FAC Explorer

Audit 358984

FY End
2020-09-30
Total Expended
$27.27M
Findings
8
Programs
7
Organization: Virgin Islands Port Authority (VI)
Year: 2020 Accepted: 2025-06-17
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565056 2020-007 Material Weakness - L
565057 2020-008 Significant Deficiency Yes F
565058 2020-009 Material Weakness Yes L
565059 2020-010 Material Weakness - L
1141498 2020-007 Material Weakness - L
1141499 2020-008 Significant Deficiency Yes F
1141500 2020-009 Material Weakness Yes L
1141501 2020-010 Material Weakness - L

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $17.48M Yes 0
20.933 National Infrastructure Investments $4.65M Yes 1
11.307 Economic Adjustment Assistance $1.69M Yes 1
97.090 Law Enforcement Officer Reimbursement Agreement Program $276,407 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $153,146 - 0
97.072 National Explosives Detection Canine Team Program $138,909 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $11,340 - 0

Contacts

Name Title Type
T4ZRFC3WZ5M9 Anna Mauricia Penn Auditee
3407146622 Scott Warnetski Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: Basis of Accounting Expenditures included in the Schedule are reported on 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. Matching Costs Matching costs, the nonfederal share of certain program costs, are not included in the Schedule. Relationship to Federal Financial Reports The regulations and guidelines governing the preparation of Federal financial reports vary by Federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal financial reports do not necessarily agree with the amounts reported in the accompanying Schedule, which is prepared on the basis described above. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Virgin Islands Port Authority (the Authority) for the year ended September 30, 2020. 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Further, because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to, and does not present, the financial position, changes in net position, or cash flows of the Authority.
Title: Summary of Significant Accounting Policies Accounting Policies: Basis of Accounting Expenditures included in the Schedule are reported on 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. Matching Costs Matching costs, the nonfederal share of certain program costs, are not included in the Schedule. Relationship to Federal Financial Reports The regulations and guidelines governing the preparation of Federal financial reports vary by Federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal financial reports do not necessarily agree with the amounts reported in the accompanying Schedule, which is prepared on the basis described above. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Basis of Accounting Expenditures included in the Schedule are reported on 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. Matching Costs Matching costs, the nonfederal share of certain program costs, are not included in the Schedule. Relationship to Federal Financial Reports The regulations and guidelines governing the preparation of Federal financial reports vary by Federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal financial reports do not necessarily agree with the amounts reported in the accompanying Schedule, which is prepared on the basis described above.
Title: Indirect Cost Rate Accounting Policies: Basis of Accounting Expenditures included in the Schedule are reported on 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. Matching Costs Matching costs, the nonfederal share of certain program costs, are not included in the Schedule. Relationship to Federal Financial Reports The regulations and guidelines governing the preparation of Federal financial reports vary by Federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal financial reports do not necessarily agree with the amounts reported in the accompanying Schedule, which is prepared on the basis described above. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Contingencies Accounting Policies: Basis of Accounting Expenditures included in the Schedule are reported on 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. Matching Costs Matching costs, the nonfederal share of certain program costs, are not included in the Schedule. Relationship to Federal Financial Reports The regulations and guidelines governing the preparation of Federal financial reports vary by Federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal financial reports do not necessarily agree with the amounts reported in the accompanying Schedule, which is prepared on the basis described above. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Authority is subject to audit examination by funding sources to determine compliance with grant conditions. In the event that expenditures would be disallowed, repayment could be required. Management believes that the impact of any disallowed grant expenditures would not have a material adverse effect on the Authority’s financial position, changes in net position, or liquidity. In June 2018, the Federal Aviation Administration (FAA) issued a $1.5 million civil penalty against the Authority for the alleged violations of airport safety regulations at Cyril E. King Airport and Henry E. Rohlsen Airport. In March 2020, the Authority signed a settlement agreement with the FAA and agreed to remit payment of a $1.5 million civil penalty in four installments and payments were completed in November 2020.
Title: Subsequent Events Accounting Policies: Basis of Accounting Expenditures included in the Schedule are reported on 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. Matching Costs Matching costs, the nonfederal share of certain program costs, are not included in the Schedule. Relationship to Federal Financial Reports The regulations and guidelines governing the preparation of Federal financial reports vary by Federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal financial reports do not necessarily agree with the amounts reported in the accompanying Schedule, which is prepared on the basis described above. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Natural Disasters – Hurricanes Irma and Maria The Authority made significant progress towards restoring its facilities which were damaged by Hurricanes Irma and Maria in September 2017. Rebuilding the Authority’s air and seaports has taken precedence over other activities and the Authority continues to tabulate the associated costs and expenses with respect to remediation, mitigation, and the restoration of services. The Federal Emergency Management Agency (FEMA) requires the Authority to take reasonable efforts to recover insurance proceeds that it is entitled to receive when pursuing claims. In February 2021, the Authority received approximately $34.0 million as the final settlement in connection with its insurance claims related to damages incurred and FEMA project worksheets are now closed. Global Pandemic In March 2020, the Governor of the U.S. Virgin Islands declared a state of emergency due to the coronavirus pandemic known as COVID-19. The state of emergency was approved by the President of the United States under the provisions of the Stafford Act and the National Emergencies Act. A federally approved state of emergency activates federal assistance to states in the form of financial, logistical, and technical assistance. The state of emergency also activates other emergency response protocols and systems to protect citizenry such as stay-at-home orders, travel restrictions, and social distancing requirements. As the emergency measures have eased, management continues to actively monitor the impact of the COVID-19 outbreak on its financial condition, including the duration of the closings, speed of recovery, and impact on demand. The Authority coordinated with local agencies and stakeholders to prepare and present the U.S. Virgin Islands as a COVID-19 prepared destination. The Authority further continues to identify and implement various additional mitigation efforts to minimize the impact on results of operations, financial position, and liquidity. Airport and Marine Terminal Modernization The Authority has also received several grant award appropriations from the FAA, U.S. Economic Development Administration, U.S. Maritime Administration, and the Government of the U.S. Virgin Islands of approximately $179.2 million. As of March 31, 2025, the Authority has drawn a total of $79.3 million for additional modernization and construction projects. FAA Special Condition On June 4, 2025, the Authority received communication from the FAA regarding noncompliance with its requirement to submit annual audits within nine months from year-end. The noncompliance is specific to the Authority’s delinquent fiscal year 2021 through 2023 annual audits and has resulted in the FAA imposing special conditions on the fiscal year 2025 grants. The special conditions stipulate that the FAA will not make payments on fiscal year 2025 grant reimbursement requests until the FAA has received all overdue audits. The Authority anticipates fiscal year 2025 grant awards totaling approximately $33.8 million. As of June 13, 2025, these grant awards are pending with the FAA and have not been executed. All fiscal year 2025 grants are related to projects for the Authority’s Capital Improvement Program and would not be used to fund operations. The Authority is currently evaluating the effect of these special conditions, however, the Authority does expect their ability to execute projects in a timely manner will be affected. The Authority’s intent is to complete the outstanding audits as expeditiously as possible to minimize the impact to Authority’s grant funded projects.

Finding Details

Finding 2020-007
Finding Number: 2020-007 Prior Year Finding Number: N/A Compliance Requirement: Reporting Program: U.S. Department of Commerce Economic Development Cluster CFDA: 11.307 Award #: 01-01-14843, 01-01-14844 Award Year: 03/06/19 – 06/06/22 03/06/19 – 05/21/22 Criteria – Each State or Territory must file various financial, programmatic, and special reports. Additionally, the requirements necessitate that all submitted reports should be supported by the underlying performance records and presented in accordance with program requirements. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We reviewed 7 out of the 20 reports (12 financial, 8 performance) required to be submitted during the fiscal year and noted the following: • 1 of the 4 financial reports tested was not submitted to the Federal agency. • All 3 performance reports tested did not contain evidence of review and approval. Cause – It appears that policies and procedures, including review over reporting procedures were not functioning as intended. Effect or Potential Effect – The Authority is not in compliance with the stated provisions and inaccurate information may have been reported to the Federal government. Failure to submit required reports could result in reduction or disallowance of Federal funding. Questioned Costs – None. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Recommendation – We recommend that the Authority reevaluate its policies and procedures to ensure proper monitoring and review of the required reports by an appropriate official who would ensure the information submitted is complete, accurate, consistent, and submitted within the required timeframe. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure proper monitoring and review of the required reports by an appropriate official. The planned corrective actions are presented in the Authority’s Corrective Action Plan which is attached as Appendix B.
Finding 2020-008
Finding Number: 2020-008 Prior Year Finding Number: 2019-007 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of Transportation Airport Improvement Program CFDA: 20.106 Award #: Various Award Year: Various Criteria – Per 2 CFR section 200.313, Equipment, 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, 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 conditions of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Further, a physical inventory of equipment should be taken at least once every 2 years and reconciled to the equipment records along with the usage of an appropriate control system to safeguard and maintain equipment. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We noted that the Authority maintains an equipment listing for fixed assets purchased with federal funding. However, the Authority was unable to provide complete property records which met the stated requirements. Additionally, the Authority did not conduct a physical inventory count of equipment in the last two years. The most recent physical inventory count was performed during fiscal year 2017. Further, it does not appear that internal controls over compliance are operating at a level of precision to ensure compliance with the equipment management compliance requirements. Cause – The internal controls established for the records maintenance and physical inventory count did not fully operate as designed causing the Authority to fall out of compliance with the required timing of such physical inventory count. Effect or Potential Effect – There is a risk that inadequate monitoring of equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Questioned Costs – None. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Recommendation – We recommend that the Authority improve internal controls to ensure adherence to Federal regulations related to equipment record maintenance and physical inventory counts. There should be timely coordination and communication among all departments responsible for handling and managing such assets. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority recognize the importance of maintaining accurate and complete property records for fixed assets purchased with federal funding. A complete fixed asset inventory was conducted in 2023 and is now performed annually. The planned corrective actions are presented in the Authority’s Corrective Action Plan which is attached as Appendix B.
Finding 2020-009
Finding Number: 2020-009 Prior Year Finding Number: 2019-008 Compliance Requirement: Reporting Program: U.S. Department of Transportation Airport Improvement Program CFDA: 20.106 Award #: Various Award Year: Various Criteria – Each State or Territory must file various financial, programmatic, and special reports. Additionally, the requirements necessitate that all submitted reports should be supported by the underlying performance records and presented in accordance with program requirements. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We reviewed 18 (9 financial and 9 performance) out of the 78 (49 financial and 29 performance) reports required to be submitted during the fiscal year and noted the following: • 1 financial report did not contain evidence of review and approval by one of the two designated reviewers. • 1 financial report was not submitted. • 9 performance reports did not contain evidence of review and approval. • 2 performance reports did not contain evidence of submission. • 2 financial and 1 performance reports had not been submitted in a timely manner. Cause – It appears that policies and procedures, including review over reporting procedures, were not functioning as intended. Effect or Potential Effect – The Authority is not in compliance with the stated provisions and inaccurate information may have been reported to the Federal government. Failure to submit required reports could result in reduction or disallowance of Federal funding. Questioned Costs – None. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Recommendation – We recommend that the Authority reevaluate its policies and procedures to ensure proper monitoring and review of the required reports by an appropriate official who would ensure the information submitted is complete, accurate, consistent, and submitted within the required timeframe. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure proper monitoring and review of the required reports by an appropriate official. The planned corrective actions are presented in the Authority’s Corrective Action Plan which is attached as Appendix B.
Finding 2020-010
Finding Number: 2020-010 Prior Year Finding Number: N/A Compliance Requirement: Reporting Program: U.S. Department of Transportation National Infrastructure Investments CFDA: 20.933 Award #: DTMA91G1600010 Award Year: 02/01/2017 - 03/31/2022 Criteria – Each State or Territory must file various financial, programmatic, and special reports. Additionally, the requirements necessitate that all submitted reports should be supported by the underlying performance records and presented in accordance with program requirements. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We reviewed 4 out of the 9 special reports required to be submitted during the fiscal year and noted the following: • 2 reports were submitted to the Federal Agency; however, they did not contain evidence of review, approval, and submission. • 2 reports were not submitted to the Federal Agency. Cause – It appears that policies and procedures, including review over reporting procedures were not functioning as intended. Effect or Potential Effect – The Authority is not in compliance with the stated provisions and inaccurate information may have been reported to the Federal government. Failure to submit required reports could result in reduction or disallowance of Federal funding. Questioned Costs – None. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Recommendation – We recommend that the Authority reevaluate its policies and procedures to ensure proper monitoring and review of the required reports by an appropriate official who would ensure the information submitted is complete, accurate, consistent, and submitted within the required timeframe. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure proper monitoring and review of the required reports by an appropriate official. The planned corrective actions are presented in the Authority’s Corrective Action Plan which is attached as Appendix B.
Finding 2020-007
Finding Number: 2020-007 Prior Year Finding Number: N/A Compliance Requirement: Reporting Program: U.S. Department of Commerce Economic Development Cluster CFDA: 11.307 Award #: 01-01-14843, 01-01-14844 Award Year: 03/06/19 – 06/06/22 03/06/19 – 05/21/22 Criteria – Each State or Territory must file various financial, programmatic, and special reports. Additionally, the requirements necessitate that all submitted reports should be supported by the underlying performance records and presented in accordance with program requirements. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We reviewed 7 out of the 20 reports (12 financial, 8 performance) required to be submitted during the fiscal year and noted the following: • 1 of the 4 financial reports tested was not submitted to the Federal agency. • All 3 performance reports tested did not contain evidence of review and approval. Cause – It appears that policies and procedures, including review over reporting procedures were not functioning as intended. Effect or Potential Effect – The Authority is not in compliance with the stated provisions and inaccurate information may have been reported to the Federal government. Failure to submit required reports could result in reduction or disallowance of Federal funding. Questioned Costs – None. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Recommendation – We recommend that the Authority reevaluate its policies and procedures to ensure proper monitoring and review of the required reports by an appropriate official who would ensure the information submitted is complete, accurate, consistent, and submitted within the required timeframe. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure proper monitoring and review of the required reports by an appropriate official. The planned corrective actions are presented in the Authority’s Corrective Action Plan which is attached as Appendix B.
Finding 2020-008
Finding Number: 2020-008 Prior Year Finding Number: 2019-007 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of Transportation Airport Improvement Program CFDA: 20.106 Award #: Various Award Year: Various Criteria – Per 2 CFR section 200.313, Equipment, 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, 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 conditions of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Further, a physical inventory of equipment should be taken at least once every 2 years and reconciled to the equipment records along with the usage of an appropriate control system to safeguard and maintain equipment. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We noted that the Authority maintains an equipment listing for fixed assets purchased with federal funding. However, the Authority was unable to provide complete property records which met the stated requirements. Additionally, the Authority did not conduct a physical inventory count of equipment in the last two years. The most recent physical inventory count was performed during fiscal year 2017. Further, it does not appear that internal controls over compliance are operating at a level of precision to ensure compliance with the equipment management compliance requirements. Cause – The internal controls established for the records maintenance and physical inventory count did not fully operate as designed causing the Authority to fall out of compliance with the required timing of such physical inventory count. Effect or Potential Effect – There is a risk that inadequate monitoring of equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Questioned Costs – None. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Recommendation – We recommend that the Authority improve internal controls to ensure adherence to Federal regulations related to equipment record maintenance and physical inventory counts. There should be timely coordination and communication among all departments responsible for handling and managing such assets. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority recognize the importance of maintaining accurate and complete property records for fixed assets purchased with federal funding. A complete fixed asset inventory was conducted in 2023 and is now performed annually. The planned corrective actions are presented in the Authority’s Corrective Action Plan which is attached as Appendix B.
Finding 2020-009
Finding Number: 2020-009 Prior Year Finding Number: 2019-008 Compliance Requirement: Reporting Program: U.S. Department of Transportation Airport Improvement Program CFDA: 20.106 Award #: Various Award Year: Various Criteria – Each State or Territory must file various financial, programmatic, and special reports. Additionally, the requirements necessitate that all submitted reports should be supported by the underlying performance records and presented in accordance with program requirements. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We reviewed 18 (9 financial and 9 performance) out of the 78 (49 financial and 29 performance) reports required to be submitted during the fiscal year and noted the following: • 1 financial report did not contain evidence of review and approval by one of the two designated reviewers. • 1 financial report was not submitted. • 9 performance reports did not contain evidence of review and approval. • 2 performance reports did not contain evidence of submission. • 2 financial and 1 performance reports had not been submitted in a timely manner. Cause – It appears that policies and procedures, including review over reporting procedures, were not functioning as intended. Effect or Potential Effect – The Authority is not in compliance with the stated provisions and inaccurate information may have been reported to the Federal government. Failure to submit required reports could result in reduction or disallowance of Federal funding. Questioned Costs – None. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Recommendation – We recommend that the Authority reevaluate its policies and procedures to ensure proper monitoring and review of the required reports by an appropriate official who would ensure the information submitted is complete, accurate, consistent, and submitted within the required timeframe. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure proper monitoring and review of the required reports by an appropriate official. The planned corrective actions are presented in the Authority’s Corrective Action Plan which is attached as Appendix B.
Finding 2020-010
Finding Number: 2020-010 Prior Year Finding Number: N/A Compliance Requirement: Reporting Program: U.S. Department of Transportation National Infrastructure Investments CFDA: 20.933 Award #: DTMA91G1600010 Award Year: 02/01/2017 - 03/31/2022 Criteria – Each State or Territory must file various financial, programmatic, and special reports. Additionally, the requirements necessitate that all submitted reports should be supported by the underlying performance records and presented in accordance with program requirements. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We reviewed 4 out of the 9 special reports required to be submitted during the fiscal year and noted the following: • 2 reports were submitted to the Federal Agency; however, they did not contain evidence of review, approval, and submission. • 2 reports were not submitted to the Federal Agency. Cause – It appears that policies and procedures, including review over reporting procedures were not functioning as intended. Effect or Potential Effect – The Authority is not in compliance with the stated provisions and inaccurate information may have been reported to the Federal government. Failure to submit required reports could result in reduction or disallowance of Federal funding. Questioned Costs – None. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Recommendation – We recommend that the Authority reevaluate its policies and procedures to ensure proper monitoring and review of the required reports by an appropriate official who would ensure the information submitted is complete, accurate, consistent, and submitted within the required timeframe. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure proper monitoring and review of the required reports by an appropriate official. The planned corrective actions are presented in the Authority’s Corrective Action Plan which is attached as Appendix B.