Finding Text
2022-007 – Activities allowed, Allowable Costs over Non-Payroll (Material Weakness over Internal
Controls over Compliance, Other Noncompliance)
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-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: During our review of non-payroll related transactions, 14 out of 18 transactions tested did not
include appropriate approval by the Airport Manager, 3 out of 18 transactions did not include a date of
approval by the Airport Manager, and 1 out of 18 transactions did not include supporting documentation
or purchase order information on the GL.
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 purchases or retaining the supporting documentation to ensure purchase is allowable.
Questioned Cost: Known and likely questioned costs of $35,021
Effect: The City may unintentionally charge expenses to the program that do not qualify and in turn lead
to questioned costs and/or repayment of funds to the Grantor agency.