Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.