Finding Text
2023‐006 – Equipment and Real Property Management (Material Weakness over Internal Controls over
Compliance)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF‐SWG‐3‐35‐0037‐051‐2020
Federal Award Year: 2023
Condition: The City’s approved annual inventory was not complete and accurate. Certain assets listed as
disposed were still in use for Airport operations, other assets that were disposed were included as active
assets.
Criteria: Per 2 CFR 200.303(a), the non‐federal entity must establish and maintain effective internal
control over the Federal award that provides reasonable assurance that the non‐Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should be in compliance with guidance in
“Standards for Internal Control in the Federal Government” issued by the Comptroller General of the
United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).
Per 2 CFR 200.313(d)(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 FAIN),
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 and sale price
of the property.
Cause: The City’s approved annual inventory contained errors in information and assets disposed of still
listed.
Questioned Cost: None.
Effect: The City could dispose of or lose federally funded equipment without following federal guidelines.