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Federal Awards Reports in Accordance
with the Uniform Guidance
June 30, 2022
Alaska Energy Authority
(A Component Unit of the State of Alaska)
Alaska Energy Authority
(A Component Unit of the State of Alaska)
Table of Contents
June 30, 2022
Compliance Section
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards ................................................................................................................................................................... 1
Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control
Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform
Guidance .................................................................................................................................................................... 3
Schedule of Expenditures of Federal Awards ............................................................................................................ 6
Notes to Schedule of Expenditures of Federal Awards ............................................................................................. 8
Schedule of Findings and Questioned Costs .............................................................................................................. 9
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Independent Auditor’s Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
To the Board of Directors
Alaska Energy Authority
Anchorage, Alaska
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities and each major fund of Alaska Energy Authority, which comprise
the statement of financial position as of June 30, 2022, and the related statements of activities, and cash
flows for the year then ended, and the related notes to the financial statements, and have issued our
report thereon dated December 22, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Alaska Energy
Authority's internal control over financial reporting (internal control) as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of Alaska
Energy Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of
Alaska Energy Authority's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
2
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Alaska Energy Authority's financial statements
are free from material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Boise, Idaho
December 22, 2022
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Independent Auditor's Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of
Federal Awards Required by the Uniform Guidance
To the Board of Directors
Alaska Energy Authority
Anchorage, Alaska
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Alaska Energy Authority’s compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
effect on each of Alaska Energy Authority’s major federal programs for the year ended June 30, 2022.
Alaska Energy Authority’s major federal programs are identified in the summary of auditor’s results
section of the accompanying schedule of findings and questioned costs.
In our opinion, Alaska Energy Authority complied, in all material respects, with the compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended June 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described
in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of Alaska Energy Authority and to meet our other ethical
responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
compliance for each major federal program. Our audit does not provide a legal determination of Alaska
Energy Authority’s compliance with the compliance requirements referred to above.
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Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements
of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to Alaska
Energy Authority’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on Alaska Energy Authority’s compliance based on our audit. Reasonable assurance is a high
level of assurance but is not absolute assurance and therefore is not a guarantee that an audit
conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will
always detect material noncompliance when it exists. The risk of not detecting material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the
compliance requirements referred to above is considered material, if there is a substantial likelihood
that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the
report on compliance about Alaska Energy Authority’s compliance with the requirements of each major
federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding Alaska Energy Authority’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered
necessary in the circumstances.
•Obtain an understanding of Alaska Energy Authority’s internal control over compliance relevant to
the audit in order to design audit procedures that are appropriate in the circumstances and to test
and report on internal control over compliance in accordance with the Uniform Guidance, but not
for the purpose of expressing an opinion on the effectiveness of Alaska Energy Authority’s internal
control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
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in internal control over compliance with a type of compliance requirement of a federal program that is
less severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type activities,
and each major fund of Alaska Energy Authority as of and for the year ended June 30, 2022, and the
related notes to the financial statements, which collectively comprise Alaska Energy Authority’s basic
financial statements. We issued our report thereon dated December 22, 2022, which contained
unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming
opinions on the financial statements that collectively comprise the basic financial statements. The
accompanying schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by the Uniform Guidance and is not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the schedule of
expenditures of federal awards is fairly stated in all material respects in relation to the basic financial
statements as a whole.
Boise, Idaho
December 22, 2022
See Notes to Schedule of Expenditures of Federal Awards. 6
Alaska Energy Authority
(A Component Unit of the State of Alaska)
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2022
Federal Financial
Assistance Pass-Through Amounts
Listing/Federal Entity Identifying Passed-Through
Federal Grantor/Pass-Through Grantor/Program or Cluster Title CFDA Number Number Expenditures to Subrecipients
Department of Agriculture
Direct Award
Wood Utilization Assistance 10.674 35,420$ 17,338$
Wood Utilization Assistance 10.674 122,799 67,000
Wood Utilization Assistance 10.674 17,435 -
Total Department of Agriculture 175,654 84,338
Department of Treasury
Direct Award
COVID-19 Electric Utility Grants 21.027 2,982,141 -
COVID-19 Electric Utility Grants 21.027 99,496 -
Total Department of Treasury 3,081,637 -
Environmental Protection Agency
Direct Award
State Clean Diesel Grant Program 66.040 18,996 12,870
State Clean Diesel Grant Program 66.040 372,349 320,647
State Clean Diesel Grant Program 66.040 8,045 306
Total Environmental Protection Agency 399,390 333,823
Department of Energy
Direct Award
State Energy Program 81.041 2,517 2,179
State Energy Program 81.041 204,603 20,000
State Energy Program 81.041 475,374 40,000
Passed through Washington State University
Energy Efficiency and Renewable Energy, Information Dissemination,
Outreach, Training and Technical Analysis/Assistance 81.117 1,263 -
Direct Award
State Energy Program Special Projects 81.119 48,700 -
Electricity Delivery and Energy Reliability, Research, Development,
and Analysis 81.122 11,754 11,754
Total Department of Energy 744,211$ 73,933$
See Notes to Schedule of Expenditures of Federal Awards. 7
Alaska Energy Authority
(A Component Unit of the State of Alaska)
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2022
Federal Financial
Assistance Pass-Through Amounts
Listing/Federal Entity Identifying Passed-Through
Federal Grantor/Pass-Through Grantor/Program or Cluster Title CFDA Number Number Expenditures to Subrecipients
Denali Commission Program
Direct Award
Tatitlek Bulk Fuel Upgrade 90.100 108,762$ 108,845$
Chalkytsik Bulk Fuel Facility Design 90.100 90,251 85,350
START Communities Technical Assistance 90.100 42,109 22,920
Beaver Bulk Fuel Facility Design 90.100 224,657 219,290
Bulk Fuel Operator Training 90.100 226,888 -
Circuit Rider Program 90.100 286,252 -
Gen Set Maintenance and Improvement Program 90.100 48,465 (4,639)
Miscellaneous Small Maintenance and Improvement Project 90.100 492,841 245,452
Power Plant Operator Training 90.100 133,785 -
Twin Hills RPSU #350294 Conceptual Design Report 90.100 1,305 -
Itinerant Utility Training 90.100 51,347 -
RPSU Maintenance and Improvement Program - Statewide 90.100 937,098 720,207
RPSU Inventory and Assessment 90.100 946 -
RPSU Akhiok, Alaska 90.100 17,681 17,681
RPSU Venetie, Alaska 90.100 51,255 21,293
Barge Headers and Fill Lines 90.100 250,170 49,550
Bulk Fuel Storage Facility Upgrade - Nunapitchuk, Alaska 90.100 734,207 712,169
RPSU Napaskiak, Alaska 90.100 77,042 59,049
RPSU Nikolai, Alaska 90.100 150,303 123,671
RPSU Nelson Lagoon, Alaska 90.100 24,814 7,930
RPSU Rampart, Alaska 90.100 287,607 256,370
Bulk Fuel Storage Upgrade - Scammon Bay, Alaska 90.100 21,067 -
Village Energy Efficient Program - Statewide 90.100 200,077 149,513
Bulk Fuel Upgrade - Ekwok, Alaska 90.100 92,649 82,500
Engineering Library 90.100 6,684 -
Craig High School Biomass Project 90.100 601 -
Port Heiden Phase I Electrical Distribution Upgrades 90.100 108,041 74,430
Bulk Fuel Inventory and Assessment 90.100 7,826 -
Remote Power System Upgrade - Rampart 90.100 9,130 6,182
RPSU Nikolai, Alaska 90.100 1,224,069 1,214,295
DOE Littoral Power Systems Hydrokinetic Project 90.100 1,282 -
Total Denali Commission Program 5,909,211 4,172,056
Total Federal Financial Assistance 10,310,103$ 4,664,150$
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Alaska Energy Authority
(A Component Unit of the State of Alaska)
Notes to Schedule of Expenditures of Federal Awards
Year Ended June 30, 2022
Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of Alaska Energy Authority (the Authority) under programs of the federal government for the year ended June
30, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the
Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows
of the Authority.
Note 2 - Summary of Significant Accounting Policies
Expenditures reported in the schedule are reported on the accrual basis of accounting, except for subrecipient
expenditures which are recorded on the cash basis. When applicable, such expenditures are recognized
following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement.
Note 3 - Indirect Cost Rate
The Authority has elected to use the 10% de minimis cost rate.
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Alaska Energy Authority
(A Component Unit of the State of Alaska)
Schedule of Findings and Questioned Costs
Year Ended June 30, 2022
Section 1 – Summary of Auditor’s Results
Financial Statements
Type of auditor's report issued:Unmodified
Internal control over financial reporting:
Material weaknesses identified?No
Significant deficiencies identified not considered to be material weaknesses?None reported
Noncompliance material to financial statements noted?No
Federal Awards
Internal control over major programs:
Material weaknesses identified?No
Significant deficiencies identified not considered to be material weaknesses?None reported
Type of auditor's report issued on compliance for major programs:Unmodified
Any audit findings disclosed that are required to be reported in
accordance with Uniform Guidance 2 CFR 200.516:No
Identification of major programs:
Federal
Financial
Assistance
Name of Federal Program Listing
Denali Commission Program 90.100
COVID-19 Electric Utility Relief Program 21.027
Dollar threshold used to distinguish between Type A
and type B programs:750,000$
Auditee qualified as low-risk auditee?No