Audit 16861

FY End
2022-06-30
Total Expended
$15.05M
Findings
8
Programs
4
Year: 2022 Accepted: 2023-02-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
12434 2022-002 Significant Deficiency - L
12435 2022-002 Significant Deficiency - L
12436 2022-001 Significant Deficiency Yes B
12437 2022-001 Significant Deficiency Yes B
588876 2022-002 Significant Deficiency - L
588877 2022-002 Significant Deficiency - L
588878 2022-001 Significant Deficiency Yes B
588879 2022-001 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $9.25M Yes 1
20.106 Covid-19: Airport Improvement Program $4.55M Yes 1
20.930 Payments for Small Community Air Service Development $324,968 - 0
11.307 Covid-19: Economic Adjustment Assistance $50,000 Yes 1

Contacts

Name Title Type
UKXPQL7S5288 Joshua Potter, CPA Auditee
3043448033 Chris Lambert, Cpa, Cgma, Ccifp Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards (the Schedule) are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of the Authority under programs of the federal government for the year ended June 30, 2022. The information in this Schedule 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 position, or cash flows of the Authority.

Finding Details

2022-002 INTERNAL CONTROLS OVER REPORTING Federal Program Information: Federal Agency and Program Name: U.S. Department of Commerce Economic Adjustment Assistance Grant Number: 01-79-14958 Federal Assistance Listing Number COVID-19 11.307 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: The Authority submitted the periodic performance reports required under the terms of the award without going through an appropriate review and approval process. Questioned Costs: Not Applicable Context: Total federal expenditures for the Economic Adjustment Assistance program were $924,647 for the year ended June 30, 2022. Cause: The Authority does not have adequate internal controls and policies and procedures in place to ensure all reports are reviewed for accuracy prior to initial submission. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Information included in the required reports may be inaccurate. Recommendation: We recommend that the Authority implement controls to ensure that reports are properly reviewed for accuracy prior to initial submission. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2022-002 INTERNAL CONTROLS OVER REPORTING Federal Program Information: Federal Agency and Program Name: U.S. Department of Commerce Economic Adjustment Assistance Grant Number: 01-79-14958 Federal Assistance Listing Number COVID-19 11.307 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: The Authority submitted the periodic performance reports required under the terms of the award without going through an appropriate review and approval process. Questioned Costs: Not Applicable Context: Total federal expenditures for the Economic Adjustment Assistance program were $924,647 for the year ended June 30, 2022. Cause: The Authority does not have adequate internal controls and policies and procedures in place to ensure all reports are reviewed for accuracy prior to initial submission. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Information included in the required reports may be inaccurate. Recommendation: We recommend that the Authority implement controls to ensure that reports are properly reviewed for accuracy prior to initial submission. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2022-001 INTERNAL CONTROLS OVER ALLOWABILITY (REPEAT OF PRIOR YEAR FINDINGS 2021-001 AND 2020-001) Federal Program Information: Federal Agency and Program Name: U.S. Department of Transportation Airport Improvement Program Grant Number: AIP #3-54-0003-063-2018; AIP #3-54-0003-067-2019; AIP #3-54-0003-068-2020; AIP #3-54-0003-069-2020; AIP #3-54-0003-070-2020; AIP #3-54-0003-071-2020; AIP #3-54-0003-072-2021; AIP #3-54-0003-073-2021; AIP #3-54-0003-076-2022 Federal Assistance Listing Number 20.106/COVID-19 20.106 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: For one of the forty payroll transactions selected for testing, the expenditure was not properly reviewed and approved. Questioned Costs: Not Applicable Context: Total federal expenditures for the Airport Improvement Program were $13,800,823 for the year ended June 30, 2022. Cause: The Authority did not follow the policies and procedures in place to ensure all payroll transactions are reviewed and approved. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Expenditures may be paid that are not allowable. Recommendation: We recommend that the Authority implement controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2022-001 INTERNAL CONTROLS OVER ALLOWABILITY (REPEAT OF PRIOR YEAR FINDINGS 2021-001 AND 2020-001) Federal Program Information: Federal Agency and Program Name: U.S. Department of Transportation Airport Improvement Program Grant Number: AIP #3-54-0003-063-2018; AIP #3-54-0003-067-2019; AIP #3-54-0003-068-2020; AIP #3-54-0003-069-2020; AIP #3-54-0003-070-2020; AIP #3-54-0003-071-2020; AIP #3-54-0003-072-2021; AIP #3-54-0003-073-2021; AIP #3-54-0003-076-2022 Federal Assistance Listing Number 20.106/COVID-19 20.106 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: For one of the forty payroll transactions selected for testing, the expenditure was not properly reviewed and approved. Questioned Costs: Not Applicable Context: Total federal expenditures for the Airport Improvement Program were $13,800,823 for the year ended June 30, 2022. Cause: The Authority did not follow the policies and procedures in place to ensure all payroll transactions are reviewed and approved. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Expenditures may be paid that are not allowable. Recommendation: We recommend that the Authority implement controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2022-002 INTERNAL CONTROLS OVER REPORTING Federal Program Information: Federal Agency and Program Name: U.S. Department of Commerce Economic Adjustment Assistance Grant Number: 01-79-14958 Federal Assistance Listing Number COVID-19 11.307 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: The Authority submitted the periodic performance reports required under the terms of the award without going through an appropriate review and approval process. Questioned Costs: Not Applicable Context: Total federal expenditures for the Economic Adjustment Assistance program were $924,647 for the year ended June 30, 2022. Cause: The Authority does not have adequate internal controls and policies and procedures in place to ensure all reports are reviewed for accuracy prior to initial submission. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Information included in the required reports may be inaccurate. Recommendation: We recommend that the Authority implement controls to ensure that reports are properly reviewed for accuracy prior to initial submission. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2022-002 INTERNAL CONTROLS OVER REPORTING Federal Program Information: Federal Agency and Program Name: U.S. Department of Commerce Economic Adjustment Assistance Grant Number: 01-79-14958 Federal Assistance Listing Number COVID-19 11.307 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: The Authority submitted the periodic performance reports required under the terms of the award without going through an appropriate review and approval process. Questioned Costs: Not Applicable Context: Total federal expenditures for the Economic Adjustment Assistance program were $924,647 for the year ended June 30, 2022. Cause: The Authority does not have adequate internal controls and policies and procedures in place to ensure all reports are reviewed for accuracy prior to initial submission. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Information included in the required reports may be inaccurate. Recommendation: We recommend that the Authority implement controls to ensure that reports are properly reviewed for accuracy prior to initial submission. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2022-001 INTERNAL CONTROLS OVER ALLOWABILITY (REPEAT OF PRIOR YEAR FINDINGS 2021-001 AND 2020-001) Federal Program Information: Federal Agency and Program Name: U.S. Department of Transportation Airport Improvement Program Grant Number: AIP #3-54-0003-063-2018; AIP #3-54-0003-067-2019; AIP #3-54-0003-068-2020; AIP #3-54-0003-069-2020; AIP #3-54-0003-070-2020; AIP #3-54-0003-071-2020; AIP #3-54-0003-072-2021; AIP #3-54-0003-073-2021; AIP #3-54-0003-076-2022 Federal Assistance Listing Number 20.106/COVID-19 20.106 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: For one of the forty payroll transactions selected for testing, the expenditure was not properly reviewed and approved. Questioned Costs: Not Applicable Context: Total federal expenditures for the Airport Improvement Program were $13,800,823 for the year ended June 30, 2022. Cause: The Authority did not follow the policies and procedures in place to ensure all payroll transactions are reviewed and approved. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Expenditures may be paid that are not allowable. Recommendation: We recommend that the Authority implement controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2022-001 INTERNAL CONTROLS OVER ALLOWABILITY (REPEAT OF PRIOR YEAR FINDINGS 2021-001 AND 2020-001) Federal Program Information: Federal Agency and Program Name: U.S. Department of Transportation Airport Improvement Program Grant Number: AIP #3-54-0003-063-2018; AIP #3-54-0003-067-2019; AIP #3-54-0003-068-2020; AIP #3-54-0003-069-2020; AIP #3-54-0003-070-2020; AIP #3-54-0003-071-2020; AIP #3-54-0003-072-2021; AIP #3-54-0003-073-2021; AIP #3-54-0003-076-2022 Federal Assistance Listing Number 20.106/COVID-19 20.106 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: For one of the forty payroll transactions selected for testing, the expenditure was not properly reviewed and approved. Questioned Costs: Not Applicable Context: Total federal expenditures for the Airport Improvement Program were $13,800,823 for the year ended June 30, 2022. Cause: The Authority did not follow the policies and procedures in place to ensure all payroll transactions are reviewed and approved. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Expenditures may be paid that are not allowable. Recommendation: We recommend that the Authority implement controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.