Audit 395539

Type of Finding: ALN 20.106 - Timely Filing of SF-425, Federal Financial Report (FFR) (Federal Award Finding) Condition: During our audit, we noted the SF-425, Federal Financial Report, was not submitted timely for three out of six Airport Improvement Programs (AIP) samples selected for testing. Criteria: Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and terms and conditions of the federal awards. The characteristics of internal control are presented in the context of the components of internal control discussed in Internal Control-Integrated Framework (COSO Report), published by the Committee of Sponsoring Organizations of the Treadway Commission. The COSO Report provides a framework for organizations to design, implement, and evaluate control that will facilitate compliance with the requirements of federal laws, regulations, and program compliance requirements. Cause: The County did not have procedures in place to ensure timely submission of the SF-425 reports. Effect: The County was not in compliance with federal regulations. Questioned Costs: None. Recommendation: We recommend the County establish and implement controls to ensure compliance with reporting requirements and timelines. Auditee Response and Corrective Action Plan: The County agrees with the finding. See corrective action plan.