FAC Explorer

Finding 1210827 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-29
Audit: 400108
Organization: City of Austin (TX)
Auditor: DELOITTE & TOUCHE LLP

AI Summary

  • Core Issue: Performance and progress reports were not submitted on time for multiple grants, violating grant agreement requirements.
  • Impacted Requirements: Reports due include FAA Form 5100-140 and FAA Form 5370-1, with 4 out of 4 performance reports and 3 out of 4 construction reports missing timely submission.
  • Recommended Follow-up: Ensure all reports are prepared and submitted on schedule; review and reinforce reporting requirements with project managers.

Finding Text

Finding 2025-003: ALN 20.106 ABIA FAA, 3-48-0359-067-2021, 3-48-0359-071-2022, 3-48-0359-074-2024, 3-48-0359-073-2024, 3-48-0359-075-2024, 3-48-0359-077-2025, 3-48-0359-078-2025, 3-48-0359-079-2025, 2025, U.S. Department of Transportation — Significant Deficiency in Internal Control over Reporting and Finding of Non-compliance Criteria: The Grant agreement requires the auditee to submit the following performance reports: • FAA Form 5100-140 – Performance Report for non-construction projects within 30 days of the end of the Federal fiscal year (“Performance Reports”) • FAA Form 5370-1 – Construction Progress and Inspection Report for construction projects within 30 days of the end of each Federal fiscal quarter (“Construction Progress and Inspection Reports”) Condition: • Performance Reports were prepared but not formally submitted to the grantor within the due dates stated in the grant agreements for 4 out of 4 grants subject to this reporting requirement. • Construction Progress and Inspection Reports were prepared but not formally submitted to the grantor within the due date stated in the grant agreements for 3 out of 4 grants subject to this reporting requirement. • Construction Progress and Inspection Reports were neither prepared nor formally submitted to the grantor for 1 out of 4 grants (Grant 3-48-0359-071-2022) subject to this reporting requirement. Cause: Performance reports are prepared by the respective project managers and updates on the projects are discussed during the weekly and monthly meetings with the Federal Aviation Administration Airports District Office – Texas (ADO). Grant management at the Aviation Department considered these meetings with the ADO’s contact as sufficient to meet the performance reporting requirement stated in the grant agreement. Further, for Grant 3-48-0359-071-2022, the Project Manager was not aware of the reporting requirements and as a result, the Construction Progress and Inspection Reports were not prepared for this grant. Effect: Although the City provides regular updates to the ADO, formal performance and progress reports were not consistently prepared and/or submitted. Deloitte & Touche LLP (D&T) inspected agendas for the relevant meetings and noted that the topics that would typically be included in such reports appear to have been covered. However, lack of formal preparation and/or submission of performance and progress reports may increase the risk that performance issues are not identified and corrected on a timely basis. Questioned Costs: None. Context: Repeat Finding from Prior Year: No Recommendations: Grant management at the Aviation Department should ensure all reports are prepared and formally submitted to the grantor according to the due dates stated in the grant agreement. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.

Corrective Action Plan

Finding 2025-003: ALN 20.106 ABIA FAA, 3-48-0359-067-2021, 3-48-0359-071-2022, 3-48-0359-074-2024, 3-48-0359-073-2024, 3-48-0359-075-2024, 3-48-0359-077-2025, 3-48-0359-078-2025, 3-48-0359-079-2025, U.S. Department of Transportation — Significant Deficiency in Internal Control over Reporting and Finding of Non-compliance Contact Person – Lyn Estabrook, Deputy Chief, Airport Development Management Response – Concur. The Aviation Department has completed a thorough internal review of its FAA Airport Improvement Program (AIP) and other FAA grant reporting practices in response to the audit’s draft finding. This evaluation saw gaps in documentation and deadline management that contributed to delays and inconsistencies in required FAA performance reporting. While project updates were regularly communicated during monthly ADO coordination meetings and with Airport program wide written monthly reports these updates did not meet the FAA’s formal submission requirement for their written performance reports within 30 days of the close of each reporting period. To address these issues comprehensively and sustainably, the Department has already implemented significant process improvements, including the assignment of a dedicated Project Coordinator, formalization of reporting workflows, and establishment of a centralized reporting repository. The Division has also issued a fully documented FAA Grant Reporting Procedure and implemented annual mandatory training to ensure staff knowledge, consistency, and long-term compliance. These corrective actions are designed to prevent recurrence, enhance accountability, and ensure all future performance reports are completed, submitted, and documented in accordance with FAA requirements. See below write up of the Corrective Action Taken and Planned: 1. Project Coordinator Assigned: A dedicated Project Coordinator (PC) now manages report tracking, deadlines, and documentation control. 2. Annual Mandatory Training: • Training held February 5, 2026 • Annually recurring every October (new fiscal year) • Covers: o FAA forms o Deadlines o Submission requirements o Documentation standards 3. Formal 30 Day Reporting Controls: • Tracker auto calculates deadlines • PMs receive calendar invites and reminders at 21, 14, 7, and 3 days • FAA submissions now require CC to: o Project Coordinator o Airport Deputy Chief (Lyn Estabrook) o CIP Finance Manager (Cathy Brown) • Evidence of sent email placed in centralized repository 4. Centralized Evidence Repository: • All submitted forms, sent emails, and FAA acknowledgments stored in one location • Reduces risk of buried project files • Supports complete, auditable documentation 5. Procedure Issued: The FAA Grant Reporting Procedure has been issued and is now mandatory Division policy. 6. Timeline & Monitoring: • Immediate: Controls implemented in March 2026 • Next 90 Days: Review effectiveness after full quarterly cycle • Ongoing: o Annual training at beginning of the fiscal year o Quarterly internal reviews o Annual procedure update aligned to any FAA changes Estimated Completion – June 30, 2026.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1210817 2025-004
    Material Weakness Repeat
  • 1210818 2025-004
    Material Weakness Repeat
  • 1210819 2025-004
    Material Weakness Repeat
  • 1210820 2025-003
    Material Weakness Repeat
  • 1210821 2025-003
    Material Weakness Repeat
  • 1210822 2025-003
    Material Weakness Repeat
  • 1210823 2025-003
    Material Weakness Repeat
  • 1210824 2025-003
    Material Weakness Repeat
  • 1210825 2025-003
    Material Weakness Repeat
  • 1210826 2025-003
    Material Weakness Repeat
  • 1210828 2025-002
    Material Weakness Repeat
  • 1210829 2025-002
    Material Weakness Repeat
  • 1210830 2025-002
    Material Weakness Repeat
  • 1210831 2025-004
    Material Weakness Repeat
  • 1210832 2025-004
    Material Weakness Repeat
  • 1210833 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 COVID-19 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $30.82M
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $7.78M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $7.71M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $3.94M
12.U00 Waterloo Greenway-Design and Construction Assistance $3.53M
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $2.97M
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $2.60M
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $2.56M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $2.47M
66.468 DRINKING WATER STATE REVOLVING FUND $2.26M
15.916 OUTDOOR RECREATION ACQUISITION, DEVELOPMENT AND PLANNING $2.25M
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $2.13M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.23M
93.686 ENDING THE HIV EPIDEMIC: A PLAN FOR AMERICA — RYAN WHITE HIV/AIDS PROGRAM PARTS A AND B $1.20M
16.922 EQUITABLE SHARING PROGRAM $1.18M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $834,107
93.268 COVID-19 - IMMUNIZATION COOPERATIVE AGREEMENTS $701,914
66.046 CLIMATE POLLUTION REDUCTION GRANTS $613,391
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $572,727
97.036 COVID-19 - DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $563,896
81.086 CONSERVATION RESEARCH AND DEVELOPMENT $534,557
20.940 RECONNECTING COMMUNITIES PILOT (RCP) DISCRETIONARY GRANT PROGRAM $464,802
93.493 CONGRESSIONAL DIRECTIVES $454,472
97.091 HOMELAND SECURITY BIOWATCH PROGRAM $320,670
20.237 MOTOR CARRIER SAFETY ASSISTANCE HIGH PRIORITY ACTIVITIES GRANTS AND COOPERATIVE AGREEMENTS $319,492
93.918 GRANTS TO PROVIDE OUTPATIENT EARLY INTERVENTION SERVICES WITH RESPECT TO HIV DISEASE $288,796
93.940 HIV PREVENTION ACTIVITIES HEALTH DEPARTMENT BASED $278,080
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $240,000
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $225,000
14.248 COMMUNITY DEVELOPMENT BLOCK GRANTS SECTION 108 LOAN GUARANTEES $190,936
97.067 HOMELAND SECURITY GRANT PROGRAM $185,863
97.045 COOPERATING TECHNICAL PARTNERS $180,256
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $178,309
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $177,245
93.387 NATIONAL AND STATE TOBACCO CONTROL PROGRAM $167,266
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $161,223
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $153,932
66.202 CONGRESSIONALLY MANDATED PROJECTS $153,035
16.590 GRANTS TO ENCOURAGE ARREST POLICIES AND ENFORCEMENT OF PROTECTION ORDERS PROGRAM $145,735
93.323 COVID-19 - EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $130,744
20.939 SAFE STREETS AND ROADS FOR ALL $127,345
93.297 TEENAGE PREGNANCY PREVENTION PROGRAM $122,376
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $104,185
93.823 PUBLIC HEALTH RESPONSE, FORECASTING, AND ANALYTIC CAPACITIES RELATED TO DISEASE OUTBREAKS, EPIDEMICS, AND PANDEMICS $101,518
16.575 CRIME VICTIM ASSISTANCE $97,485
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $95,000
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $87,770
16.742 PAUL COVERDELL FORENSIC SCIENCES IMPROVEMENT GRANT PROGRAM $85,130
14.239 COVID-19 - HOME INVESTMENT PARTNERSHIPS PROGRAM $81,800
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $77,560
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $77,454
21.016 EQUITABLE SHARING $73,647
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $70,933
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $70,000
16.833 NATIONAL SEXUAL ASSAULT KIT INITIATIVE $66,836
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $59,078
16.585 TREATMENT COURT DISCRETIONARY GRANT PROGRAM $57,877
93.977 SEXUALLY TRANSMITTED DISEASES (STD) PREVENTION AND CONTROL GRANTS $49,377
94.006 AMERICORPS STATE AND NATIONAL 94.006 $42,397
10.664 COOPERATIVE FORESTRY ASSISTANCE $42,124
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION’S HEALTH $41,248
93.495 COVID-19 - COMMUNITY HEALTH WORKERS FOR PUBLIC HEALTH RESPONSE AND RESILIENT $40,620
16.817 BYRNE CRIMINAL JUSTICE INNOVATION PROGRAM $31,387
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $24,797
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $24,391
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $22,025
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $22,000
14.023 COMMUNITY DEVELOPMENT BLOCK GRANT- PRO HOUSING COMPETITION $21,890
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $18,946
16.745 CRIMINAL AND JUVENILE JUSTICE AND MENTAL HEALTH COLLABORATION PROGRAM $15,247
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $11,363
16.058 DEMONSTRATION PROGRAM ON TRAUMA-INFORMED, VICTIM CENTERED TRAINING FOR LAW ENFORCEMENT $10,310
93.391 COVID-19 - ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $9,799
94.013 AMERICORPS VOLUNTEERS IN SERVICE TO AMERICA 94.013 $6,768
93.008 MEDICAL RESERVE CORPS SMALL GRANT PROGRAM $5,795
45.024 PROMOTION OF THE ARTS GRANTS TO ORGANIZATIONS AND INDIVIDUALS $5,000
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $2,090
93.569 COMMUNITY SERVICES BLOCK GRANT $1,428
14.231 COVID-19 - EMERGENCY SOLUTIONS GRANT PROGRAM $951
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $-190
14.401 FAIR HOUSING ASSISTANCE PROGRAM $-582
93.354 COVID-19 - PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $-1,233
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $-29,343