Audit 411137

2022-004 – Reporting – Material Weakness Federal Program AL 20.106 - Airport Improvement Program Criteria The Uniform Guidance requires all entities that expend in excess of $750,000 to file audited financial statements within 9 months of year-end. Condition The Authority’s December 31, 2022 audited financial statements were not filed with the Federal Audit Clearinghouse within 9 months of the City’s year-end. Cause The Authority did not contract for the audit until after the filing deadline. Questioned Costs None Context N/A Effect The Authority is not in compliance with Uniform Guidance requirements. Repeat Finding This is not a repeat finding. Recommendation Controls should be implemented to contract for audit prior to audit deadline to ensure the Authority’s financial statements are audited and filed with the Federal Audit Clearinghouse within nine months of each year end. View of Responsible Officials and Planned Corrective Actions The Authority plans to implement the auditor's recommendation.

2022-005 – Reporting – Material Weakness Federal Program AL 20.106 - Airport Improvement Program Criteria The Authority is required to submit Federal Financial Report (SF-425) for each grant award. The grant agreements require for this form to be filed annually with a due date of 90 days after the end of each federal fiscal year. This form should accurately present federal cash, federal expenditures and unobligated balance, recipient share and program income. In addition, the Authority is required to submit FAA 5100-126 and FAA 5100-127 within 120 days of the fiscal period end. Condition The following conditions were found for the reports filed: 1) SF-425 Reporting : a) Grant Award 3-38-0012-039-2020 - Documentation was not maintained to support the report was submitted in a timely manner. b) Grant Award 3-38-0012-040-2022 – The Federal share of expenditures reported did not agree to the federal share of expenditures incurred. The report was not submitted on a timely basis. c) Grant Award 3-38-0012-042-2022 - Federal share of expenditures reported did not agree to the federal share of expenditures incurred. The report was not submitted on a timely basis. 2) FAA 5100-126 - This report has not been filed. 3) FAA 5100-127 – The report was not submitted on a timely basis. Cause The Authority did not have appropriate internal controls to ensure expenditures were reported properly and to ensure the reports are submitted timely. Questioned Costs None Context The Airport Improvement Program was funded by four grants. Each grant required an annual SF- 425 report to be submitted and each of these were tested during audit procedures. The Authority was also required to submit annual FAA 5100-126 and FAA 5100-127 during the year, both reports were selected for testing. Effect The Authority is not in compliance with grant reporting requirements which could have an impact on future funding. Repeat Finding This is not a repeat finding. Recommendation We recommend for the Authority to review internal controls and procedures to ensure reports are appropriately reporting expenditures and are submitted timely. View of Responsible Officials and Planned Corrective Actions The Authority plans to implement the auditor's recommendation.