Finding 1173434 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-02-13

AI Summary

  • Core Issue: The District missed the deadline to submit its Data Collection Form and Reporting Package to the Federal Audit Clearinghouse.
  • Impacted Requirements: This failure violates 2 CFR §200.512(a)(1), which mandates timely submission for entities expending over $750,000 in federal awards.
  • Recommended Follow-Up: Establish a formal timeline and written plan for the audit process, outlining responsibilities and deadlines, especially during key personnel changes.

Finding Text

Item 2024-001: Report Submission to the Federal Audit Clearinghouse (Other Matter Required to be Reported Under the Uniform Guidance) (Material Weakness) Criteria: 2 CFR §200.512(a)(1) requires a non-federal entity that expends federal awards of $750,000 or more in a fiscal year to submit a reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receiving the auditor's report or nine months after the end of the audit period. Condition: The District did not prepare and submit its Data Collection Form and Reporting Package for the year ended December 31, 2024 to the Federal Audit Clearinghouse by the due date of September 30, 2025. Cause: The District was without its Chief Executive Officer for most of the fiscal year 2025. The Chief Financial Officer was performing both duties and was not able to timely reconcile general ledger and produce the financial statements. Accordingly, the District’s general ledger for the year December 31, 2024 was not closed out in a timely manner. Effect: The District’s Data Collection Form and Reporting Package for the year ended December 31, 2024 was not prepared and submitted to the Federal Audit Clearinghouse by the due date. Recommendation: We recommend that management implement a formal timeline for all aspects of the single audit process to include developing a written plan with defined responsibilities and target dates for each task in the event of a key management personnel departure.

Corrective Action Plan

The Richland-Lexington Airport District respectfully submits this corrective action plan for the audit finding during the 2024 year-end audit. The management of the Richland-Lexington Airport District agrees with Item 2024-001 as presented in Section III- Federal Award Findings and Questioned Costs. The challenges associated with both roles and the time required to select the District’s next permanent Chief Executive Officer resulted in a delay in completing the audit of the District’s financial statements for the year ended December 31, 2024. The Richland-Lexington Airport Commission selected Mr. Christopher White, AAE as the District’s Chief Executive Officer and Mr. White assumed his new duties with the District on January 4, 2026. As of this date, the Chief Financial Officer was relieved of the Interim Chief Executive Officer duties and has completed all actions necessary to reconcile the general ledger and finalize the District’s Annual Comprehensive Financial Report (the “ACFR”) for the year ended December 31, 2024. The “full-staffing” status of the District’s senior management team will allow for the proper allocation of personnel resources to ensure the timely production of the ACFR and District’s Data Collection Form and Reporting Package in subsequent years.

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1173424 2024-001
    Material Weakness Repeat
  • 1173425 2024-001
    Material Weakness Repeat
  • 1173426 2024-001
    Material Weakness Repeat
  • 1173427 2024-001
    Material Weakness Repeat
  • 1173428 2024-001
    Material Weakness Repeat
  • 1173429 2024-001
    Material Weakness Repeat
  • 1173430 2024-001
    Material Weakness Repeat
  • 1173431 2024-001
    Material Weakness Repeat
  • 1173432 2024-001
    Material Weakness Repeat
  • 1173433 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.090 LAW ENFORCEMENT OFFICER REIMBURSEMENT AGREEMENT PROGRAM $61,440
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $1,498