Finding Text
Finding: Reporting
Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs
Assistance Listing Number: 20.106
Department of Transportation, Award Number 3-05-0047-031-2023, Award Year 2023
Department of Transportation, Award Number 3-05-0047-032-2024, Award Year 2024
Criteria: In accordance with 2 CFR section 200.328, recipients must use the standard financial reporting forms when reporting to the federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. Recipients use the Federal Financial Report (FFR) (SF-425/SF-425A) as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (lines 10.a, 10.b, and 10c).
Condition: We noted the City did not complete and submit the required annual Federal Financial Reports (SF-425) for the two awards identified above during the year ended December 31, 2024.
Questioned Costs: None
Context: We identified and tested both FFR (SF-425) reports that were required to be completed and submitted for the year ended December 31, 2024, and noted the reports were not submitted as described above.
Effect: Failure to complete and submit reports could lead to inaccurate reporting of information to the Federal Aviation Administration. In addition, failure to submit required reports to the Federal Aviation Administration could result in non-compliance and revocation of awarded grant funds.
Cause: Controls over reporting were not sufficiently operating during the year primarily due to staffing issues and turnover within the Airport Department.
Identification as a Repeat Finding: Not applicable.
Recommendation: We recommend that the City develop a process for reviewing and tracking the submission of FFR reporting to the Federal Aviation Administration.
Views of Responsible Officials: We agree with the finding. See separate report for planned corrective actions.