City of Homer

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.

Finding 2022-004 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 2022 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 shall 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, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit, and any extensions granted by the Office of Management and Budget. 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, 2022. 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 Not a repeat finding. 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.

Finding 2022-005 Review of Reporting – Significant Deficiency in Internal Control Over Compliance Agency U.S. Department of Treasury ALN 21.027 Program COVID-19 – Coronavirus Local Fiscal Recovery Fund Award Year FY 2022 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number(s) AK0049 Criteria 2 CFR 200.303, Internal Controls, requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and the terms and conditions of the federal award. Condition During our testing of the reporting requirements, we noted the one report tested did not have evidence of review before submission. Cause The City’s internal controls over reporting are not designed appropriately to ensure reports required to be submitted to federal agencies are reviewed for accuracy before submission. Effect or potential effect Information submitted to the granting agency may be inaccurate or late. Questioned costs Not applicable. Context During our testwork of the one report required for submission, we identified that the report was submitted timely, but no internal controls were established to document the review and approval of the report before submission. Identification as a repeat finding Not a repeat finding. Recommendation Management should review report due dates and ensure that accurate reports are submitted before they are due. Views of responsible officials Management agrees with the finding. All reporting will be reviewed by at least one other staff member to ensure accuracy prior to submission.