Finding Text
Equipment and Real Property Management Federal Agency: U.S. Department of Transportation Federal Program Title: Airport Improvement Program ALN: 20.106 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 3-48-0007-056-2024, 3-48-0007-057-2024, 3-48-0007-058-2024, 3-48-0007-059-2024, 3-48-0007-060-2025, 3-48-0007-061-2025 December 29, 2023 – December 29, 2027, December 27, 2023 – December 27, 2027, August 16, 2024 – August 16, 2028, August 16, 2024 – August 16, 2028, September 18, 2025 – September 18, 2029, September 10, 2025 – September 10, 2029 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), the City of Amarillo (the City) must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the Federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Pursuant to 2 CFR 200.313(d), the City is required to maintain property records for equipment acquired with federal funds that include, among other elements, the source of funding and the percentage of federal participation. Condition: The City’s fixed asset ledger does not identify or distinguish assets acquired with federal award funds from assets acquired with other funding sources. As a result, the City’s property records do not readily identify the source of funding or percentage of federal participation for individual assets, as required by 2 CFR 200.313(d). Questioned costs: None. Context: See “Condition.” Cause: The City’s fixed asset system was not configured to capture funding source and federal participation information, and related procedures did not require this information to be recorded when assets were added to the ledger. Effect: Without complete property records, the City cannot readily demonstrate compliance with federal property management requirements. This increases the risk that federally funded assets may not be properly identified, safeguarded, reported, or disposed of in accordance with federal requirements. Repeat Finding: No Recommendation: The City should configure its fixed asset system, or implement an equivalent tracking mechanism, to identify assets acquired with federal award funds and document the related funding source and percentage of federal participation. The City should also update written procedures and perform periodic reviews to ensure property records remain complete, accurate, and compliant with federal requirements. Views of responsible officials: See management response on corrective action plan.