Finding Text
FINDING 2023-002
Subject: Airport Improvement Program - Reporting
Federal Agency: Department of Transportation
Federal Program: Airport Improvement Program, COVID-19 Airports Programs,
and Infrastructure Investment and Jobs Act Programs
Assistance Listings Number: 20.106
Federal Award Number and Year (or Other Identifying Number): 3-18-0082-054
Compliance Requirement: Reporting
Audit Findings: Material Weakness, Other Matters
Condition and Context
Annual reports are to be filed with the awarding agency if the entity does not report on the accrual
basis of accounting. As the Authority reports on the regulatory basis of accounting, the Authority was
required to file an SF-271: Outlay report and Request for Reimbursement for Construction Programs and
an SF-425: Federal Financial Report for each project.
During the audit period, a total of eight reports were to be filed. One of the eight reports, the
SF-425: Federal Financial Report for the AIP 54 project, was not submitted. As such, we could not
determine the accuracy of that report.
The lack of internal controls and noncompliance were isolated to the SF-425: Federal Financial
Report for the AIP 54 project.
Criteria
2 CFR 200.303 states in part:
"The non-Federal entity must:
(a) 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). . . ."
31 CFR 35.49(c) states in part: "Reporting and requests for other information. During the period
of performance, recipients shall provide to the Secretary periodic reports detailed accounting of the uses of
funds. . . ."
INDIANA STATE BOARD OF ACCOUNTS
15
TERRE HAUTE REGIONAL AIRPORT AUTHORITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Cause
The Authority was unable to provide documentation to show it had filed the SF-425: Federal
Financial Report.
Effect
Without the proper implementation of an effectively designed system of internal controls, the
Authority cannot ensure the required reports are filed with the awarding agency. As such, the awarding
agency does not have accurate and current information to discern the financial status of the Authority's
project. Furthermore, noncompliance with the provisions of federal statutes, regulations, and the terms and
conditions or the federal award could result in the loss of future federal funding to the Town.
Questioned Costs
There were no questioned costs identified.
Recommendation
We recommended that the Authority's management strengthen its system of internal controls to
ensure that all required reports are filed.
Views of Responsible Officials
For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.