Municipal Audit Committee Meeting

The Municipality of Anchorage Municipal Audit Committee met on October 27, 2026, to review an internal audit of the Health Department’s Community Development Block Grant (CDBG) program. The audit identified nine findings, primarily involving performance oversight, grant and contract management, procurement documentation, public participation, and incomplete files. Officials said the findings concerned controls and documentation—not CDBG funds being spent on ineligible projects—and reported that corrective procedures had been put in place, including requiring Title 7 procurement processes for CDBG, HOME, and ESG disbursements; tracking agreements and deadlines; and using standardized pre-execution checklists and quarterly reviews. Four sampled subrecipient selections lacked documentation sufficient to verify a competitive process; those recipients are not currently receiving funds, which remain held. Staff reported that three or four grantees still had procurement-compliance issues to resolve. No contract award or spending motion was made. Staff also said 25 of 40 mobile-home repairs had been completed, and that some administrative costs may be withheld for untimely performance; no penalties or withholdings had been applied since June 16. An RFP selection of an organization identified in the transcript as Sally Stew’s was mentioned in connection with the funds workflow, but its scope and dollar value were not clear.

The committee also discussed a proposal to have boards and commissions submit more timely reports, potentially reducing the internal auditor’s workload on sunset audits; no vote was recorded on that proposal. The auditor said sunset audits take about 40–50 staff hours each, with roughly 19–20 audits scheduled over three years. No procurement activity was identified for this second item.