FAC Explorer

Audit 305388

FY End
2023-12-31
Total Expended
$22.26M
Findings
8
Programs
1
Organization: Grand Forks Regional Airport Authority (ND)
Year: 2023 Accepted: 2024-05-02
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
395758 2023-003 Significant Deficiency - L
395759 2023-004 Significant Deficiency - B
395760 2023-003 Significant Deficiency - L
395761 2023-004 Significant Deficiency - B
972200 2023-003 Significant Deficiency - L
972201 2023-004 Significant Deficiency - B
972202 2023-003 Significant Deficiency - L
972203 2023-004 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $9.38M Yes 2

Contacts

Name Title Type
YJB8S4A7CM25 Krista Martin Auditee
7017956981 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule includes the federal award activity of the Grand Forks Regional Airport Authority for the year ended December 31, 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 Grand Forks Regional Airport Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Grand Forks Regional Airport Authority.

Finding Details

Finding 2023-003
2023-003 U.S. Department of Transportation – AL #20.106 Airport Improvement Program – Reporting Grant Award: 3-38-0022-064-2022 Criteria The Authority is required to submit payment requests using the DOT Electronic Grants payment system, Delphi e-Invoicing. These requests must meet the standards described in 2 CFR ss 200.302 and 200.305. Condition During review of submitted Request for Reimbursements and Outlay reports, it was noted that one request submitted was not accurately prepared as there were two instances in which the amount requested was greater than invoice documentation, additionally the request included a request for reimbursement of AIP ineligible costs. As of December 31, 2023 no funds have been returned to U.S. DOT. Questioned Costs N/A Context We reviewed the project financial summary for two of the 19 requests submitted during 2023 Cause Employee oversight. Effect The Authority could have had federal funding delayed or reduced. Recommendation We recommend that the Authority implement internal controls to ensure all reporting is accurately filed. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Finding 2023-004
2023-004 U.S. Department of Department of Transportation – AL #20.106 Airport Improvement Program – Allowable Costs Grant Award: 3-38-0022-064-2022 & 3-38-0022-056-2021 Criteria The Authority is required to ensure costs charged to the AIP program comply with the cost principles at 2 CFR 200, Subpart E, and the AIP handbook. Condition During Review of costs charged to the AIP program, it was noted that the Authority submitted a payment request and subsequently received AIP funds for Payroll and Benefit expenses that were previously reimbursed. Additionally, the Authority submitted a payment request and subsequently received AIP funds for AIP Ineligible Constructions costs. As of December 31, 2023 no funds have been returned to U.S. DOT. Questioned Costs $129,874 Context We reviewed all expenditures charged to the AIP program Cause Employee oversight. Effect The questioned cost could potentially result in unallowable costs for the program. Recommendation We recommend that the Authority implement internal controls to ensure all payment requests, related invoices and expenditures are properly reviewed for allowability and accuracy. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Finding 2023-003
2023-003 U.S. Department of Transportation – AL #20.106 Airport Improvement Program – Reporting Grant Award: 3-38-0022-064-2022 Criteria The Authority is required to submit payment requests using the DOT Electronic Grants payment system, Delphi e-Invoicing. These requests must meet the standards described in 2 CFR ss 200.302 and 200.305. Condition During review of submitted Request for Reimbursements and Outlay reports, it was noted that one request submitted was not accurately prepared as there were two instances in which the amount requested was greater than invoice documentation, additionally the request included a request for reimbursement of AIP ineligible costs. As of December 31, 2023 no funds have been returned to U.S. DOT. Questioned Costs N/A Context We reviewed the project financial summary for two of the 19 requests submitted during 2023 Cause Employee oversight. Effect The Authority could have had federal funding delayed or reduced. Recommendation We recommend that the Authority implement internal controls to ensure all reporting is accurately filed. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Finding 2023-004
2023-004 U.S. Department of Department of Transportation – AL #20.106 Airport Improvement Program – Allowable Costs Grant Award: 3-38-0022-064-2022 & 3-38-0022-056-2021 Criteria The Authority is required to ensure costs charged to the AIP program comply with the cost principles at 2 CFR 200, Subpart E, and the AIP handbook. Condition During Review of costs charged to the AIP program, it was noted that the Authority submitted a payment request and subsequently received AIP funds for Payroll and Benefit expenses that were previously reimbursed. Additionally, the Authority submitted a payment request and subsequently received AIP funds for AIP Ineligible Constructions costs. As of December 31, 2023 no funds have been returned to U.S. DOT. Questioned Costs $129,874 Context We reviewed all expenditures charged to the AIP program Cause Employee oversight. Effect The questioned cost could potentially result in unallowable costs for the program. Recommendation We recommend that the Authority implement internal controls to ensure all payment requests, related invoices and expenditures are properly reviewed for allowability and accuracy. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Finding 2023-003
2023-003 U.S. Department of Transportation – AL #20.106 Airport Improvement Program – Reporting Grant Award: 3-38-0022-064-2022 Criteria The Authority is required to submit payment requests using the DOT Electronic Grants payment system, Delphi e-Invoicing. These requests must meet the standards described in 2 CFR ss 200.302 and 200.305. Condition During review of submitted Request for Reimbursements and Outlay reports, it was noted that one request submitted was not accurately prepared as there were two instances in which the amount requested was greater than invoice documentation, additionally the request included a request for reimbursement of AIP ineligible costs. As of December 31, 2023 no funds have been returned to U.S. DOT. Questioned Costs N/A Context We reviewed the project financial summary for two of the 19 requests submitted during 2023 Cause Employee oversight. Effect The Authority could have had federal funding delayed or reduced. Recommendation We recommend that the Authority implement internal controls to ensure all reporting is accurately filed. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Finding 2023-004
2023-004 U.S. Department of Department of Transportation – AL #20.106 Airport Improvement Program – Allowable Costs Grant Award: 3-38-0022-064-2022 & 3-38-0022-056-2021 Criteria The Authority is required to ensure costs charged to the AIP program comply with the cost principles at 2 CFR 200, Subpart E, and the AIP handbook. Condition During Review of costs charged to the AIP program, it was noted that the Authority submitted a payment request and subsequently received AIP funds for Payroll and Benefit expenses that were previously reimbursed. Additionally, the Authority submitted a payment request and subsequently received AIP funds for AIP Ineligible Constructions costs. As of December 31, 2023 no funds have been returned to U.S. DOT. Questioned Costs $129,874 Context We reviewed all expenditures charged to the AIP program Cause Employee oversight. Effect The questioned cost could potentially result in unallowable costs for the program. Recommendation We recommend that the Authority implement internal controls to ensure all payment requests, related invoices and expenditures are properly reviewed for allowability and accuracy. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Finding 2023-003
2023-003 U.S. Department of Transportation – AL #20.106 Airport Improvement Program – Reporting Grant Award: 3-38-0022-064-2022 Criteria The Authority is required to submit payment requests using the DOT Electronic Grants payment system, Delphi e-Invoicing. These requests must meet the standards described in 2 CFR ss 200.302 and 200.305. Condition During review of submitted Request for Reimbursements and Outlay reports, it was noted that one request submitted was not accurately prepared as there were two instances in which the amount requested was greater than invoice documentation, additionally the request included a request for reimbursement of AIP ineligible costs. As of December 31, 2023 no funds have been returned to U.S. DOT. Questioned Costs N/A Context We reviewed the project financial summary for two of the 19 requests submitted during 2023 Cause Employee oversight. Effect The Authority could have had federal funding delayed or reduced. Recommendation We recommend that the Authority implement internal controls to ensure all reporting is accurately filed. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Finding 2023-004
2023-004 U.S. Department of Department of Transportation – AL #20.106 Airport Improvement Program – Allowable Costs Grant Award: 3-38-0022-064-2022 & 3-38-0022-056-2021 Criteria The Authority is required to ensure costs charged to the AIP program comply with the cost principles at 2 CFR 200, Subpart E, and the AIP handbook. Condition During Review of costs charged to the AIP program, it was noted that the Authority submitted a payment request and subsequently received AIP funds for Payroll and Benefit expenses that were previously reimbursed. Additionally, the Authority submitted a payment request and subsequently received AIP funds for AIP Ineligible Constructions costs. As of December 31, 2023 no funds have been returned to U.S. DOT. Questioned Costs $129,874 Context We reviewed all expenditures charged to the AIP program Cause Employee oversight. Effect The questioned cost could potentially result in unallowable costs for the program. Recommendation We recommend that the Authority implement internal controls to ensure all payment requests, related invoices and expenditures are properly reviewed for allowability and accuracy. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.