Finding Text
Condition and criteria: The Airport claimed costs under the CARES Act that were originally determined to be deferred maintenance and not requiring an addendum for a development agreement. However, the taxi lanes and portions of the terminal rehabilitation projects are now required to go through a development addendum, which the FAA had not approved at the time of the audit. Cause: Guidance related to CARES Act dollars has changed several times since inception of the program. Context and Effect: Costs of $32,091 were disallowed by the FAA and adjustments were required to correct revenue reported on the SEFA since the addendum and $9.6 million grants were not yet approved. Auditor?s recommendation: We recommend that additional procedures and reviews be put in place to monitor projects that may require development addendums and that the addendums be obtained prior to performing the project. Management?s response: Economic Development & Airport Director believes very strongly that there is no way that Airport Staff could have foreseen the FAA procedural change as it relates to addendums being required for CARES Act projects. Staff understands the seriousness of the cash flow challenges this FAA procedural change created for the City, but still does not see any way it could have been avoided. If anything, someone on the FAA?s side made a serious mistake in telling Airport Staff that our projects did not require addendum agreements.