Finding 520631 (2024-001)

Finding 2024-001 Significant Deficiency – Schedule of Expenditures of Federal Awards (SEFA) Reporting Federal Assistance Listing No. 20.106 U.S. Department of Transportation Airport Improvement Program Criteria: The Authority should properly identify and report all federal grant expenditures to ensure they are properly included on the Authority’s SEFA. Condition: The Authority’s current year SEFA included several expenditures that should have been reported in the Authority’s prior year SEFA. Cause: The 2023 fiscal year end invoice accruals were not calculated into the total expenditures for the SEFA in prior fiscal year. Effect: This condition resulted in $1,177,476 of expenditures that were not reported in the Authority’s prior year SEFA. Questioned Costs: Not applicable. Recommendation: We recommend that the Authority implement a process that ensures that the Authority’s personnel responsible for financial federal assistance reporting be included and notified whenever, grant expenditures are incurred to ensure proper reporting of these activities in the Authority’s financial records.