Worksession of the Audit Committee Re 2024 ACFR Report

The Municipality of Anchorage Assembly Audit Committee held a work session on October 8, 2026, to review findings from the 2024 Annual Comprehensive Financial Report (ACFR) audit with BDO. The committee examined material weaknesses involving timely financial reporting, review and accuracy of financial information, SAP journal entries, grant accounting, and capital-asset documentation. BDO described a $25 million adjustment related to cash and investments and noted challenges reconciling documentation and financial reporting across approximately 310 grants. Municipal staff said the Controller Division’s 20 budgeted positions are filled, described new review and documentation practices, and said they are working toward completing the 2025 ACFR in the first quarter of 2027. A manual trial-balance workaround is being used while the municipality works with its SAP ERP and budget teams on procedural and system improvements; staff said testing and implementation could take about six months.

The discussion also covered decentralized grant administration and compliance, including the need for consistent departmental guidance and training on federal grant requirements such as procurement rules and Davis-Bacon. Members suggested exploring training resources and a clearer central point of contact for grant compliance and capital-asset tracking, but no formal recommendation or action was adopted. No contract award, purchase, funding allocation, procurement vote, or other spending decision was identified; the committee planned to address significant deficiencies at a future discussion.