Finding 553726 (2021-004)

Significant Deficiency
Requirement
ABFGLN
Questioned Costs
-
Year
2021
Accepted
2025-04-01

AI Summary

  • Core Issue: The Board lacks familiarity with Federal compliance requirements under 2 C.F.R. 200, leading to potential non-compliance.
  • Impacted Requirements: Missing the Federal Audit Clearinghouse deadline and risking improper use of funds related to Allowable Activities and other compliance areas.
  • Recommended Follow-Up: The grant manager should contact the FAA for guidance on compliance requirements for the Airport Improvement Program funds.

Finding Text

Finding 2021-04 – Lack of Internal Control Over Compliance – Unfamiliarity with Federal Compliance Requirements Criteria – Entities that disburse Federal funds to subrecipients and entities who expend Federal funds in excess of $750,000 (at June 30, 2021) are each required to gain an understanding of the compliance requirements found in 2 C.F.R. 200 – Uniform Guidance for the specific Federal grant awards the entity disburses/receives. The disbursing entity should monitor compliance requirements and ensure compliance requirements are being met. Condition – The Board shows a lack of familiarity with the 2 C.F.R. 200 – Uniform Guidance compliance requirements. Effect – This lack of familiarity with the compliance requirements allowed the Federal Audit Clearinghouse deadline to be missed by one year and may, in the future, allow funds to be used in a manner that is not consistent with Allowable Activities and Cost Principles in 2 C.F.R.200 – Uniform Guidance. Other compliance requirements such as Equipment and Real Property Management, Matching and Level of Effort, Reporting, and Special Tests and Provisions may also be affected. Recommendation – We recommend the Board’s grant manager contact the Federal Aviation Administration and inquire about Uniform Guidance compliance requirements for CFDA 20.106 Airport Improvement Program funds. Management’s Response – Management will consider the costs and benefits of implementing this recommendation, and with guidance from the Board of Directors proceed in the best interest of the Board.

Corrective Action Plan

Finding Reference Number: 2021-004 Description of Finding: Lack of Internal Control Over Compliance – Unfamiliarity with Federal Compliance Requirements Statement of Concurrence or Nonconcurrence: The Board of the Falmouth Pendleton County Airport agrees with the audit finding. Corrective Action: In future years, when receiving federal funds, management will contact the appropriate Federal agency and inquire about Uniform Guidance compliance requirements for federal funds. Name of Contact Person: Dan Bell, Board Chairman, k62airport@gmail.com (859) 816-8879 Projected Completion Date: On or before June 30, 2025

Categories

Equipment & Real Property Management Matching / Level of Effort / Earmarking Special Tests & Provisions Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 553723 2021-001
    Material Weakness
  • 553724 2021-002
    Significant Deficiency
  • 553725 2021-003
    Significant Deficiency
  • 1130165 2021-001
    Material Weakness
  • 1130166 2021-002
    Significant Deficiency
  • 1130167 2021-003
    Significant Deficiency
  • 1130168 2021-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $5.68M