and to facilitate a smooth transaction as senior staff plan to retire in 2025.

Other Findings in this Audit

45833 2022-004

Significant Deficiency
45834 2022-003

-
45835 2022-004

Significant Deficiency
45836 2022-004

Significant Deficiency
622274 2022-003

-
622275 2022-004

Significant Deficiency
622276 2022-003

-
622277 2022-004

Significant Deficiency
622278 2022-004

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
12.U02	Cooperative Agreement-Remedial Action Construction Phase One North Loop Supply and Distribution System, Moose Creek, Alaska	$2.06M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$255,545
12.U01	Cooperative Agreement-Water Supply and Distribution Design, Moose Creek, Alaksa	$95,764
21.019	Coronavirus Relief Fund	$66,655
97.067	Homeland Security Grant Program	$45,594
16.738	Edward Byrne Memorial Justice Assistance Grant Program	$37,109
97.042	Emergency Management Performance Grants	$6,308