FAC Explorer

Audit 300702

FY End
2023-09-30
Total Expended
$2.74M
Findings
2
Programs
1
Organization: City of Naples Airport Authority (FL)
Year: 2023 Accepted: 2024-03-29
Auditor: Msl

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389809 2023-001 Significant Deficiency - G
966251 2023-001 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $327,195 Yes 0

Contacts

Name Title Type
MRYDWCGQHPA5 Ken Warriner Auditee
2398514764 Jeff Wolf Auditor
No contacts on file

Notes to SEFA

Title: General Accounting Policies: The Authority’s basis of accounting is further described in Note 1 of the accompanying basic financial statements. The accompanying Schedule is presented using the accrual basis of accounting. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) presents the activity of all federal awards programs of the Authority for the year ended September 30, 2023.
Title: Basis of Accounting Accounting Policies: The Authority’s basis of accounting is further described in Note 1 of the accompanying basic financial statements. The accompanying Schedule is presented using the accrual basis of accounting. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. The Authority’s basis of accounting is further described in Note 1 of the accompanying basic financial statements. The accompanying Schedule is presented using the accrual basis of accounting. Under the accrual basis, expenditures are recognized in the period liabilities are incurred.
Title: Indirect Cost Rate Accounting Policies: The Authority’s basis of accounting is further described in Note 1 of the accompanying basic financial statements. The accompanying Schedule is presented using the accrual basis of accounting. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. The Authority has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001 Significant Deficiency – Matching Federal Assistance Listing No. 20.106 U.S. Department of Transportation Airport Improvement Program Criteria: All match funding must be provided in compliance with the requirements of 2 CFR Part 200.306. The Authority’s share of projects costs on an Airport Improvement Grant is defined in 49 USC 47109 and set forth in the grant agreement. The nonfederal share was 10 percent. Condition: Grant number 3-12-0053-040-2022 request for reimbursement number 4 included the nonfederal share for one invoice. Cause: The form used by the Authority contained a formula error that resulted in the Airport Improvement Program share to calculate at 100 percent instead of the required 90 percent. The error was not identified in the Authority’s review process of reimbursement number 4. It was subsequently identified by the Authority during the preparation of a subsequent grant draw. Effect: This condition resulted in an overpayment to the Authority of $62,469. If not corrected in future drawdowns, the grantor agency could deem the Authority to be non-compliant. Questioned Costs: Not applicable. Recommendation: We recommend that the Authority contact the grantor agency to correct the overpayment and also review its internal controls as it relates to complying with matching requirements.
Finding 2023-001
Finding 2023-001 Significant Deficiency – Matching Federal Assistance Listing No. 20.106 U.S. Department of Transportation Airport Improvement Program Criteria: All match funding must be provided in compliance with the requirements of 2 CFR Part 200.306. The Authority’s share of projects costs on an Airport Improvement Grant is defined in 49 USC 47109 and set forth in the grant agreement. The nonfederal share was 10 percent. Condition: Grant number 3-12-0053-040-2022 request for reimbursement number 4 included the nonfederal share for one invoice. Cause: The form used by the Authority contained a formula error that resulted in the Airport Improvement Program share to calculate at 100 percent instead of the required 90 percent. The error was not identified in the Authority’s review process of reimbursement number 4. It was subsequently identified by the Authority during the preparation of a subsequent grant draw. Effect: This condition resulted in an overpayment to the Authority of $62,469. If not corrected in future drawdowns, the grantor agency could deem the Authority to be non-compliant. Questioned Costs: Not applicable. Recommendation: We recommend that the Authority contact the grantor agency to correct the overpayment and also review its internal controls as it relates to complying with matching requirements.