Finding 1216355 (2024-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2026-06-02

AI Summary

  • Core Issue: The City Airport struggled to reconcile FAA reimbursements with project expenses due to inadequate documentation and mixed project invoicing.
  • Impacted Requirements: The City Airport must maintain clear and detailed bookkeeping to ensure accurate financial records for each project.
  • Recommended Follow-Up: Consider hiring a bookkeeper or accounting firm to improve recordkeeping and assist with timely reconciliation of FAA reimbursements.

Finding Text

There was great difficulty in reconciling the reimbursable amounts received from the Federal Aviation Administration (FAA) and the expenses incurred by the Airport throughout the year. The City Airport did not have sufficient detailed documentation of the five separate airport projects that were taking place throughout the year. Many times multiple projects were included on the same reimbursement form submitted to the FAA. Other time multiple separate invoices from different time periods for different projects were submitted on the same reimbursement form. This would require concise and clear recordkeeping by the City Airport. The City Airport is required to maintain adequate bookkeeping and recordkeeping at the City Airport. The City Airport should have readily available information to reconcile amounts spent at the City on the airport projects reconciled to the amounts submitted to the FAA for reimbursement. Invoices submitted for reimbursement should be obtained and split out by separate project if applicable. The City Airport did not have sufficient detailed documentation of the five separate airport projects that were taking place throughout the year and invoices to trace back to the airport accounting records and amounts submitted to the FAA for reimbursement. The City Airport should give strong consideration to hiring a bookkeeper or an accounting firm to help assist with the financial recordkeeping. We further recommend that the bookkeeper or accounting firm be involved in reconciling the amounts submitted for reimbursement to the FAA for timely submittal. Management of the City is committed to taking steps to enhance the bookkeeping and accounting at the City Airport. The City has further committed to documenting the invoice detail for each specific project be reconciled to the City's accounting records at the airport.

Corrective Action Plan

Management of the City is committed to taking steps to enhance the bookkeeping and accounting at the City Airport. The City has further committed to documenting the invoice detail for each specific project be reconciled to the City's accounting records at the airport.

Categories

Cash Management

Other Findings in this Audit

  • 1216356 2024-002
    Material Weakness Repeat
  • 1216357 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $4.60M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $1.41M
66.468 DRINKING WATER STATE REVOLVING FUND $809,718
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $234,389
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $17,640