Finding Text
Finding 2023-002 Reporting - Noncompliance and Significant Deficiency in Internal Control
Over Compliance
Agency Department of Homeland Security, Federal Emergency Management Agency
(FEMA)
Assistance Listing
Numbers (ALN)
97.036
Program Name Disaster Grants – Public Assistance (Presidentially Declared Disasters)
Award Year 2022
Pass-Through Agency State of Alaska Department of Military and Veterans Affairs
Pass-Through Entity
Identifying Number
PW0005
Criteria or Specific
Requirement
Uniform Guidance stipulates that recipients must use the standard financial
reporting forms or such other forms as may be required by the granting
agency. Recipients of Public Assistance are required to submit a yearly
financial report along with quarterly progress reports.
Condition The Association did not include life-to-date expenditures on the quarterly
progress reports to the State of Alaska, the pass-through agency for the
Public Assistance program.
Cause The Association was informed by certain personnel at the State of Alaska to
fill out the progress reports in an inaccurate manner.
Effect or Potential
Effect
Inaccurate quarterly progress reports were submitted to the State of Alaska.
As a result, there may be errors in State of Alaska reporting to the Federal
agency.
Questioned costs None.
Context BDO tested two quarterly progress reports in 2023 and one yearly financial
report for 2023, which represents all of the reports filed. Life to date
expenditures were not disclosed on the two quarterly progress reports
tested.
Identification as a
repeat finding
Not a repeat finding
Recommendation We recommend management establish internal controls to ensure that
reports are submitted to federal agencies in accordance with OMB and
federal awarding agency requirements.
Views of
Responsible Officials
Management agrees with the finding and will complete the missing
information in future progress reports submitted to the State of Alaska.