FAC Explorer

Finding 479645 (2022-011)

Material Weakness
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2024-07-30
Audit: 316214
Organization: Municipality of Anchorage, Alaska (AK)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The Municipality failed to maintain proper records for equipment and real property funded by federal awards, violating 2 CFR 200.313.
  • Impacted Requirements: Internal controls for tracking equipment were inadequate, leading to potential noncompliance and risk of funding loss.
  • Recommended Follow-Up: Conduct annual inventories to reconcile equipment purchased with federal funds against the general ledger.

Finding Text

Finding 2022-011 Equipment and Real Property Management - Material Noncompliance and Material Weakness in Internal Controls Over Compliance Agency/Passthrough Grantor Department of Health and Human Services passed through the State of Alaska Department of Health and Social Services ALN and Program Name 93.323 – COVID-19-Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Award # C0621-570-BB Award Year 3/15/2021-6/30/2022 Criteria or Specific Requirement The regulations in 2 CFR 200.313(d)(1) notes equipment and real property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Condition We reviewed a sample of 6 items owned by the Municipality and noted 1 instance in which managements internal controls were not functioning as designed, and in which equipment records were not properly maintained. Cause Controls to review and track equipment and real property funded by federal awards are not properly maintained by program personnel. In addition, there is no reconciliation from the program equipment and real property lists to the general ledger detail to ensure all equipment and/or real property is being recorded and properly capitalized, if applicable. Effect or Potential Effect The Municipality was not in compliance with Equipment and Real Property requirements outlined in 2 CRF 200.313. The Municipality could be exposed to a reduction or elimination of funds by the Federal awarding agency. Questioned costs Not applicable Context For Epidemiology and Laboratory Capacity for Infectious Diseases we selected a sample of 6 items of equipment with a book value of $848,963 from a population of 41 items with a total book value of $886,733 and noted 1 exception with a book value of $843,569. The sample tested was selected using nonstatistical sampling methods and was not a statistically valid sample. Identification as a repeat finding Not a repeat finding. Recommendation We recommend an inventory is completed at least annually to compare items purchased with federal funds to counts and the values recorded in the general ledger. Views of Responsible Officials Management agrees with this finding. Staff will perform regular reconciliations for the equipment and real property listing to ensure that its accuracy is maintained.

Corrective Action Plan

Finding 2022-011 Equipment and Real Property Management - Material Noncompliance and Material Weakness in Internal Controls Over Compliance Corrective Action Plan: Management agrees with this finding and will strive to create and to maintain a complete and accurate equipment and real property listing. Further, staff will perform regular reconciliations for the equipment and real property listing to ensure that its accuracy is maintained. Anticipated Completion Date: December 31, 2024

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 479622 2022-008
    Material Weakness
  • 479623 2022-008
    Material Weakness
  • 479624 2022-008
    Material Weakness
  • 479625 2022-008
    Material Weakness
  • 479626 2022-008
    Material Weakness
  • 479627 2022-008
    Material Weakness
  • 479628 2022-008
    Material Weakness
  • 479629 2022-008
    Material Weakness
  • 479630 2022-008
    Material Weakness
  • 479631 2022-008
    Material Weakness
  • 479632 2022-008
    Material Weakness
  • 479633 2022-008
    Material Weakness
  • 479634 2022-009
    Material Weakness Repeat
  • 479635 2022-009
    Material Weakness Repeat
  • 479636 2022-009
    Material Weakness Repeat
  • 479637 2022-010
    Significant Deficiency Repeat
  • 479638 2022-010
    Significant Deficiency Repeat
  • 479639 2022-010
    Significant Deficiency Repeat
  • 479640 2022-010
    Significant Deficiency Repeat
  • 479641 2022-010
    Significant Deficiency Repeat
  • 479642 2022-010
    Significant Deficiency Repeat
  • 479643 2022-010
    Significant Deficiency Repeat
  • 479644 2022-010
    Significant Deficiency Repeat
  • 479646 2022-012
    Significant Deficiency
  • 479647 2022-012
    Significant Deficiency
  • 479648 2022-013
    Significant Deficiency
  • 479649 2022-013
    Significant Deficiency
  • 479650 2022-013
    Significant Deficiency
  • 1056064 2022-008
    Material Weakness
  • 1056065 2022-008
    Material Weakness
  • 1056066 2022-008
    Material Weakness
  • 1056067 2022-008
    Material Weakness
  • 1056068 2022-008
    Material Weakness
  • 1056069 2022-008
    Material Weakness
  • 1056070 2022-008
    Material Weakness
  • 1056071 2022-008
    Material Weakness
  • 1056072 2022-008
    Material Weakness
  • 1056073 2022-008
    Material Weakness
  • 1056074 2022-008
    Material Weakness
  • 1056075 2022-008
    Material Weakness
  • 1056076 2022-009
    Material Weakness Repeat
  • 1056077 2022-009
    Material Weakness Repeat
  • 1056078 2022-009
    Material Weakness Repeat
  • 1056079 2022-010
    Significant Deficiency Repeat
  • 1056080 2022-010
    Significant Deficiency Repeat
  • 1056081 2022-010
    Significant Deficiency Repeat
  • 1056082 2022-010
    Significant Deficiency Repeat
  • 1056083 2022-010
    Significant Deficiency Repeat
  • 1056084 2022-010
    Significant Deficiency Repeat
  • 1056085 2022-010
    Significant Deficiency Repeat
  • 1056086 2022-010
    Significant Deficiency Repeat
  • 1056087 2022-011
    Material Weakness
  • 1056088 2022-012
    Significant Deficiency
  • 1056089 2022-012
    Significant Deficiency
  • 1056090 2022-013
    Significant Deficiency
  • 1056091 2022-013
    Significant Deficiency
  • 1056092 2022-013
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $42.92M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $35.89M
21.023 Emergency Rental Assistance Program $10.90M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $6.53M
20.507 Federal Transit_formula Grants $5.06M
20.106 Airport Improvement Program $4.56M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $3.79M
20.933 National Infrastructure Investments $3.65M
20.823 Port Infrastructure Development Program (b) $2.23M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.98M
93.575 Child Care and Development Block Grant $1.57M
20.616 National Priority Safety Programs $1.38M
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1.27M
14.218 Community Development Block Grants/entitlement Grants $960,959
14.275 Housing Trust Fund $689,977
14.239 Home Investment Partnerships Program $651,483
16.738 Edward Byrne Memorial Justice Assistance Grant Program $599,460
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $595,741
16.034 Coronavirus Emergency Supplemental Funding Program $561,990
20.205 Highway Planning and Construction $449,945
16.543 Missing Children's Assistance $409,551
95.001 High Intensity Drug Trafficking Areas Program $400,000
97.067 Homeland Security Grant Program $320,227
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $303,988
20.600 State and Community Highway Safety $297,921
97.042 Emergency Management Performance Grants $258,822
97.056 Port Security Grant Program $256,125
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $251,632
20.500 Federal Transit_capital Investment Grants $251,172
93.069 Public Health Emergency Preparedness $243,830
93.889 National Bioterrorism Hospital Preparedness Program $227,394
93.778 Medical Assistance Program $221,352
30.001 Employment Discrimination_title Vii of the Civil Rights Act of 1964 $173,207
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $171,372
15.916 Outdoor Recreation_acquisition, Development and Planning $165,117
15.808 U.s. Geological Survey_ Research and Data Collection $162,876
45.310 Grants to States $141,384
93.558 Temporary Assistance for Needy Families $134,595
93.940 Hiv Prevention Activities_health Department Based $108,923
16.922 Equitable Sharing Program $87,249
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $79,167
10.665 Schools and Roads - Grants to States $75,655
93.136 Injury Prevention and Control Research and State and Community Based Programs $69,373
97.044 Assistance to Firefighters Grant $68,487
14.881 Moving to Work Demonstration Program $59,532
14.195 Section 8 Housing Assistance Payments Program $59,532
10.664 Cooperative Forestry Assistance $55,551
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $52,055
10.935 Urban Agriculture and Innovative Production $31,390
93.103 Food and Drug Administration_research $27,679
14.231 Emergency Solutions Grant Program $23,899
16.607 Bulletproof Vest Partnership Program $23,188
97.039 Hazard Mitigation Grant $13,515
81.086 Conservation Research and Development $10,236
16.320 Services for Trafficking Victims $8,827
15.904 Historic Preservation Fund Grants-in-Aid $3,018
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $2,092