Finding 559952 (2023-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-05-08
Audit: 355888
Organization: City of Delta Junction, Alaska (AK)

AI Summary

  • Core Issue: The City failed to submit required reports on time, violating federal guidelines.
  • Impacted Requirements: Noncompliance with 2 CFR part 200, subpart F, section 200.512 regarding timely reporting.
  • Recommended Follow-Up: Establish new policies and procedures to ensure timely completion of Federal Single Audits.

Finding Text

Finding 2023-005: Late Reporting and Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of the Treasury (SLFRF) and U.S. Department of the Interior (PILT) Pass through agency: Direct (SLFRF) and State of Alaska, Department of Commerce, Community, and Economic Development (PILT) Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) and Payments in Lieu of Taxes (PILT) Assistance Listing Numbers: 21.027 (CSLFRF) and 15.226 (PILT) Award Numbers: AK0030 (CSLFRF) and None (PILT) Award Period: 2021(CSLFRF) and 2023 (PILT) Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR part 200, subpart F, section 200.512 requires that the reporting package must be submitted within 30 calendar days after the report issuance or nine months after the end of the audit period (whichever is earlier). Condition and Context: The City did not adhere to the Uniform Guidance requirement of submitting the reporting package and Form SF-SAC within the earlier of nine months plus any extensions after year end, or 30 days after the report issuance date. Cause: Lack of internal controls over Uniform Guidance reporting requirements. Effect: The City is not in compliance with 2 CFR part 200, subpart F, section 200.512. Questioned Costs: None.   Repeat Finding: Yes, this is a repeat of Finding 2022-002, and since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend the City implement policies and procedures to ensure timely completion of its Federal Single Audit. Management Response: Management concurs with this finding. See Corrective Action Plan.

Corrective Action Plan

Finding 2023-005 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Kaylee Reierson, Finance Officer Corrective Action: Neither current City Administrator or Finance Officer was employed with the City during this time period. Moving forward, all reporting will be done in a timely manner. Proposed Completion Date: Already implemented when the new administration was hired.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 559953 2023-005
    Material Weakness Repeat
  • 1136394 2023-005
    Material Weakness Repeat
  • 1136395 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
15.226 Payments in Lieu of Taxes $1.13M
21.027 Coronavirus State and Local Fiscal Recovery Funds $552,000
45.310 Grants to States $4,171
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $3,125
93.268 Immunization Cooperative Agreements $3,125
10.664 Cooperative Forestry Assistance $2,504