Finding Text
2023‐005 – Activities Allowed, Allowable Costs over Payroll (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 our review of payroll related transactions, 10 out of 45 timesheets tested did not include
appropriate approval by the Manager/Supervisor.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non‐federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non‐Federal entities 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 Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be
allowable under Federal awards.
Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on
all payroll transactions.
Questioned Cost: None.
Effect: The City may unintentionally overpay or underpay employees during their fiscal year.