Finding Text
Federal agency: Department of Transportation
Federal program title: Airport Improvement Program
Assistance Listing Number: 20.106
Federal Award Identification Number and Year:
• 3-12-002-023-2022
• 3-12-002-024-2022
• 3-12-002-025-2022
Award Period:
• 1/20/2020-1/20/2024
• 9/13/2022-9/13/2026
• 9/13/2022-9/13/2026
Type of Finding:
• Material Weakness in Internal Control Over Compliance
• Other Matters
Criteria or specific requirement: The City is required to submit formal financial and performance reports on an annual basis using prescribed form SF-425 and formal reimbursement requests on an as needed basis using prescribed form SF-270. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely.
Condition: There is no review process in place to ensure required reports are filed timely, accurately, and in accordance with program guidelines. Two reports were not filed for the year audited.
Questioned costs: None.
Context: Form SF-425 Federal Financial Report is due 90 days after fiscal year end, for each grant open at year end. Six reports were tested during our audit procedures.
Cause: Turnover in City staff and lack of knowledge and training of those managing grants.
Effect: A failure to submit required reports to FAA could result in disciplinary action such as a delay in payments or change in award.
Repeat finding: No.
Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner.
Views of responsible officials: There is no disagreement with the audit finding.