Finding Text
2025-003: Significant Deficiency and Noncompliance: Reporting U.S. Department of Transportation Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs Federal Assistance Listing Number (ALN): 20.106 Federal Award Year: 2025 Criteria: The City’s Airport Improvement Program has reporting requirements that are applicable to the program and that should be submitted to the federal government throughout the project. SF-271 and SF-425 reports are required to be submitted before December 31 each year the grant is open. In addition, form 5370-1 (construction projects) or 5100-400 (non-construction projects) is required to be submitted within 30 days of the end of each quarter. Condition: The City did not submit in a timely manner, all of the required reports stipulated in the grant agreements. Cause: The City did not have processes and controls in place to ensure reporting requirements are met. The City experienced turnover in airport personnel during the end of fiscal year 2025, and did not have processes and controls in place for sufficient cross training of personnel assuming responsibility of these reporting requirements. Effect or potential effect: The City did not comply with the reporting compliance requirement because the required reports were not submitted in the timeframe communicated in the grant agreements. Questioned costs: None. Context: The City submitted two of the four SF-271 reports by the required deadline, as these two grants closed out earlier in the fiscal year. The City subsequently submitted the remaining two SF-271 reports approximately 90 days after the December 31, 2025 deadline. These late reports were for projects that had not commenced and no expenditures had yet been incurred. The City submitted two of the four SF-425 reports by the required deadline, as these grants closed out earlier in the fiscal year. The City subsequently submitted the remaining two SF-425 reports approximately 180 days after the December 31, 2025 deadline. These late reports were for projects that had not commenced and no expenditures had yet been incurred. For four of four quarterly 5370-1 construction projected selected for testing, these were remitted timely and accurately. Identification as a repeat finding, if applicable: Not a repeat finding. Recommendation: We recommend the City implement procedures to ensure there are processes and controls in place to maintain compliance with reporting requirements. We recommend the City maintain documentation that provides guidance on who specifically has responsibility over reports required to be submitted to granting agencies, as well as the due dates of such reports. Views of responsible officials: Management agrees with the finding.