Finding Text
Finding 2022-003: Airport Improvement Program, CFDA No. 20.106 U.S. Department of Transportation Compliance Requirement: Reporting Grant No.: Not applicable Type of finding: Internal Control (material weakness) and Compliance (material noncompliance) Criteria: The requirements for the financial reporting section of the FAA Order 5100.38D (Airport Improvement Handbook) requires non-federal entities to submit an annual report to the Federal oversight agency using standard form SF-425. Annual reports shall be supported by underlying accounting or performance records and are fairly presented in accordance with program requirements. Condition: The County omitted cash disbursements of $995,545 which resulted in reporting cash on hand of this same amount on the SF-425 Annual Federal Financial Report for the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) grant submitted for the Airport Improvement Program (AIP) project for the period ending September 30, 2022. Cause: The County does not have a complete system of internal controls that provides for the review of the SF-425 Annual Federal Financial Report. Questioned Costs: None Effect: The SF-425 Annual Federal Financial Report contained errors and was not in complete compliance with the financial reporting requirements section of the FAA Order 5100.38D (Airport Improvement Handbook). Recommendation: The County should strengthen its internal controls with adopted policies and procedures to ensure accurate financial reporting in compliance with AIP requirements. Grantee?s Response: See corrective action plan.