Finding 502674 (2023-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-10-14
Audit: 324691
Organization: City of Homer, 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 on time for FY 2023.
  • Impacted Requirements: This noncompliance violates 2 CFR 200.512, which mandates timely submission of audit reports.
  • Recommended Follow-Up: The City should implement controls to ensure audits are completed and reports submitted within the required deadlines.

Finding Text

Finding 2023-003 Deadline for Federal Single Audit – Reporting - Noncompliance and Material Weakness in Internal Control Over Compliance Agency U.S. Department of the Treasury Assistance Listing Numbers (ALN) 21.027 Program Name COVID-19 - Coronavirus Local Fiscal Recovery Fund Award Year FY 2023 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number AK0049 Criteria or Specific Requirement 2 CFR 200.512, Report Submission, establishes that the audit must 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. 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, 2023. 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 Yes. Finding 2022-004 Noncompliance and Material Weakness in Internal Control over Compliance. 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 agrees with this finding. Management has developed internal deadlines to ensure the FY24 financial statements will be completed within the appropriate reporting deadlines.

Corrective Action Plan

Finding 2023-003 Deadline for Federal Single Audit – Reporting – Noncompliance and Material Weakness in Internal Control over Compliance Planned Corrective Actions: The Finance Department is continuing its efforts in establishing and enforcing internal deadlines to ensure the financial statements are audited within the appropriate reporting deadlines. The department has shifted staff duties to ensure the FY24 financial statements will be completed within the appropriate reporting deadlines. Individual(s) Responsible for Corrective Action Plan Elizabeth Fischer (Finance Director) Jenna deLumeau (Controller) Anticipated Completion Date: The department has developed internal deadlines to ensure the FY24 financial statements will be completed within the appropriate reporting deadlines. This has been completed.

Categories

Subrecipient Monitoring Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1079116 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $716,685
97.067 Homeland Security Grant Program $59,506
66.447 Sewer Overflow and Stormwater Reuse Municipal Grant Program $24,796
45.310 Grants to States $11,204