Finding Text
Federal Agency: Department of Transportation Federal Program: 20.106 Airport Improvement Program, COVID-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs Identification Number: 3-24-0017-049-2021 Requirement: Reporting Type of Finding: Significant deficiency in internal control over major program Criteria: Federal revenue, federal expenditures and the recipient share are to be reported for the period Form SF-425 is being filed. Condition: Forms SF-425, Federal Financial Report (FFR), were completed using amounts from a varying reporting period. Cause: There was no management oversight of the preparation of Form SF-425. Effect: The Department of Transportation will not have accurate information to assess the status of each project. Context: FFR for Grant 49 was filed with period-end date September 30, 2022 noting $1,488,124 of expenditures when actual expenditures were $1,802,530. The difference was due to a request which was marked as paid on June 30, 2022 and was included in the June 30, 2022 FFR. The request was payable as of June 30, 2022 and was paid in July 2022. Repeat Finding: This finding was reported for the year ended June 30, 2022 as 2022-002 as a significant deficiency in internal control. For the years ended June 30, 2021 and 2020 the finding was reported as 2021-002 and 2020-004, respectively, as a material weakness and noncompliance. Recommendation: The finance department should provide accounting records to the airport that are for the reporting period the Form SF-425 is being prepared. Also, since reports are filed on the cash basis of accounting, any accruals should be reversed so reporting is consistent from period to period. This will provide the Department of Transportation with an accurate accounting of where the project stands. Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.