Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - 3-26-0039-068-2022; 2022 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The Uniform Guidance cost principles described in 2 CFR Part 200, Subpart E, apply to the Airport Improvement Program. Except as otherwise authorized by statute, costs must be determined except for state and local governments or as otherwise provided for in the Code of Federal Regulations (2 CFR 200.403). Condition - Unallowable costs incurred prior to the period of performance under the grant agreement were submitted and reimbursed by the granting agency. Additionally, these costs were initially included on the schedule of expenditures of federal awards. Questioned Costs - $139,625 Identification of How Questioned Costs Were Computed - The questioned costs were determined by totaling all invoices charged to the grant for costs incurred prior to the period of performance and not eligible for reimbursement. Context - The questioned costs of $139,625 charged to the grant related to the same project approved by the granting agency; however, these costs fell outside of the stipulated project period within the grant application and were designated to be covered by the Authority's local match requirement. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be charged to the grant did not operate effectively. This resulted in the unallowable costs charged to the grant and the Authority's schedule of expenditures of federal awards to be inaccurate prior to corrections made by management. Recommendation - We recommend that the Authority enhance review procedures prior to submission of grant reimbursements to ensure that costs were incurred in the period of performance under the grant. Views of Responsible Officials and Planned Corrective Actions - The personnel responsible for submitting reimbursement requests will review grant agreements with the personnel responsible for applying for the grants upon their award. Worksheets created for reimbursement and reporting will be reviewed against the grant schedules for accuracy.