FAC Explorer

Audit 42215

FY End
2022-12-31
Total Expended
$17.18M
Findings
4
Programs
2
Organization: Sioux Falls Regional Airport Authority (SD)
Year: 2022 Accepted: 2023-05-18
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50448 2022-002 Material Weakness - L
50449 2022-002 Material Weakness - L
626890 2022-002 Material Weakness - L
626891 2022-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $2.59M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $36,363 - 0

Contacts

Name Title Type
WKP2R324WW41 Dan Letellier Auditee
6053670762 Brian Stavenger Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Authority does not draw for indirect administrative expense and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Sioux Falls Regional Airport Authority (the Authority) under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operation of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: Airport Improvement Program Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Authority does not draw for indirect administrative expense and has not elected to use the 10% de minimis cost rate. Description of each airport improvement program identified in the schedule is as follows:Project Number AIP46005053 Construct terminal deicing and remain overnight apron. Design and construct south terminal apron partial pavement replacement; east cargo apron expansion.Project Number AIP46005054 Coronavirus Aid, Relief and Economic Security Act (CARES) to reimburse airport operational and maintenance expenses directly related to Joe Foss Field incurred no earlier than January 20, 2020.Project Number AIP46005055 Reconstruct runway 321 Approach ends, construct runway 321 shoulders, install new HIRLs and reconstruct runway 21 MALSR threshold bar.Project Number AIP46005056 Coronavirus Response and Relief Appropriation Act (CRRSAA) to provide funding for costs related to operations, personnel, cleaning, sanitation, janitorial services, combatting the spread of pathogens at the airport directly related to Joe Foss Field incurred no earlier than January 20, 2020.Project Number AIP46005057 Design of Runway 1533 to Taxiway B5 and Reconstruction; Design of Taxiway A, A1, A3, A5 and Rehabilitation, D Reconstruction and Realignment, F with Reconstruction and M with Rehabilitation. Construction of Taxiway B, B4, B5 with Rehabilitation. Acquire and Install 2 passenger boarding bridges for gates 4 & 6. Removal of Taxiway Airport Hot Spot E.Project Number AIP46005058 Coronavirus Response and Relief Appropriation Act (CRRSAA) to provide relief from rent and minimum annual guarantees (MAG) obligations to each eligible airport concession.Project Number AIP46005059 American Rescue Plan Act (ARPA) to reimburse airport operational and maintenance expenses directly related to Joe Foss Field incurred no earlier than January 20, 2020.Project Number AIP46005061 Rehabilitate Runway 1533, Taxiway A, Taxiway A1, Taxiway A3, Taxiway A5 and Taxiway M, including concrete panel repair, spall repair, joint sealing, asphalt milling and overlay, grooving and pavement marking; Realign Taxiway D including removal, salvage and reinstallation of taxiway signs on new foundations; Remove Taxiway E; and Reconstruct Taxiway F including removal, salvage, and reinstallation of Medium Intensity Taxiway Lighting on new base cans and removal, salvage, and reinstallation of taxiway signs on new foundations.Project Number AIP46005062 Coronavirus Aid, Relief and Economic Security Act (CARES) to reimburse airport operational and maintenance expenses directly related to Joe Foss Field incurred no earlier than January 20, 2020.

Finding Details

Finding 2022-002
Finding 2022-002 Department of Transportation Federal Financial Assistance Listing 20.106; Awards AIP3-46-0050-57 and AIP3-46-0050-61 Airport Improvement Program Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria - 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the conditions of the federal award. 2 CFR 200.327 and 2 CFR 200.328 require the auditee to collect financial information and monitor its activities under federal awards to assure compliance with applicable federal requirements and performance expectations are being achieved and report these items in accordance with the program requirements. Condition - The SF-425 annual report dated September 30, 2022, for award AIP3-46-0050-57 overreported the federal share of expenditures by $1,347, while the SF-425 annual report dated September 30, 2022, for award AIP3-46-0050-61 underreported the federal share of expenditures by $1,494,690. Cause - The Authority does not have an internal control structure designed to ensure amounts reported on SF-425 reports are adequately reviewed and agree to underlying accounting records. Effect - Lack of compliance with designed internal controls over reporting could result in the Authority reporting incorrect or incomplete information. Questioned Costs - None reported. Context/Sampling - A nonstatistical sample of 4 reports out of 12 reports. Repeat Finding from Prior Year - No Recommendation - Management should determine and formalize reporting responsibilities between the Airport and the State and establish review processes to ensure that amounts included in SF-425 reports agree with the underlying accounting records. Views of Responsible Officials - Management agrees with the finding.
Finding 2022-002
Finding 2022-002 Department of Transportation Federal Financial Assistance Listing 20.106; Awards AIP3-46-0050-57 and AIP3-46-0050-61 Airport Improvement Program Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria - 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the conditions of the federal award. 2 CFR 200.327 and 2 CFR 200.328 require the auditee to collect financial information and monitor its activities under federal awards to assure compliance with applicable federal requirements and performance expectations are being achieved and report these items in accordance with the program requirements. Condition - The SF-425 annual report dated September 30, 2022, for award AIP3-46-0050-57 overreported the federal share of expenditures by $1,347, while the SF-425 annual report dated September 30, 2022, for award AIP3-46-0050-61 underreported the federal share of expenditures by $1,494,690. Cause - The Authority does not have an internal control structure designed to ensure amounts reported on SF-425 reports are adequately reviewed and agree to underlying accounting records. Effect - Lack of compliance with designed internal controls over reporting could result in the Authority reporting incorrect or incomplete information. Questioned Costs - None reported. Context/Sampling - A nonstatistical sample of 4 reports out of 12 reports. Repeat Finding from Prior Year - No Recommendation - Management should determine and formalize reporting responsibilities between the Airport and the State and establish review processes to ensure that amounts included in SF-425 reports agree with the underlying accounting records. Views of Responsible Officials - Management agrees with the finding.
Finding 2022-002
Finding 2022-002 Department of Transportation Federal Financial Assistance Listing 20.106; Awards AIP3-46-0050-57 and AIP3-46-0050-61 Airport Improvement Program Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria - 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the conditions of the federal award. 2 CFR 200.327 and 2 CFR 200.328 require the auditee to collect financial information and monitor its activities under federal awards to assure compliance with applicable federal requirements and performance expectations are being achieved and report these items in accordance with the program requirements. Condition - The SF-425 annual report dated September 30, 2022, for award AIP3-46-0050-57 overreported the federal share of expenditures by $1,347, while the SF-425 annual report dated September 30, 2022, for award AIP3-46-0050-61 underreported the federal share of expenditures by $1,494,690. Cause - The Authority does not have an internal control structure designed to ensure amounts reported on SF-425 reports are adequately reviewed and agree to underlying accounting records. Effect - Lack of compliance with designed internal controls over reporting could result in the Authority reporting incorrect or incomplete information. Questioned Costs - None reported. Context/Sampling - A nonstatistical sample of 4 reports out of 12 reports. Repeat Finding from Prior Year - No Recommendation - Management should determine and formalize reporting responsibilities between the Airport and the State and establish review processes to ensure that amounts included in SF-425 reports agree with the underlying accounting records. Views of Responsible Officials - Management agrees with the finding.
Finding 2022-002
Finding 2022-002 Department of Transportation Federal Financial Assistance Listing 20.106; Awards AIP3-46-0050-57 and AIP3-46-0050-61 Airport Improvement Program Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria - 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the conditions of the federal award. 2 CFR 200.327 and 2 CFR 200.328 require the auditee to collect financial information and monitor its activities under federal awards to assure compliance with applicable federal requirements and performance expectations are being achieved and report these items in accordance with the program requirements. Condition - The SF-425 annual report dated September 30, 2022, for award AIP3-46-0050-57 overreported the federal share of expenditures by $1,347, while the SF-425 annual report dated September 30, 2022, for award AIP3-46-0050-61 underreported the federal share of expenditures by $1,494,690. Cause - The Authority does not have an internal control structure designed to ensure amounts reported on SF-425 reports are adequately reviewed and agree to underlying accounting records. Effect - Lack of compliance with designed internal controls over reporting could result in the Authority reporting incorrect or incomplete information. Questioned Costs - None reported. Context/Sampling - A nonstatistical sample of 4 reports out of 12 reports. Repeat Finding from Prior Year - No Recommendation - Management should determine and formalize reporting responsibilities between the Airport and the State and establish review processes to ensure that amounts included in SF-425 reports agree with the underlying accounting records. Views of Responsible Officials - Management agrees with the finding.