Finding 1173168 (2023-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-02-10
Audit: 386627
Organization: Rmi Ports Authority (MH)

AI Summary

  • Core Issue: The Authority failed to submit the required annual SF-425 report for open grants by the deadline.
  • Impacted Requirements: Noncompliance with federal reporting requirements could lead to penalties from the Federal Aviation Administration.
  • Recommended Follow-Up: Implement internal controls to monitor report deadlines and ensure timely submissions, including reviewing extension requests.

Finding Text

Federal Agency: U.S Department of Transportation Assistance Listing Program: 20.106 Airport Improvement Program Federal Award Nos.: 3-68-0001-018-2017, 3-68-0001-020-2019, 3-68-0001-022-2020, 3-68-0001-023-2020, 3-68-0001-024-2020, 3-68-0001-025-2022 Area: Reporting Questioned Costs: $ Undeterminable Criteria: In accordance with applicable reporting requirements and with grant terms and conditions, the Authority is responsible for submitting a signed/dated SF-270 (non-construction projects) or SF-271 or equivalent (construction projects) and SF-425 annually, due 90 days after the end of each federal fiscal year in which the grants are open (due December 31 of each year). Condition: For the year ended September 30, 2023, the Authority could not provide and submit the required annual SF-425 report for the grants open as of and for the year ended September 30, 2023, having a due date of December 31, 2023. Cause: The Authority lacks internal control policies and procedures over submission of required reports and monitoring report deadlines to ensure compliance with reporting requirements. Effect: The Authority is in noncompliance with applicable reporting requirements and could be subject to penalties or sanctions from the Federal Aviation Administration. No questioned costs are reported as we were unable to determine the quantitative impact to the program. Identified as a Repeat Finding: 2022-004 Recommendation: We recommend the Authority’s responsible personnel to establish internal control policies and procedures in monitoring required reports and corresponding filing dates, including review of extensions, and to ensure timely review and submission of the required reports. Views of Responsible Officials and Corrective Action Plan: The Authority agrees with the finding and provides details in its Corrective Action Plan.

Corrective Action Plan

SOP will be developed in alignment with contract terms and conditions, assigning responsible parties for each type of reporting, including SF-270 and SF-425 and others. A tracking system will be implemented and strictly monitored to ensure timely submission of these reports. Automated notifications will be issued to responsible parties 60 days and 30 days in advance of each reporting deadline to prevent delays and maintain compliance.

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 1173166 2023-003
    Material Weakness Repeat
  • 1173167 2023-004
    Material Weakness Repeat
  • 1173169 2023-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $4.83M