Finding Text
2025-004 U.S. Department of Transportation Airport Improvement Program Assistance Listing 20.106 Reporting Significant Deficiency in Internal Control over Compliance Criteria: The OMB compliance supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by underlying accounting information or performance records, and are fairly presented in accordance with government requirements. The City of Fallon is required to submit and SF-425 annually. Recipients use the Federal Financial Report (FFR) as a standardized format to report expenditures under federal awards as well as, when applicable, cash status. Condition: We noted the City incorrectly reported federal share of expenditures and recipient share of expenditures. Cause: The City did not have adequate internal controls for accurate reporting. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: All reports submitted during the year were tested. Repeat Finding from Prior Year: No. Recommendation: We recommend City of Fallon enhance internal controls to ensure its reports are accurate. Views of Responsible Officials: Management concurs with the finding regarding reported federal share of expenditures and recipient share of expenditures. Grant management procedures have been updated to include a secondary review of all reports prior to submission to the awarding agency.