Audit 11331

2022-0001 Airport Improvement Program Criteria and Condition: This was the first year that the Commission received federal funding in excess of the Single Audit threshold. With that increased funding came additional audit and reporting requirements, one of which is that the Single Audit report be completed and submitted to the Federal Audit Clearinghouse within nine months of year end. That deadline was not met. Context: Under the Single Audit Act, there are additional requirements for the compliance audit that the Commission does not routinely have to meet with its annual financial audit. However, knowing that there are additional requirements and ensuring that all the compliance elements are met is one of the responsibilities of the Commission and its management. For example, performance reports filed periodically during the project were included in the compliance requirements to be tested. The Commission relied on outside parties to complete and retain those reports instead of maintaining their own copies, which would have facilitated the testing process.There were also delays related to the items noted above in the financial statement audit with the improper accounting and lack of year end accruals. The additional time needed to ensure the federal expenditures were correct so that the Single Audit report would be accurate contributed to the delay in issuing the report. Cause: The Airport Commission has a very small staff, and it is not unusual for management to rely on outside contractors for accounting and grant assistance. However, because of the large grant funds received it was imperative that management recognize the added requirements and endeavor to obtain and retain all the necessary reports and supporting documentation related to the grant that would have facilitated the compliance audit process. Effect: The Commission was out of compliance with the Single Audit Act with respect to the reporting requirements. Recommendation: The Commission should consider implementing a process whereby all information related a specific project, regardless of funding source, need to be retained in-house. Views of Responsible Officials and Planned Corrective Actions: The Natchez Adams County Airport Commission has already corrected this item by engaging new engineering consultants and requesting project reports on a timely basis. These are to be printed and placed in a locked file cabinet, along with payment documentation, so the Airport is not awaiting reports from third parties on future projects and audits.

2022-0001 Airport Improvement Program Criteria and Condition: This was the first year that the Commission received federal funding in excess of the Single Audit threshold. With that increased funding came additional audit and reporting requirements, one of which is that the Single Audit report be completed and submitted to the Federal Audit Clearinghouse within nine months of year end. That deadline was not met. Context: Under the Single Audit Act, there are additional requirements for the compliance audit that the Commission does not routinely have to meet with its annual financial audit. However, knowing that there are additional requirements and ensuring that all the compliance elements are met is one of the responsibilities of the Commission and its management. For example, performance reports filed periodically during the project were included in the compliance requirements to be tested. The Commission relied on outside parties to complete and retain those reports instead of maintaining their own copies, which would have facilitated the testing process.There were also delays related to the items noted above in the financial statement audit with the improper accounting and lack of year end accruals. The additional time needed to ensure the federal expenditures were correct so that the Single Audit report would be accurate contributed to the delay in issuing the report. Cause: The Airport Commission has a very small staff, and it is not unusual for management to rely on outside contractors for accounting and grant assistance. However, because of the large grant funds received it was imperative that management recognize the added requirements and endeavor to obtain and retain all the necessary reports and supporting documentation related to the grant that would have facilitated the compliance audit process. Effect: The Commission was out of compliance with the Single Audit Act with respect to the reporting requirements. Recommendation: The Commission should consider implementing a process whereby all information related a specific project, regardless of funding source, need to be retained in-house. Views of Responsible Officials and Planned Corrective Actions: The Natchez Adams County Airport Commission has already corrected this item by engaging new engineering consultants and requesting project reports on a timely basis. These are to be printed and placed in a locked file cabinet, along with payment documentation, so the Airport is not awaiting reports from third parties on future projects and audits.