Finding 37949 (2022-003)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-09-04
Audit: 29568
Organization: Commonwealth Ports Authority (MP)

AI Summary

  • Core Issue: CPA lacks proper oversight and monitoring of equipment and real property management, leading to noncompliance with federal requirements.
  • Impacted Requirements: Incomplete property records and failure to reconcile physical inventory with accounting records resulted in unidentified assets and missing information.
  • Recommended Follow-Up: CPA should ensure annual inventory results align with property records and enhance asset details in the subledger for better tracking.

Finding Text

Finding No.: 2022-003 Federal Agency: U.S. Department of Transportation Assistance Listings Program: 20.106 Airport Improvement Program Award Numbers: All AIP Grants Area: Equipment and Real Property Management Questioned Costs: $-0- Criteria: In accordance with applicable equipment and real property management requirements, a State must use, manage and dispose of equipment acquired under a Federal award by the State in accordance with State laws and procedures. (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal of the property; (2) A physical inventory of the property must be taken and the results reconciled with the property records annually. Condition: Tests of equipment and real property noted the following: 1. CPA performed a capital assets inventory during fiscal year 2022. Based on controls testing, a reconciliation was performed at the department level; however, it was not reconciled with accounting records, resulting in $1,824,424 that were identified as not program assets. Total fixed asset additions capitalized and related to CPA?s major program, is as follows: See Schedule of Findings and Questioned Costs for chart/table 2. The fixed assets schedule did not include information such as who holds title and the use of the assets. Of nine items (or 10%) tested of a total population of eighty-nine FAA-funded capital assets, we noted deficiencies, as follows: 3. One item (or 11%) has been unidentified, and management was not able to substantiate the existence of the actual fixed asset. It also has outlived its 20-year life expectancy. See Schedule of Findings and Questioned Costs for chart/table Cause: CPA lacks oversight responsibility and monitoring controls over compliance with equipment and real property management requirements. Effect: CPA is in noncompliance with applicable equipment and real property management requirements. No questioned costs are presented as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: Finding 2021-002. Recommendation: CPA should reconcile the results of the annual physical inventory to the property records and ascertain that the acquisition costs of the individual assets agree to the records of accounting. Further, sufficient details should be included in the fixed assets subledger to specifically identify the individual assets. Views of Responsible Officials: Management states agreement. Refer to separate Corrective Action Plan.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 37948 2022-003
    Material Weakness Repeat
  • 37950 2022-003
    Material Weakness Repeat
  • 37951 2022-004
    Significant Deficiency
  • 37952 2022-005
    Significant Deficiency
  • 614390 2022-003
    Material Weakness Repeat
  • 614391 2022-003
    Material Weakness Repeat
  • 614392 2022-003
    Material Weakness Repeat
  • 614393 2022-004
    Significant Deficiency
  • 614394 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.U01 Electronic Baggage Screening Program $7.57M
20.106 Airport Improvement Program $5.15M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.96M
97.072 National Explosives Detection Canine Team Program (nedctp) $150,516
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $139,637
97.U02 Law Enforcement Officer Reimbursement Program $36,017
97.039 Hazard Mitigation Grant $14,944