Anchorage Health Department says audit fixes are in place, though some grant work remains

Anchorage Health Department Director Kimberly Rash told the Assembly's Municipal Audit Committee on Oct. 21 that the department has put in place the corrective actions it promised after an internal audit found nine problems in how it runs its federal Community Development Block Grant program.

"I am happy to say that all of our comments that are in the audit have been put into place," Rash said. She cited competitive procurement under city rules, project tracking in Microsoft Planner, documentation checklists and supervisor review.

The June audit found four of six sampled agreements had expired, one for more than a year. Auditors could not verify how four grant recipients chosen between 2021 and 2023 were selected. The department missed the first of four required hearings on its 2024 spending plan, and subrecipients did not follow 94% of reporting requirements from January 2023 through March 2026. Rash said none of the findings involved money going to ineligible projects.

As Alaska News reported July 14, a mobile-home repair subrecipient had finished 12 units by March 31 against a 2025 goal of 20. Rash said 25 repairs are now complete against 40 units. A shelter provider logged 5,526 bed nights against a goal of 9,000.

Under questioning from William Falsey, who chaired the meeting, officials said three items remain unfinished: an amendment extending the repair agreement to 2027, five-year property-use language in two property acquisition agreements, and procurement compliance for three or four grantees. Rash said she hopes to resolve the procurement issue by Jan. 1.

Officials said no penalties or withholdings have been applied since June 15, though Human Services Division Manager Darcie Montalvo said some administrative costs for the repair subrecipient will be withheld. Rash said the four unverified recipients are not receiving funds, which remain held while the department decides where to move them.