Audit 408256

Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Programs Assistance Listing No. 20.106 U.S. Department of Transportation Criteria: Reporting (2 CFR 200.328) Entities are required to submit accurate and timely financial reports, including the Federal Financial Report (SF-425), to the U.S. Department of Transportation Federal Aviation Administration (FAA) on an annual basis. Condition: The City did not submit the required annual Federal Financial Report (SF-425) to the FAA for the period under audit. Cause: The City does not have formalized procedures in place to ensure that required Federal reports are identified, prepared, reviewed, and submitted in accordance with grant requirements. Effect or Potential Effect: Failure to submit the required Federal Financial Report (SF-425) could result in the City not providing necessary financial information to the FAA to monitor grant activity and the use of Federal funds. Noncompliance with reporting requirements may result in delayed reimbursements, suspension of funding, or other engorcement actions by the awarding agency. Context: We selected a sample of four out of four reports required to be submitted during the year for detailed testing. For all reports tested, we noted a 100% error rate in submittal of the reports. The sampling methodology used is not, and is not intended to be, statistically valid. Repeat Finding: No Questioned Costs: No unknown or questioned costs. Recommendation: We recommend management implement procedures ensuring that all performance reporting requirements are identified in grant awards, and prepared, reviewed, and submitted accurately and timely in accordance with the grant requirements. Views of Responsible Officials: We agree with the finding. See separate report for planned corrective actions.