Finding No. 2022-003
Federal Agency: U.S Department of Transportation
Assistance Listing Program: 20.106 Airport Improvement Program
Federal Award No.: 3-68-0001-023-2020
Area: Equipment and Real Property Management
Questioned Costs: $0
Criteria: In accordance with applicable equipment and real property management requirements, the Authority must comply with the following:
•Under 2 CFR section 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 federal award identification number), who holds title, the acquisition date, 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 sales price of the property.
•Under 2 CFR section 200.313(d)(2), a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.
•Under 2 CFR section 200.313(d)(2), a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.
Conditions:
1.For 1 (or 100%) item tested, the Authority included description of the property, which is generic or limited (i.e., TO CAPITALISE THE NEW FIRE TRUCK) and related property records did not include serial number or identification number, federal award identification number, percentage of federal participation in the project costs for the federal award under which the property was acquired, and the location, use and condition of the property.
2.The Authority did not perform required physical inventory and reconciliation for all equipment and real properties acquired from Federal funds.
3.Furthermore, there is no control system to ensure adequate safeguards to prevent loss, damage, or theft of all equipment and real properties acquired from Federal funds.
Cause: The Authority lacks internal control policies and procedures over compliance with applicable equipment and real property management requirements.
Effect: The Authority is exposed to the risk of possible unauthorized use, misappropriation, and disposition of property without being noticed due to the lack of internal controls and proper supporting accounting records. No questioned costs are reported as we are unable to determine the quantitative impact to the program.
Finding No. 2022-004
Federal Agency: U.S Department of Transportation
Assistance Listing Program: 20.106 Airport Improvement Program
Federal Award No(s).: 3-68-0001-018-2017
3-68-0001-020-2019
3-68-0001-022-2020
3-68-0001-023-2020
3-68-0001-024-2020
3-68-0001-025-2022
Area: Reporting
Questioned Costs: $0
Criteria: In accordance with applicable reporting requirements and with grant terms and conditions, the Authority is responsible for submitting a signed/dated SF-270 (non-construction projects) or SF-271 or equivalent (construction projects) and SF-425 annually, due 90 days after the end of each federal fiscal year in which the grants are open (due December 31 of each year).
Condition: For the year ended September 30, 2022, the Authority was not able to provide and submit the required annual SF-425 report for the grants open as of and for the year ended September 30, 2022, having a due date of December 31, 2022.
Cause: The Authority lacks internal control policies and procedures over submission of required reports and monitoring report deadlines to ensure compliance with reporting requirements.
Effect: The Authority is in noncompliance with applicable reporting requirements and no questioned costs are reported as we are unable to determine the quantitative impact to the program. In addition, the Authority could be subject to penalties or sanctions from the Federal Aviation Administration.
Finding No. 2022-003
Federal Agency: U.S Department of Transportation
Assistance Listing Program: 20.106 Airport Improvement Program
Federal Award No.: 3-68-0001-023-2020
Area: Equipment and Real Property Management
Questioned Costs: $0
Criteria: In accordance with applicable equipment and real property management requirements, the Authority must comply with the following:
•Under 2 CFR section 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 federal award identification number), who holds title, the acquisition date, 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 sales price of the property.
•Under 2 CFR section 200.313(d)(2), a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.
•Under 2 CFR section 200.313(d)(2), a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.
Conditions:
1.For 1 (or 100%) item tested, the Authority included description of the property, which is generic or limited (i.e., TO CAPITALISE THE NEW FIRE TRUCK) and related property records did not include serial number or identification number, federal award identification number, percentage of federal participation in the project costs for the federal award under which the property was acquired, and the location, use and condition of the property.
2.The Authority did not perform required physical inventory and reconciliation for all equipment and real properties acquired from Federal funds.
3.Furthermore, there is no control system to ensure adequate safeguards to prevent loss, damage, or theft of all equipment and real properties acquired from Federal funds.
Cause: The Authority lacks internal control policies and procedures over compliance with applicable equipment and real property management requirements.
Effect: The Authority is exposed to the risk of possible unauthorized use, misappropriation, and disposition of property without being noticed due to the lack of internal controls and proper supporting accounting records. No questioned costs are reported as we are unable to determine the quantitative impact to the program.
Finding No. 2022-004
Federal Agency: U.S Department of Transportation
Assistance Listing Program: 20.106 Airport Improvement Program
Federal Award No(s).: 3-68-0001-018-2017
3-68-0001-020-2019
3-68-0001-022-2020
3-68-0001-023-2020
3-68-0001-024-2020
3-68-0001-025-2022
Area: Reporting
Questioned Costs: $0
Criteria: In accordance with applicable reporting requirements and with grant terms and conditions, the Authority is responsible for submitting a signed/dated SF-270 (non-construction projects) or SF-271 or equivalent (construction projects) and SF-425 annually, due 90 days after the end of each federal fiscal year in which the grants are open (due December 31 of each year).
Condition: For the year ended September 30, 2022, the Authority was not able to provide and submit the required annual SF-425 report for the grants open as of and for the year ended September 30, 2022, having a due date of December 31, 2022.
Cause: The Authority lacks internal control policies and procedures over submission of required reports and monitoring report deadlines to ensure compliance with reporting requirements.
Effect: The Authority is in noncompliance with applicable reporting requirements and no questioned costs are reported as we are unable to determine the quantitative impact to the program. In addition, the Authority could be subject to penalties or sanctions from the Federal Aviation Administration.