Finding Text
Finding 2025-001: Information on the Federal Program: Assistance Listing Number 20.106—Airport Improvement Program (AIP). Award Number(s): 3-49-0024-063-2023, 3-49-0024-065-2024, 3-49-0024-064-2024. Compliance Requirement: Reporting Type of Finding: Noncompliance. Criteria: 2 CFR § 200.328(a) requires that the non-federal entity submit financial reports as required by the terms and conditions of the federal award, including the frequency and due dates for submission. The federal awarding agency or pass-through entity must use OMBapproved information collections, such as the SF-425A (federal financial report) to collect financial information from recipients. The AIP grant agreements further specify the requirement for timely submission of the SF-425A as a condition of the award. Condition: The City did not submit the required federal financial report for the AIP grant within the required reporting deadline – within 90 days after the end of the fiscal year. Cause: The City program staff and management did not have complete understanding and oversight regarding federal reporting deadlines. Effect or Potential Effect: Failure to submit required federal financial reports in a timely manner may result in noncompliance with federal award terms, potential delays in future funding, and increased risk of federal sanctions or additional monitoring by the awarding agency. Questioned Costs: None identified as the finding relates to a reporting compliance issue. Context: Of the required reports for the fiscal year, the federal financial report for the AIP grant was submitted approximately one year and 3 months late (December 8, 2025). Recommendation: The City program staff and management should implement procedures to ensure timely submission of all required federal financial reports. Procedures should include establishing a tracking system for necessary reports and deadlines as well as providing training to program staff responsible for submission of required reports.