Alaska Ocean Observing System

Program: ALN 11.012, National Oceanic and Atmospheric Administration, Implementation and Development of Regional Coastal Ocean Observing System, Alaska Ocean Observing System grant numbers NA16NOS0120027, NA21NOS0120094, NA23NOS0120080, NA24NOSX012C0027 Criteria: 2 CFR section 200.303(d)(2), states that a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statues, regulations, and the terms and conditions of the federal award. Condition: Reports were submitted to the federal agency without documented review or approval by management. Cause: The entity contracts with another organization to act as its fiscal agent. The fiscal agent experienced significant turnover and delays in hiring qualified personnel for finance roles, and the entity did not retain documentation of report reviews. Possible asserted effect: Lack of review increases the risk of submitting incomplete or inaccurate information, potentially leading to audit findings or questioned costs. Questioned costs: None Context: Inspection of all reports submitted during the year indicated that no financial or performance reports had documented approval prior to submission. Statistical sampling: No Repeat finding: No Recommendations: We recommend the entity work with its fiscal agent to provide oversight and compensating controls in times of staff vacancy, and develop policies that incorporate review and documentation of review of reports prior to them being submitted to the granting agencies. Views of responsible officials: AOOS will work with its fiscal agent to strengthen oversight and establish compensating controls during staff vacancies to ensure proper review of reports. In addition, AOOS will develop and implement policies that require management review and documentation of all reports prior to submission to granting agencies, thereby ensuring accuracy, accountability, and compliance with federal requirements

AOOS will work with its fiscal agent to strengthen oversight and establish compensating controls during staff vacancies to ensure proper review of reports. In addition, AOOS will re-establish and implement policies that require management review and documentation of all reports prior to submission to granting agencies, thereby ensuring accuracy, accountability, and compliance with federal requirements. Completion Date: September 30, 2026 Responsible Person: Sheyna Wisdom, Executive Director, AOOS