NATIVE VILLAGE OF SHUNGNAK

Section III ? Federal Award Findings and Questioned Costs Finding 2020-001 Late Reporting and Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of the Treasury Federal Programs: Coronavirus Relief Funds (CRF) Assistance Listing Numbers: 21.019 Award Numbers: SLT0695 Award Years: 2020 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Uniform Guidance requires that the reporting package be submitted within the earlier of 9 months after year end of 30 days after the report issuance in accordance with the provisions of 2 CFR part 200, subpart F, section 200.512. Condition and Context: The Council did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or nine months after year end of the audit period. Cause: Lack of internal controls over Uniform Guidance reporting requirements. Effect: The Council was not in compliance with reporting requirements. Questioned Costs: None. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management comply with the Uniform Guidance reporting requirements. Management?s Response: Management concurs with this finding, see Corrective Action Plan.

Native Village of Shungnak P.O. Box 64 Shungnak, AK 99773 (907) 437-2163 tribeadmin@issingnak.org Corrective Action Plan Year Ended September 30, 2020 Federal Award Findings Finding 2020-001 Late Reporting and Noncompliance with Reporting Requirements Type of Finding: Material weakness in internal control over compliance and material Noncompliance Name of Contact Person: Kathleen Custer Corrective Action Plan: We concur with this finding and will ensure that an accounting firm is timely engaged to meet the reporting requirements of 2 CFR part 200, subpart F, section 200.512 of the Uniform Guidance. Shungnak experienced multiple employee challenges during COVID which resulted in the delay of gathering information needed for the audit. This issue has been resolved. Proposed Completion Date: 02/28/2023