FAC Explorer

Audit 292893

FY End
2023-06-30
Total Expended
$1.42M
Findings
6
Programs
1
Organization: Tuscola Area Airport Authority (MI)
Year: 2023 Accepted: 2024-02-29
Auditor: Anderson Tuckey Bernhardt & Doran PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
371203 2023-003 Significant Deficiency - A
371204 2023-003 Significant Deficiency - A
371205 2023-003 Significant Deficiency - A
947645 2023-003 Significant Deficiency - A
947646 2023-003 Significant Deficiency - A
947647 2023-003 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $1.05M Yes 1

Contacts

Name Title Type
KGLHD13LSDK7 Lynn Hayward Auditee
9892334124 Valerie Hartel Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Tuscola Area Airport Authority under programs of the federal government for the year ended June 30, 2023. 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 Tuscola Area Airport Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Tuscola Area Airport Authority.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on 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. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The Authority has elected not to use the 10-percent de-minimis indirect cost rate allowed under the Uniform Guidance. The Authority does not pass through federal funds.
Title: Reconciliation with Audited Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-003
Federal Program: Airport Improvement Program ALN #: 20.106 Federal Agency: U.S. Department of Transportation Pass-through entity: Michigan Department of Transportation Pass-through number: B-26-0016-3021, B-26-0016-2920, C-26-0016-2822 Criteria: In order to comply with the Uniform Guidance requirements, the Authority must have oversite on expenditures charges to federal grants. Condition: The Authority did not review and approve invoices charged to the federal grants nor input the corresponding activity into the general ledger. Context: During our audit, we identified federal grant activity that was not posted to the general ledger. In speaking with management, the Authority does not receive the invoices that are being charged to the grant. Effect: Without receiving copies of the invoices, the Authority’s trial balance is not properly stated, nor are they reviewing and approving the expenditures to ensure they are in compliance with the federal grant. Cause: The contractor directly submits invoices to MDOT to process for payment. Recommendation: We recommend the Authority receive copies of the invoices being charged to the grant to review for compliance with the federal grant and to record the activity into their general ledger. Client Response: We are aware of this deficiency and alternate procedures will be implemented to assist with the federal grant administration.
Finding 2023-003
Federal Program: Airport Improvement Program ALN #: 20.106 Federal Agency: U.S. Department of Transportation Pass-through entity: Michigan Department of Transportation Pass-through number: B-26-0016-3021, B-26-0016-2920, C-26-0016-2822 Criteria: In order to comply with the Uniform Guidance requirements, the Authority must have oversite on expenditures charges to federal grants. Condition: The Authority did not review and approve invoices charged to the federal grants nor input the corresponding activity into the general ledger. Context: During our audit, we identified federal grant activity that was not posted to the general ledger. In speaking with management, the Authority does not receive the invoices that are being charged to the grant. Effect: Without receiving copies of the invoices, the Authority’s trial balance is not properly stated, nor are they reviewing and approving the expenditures to ensure they are in compliance with the federal grant. Cause: The contractor directly submits invoices to MDOT to process for payment. Recommendation: We recommend the Authority receive copies of the invoices being charged to the grant to review for compliance with the federal grant and to record the activity into their general ledger. Client Response: We are aware of this deficiency and alternate procedures will be implemented to assist with the federal grant administration.
Finding 2023-003
Federal Program: Airport Improvement Program ALN #: 20.106 Federal Agency: U.S. Department of Transportation Pass-through entity: Michigan Department of Transportation Pass-through number: B-26-0016-3021, B-26-0016-2920, C-26-0016-2822 Criteria: In order to comply with the Uniform Guidance requirements, the Authority must have oversite on expenditures charges to federal grants. Condition: The Authority did not review and approve invoices charged to the federal grants nor input the corresponding activity into the general ledger. Context: During our audit, we identified federal grant activity that was not posted to the general ledger. In speaking with management, the Authority does not receive the invoices that are being charged to the grant. Effect: Without receiving copies of the invoices, the Authority’s trial balance is not properly stated, nor are they reviewing and approving the expenditures to ensure they are in compliance with the federal grant. Cause: The contractor directly submits invoices to MDOT to process for payment. Recommendation: We recommend the Authority receive copies of the invoices being charged to the grant to review for compliance with the federal grant and to record the activity into their general ledger. Client Response: We are aware of this deficiency and alternate procedures will be implemented to assist with the federal grant administration.
Finding 2023-003
Federal Program: Airport Improvement Program ALN #: 20.106 Federal Agency: U.S. Department of Transportation Pass-through entity: Michigan Department of Transportation Pass-through number: B-26-0016-3021, B-26-0016-2920, C-26-0016-2822 Criteria: In order to comply with the Uniform Guidance requirements, the Authority must have oversite on expenditures charges to federal grants. Condition: The Authority did not review and approve invoices charged to the federal grants nor input the corresponding activity into the general ledger. Context: During our audit, we identified federal grant activity that was not posted to the general ledger. In speaking with management, the Authority does not receive the invoices that are being charged to the grant. Effect: Without receiving copies of the invoices, the Authority’s trial balance is not properly stated, nor are they reviewing and approving the expenditures to ensure they are in compliance with the federal grant. Cause: The contractor directly submits invoices to MDOT to process for payment. Recommendation: We recommend the Authority receive copies of the invoices being charged to the grant to review for compliance with the federal grant and to record the activity into their general ledger. Client Response: We are aware of this deficiency and alternate procedures will be implemented to assist with the federal grant administration.
Finding 2023-003
Federal Program: Airport Improvement Program ALN #: 20.106 Federal Agency: U.S. Department of Transportation Pass-through entity: Michigan Department of Transportation Pass-through number: B-26-0016-3021, B-26-0016-2920, C-26-0016-2822 Criteria: In order to comply with the Uniform Guidance requirements, the Authority must have oversite on expenditures charges to federal grants. Condition: The Authority did not review and approve invoices charged to the federal grants nor input the corresponding activity into the general ledger. Context: During our audit, we identified federal grant activity that was not posted to the general ledger. In speaking with management, the Authority does not receive the invoices that are being charged to the grant. Effect: Without receiving copies of the invoices, the Authority’s trial balance is not properly stated, nor are they reviewing and approving the expenditures to ensure they are in compliance with the federal grant. Cause: The contractor directly submits invoices to MDOT to process for payment. Recommendation: We recommend the Authority receive copies of the invoices being charged to the grant to review for compliance with the federal grant and to record the activity into their general ledger. Client Response: We are aware of this deficiency and alternate procedures will be implemented to assist with the federal grant administration.
Finding 2023-003
Federal Program: Airport Improvement Program ALN #: 20.106 Federal Agency: U.S. Department of Transportation Pass-through entity: Michigan Department of Transportation Pass-through number: B-26-0016-3021, B-26-0016-2920, C-26-0016-2822 Criteria: In order to comply with the Uniform Guidance requirements, the Authority must have oversite on expenditures charges to federal grants. Condition: The Authority did not review and approve invoices charged to the federal grants nor input the corresponding activity into the general ledger. Context: During our audit, we identified federal grant activity that was not posted to the general ledger. In speaking with management, the Authority does not receive the invoices that are being charged to the grant. Effect: Without receiving copies of the invoices, the Authority’s trial balance is not properly stated, nor are they reviewing and approving the expenditures to ensure they are in compliance with the federal grant. Cause: The contractor directly submits invoices to MDOT to process for payment. Recommendation: We recommend the Authority receive copies of the invoices being charged to the grant to review for compliance with the federal grant and to record the activity into their general ledger. Client Response: We are aware of this deficiency and alternate procedures will be implemented to assist with the federal grant administration.