FAC Explorer

Audit 325856

FY End
2024-06-30
Total Expended
$1.37M
Findings
2
Programs
5
Organization: City of Cushing (OK)
Year: 2024 Accepted: 2024-10-24
Auditor: Cbew Professional Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503652 2024-001 Material Weakness - A
1080094 2024-001 Material Weakness - A

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $783,538 Yes 0
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $321,177 Yes 1
97.039 Hazard Mitigation Grant $242,971 - 0
97.042 Emergency Management Performance Grants $14,330 - 0
97.067 Homeland Security Grant Program $7,764 - 0

Contacts

Name Title Type
PLZKN6CKDZY4 Jerrica Worthy Auditee
9182250277 Charles Crooks JR Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note A - Basis of Presentation - The accompanying schedule of expenditures of federal awards (the Schedule) incluldes the federal award activity of the City under programs of the federal government for the year ended June 30, 2024. Because the Schedule presents only selected portion of the operations of the City, it is not intended and does not present the financial position, changes in net assets, or cash flows of the City. Note B - Summary of Significant Accounting Policies - Expenditures reported on the Schedule are reported using 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. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
1. Internal Control & Compliance – Hangar Licensing (Leasing) System Criteria: The Federal Aviation Administration (FAA) has compliance requirements any airports receiving FAA monies that address hangar licensing (leasing). The FAA has an expectation that the hangar licensing rates should be within reason of market rates for the area. Condition: The City has not adjusted its hangar licensing rates to market over the years. Cause: The City had contracts with hangar license holders that were perpetual in nature which were not adjusted to reasonable market rates. The contracts were intended to provide a service for the community and keep the hangars available for the hangar license holders. Effect or Potential Effect: Without adjusting licensing rates to the reasonable market rate, the City could lose the FAA grant funding that is important to keep the airport up to standards which are set by the FAA. Recommendation: We recommend that City should consider updating the license holder contracts to reasonable market rates in order to come into compliance with the FAA. Responsible Official’s Response: The City concurs with the recommendation and has already started the process to address the hangar licensing contracts.
Finding 2024-001
1. Internal Control & Compliance – Hangar Licensing (Leasing) System Criteria: The Federal Aviation Administration (FAA) has compliance requirements any airports receiving FAA monies that address hangar licensing (leasing). The FAA has an expectation that the hangar licensing rates should be within reason of market rates for the area. Condition: The City has not adjusted its hangar licensing rates to market over the years. Cause: The City had contracts with hangar license holders that were perpetual in nature which were not adjusted to reasonable market rates. The contracts were intended to provide a service for the community and keep the hangars available for the hangar license holders. Effect or Potential Effect: Without adjusting licensing rates to the reasonable market rate, the City could lose the FAA grant funding that is important to keep the airport up to standards which are set by the FAA. Recommendation: We recommend that City should consider updating the license holder contracts to reasonable market rates in order to come into compliance with the FAA. Responsible Official’s Response: The City concurs with the recommendation and has already started the process to address the hangar licensing contracts.