Federal Agency: U.S Department of Transportation Assistance Listing Program: 20.106 Airport Improvement Program Federal Award Nos.: 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: Equipment and Real Property Management Questioned Costs: $ Undeterminable Criteria: Non-federal entities other than states must follow Sections 200.313(c) through (e) of the Uniform Guidance. Section 200.313(d) states that procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: a. 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; b. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years; c. 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; d. Adequate maintenance procedures must be developed to keep the property in good condition; and e. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Capital asset records do not meet the criteria above and are not effectively maintained since updates to the records occur only once a year. Specifically, we noted the following deficiencies: 1. For 1 (or 100%) of 1 item tested, the Authority included description of the property which is generic or limited and 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. For 5 (or 33%) of 16 items tested, 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. 4. Long-lived assets are not routinely evaluated for possible impairment. Cause: The Authority lacks internal control policies and procedures over compliance with applicable equipment and real property management requirements. Moreover, internal control policies and procedures requiring periodic and timely performance and independent review of capital assets reconciliations and related general ledger accounts are not effectively implemented. 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. Questioned costs, if any, that may result from inadequate property records, maintenance procedures, and the absence of timely reconciliations are not determinable. Identified as a Repeat Finding: 2022-003 Recommendation: We recommend the Authority’s responsible personnel to establish internal control policies and procedures to ensure that the required information is contained in all property records and to perform required physical inventory and reconciliation for all equipment and real properties acquired from Federal funds at least once every two years in accordance with applicable equipment and real property management requirements. Views of Responsible Officials and Corrective Action Plan: The Authority agrees with the finding and provides details in its Corrective Action Plan.
Federal Agency: U.S Department of Transportation Assistance Listing Program: 20.106 Airport Improvement Program Federal Award Nos.: 3-68-0001-020-2019, 3-68-0001-025-2022 Area: Matching, Level of Effort, and Earmarking Questioned Costs: $152,120 Criteria: All match funding must be provided in compliance with the requirements of 2 CFR Part 200.306. The grantee’s share of project costs on an AIP grant (also known as cost share) is defined in 49 USC 47109 and set forth in the grant award. The nonfederal share varies by airport size and is generally 25 percent for large and medium hub airports and 10 percent for all other airports. Acceptable match, whether cash or in-kind, must be allowable and eligible. In addition, match must be provided by the recipient; or provided as cash by a third party; or provided as in-kind by a third party; or any combination of cash and in-kind provided by the recipient and/or a third party. Condition: For 3 (or 34%) items tested, the Authority did not consider matching requirements upon request for reimbursement and submission of related signed/dated SF-270 or SF-271 to the Federal Aviation Administration. Consideration of matching requirements for these transactions were subsequently corrected only during the audit process. Cause: The Authority lacks internal control policies and procedures compliance with applicable matching, level of effort, earmarking requirements relative to matching requirements. Effect: The Authority is in noncompliance with applicable matching requirements. Total questioned costs amounted to $152,120. Recommendation: We recommend the Authority’s responsible personnel to establish internal control policies and procedures to require monitoring of matching requirements prior to the submission of request for reimbursement. Views of Responsible Officials and Corrective Action Plan: The Authority agrees with the finding and provides details in its Corrective Action Plan.
Federal Agency: U.S Department of Transportation Assistance Listing Program: 20.106 Airport Improvement Program Federal Award Nos.: 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: $ Undeterminable 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, 2023, the Authority could not provide and submit the required annual SF-425 report for the grants open as of and for the year ended September 30, 2023, having a due date of December 31, 2023. 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 could be subject to penalties or sanctions from the Federal Aviation Administration. No questioned costs are reported as we were unable to determine the quantitative impact to the program. Identified as a Repeat Finding: 2022-004 Recommendation: We recommend the Authority’s responsible personnel to establish internal control policies and procedures in monitoring required reports and corresponding filing dates, including review of extensions, and to ensure timely review and submission of the required reports. Views of Responsible Officials and Corrective Action Plan: The Authority agrees with the finding and provides details in its Corrective Action Plan.
Federal Agency: U.S Department of Transportation Assistance Listing Program: 20.106 Airport Improvement Program Federal Award Nos.: 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: Special Tests and Provisions – Wage Rate Requirements Questioned Costs: $ Undeterminable Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts more than $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141–3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Condition: For the year ended September 30, 2023, the Authority did not receive and review certified weekly payrolls from contractors and/or subcontractors. Cause: The Authority lacks internal control policies and procedures to obtain required certified weekly payrolls reports from contractors and/or subcontractors to ensure compliance with wage rate requirements. Effect: The Authority is in noncompliance with applicable wage rate requirements. No questioned costs are reported as we were unable to determine the quantitative impact to the program. Recommendation: We recommend the Authority’s responsible personnel to establish internal control policies and procedures to ensure that contractors and/or subcontractors are submitting weekly certified payrolls as required. Views of Responsible Officials and Corrective Action Plan: The Authority agrees with the finding and provides details in its Corrective Action Plan.