Finding Text
Reporting – FAA Form 5100-127 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 December 29, 2023 – December 29, 2027, December 27, 2023 – December 27, 2027, August 16, 2024 – August 16, 2028, August 16, 2024 – August 16, 2028 Type of Finding: Significant Deficiency in Internal Control over Compliance and 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 49 U.S.C. § 47107(a)(15) and Federal Aviation Administration (FAA) guidance, including AC 150/5100-19, requires airport sponsors to prepare FAA Form 5100-127 using financial information that is accurate, complete, and supported by underlying accounting records. Additionally, in accordance with 2 CFR 200.302(b)(3), the City must maintain financial management systems and internal controls that ensure reported data is complete, accurate, and reconcilable to the general ledger. Condition: During testing of FAA Form 5100-127 submitted in March 2025, which reported financial information for the fiscal year ended September 30, 2024, with comparative amounts for the fiscal year ended September 30, 2023, we noted that several line items did not agree to the City’s general ledger or supporting documentation. As a result, certain amounts reported on the form were not fully supported by the underlying accounting records. The specific line items and variances are summarized in the table below. The large variances noted were attributable primarily to reporting input/mapping errors and did not result in questioned costs; however, the errors indicate that the reconciliation and review controls did not operate at a sufficient level of precision. Questioned costs: None. Context: See “Condition.” Cause: The condition occurred because reconciliation procedures were not sufficiently detailed or consistently documented, supporting general ledger documentation was not maintained for all reported amounts, and the review process was not performed at a level of precision sufficient to identify variances prior to submission. Effect: As a result, the FAA may rely on financial information that is inaccurate or not fully supported by the City’s accounting records, which could impair monitoring of airport financial operations and compliance with grant assurances. The condition also increases the risk of future reporting errors and additional FAA oversight. Repeat Finding: No. Recommendation: The City should enhance its existing reconciliation and review procedures by requiring documented tie-outs of FAA Form 5100-127 amounts to the general ledger, retention of supporting documentation for all reported amounts, and evidence of supervisory review prior to submission. Views of responsible officials: See management response on corrective action plan.