|SUMMARY OF:||State of Alaska, Single Audit for the Fiscal Year Ended June 30, 2019|
Purpose 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 $4.5 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 Uniform Guidance.
The report contains an opinion on the basic financial statements of the State of Alaska for FY 19, findings and 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.
With the exception of General Fund accounts rents and royalties and due to other funds, and Note 2 relating to the State’s Constitutional Budget Reserve Fund, 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.
We were unable to obtain sufficient appropriate audit evidence to provide assurance over tax revenues. Department of Revenue management denied auditors access to relevant financial records and the department’s commissioner refused to provide written representations over the financial statement preparation and fair presentation of tax revenue accounts, and the completeness of information provided to auditors.
With the exception of the United States Forest Service Fire Suppression program, the Bureau of Land Management Fire Suppression program, the Temporary Assistance for Needy Families cluster, the Medicaid cluster, and the Children’s Health Insurance program, the State has substantially complied with the applicable laws and regulations in the administration of its major federal financial assistance programs. The report does contain findings regarding material noncompliance with the provisions of laws and regulations, and material weaknesses and significant deficiencies in the State’s internal control over financial reporting and internal control over federal compliance.
Findings and Recommendations
This report contains 89 findings, of which 35 are unresolved issues from last year. 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 prior financial and federal program related audit findings not resolved as of June 30, 2019.