Finding 1216356 (2024-002)

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

AI Summary

  • Core Issue: The City Airport delayed submitting project expenses for reimbursement, leading to a late claim in September 2024 for costs incurred in 2023.
  • Impacted Requirements: The City Airport must maintain proper bookkeeping and submit invoices promptly after payment to vendors.
  • Recommended Follow-Up: Engage a bookkeeper or accounting firm to ensure timely reconciliation and submission of eligible expenses for reimbursement.

Finding Text

The City Airport had Airport Project expenses for project 3-05-0041-028-2022 ('028) incurred and paid for in 2023 not submitted until September 2024. The City Airport finally submitted and received reimbursement of $48,719.00 on 9/17/2024. The City Airport is required to maintain adequate bookkeeping and recordkeeping at the City Airport. The City Airport should turn in invoices for reimbursement to the FAA as soon as possible after they have been approved and paid to the vendors. The City Airport did not turn in invoices for project '028 in 2023 when it was paid, but rather in September 2024. This caused a delay in expenses paid in 2023 to be reimbursed in 2024. The City Airport should submit expenses eligible for reimbursement by the FAA as soon as possible for reimbursement. We further recommend that the City Airport have a bookkeeper or accounting firm on hand to reconcile the amounts for each project, and check for expenses submitted for reimbursement to each individual invoice and project. Management of the City is committed to taking steps to ensure that expenses eligible for reimbursement are submitted to the FAA as soon as possible by the City Airport.

Corrective Action Plan

Management of the City is committed to taking steps to ensure that expenses eligible for reimbursement are submitted to the FAA as soon as possible by the City Airport.

Categories

Cash Management

Other Findings in this Audit

  • 1216355 2024-001
    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