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02-40013-13

June 05, 2013
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SUMMARY OF: State of Alaska, Single Audit for the Fiscal Year Ended June 30, 2012.

Purpose and Scope of the Report

This report summarizes our review of the State of Alaska’s basic financial statements and the State’s compliance with federal laws and regulations in the administration of approximately $3.4 billion of federal financial assistance programs. The audit was conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. It also complies with the federal Single Audit Act Amendments of 1996 and the related United States Office of Management and Budget Circular A-133.

The report contains an opinion on the basic financial statements of the State of Alaska for FY 12, recommendations on financial and compliance matters, auditor’s reports on internal controls and compliance, the Schedule of Expenditures of Federal Awards, and the Summary of Prior Audit Findings.

Report Conclusions

The basic financial statements for the State of Alaska are fairly presented in accordance with accounting principles generally accepted in the United States of America without qualification. Additionally, the State’s FY 12Comprehensive Annual Financial Report includes a Certificate of Achievement for Excellence in Financial Reporting which is presented by the Government Finance Officers Association.

All borrowing from the Constitutional Budget Reserve Fund (CBRF) was completely repaid in FY 10 and no borrowing activity from the CBRF occurred during FY 11 or FY 12.

The State of Alaska did not comply with Federal Funding Accountability and Transparency Act (FFATA) reporting requirements applicable to the Social Services Block Grant (SSBG; CFDA 93.667) administered by the Department of Health and Social Services. Failure to comply with FFATA reporting requirements resulted in a material weakness and material noncompliance for the SSBG program. The State has substantially complied with the applicable laws and regulations in the administration of its other major federal financial assistance programs. The report does contain recommendations regarding significant deficiencies in the State’s internal control over financial statements and federal programs.

Findings and Recommendations

This report contains 41 recommendations, of which 17 are unresolved issues from last year. One of the 41 recommendations is made to Alaska Energy Authority whose audit was performed by other auditors. Some of the recommendations made in this report require significant changes in procedures or a shifting of priorities and, therefore, may take more than one year to implement. The Summary Schedule of Prior Audit Findings in Section III identifies the current status of most prior audit recommendations not resolved by the release of the FY 12 statewide single audit.

Single Audit State of Alaska FY12
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