Finding Text
Airport Improvement Program – Assistance Listing Number 20.106 U.S. Department of Transportation, Federal Aviation Administration Award No. 3-05-0089-012-2023 Award No. 3-05-0089-013-2024 Award No. 3-05-0089-014-2025 Criteria or Specific Requirement – Uniform Guidance at 2 CFR § 200.328(c) requires recipients to submit financial reports as required by the terms and conditions of the federal award. When quarterly financial reports are required, they must be submitted no later than 30 calendar days after the end of the reporting period. The City's FAA grant agreements require quarterly SF-425, Federal Financial Reports, for each grant that remains open. Condition – The City did not submit the required quarterly SF-425 reports for Grant Nos. 3-05-0089-012-2023 and 3-05-0089-014-2025. Cause – The City did not independently monitor quarterly reporting deadlines or verify report submission. Effect or Potential Effect – The City did not comply with the reporting requirements of its FAA awards or the Uniform Guidance requirement to submit financial reports as required by the Federal award. Questioned Costs – None. Context – Auditors reviewed the quarterly SF-425 reporting requirements for FAA grants open during fiscal year 2025 and identified that the required quarterly reports had not been submitted for Grant Nos. 3-05-0089-012-2023 and 3-05-0089-014-2025. Accordingly, the City's control over federal award reporting did not operate effectively. Identification as a repeat finding, if applicable – No. Recommendation – The City should implement procedures to identify and track all reporting requirements for active federal awards, including quarterly SF-425 due dates, and require management to independently review and verify that each report is complete and submitted within the timeframe required by the award and Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding and will implement a centralized grant reporting tracker that identifies reporting deadlines, assigns responsibility for preparation and review, and documents management's verification that required reports are submitted timely.