CITY OF CRAIG

Finding 2024-006 Lack of Internal Controls Over Reporting Federal Agency: U.S. Department of the Treasury, passed through State of Alaska Federal Program: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Number AK0028 Award Year: 2021 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Annual expenditure reports are due to the U.S. Department of the Treasury by April 30th of each year for the reporting period of April 1st through March 31st of the preceding year. Condition/Context: Management submitted the report for the period April 1st 2023 through March 31, 2024 on May 8th (8 days passed the reporting deadline). Cause: Due to employee turnover, the filing of the report was late. Effect: Late reporting may jeopardize future funding. Questioned Costs; None Repeat Finding: No Recommendation: The City should implement procedures to ensure that annual reports are submitted within the required timeline. Management Response: Management concurs with finding. See corrective action plan for more information.

Finding 2023-003 Late Reporting and Noncompliance with Reporting Requirements Federal Agencies U.S. Department of Agriculture Federal Programs: National Forest Receipts- Municipal & Regional Assistance ALN Numbers: 10.665 Award Number: None Award Year: 2023 Type of Finding Significant deficiency in internal control over compliance and noncompliance. Criteria: Uniform Guidance requires that the reporting package be submitted within the earlier of 9 months after year end or 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 City 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 the nine months after the end of the audit period. Cause: Lack of internal controls around Uniform Guidance requirements. Effect: The City was not in compliance with reporting requirements Questioned costs: None. Repeat finding: This is a repeat finding of 2022-002, therefore we consider this to be a systemic issue. Recommendation: We recommend that management comply with Uniform Guidance reporting requirements. Management Response: Management concurs with this finding. See Corrective Action Plan.

Finding 2022-002 Late Reporting and Noncompliance with Reporting Requirements Federal Agencies U.S. Department of Agriculture Federal Programs: National Forest Receipts- Municipal & Regional Assistance CFDA Numbers: 10.665 Award Number: None Award Year: 2022 Type of Finding Significant deficiency in internal control over compliance and noncompliance. Criteria: Uniform Guidance requires that the reporting package be submitted within the earlier of 9 months after year end or 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 Community 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 the nine months after the end of the audit period Cause: Lack of internal controls around Uniform Guidance requirements. Effect: Community 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 Uniform Guidance reporting requirements. Management Response: Management concurs with this finding. See Corrective Action Plan.