Audit 315062

2023‐004 – Activities Allowed, Allowable Costs over Payroll (Material Noncompliance, Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During reconciliation of the general ledger to the SEFA, it was noted multiple pay periods were duplicated which were included in request for reimbursement. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430(f) – Factors affecting allowability of costs ‐ Not be included as a cost or used to meet cost sharing or matching requirements of any other federally‐financed program in either the current or a prior period. Cause: The City does not have sufficient controls in place to ensure the accuracy of the amounts listed on the general ledger as charged to the grant. Questioned Cost: Known and likely questioned costs of $86,333 Effect: The City requested reimbursement for duplicate transactions resulting in disallowed costs.

2023‐005 – Activities Allowed, Allowable Costs over Payroll (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During our review of payroll related transactions, 10 out of 45 timesheets tested did not include appropriate approval by the Manager/Supervisor. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be allowable under Federal awards. Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on all payroll transactions. Questioned Cost: None. Effect: The City may unintentionally overpay or underpay employees during their fiscal year.

2023‐006 – Equipment and Real Property Management (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020 Federal Award Year: 2023 Condition: The City’s approved annual inventory was not complete and accurate. Certain assets listed as disposed were still in use for Airport operations, other assets that were disposed were included as active assets. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: The City’s approved annual inventory contained errors in information and assets disposed of still listed. Questioned Cost: None. Effect: The City could dispose of or lose federally funded equipment without following federal guidelines.

2023‐007 (2021‐009) – Financial Reporting (Material Weakness in Internal Controls over Compliance) (repeated/modified) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020; SAF‐SWG‐3‐35‐0037‐052‐2020; SAF‐SWG‐3‐35‐0037‐054‐2021; SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During review of reports, the City submitted 10 financial reports that did not include supporting backup documentation to substantiate the information reported. Management’s Progress on Repeat Findings: Some progress made from prior year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with access to books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching funds, must be accepted as part of the non‐Federal entities matching when the following criteria is met (1) Are verifiable from the non‐Federal entities records. Cause: The City does not have sufficient controls in place to ensure documentation is retained to support accuracy of the report. Questioned Cost: None Effect: Lack of proper support for accuracy of reports can result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs.

2023‐004 – Activities Allowed, Allowable Costs over Payroll (Material Noncompliance, Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During reconciliation of the general ledger to the SEFA, it was noted multiple pay periods were duplicated which were included in request for reimbursement. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430(f) – Factors affecting allowability of costs ‐ Not be included as a cost or used to meet cost sharing or matching requirements of any other federally‐financed program in either the current or a prior period. Cause: The City does not have sufficient controls in place to ensure the accuracy of the amounts listed on the general ledger as charged to the grant. Questioned Cost: Known and likely questioned costs of $86,333 Effect: The City requested reimbursement for duplicate transactions resulting in disallowed costs.

2023‐005 – Activities Allowed, Allowable Costs over Payroll (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During our review of payroll related transactions, 10 out of 45 timesheets tested did not include appropriate approval by the Manager/Supervisor. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be allowable under Federal awards. Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on all payroll transactions. Questioned Cost: None. Effect: The City may unintentionally overpay or underpay employees during their fiscal year.

2023‐006 – Equipment and Real Property Management (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020 Federal Award Year: 2023 Condition: The City’s approved annual inventory was not complete and accurate. Certain assets listed as disposed were still in use for Airport operations, other assets that were disposed were included as active assets. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: The City’s approved annual inventory contained errors in information and assets disposed of still listed. Questioned Cost: None. Effect: The City could dispose of or lose federally funded equipment without following federal guidelines.

2023‐007 (2021‐009) – Financial Reporting (Material Weakness in Internal Controls over Compliance) (repeated/modified) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020; SAF‐SWG‐3‐35‐0037‐052‐2020; SAF‐SWG‐3‐35‐0037‐054‐2021; SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During review of reports, the City submitted 10 financial reports that did not include supporting backup documentation to substantiate the information reported. Management’s Progress on Repeat Findings: Some progress made from prior year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with access to books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching funds, must be accepted as part of the non‐Federal entities matching when the following criteria is met (1) Are verifiable from the non‐Federal entities records. Cause: The City does not have sufficient controls in place to ensure documentation is retained to support accuracy of the report. Questioned Cost: None Effect: Lack of proper support for accuracy of reports can result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs.

2023‐004 – Activities Allowed, Allowable Costs over Payroll (Material Noncompliance, Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During reconciliation of the general ledger to the SEFA, it was noted multiple pay periods were duplicated which were included in request for reimbursement. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430(f) – Factors affecting allowability of costs ‐ Not be included as a cost or used to meet cost sharing or matching requirements of any other federally‐financed program in either the current or a prior period. Cause: The City does not have sufficient controls in place to ensure the accuracy of the amounts listed on the general ledger as charged to the grant. Questioned Cost: Known and likely questioned costs of $86,333 Effect: The City requested reimbursement for duplicate transactions resulting in disallowed costs.

2023‐005 – Activities Allowed, Allowable Costs over Payroll (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During our review of payroll related transactions, 10 out of 45 timesheets tested did not include appropriate approval by the Manager/Supervisor. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be allowable under Federal awards. Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on all payroll transactions. Questioned Cost: None. Effect: The City may unintentionally overpay or underpay employees during their fiscal year.

2023‐006 – Equipment and Real Property Management (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020 Federal Award Year: 2023 Condition: The City’s approved annual inventory was not complete and accurate. Certain assets listed as disposed were still in use for Airport operations, other assets that were disposed were included as active assets. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: The City’s approved annual inventory contained errors in information and assets disposed of still listed. Questioned Cost: None. Effect: The City could dispose of or lose federally funded equipment without following federal guidelines.

2023‐007 (2021‐009) – Financial Reporting (Material Weakness in Internal Controls over Compliance) (repeated/modified) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020; SAF‐SWG‐3‐35‐0037‐052‐2020; SAF‐SWG‐3‐35‐0037‐054‐2021; SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During review of reports, the City submitted 10 financial reports that did not include supporting backup documentation to substantiate the information reported. Management’s Progress on Repeat Findings: Some progress made from prior year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with access to books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching funds, must be accepted as part of the non‐Federal entities matching when the following criteria is met (1) Are verifiable from the non‐Federal entities records. Cause: The City does not have sufficient controls in place to ensure documentation is retained to support accuracy of the report. Questioned Cost: None Effect: Lack of proper support for accuracy of reports can result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs.

2023‐004 – Activities Allowed, Allowable Costs over Payroll (Material Noncompliance, Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During reconciliation of the general ledger to the SEFA, it was noted multiple pay periods were duplicated which were included in request for reimbursement. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430(f) – Factors affecting allowability of costs ‐ Not be included as a cost or used to meet cost sharing or matching requirements of any other federally‐financed program in either the current or a prior period. Cause: The City does not have sufficient controls in place to ensure the accuracy of the amounts listed on the general ledger as charged to the grant. Questioned Cost: Known and likely questioned costs of $86,333 Effect: The City requested reimbursement for duplicate transactions resulting in disallowed costs.

2023‐005 – Activities Allowed, Allowable Costs over Payroll (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During our review of payroll related transactions, 10 out of 45 timesheets tested did not include appropriate approval by the Manager/Supervisor. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be allowable under Federal awards. Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on all payroll transactions. Questioned Cost: None. Effect: The City may unintentionally overpay or underpay employees during their fiscal year.

2023‐006 – Equipment and Real Property Management (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020 Federal Award Year: 2023 Condition: The City’s approved annual inventory was not complete and accurate. Certain assets listed as disposed were still in use for Airport operations, other assets that were disposed were included as active assets. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: The City’s approved annual inventory contained errors in information and assets disposed of still listed. Questioned Cost: None. Effect: The City could dispose of or lose federally funded equipment without following federal guidelines.

2023‐007 (2021‐009) – Financial Reporting (Material Weakness in Internal Controls over Compliance) (repeated/modified) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020; SAF‐SWG‐3‐35‐0037‐052‐2020; SAF‐SWG‐3‐35‐0037‐054‐2021; SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During review of reports, the City submitted 10 financial reports that did not include supporting backup documentation to substantiate the information reported. Management’s Progress on Repeat Findings: Some progress made from prior year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with access to books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching funds, must be accepted as part of the non‐Federal entities matching when the following criteria is met (1) Are verifiable from the non‐Federal entities records. Cause: The City does not have sufficient controls in place to ensure documentation is retained to support accuracy of the report. Questioned Cost: None Effect: Lack of proper support for accuracy of reports can result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs.

2023‐004 – Activities Allowed, Allowable Costs over Payroll (Material Noncompliance, Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During reconciliation of the general ledger to the SEFA, it was noted multiple pay periods were duplicated which were included in request for reimbursement. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430(f) – Factors affecting allowability of costs ‐ Not be included as a cost or used to meet cost sharing or matching requirements of any other federally‐financed program in either the current or a prior period. Cause: The City does not have sufficient controls in place to ensure the accuracy of the amounts listed on the general ledger as charged to the grant. Questioned Cost: Known and likely questioned costs of $86,333 Effect: The City requested reimbursement for duplicate transactions resulting in disallowed costs.

2023‐005 – Activities Allowed, Allowable Costs over Payroll (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During our review of payroll related transactions, 10 out of 45 timesheets tested did not include appropriate approval by the Manager/Supervisor. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be allowable under Federal awards. Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on all payroll transactions. Questioned Cost: None. Effect: The City may unintentionally overpay or underpay employees during their fiscal year.

2023‐006 – Equipment and Real Property Management (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020 Federal Award Year: 2023 Condition: The City’s approved annual inventory was not complete and accurate. Certain assets listed as disposed were still in use for Airport operations, other assets that were disposed were included as active assets. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: The City’s approved annual inventory contained errors in information and assets disposed of still listed. Questioned Cost: None. Effect: The City could dispose of or lose federally funded equipment without following federal guidelines.

2023‐007 (2021‐009) – Financial Reporting (Material Weakness in Internal Controls over Compliance) (repeated/modified) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020; SAF‐SWG‐3‐35‐0037‐052‐2020; SAF‐SWG‐3‐35‐0037‐054‐2021; SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During review of reports, the City submitted 10 financial reports that did not include supporting backup documentation to substantiate the information reported. Management’s Progress on Repeat Findings: Some progress made from prior year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with access to books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching funds, must be accepted as part of the non‐Federal entities matching when the following criteria is met (1) Are verifiable from the non‐Federal entities records. Cause: The City does not have sufficient controls in place to ensure documentation is retained to support accuracy of the report. Questioned Cost: None Effect: Lack of proper support for accuracy of reports can result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs.

2023‐004 – Activities Allowed, Allowable Costs over Payroll (Material Noncompliance, Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During reconciliation of the general ledger to the SEFA, it was noted multiple pay periods were duplicated which were included in request for reimbursement. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430(f) – Factors affecting allowability of costs ‐ Not be included as a cost or used to meet cost sharing or matching requirements of any other federally‐financed program in either the current or a prior period. Cause: The City does not have sufficient controls in place to ensure the accuracy of the amounts listed on the general ledger as charged to the grant. Questioned Cost: Known and likely questioned costs of $86,333 Effect: The City requested reimbursement for duplicate transactions resulting in disallowed costs.

2023‐005 – Activities Allowed, Allowable Costs over Payroll (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During our review of payroll related transactions, 10 out of 45 timesheets tested did not include appropriate approval by the Manager/Supervisor. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be allowable under Federal awards. Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on all payroll transactions. Questioned Cost: None. Effect: The City may unintentionally overpay or underpay employees during their fiscal year.

2023‐006 – Equipment and Real Property Management (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020 Federal Award Year: 2023 Condition: The City’s approved annual inventory was not complete and accurate. Certain assets listed as disposed were still in use for Airport operations, other assets that were disposed were included as active assets. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: The City’s approved annual inventory contained errors in information and assets disposed of still listed. Questioned Cost: None. Effect: The City could dispose of or lose federally funded equipment without following federal guidelines.

2023‐007 (2021‐009) – Financial Reporting (Material Weakness in Internal Controls over Compliance) (repeated/modified) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020; SAF‐SWG‐3‐35‐0037‐052‐2020; SAF‐SWG‐3‐35‐0037‐054‐2021; SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During review of reports, the City submitted 10 financial reports that did not include supporting backup documentation to substantiate the information reported. Management’s Progress on Repeat Findings: Some progress made from prior year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with access to books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching funds, must be accepted as part of the non‐Federal entities matching when the following criteria is met (1) Are verifiable from the non‐Federal entities records. Cause: The City does not have sufficient controls in place to ensure documentation is retained to support accuracy of the report. Questioned Cost: None Effect: Lack of proper support for accuracy of reports can result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs.

2023‐004 – Activities Allowed, Allowable Costs over Payroll (Material Noncompliance, Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During reconciliation of the general ledger to the SEFA, it was noted multiple pay periods were duplicated which were included in request for reimbursement. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430(f) – Factors affecting allowability of costs ‐ Not be included as a cost or used to meet cost sharing or matching requirements of any other federally‐financed program in either the current or a prior period. Cause: The City does not have sufficient controls in place to ensure the accuracy of the amounts listed on the general ledger as charged to the grant. Questioned Cost: Known and likely questioned costs of $86,333 Effect: The City requested reimbursement for duplicate transactions resulting in disallowed costs.

2023‐005 – Activities Allowed, Allowable Costs over Payroll (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During our review of payroll related transactions, 10 out of 45 timesheets tested did not include appropriate approval by the Manager/Supervisor. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be allowable under Federal awards. Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on all payroll transactions. Questioned Cost: None. Effect: The City may unintentionally overpay or underpay employees during their fiscal year.

2023‐006 – Equipment and Real Property Management (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020 Federal Award Year: 2023 Condition: The City’s approved annual inventory was not complete and accurate. Certain assets listed as disposed were still in use for Airport operations, other assets that were disposed were included as active assets. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: The City’s approved annual inventory contained errors in information and assets disposed of still listed. Questioned Cost: None. Effect: The City could dispose of or lose federally funded equipment without following federal guidelines.

2023‐007 (2021‐009) – Financial Reporting (Material Weakness in Internal Controls over Compliance) (repeated/modified) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020; SAF‐SWG‐3‐35‐0037‐052‐2020; SAF‐SWG‐3‐35‐0037‐054‐2021; SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During review of reports, the City submitted 10 financial reports that did not include supporting backup documentation to substantiate the information reported. Management’s Progress on Repeat Findings: Some progress made from prior year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with access to books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching funds, must be accepted as part of the non‐Federal entities matching when the following criteria is met (1) Are verifiable from the non‐Federal entities records. Cause: The City does not have sufficient controls in place to ensure documentation is retained to support accuracy of the report. Questioned Cost: None Effect: Lack of proper support for accuracy of reports can result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs.

2023‐004 – Activities Allowed, Allowable Costs over Payroll (Material Noncompliance, Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During reconciliation of the general ledger to the SEFA, it was noted multiple pay periods were duplicated which were included in request for reimbursement. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430(f) – Factors affecting allowability of costs ‐ Not be included as a cost or used to meet cost sharing or matching requirements of any other federally‐financed program in either the current or a prior period. Cause: The City does not have sufficient controls in place to ensure the accuracy of the amounts listed on the general ledger as charged to the grant. Questioned Cost: Known and likely questioned costs of $86,333 Effect: The City requested reimbursement for duplicate transactions resulting in disallowed costs.

2023‐005 – Activities Allowed, Allowable Costs over Payroll (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During our review of payroll related transactions, 10 out of 45 timesheets tested did not include appropriate approval by the Manager/Supervisor. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be allowable under Federal awards. Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on all payroll transactions. Questioned Cost: None. Effect: The City may unintentionally overpay or underpay employees during their fiscal year.

2023‐006 – Equipment and Real Property Management (Material Weakness over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020 Federal Award Year: 2023 Condition: The City’s approved annual inventory was not complete and accurate. Certain assets listed as disposed were still in use for Airport operations, other assets that were disposed were included as active assets. Criteria: Per 2 CFR 200.303(a), the non‐federal entity must 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: The City’s approved annual inventory contained errors in information and assets disposed of still listed. Questioned Cost: None. Effect: The City could dispose of or lose federally funded equipment without following federal guidelines.

2023‐007 (2021‐009) – Financial Reporting (Material Weakness in Internal Controls over Compliance) (repeated/modified) Federal Program Information Federal Award Title and ALN: Airport Improvement Program, 20.106 Federal Awarding Agency: Department of Transportation, Federal Aviation Administration Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020; SAF‐SWG‐3‐35‐0037‐052‐2020; SAF‐SWG‐3‐35‐0037‐054‐2021; SAF‐SWG‐3‐35‐0037‐057‐2021 Federal Award Year: 2023 Condition: During review of reports, the City submitted 10 financial reports that did not include supporting backup documentation to substantiate the information reported. Management’s Progress on Repeat Findings: Some progress made from prior year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entities 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 or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with access to books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching funds, must be accepted as part of the non‐Federal entities matching when the following criteria is met (1) Are verifiable from the non‐Federal entities records. Cause: The City does not have sufficient controls in place to ensure documentation is retained to support accuracy of the report. Questioned Cost: None Effect: Lack of proper support for accuracy of reports can result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs.