Audit 12251

FY End
2023-06-30
Total Expended
$5.23M
Findings
2
Programs
1
Year: 2023 Accepted: 2024-01-18

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
8957 2023-002 Material Weakness - P
585399 2023-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $42,318 Yes 0

Contacts

Name Title Type
U2NLLRJ12N61 Connie Lundin Auditee
4064422821 Dane Hancock Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Accounting Accounting Policies: The accompanying Schedule of Expenditure of Federal Awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some of the amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements. The accompanying Schedule of Expenditure of Federal Awards is presented using the cost principles from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimus indirect cost rate from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles. The accompanying Schedule of Expenditure of Federal Awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some of the amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements. See Note 2.
Title: 2. Project Detail and Matching Funds Accounting Policies: The accompanying Schedule of Expenditure of Federal Awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some of the amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements. The accompanying Schedule of Expenditure of Federal Awards is presented using the cost principles from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimus indirect cost rate from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles. The following table summarizes project costs to date that were active during the year ended June 30, 2023, including cash and in-kind matching contributions expended by the Authority in accordance with the terms of the grant. The Authority receives federal contributions totaling 90% of actual expenditures incurred on qualified airport improvement projects, and the Authority provides the remaining match. The CARES Act provided funds to increase the federal share to 100% for certain Airport Improvement Program grants in 2023. During fiscal year 2023, the Authority applied $1,980,430 of expenses to Covid-19 Project No. 3-30-0042-062-2021. It was later found that the applied expenses were not eligible under that grant award. The Authority retrospectively assigned expenses from fiscal year 2022 to the grant award. Based on inquiries with the Federal Aviation Administration, the Authority has included the fiscal year 2022 expenses on the 2023 Schedule of Expenditures of Federal Awards. As such, the fiscal year 2023 Schedule of Expenditures of Federal Awards reports $5,232,340 of federal expenditures, but only $3,251,910 relate to fiscal year 2023 expenditures. See the qualified opinion on the Schedule of Expenditures of Federal Awards within the independent auditors' report.
Title: 3. Cost Principles Accounting Policies: The accompanying Schedule of Expenditure of Federal Awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some of the amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements. The accompanying Schedule of Expenditure of Federal Awards is presented using the cost principles from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimus indirect cost rate from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles. The accompanying Schedule of Expenditure of Federal Awards is presented using the cost principles from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles.
Title: 4. Indirect Costs Accounting Policies: The accompanying Schedule of Expenditure of Federal Awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some of the amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements. The accompanying Schedule of Expenditure of Federal Awards is presented using the cost principles from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimus indirect cost rate from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles. The Authority did not elect to use the 10% de minimus indirect cost rate from Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles.

Finding Details

Criteria Uniform Guidance §200.510(b) requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with §200.502 of the Uniform Guidance, “Basis for Determining Federal Awards Expended.” Condition Airport Improvement Project No. 3-30-0042-062-2021 (AIP 62) included fiscal year 2022 costs on the fiscal year 2023 SEFA. The SEFA reported total federal expenditures during the year of $5,232,340, but $1,980,430 were related to fiscal year 2022. Cause SEFA preparation controls were not operating appropriately. Context/Sampling Only one grant with these specific circumstances. Effect AIP 62 expenditures overstated the fiscal year 2023 SEFA and were improperly excluded on the fiscal year 2022 SEFA. Questioned Costs None reported.
Criteria Uniform Guidance §200.510(b) requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with §200.502 of the Uniform Guidance, “Basis for Determining Federal Awards Expended.” Condition Airport Improvement Project No. 3-30-0042-062-2021 (AIP 62) included fiscal year 2022 costs on the fiscal year 2023 SEFA. The SEFA reported total federal expenditures during the year of $5,232,340, but $1,980,430 were related to fiscal year 2022. Cause SEFA preparation controls were not operating appropriately. Context/Sampling Only one grant with these specific circumstances. Effect AIP 62 expenditures overstated the fiscal year 2023 SEFA and were improperly excluded on the fiscal year 2022 SEFA. Questioned Costs None reported.