Finding Text
Finding Type - Significant deficiency in internal control over compliance
Title and Assistance Listing Number of Federal Program - ALN 20.106, U.S. Department of Transportation, Airport Improvement Program
Repeat Finding - No
Criteria - The FAA requires the Authority to file FAA Form 5100-127, Operating and Financial Summary (OMB NO. 2120-0569), and FAA Form 5100-126, Financial Government Payment Report (OMB NO. 2120-0569). FAA Form 5100-127 and Form 5100-126 are annual reports that are due within 120 days after the Authority’s fiscal year end.
Condition - The Authority did not have controls in place to ensure Form 5100-127 and Form 5100-126 were filed within 120 days after the Authority’s fiscal year end.
Context - While the due date of Form 5100-127 and Form 5100-126 was October 31, 2023, an automatic 60-day extension from the date requested is available. The process to request the automatic extension was not completed prior to October 31, 2023. As a result, the required reports were filed late on February 6, 2024.
Cause and Effect - The lack of appropriate review of reporting requirements could result in late reporting.
Recommendation - We recommend the Authority implement internal controls to ensure all reporting requirements are identified and all required reports are submitted in a timely manner in accordance with regulatory requirements.
Views of Responsible Officials and Corrective Action Plan - The Authority agrees with the finding. Due to turnover of staff formally responsible for filing the reports, the correct due date was not retained. Upon discovery of the missed due date, the Authority immediately filed the reports with the FAA. To ensure the reports are filed timely in the future, an online calendar has been established with reminders for important activities, such as filing due dates, renewals, and debt service payments. All members of the finance team have access to the online calendar to review, monitor, and add important due dates.