The Anchorage Coalition to End Homelessness, the cornerstone of the Anchorage homelessness industrial complex made up of several nonprofits, is not doing a good job with its financial reporting and accountability, according to an independent audit of the group for 2023.
The audit uncovered significant problems with the group’s internal financial and governance controls, raising concerns about its ability to manage funds and maintain accountability as it works to combat homelessness.
The audit identified two primary issues: a material weakness and a significant deficiency in the organization’s internal controls. The material weakness points to a serious flaw that could undermine ACEH’s ability to reliably track and report financial data. According to the findings, this deficiency increases the risk of failing to prevent or correct noncompliance with regulatory or operational requirements, potentially jeopardizing the nonprofit’s credibility and effectiveness.
In addition, the audit highlighted a significant deficiency, less severe than the material weakness but still notable, indicating another gap in financial or governance controls. While this issue is not considered as critical, auditors emphasized that it warranted immediate attention from ACEH’s management to ensure the organization can fulfill its mission without further complications.
These findings were first reported by ProPublica.
ACEH, which serves as the lead agency for the Anchorage Continuum of Care and collaborates with local “stakeholders” to implement the Anchored Home 2023-28 plan, has a goal of making homelessness “rare, brief, and one-time.” But in fact, homelessness has worsened during its existence.
Between 2019 and 2024, annual point-in-time surveys show an increase in the number of people experiencing homelessness. The annual count recorded a 54% rise in Anchorage’s homeless population over five years. In January 2024, the year after the audit, Anchorage’s count identified over 1,700 people experiencing literal homelessness—living in shelters, transitional housing, or unsheltered—compared to a more stable range of around 1,800 to 2,000 statewide in the years prior to 2019.
ACEH receives funding from various sources, including the Municipality of Anchorage, the State of Alaska, and millions of dollars of federal taxpayer-funded grants.
“ACEH received 66% and 44% of its support and revenue from government support for the years ended June 30, 2023 and 2022, respectively. A significant reduction in this support would have a substantial impact on ACEH,” the audit says.
Total government grant revenue for 2023 was $2,637,770.
The material weakness, in particular, could have far-reaching implications. Such deficiencies often signal a need for stronger oversight, improved financial tracking systems, or enhanced staff training. If unaddressed, it could hinder ACEH’s ability to secure future funding or maintain trust among donors and partners.
Among items deficient were accounts payable, property depreciation, and financial reporting. The items were scheduled to be resolved in 2024.
“During our testing of payroll transactions, we noted a substantial number of transactions which we were unable to verify pay rates or a personnel action form indicating approved coding, as required by the Organization’s policies and procedures. The finance department lacked the necessary supervisory capacity to determine and approve personnel information essential to determine the accuracy of payroll expenses. For each of the major programs listed above we attempted to test four payroll transactions and management was unable to provide supporting documentation of pay rates or personnel action forms for nearly all transactions tested,” the audit noted.
More alarming is that the head of the agency is a member of the Anchorage Assembly — Meg Zaletel, who is the Assembly’s vice chair. The Anchorage Assembly has awarded millions of dollars to Zaletel’s group over the past few years.
Dig into the audit at this link.
