Audit 369179

Finding Number: 2024-002 Federal Program: Airport Improvement Program Federal Award Identification Number: 3-39-0060-021-2023 Assistance Listing Number (ALN): 20.106 Federal Awarding Agency: U.S. Department of Transportation Pass-through Entity: None Repeat Finding: No Significant Deficiency and Noncompliance – Reporting Criteria: Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead). This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. (2 CFR 200.328) Until the grant is completed and closed, recipients are responsible for submitting formal reports as follows: A signed/dated Standard Form-270 (non-construction projects) or Standard Form-271 or equivalent (construction projects) and Standard Form-425 annually, due 90 days after the end of each federal fiscal year in which this grant is open (due December 31 of each year this grant is open). Condition: Errors were identified in the cash basis Standard Form-271 and Standard Form-425 reports submitted by the City. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: Standard Form-425 and Standard Form-271 included grant expenses in the amount of $1,359,343 which were paid after the reporting period closed. Cause and Effect: The Standard Form-425 and Standard Form-271 covered the reporting period of 10/1/23 through 9/30/24. The City improperly included expenses that were paid shortly after period end. Recommendation: The City should implement controls to ensure the required reports are accurate prior to submission. Officials’ Response: See Corrective Action Plan.