Finding Text
2023‐004 – Activities Allowed, Allowable Costs over Payroll (Material Noncompliance, Material
Weakness over Internal Controls over Compliance)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐057‐2021
Federal Award Year: 2023
Condition: During reconciliation of the general ledger to the SEFA, it was noted multiple pay periods were
duplicated which were included in request for reimbursement.
Criteria: Per 2 CFR 200.303(a), the non‐federal entity must establish and maintain effective internal
control over the Federal award that provides reasonable assurance that the non‐Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should be in compliance with guidance in
“Standards for Internal Control in the Federal Government” issued by the Comptroller General of the
United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).
Per 2 CFR section 200.430(f) – Factors affecting allowability of costs ‐ Not be included as a cost or used to
meet cost sharing or matching requirements of any other federally‐financed program in either the current
or a prior period.
Cause: The City does not have sufficient controls in place to ensure the accuracy of the amounts listed on
the general ledger as charged to the grant.
Questioned Cost: Known and likely questioned costs of $86,333
Effect: The City requested reimbursement for duplicate transactions resulting in disallowed costs.