Finding 1609 (2021-007)

2021-007: Reconciliation of Grant Activity - Material Weakness Criteria: Management is responsible for reconciling grant activity and for establishing and maintaining internal controls in the financial report system in an effort to produce fairly presented finanical statements including the schedule of expenditures of federal awards in conformity with U.S. generally accepted accounting principles. Condition: Material adjustments pertaining to grants were neccessary to present the finainical statements and the schedule of expenditures of federal awards in accordance with U.S. GAAP and Uniform Guidance. These adjustments affected captial assets, receivables, payables, revenues and expenses for the fiscal years ended June 30, 2021. Management has incorprorated these adjustments into the financial statements as presented in this report. Cause: A significant amount of turnover in the accounting department. Effect: Errors or fraud may not be detected in a timely manner. Questioned Costs: None noted. Repeat Finding: No Recommendation: We recommend that management frequently reconcile grant activity. Response: Please see final page of this report for management's response as found on the Airport's letterhead.