Finding 499300 (2022-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-09-29
Audit: 322122
Organization: Rmi Ports Authority (MH)

AI Summary

  • Core Issue: The Authority failed to submit the required annual SF-425 report by the December 31, 2022 deadline.
  • Impacted Requirements: This noncompliance violates federal reporting requirements for the Airport Improvement Program grants.
  • Recommended Follow-Up: Implement internal controls and procedures to ensure timely submission of all required reports and monitor deadlines effectively.

Finding Text

Finding No. 2022-004 Federal Agency: U.S Department of Transportation Assistance Listing Program: 20.106 Airport Improvement Program Federal Award No(s).: 3-68-0001-018-2017 3-68-0001-020-2019 3-68-0001-022-2020 3-68-0001-023-2020 3-68-0001-024-2020 3-68-0001-025-2022 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements and with grant terms and conditions, the Authority is responsible for submitting a signed/dated SF-270 (non-construction projects) or SF-271 or equivalent (construction projects) and SF-425 annually, due 90 days after the end of each federal fiscal year in which the grants are open (due December 31 of each year). Condition: For the year ended September 30, 2022, the Authority was not able to provide and submit the required annual SF-425 report for the grants open as of and for the year ended September 30, 2022, having a due date of December 31, 2022. Cause: The Authority lacks internal control policies and procedures over submission of required reports and monitoring report deadlines to ensure compliance with reporting requirements. Effect: The Authority is in noncompliance with applicable reporting requirements and no questioned costs are reported as we are unable to determine the quantitative impact to the program. In addition, the Authority could be subject to penalties or sanctions from the Federal Aviation Administration.

Corrective Action Plan

1. Management will delegate temporarily to the CFO to oversee the reporting requirements with the Federal funded projects until the Deputy Director will be filled in. 2. Management will establish internal control policies and procedures to properly and systematically administer the reporting requirements of Federal Aviation Administration.

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 499299 2022-003
    Material Weakness
  • 1075741 2022-003
    Material Weakness
  • 1075742 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $1.59M