Audit 402893

There was great difficulty in reconciling the reimbursable amounts received from the Federal Aviation Administration (FAA) and the expenses incurred by the Airport throughout the year. The City Airport did not have sufficient detailed documentation of the five separate airport projects that were taking place throughout the year. Many times multiple projects were included on the same reimbursement form submitted to the FAA. Other time multiple separate invoices from different time periods for different projects were submitted on the same reimbursement form. This would require concise and clear recordkeeping by the City Airport. The City Airport is required to maintain adequate bookkeeping and recordkeeping at the City Airport. The City Airport should have readily available information to reconcile amounts spent at the City on the airport projects reconciled to the amounts submitted to the FAA for reimbursement. Invoices submitted for reimbursement should be obtained and split out by separate project if applicable. The City Airport did not have sufficient detailed documentation of the five separate airport projects that were taking place throughout the year and invoices to trace back to the airport accounting records and amounts submitted to the FAA for reimbursement. The City Airport should give strong consideration to hiring a bookkeeper or an accounting firm to help assist with the financial recordkeeping. We further recommend that the bookkeeper or accounting firm be involved in reconciling the amounts submitted for reimbursement to the FAA for timely submittal. Management of the City is committed to taking steps to enhance the bookkeeping and accounting at the City Airport. The City has further committed to documenting the invoice detail for each specific project be reconciled to the City's accounting records at the airport.

The City Airport had Airport Project expenses for project 3-05-0041-028-2022 ('028) incurred and paid for in 2023 not submitted until September 2024. The City Airport finally submitted and received reimbursement of $48,719.00 on 9/17/2024. The City Airport is required to maintain adequate bookkeeping and recordkeeping at the City Airport. The City Airport should turn in invoices for reimbursement to the FAA as soon as possible after they have been approved and paid to the vendors. The City Airport did not turn in invoices for project '028 in 2023 when it was paid, but rather in September 2024. This caused a delay in expenses paid in 2023 to be reimbursed in 2024. The City Airport should submit expenses eligible for reimbursement by the FAA as soon as possible for reimbursement. We further recommend that the City Airport have a bookkeeper or accounting firm on hand to reconcile the amounts for each project, and check for expenses submitted for reimbursement to each individual invoice and project. Management of the City is committed to taking steps to ensure that expenses eligible for reimbursement are submitted to the FAA as soon as possible by the City Airport.

The City Airport had Airport Project expenses for Projects '029, '031, and '033 incurred and paid for in 2024 totaling $58,477.04 not submitted to the FAA by year-end December 31, 2024. The City Airport is required to maintain adequate bookkeeping and recordkeeping at the City Airport. The City Airport should turn in invoices for reimbursement to the FAA as soon as possible after they have been approved and paid to the vendors. The City Airport did not turn in invoices for Projects '029, '031, and '033 in 2024 before year-end December 31, 2024. This caused a delay in expenses paid in 2024 to be reimbursed in the future. The City Airport should submit expenses eligible for reimbursement by the FAA as soon as possible for reimbursement. We further recommend that the City Airport have a bookkeeper or accounting firm on hand to reconcile the amounts for each project, and check for expenses submitted for reimbursement to each individual invoice and project. Management of the City is committed to taking steps to ensure that expenses eligible for reimbursement are submitted to the FAA as soon as possible by the City Airport.