Finding Text
2024-008: Report Preparation and Submission Finding Type: Material Weakness in Internal Controls and Noncompliance (Reporting) Federal Program: U.S. Department of Transportation – Airport Improvement Program (AL #20.106); all project numbers Criteria: Sponsors of commercial airports are required to submit FAA Form 5100-127, Operating and Financial Summary (OMB No. 2120-0569), which captures revenues and expenditures at the airport, including revenue surplus. Sponsors of commercial airports are also required to submit FAA Form 5100-126, Financial Government Payment Report (OMB No. 2120-0569), which captures amounts paid and services provided to other units of government. The reports are due within 120 days within the end of the airport’s fiscal year. Criteria (continued): Until a grant is completed and closed, the County Airport is required to submit an annual Form SF-425, Federal Financial Report, and an annual Form SF-270, Request for Advance or Reimbursement for Non-Construction Projects, or Form SF-271, Outlay Report and Request for Reimbursement for Construction Programs, by December 31st of each year (90 days after fiscal year end). Condition: The County Airport did not file FAA Form 5100-127 for fiscal year 2024. The County Airport did not timely file FAA Form 5100-126 for fiscal year 2024. The County Airport did not timely file FAA Form 5100-127 for fiscal year 2023. The County Airport did not timely file FAA Form 5100-126 for fiscal year 2023. The County Airport did not timely file Form SF-425 and Form SF-271 or SF-270 for fiscal year 2024 for all of the open projects. Due to proposed audit adjustments, the data reported on certain forms does not agree to audited financial records. Cause: The County Airport does not have controls in place to ensure all required reports are filed and based on reliable financial information. The Airport grants operate outside of the general County processes and internal control system given the administration assistance provided by the State and other consultants. Also, Airport management has experienced significant turnover. Effect: As a result of this condition, the County did not comply with the grant requirements. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the County and the Airport adopt formal written policies related to report preparation and submission as soon as practical. Views of Responsible Officials: The County will work to update policies and procedures related to report preparation and submission.