Finding Text
2024-015 – FEDERAL REPORTING COMPLIANCE
Type of Finding: (F) – Significant Deficiency in Internal Control Over Compliance of Federal Awards
Funding Agency: U.S. Department of Transportation
Title: Airport Improvement Program
AL #: 20.106
Award #: 3-35-0039-031-2024, 3-35-0039-027-2022, 3-35-0039-028-2022, 3-35-0039-029-2023
Award Period: May 1, 2024 – January 1, 2025, December 13, 2021 – December 13, 2025, June 24, 2022 – June 24, 2026, July 3, 2023 – July 7, 2027
Questioned Costs: None
Statement of Condition
During our testing of the Reporting Compliance requirement for the major program, Airport Improvement Program (AL #20.106), we noted certain reporting applicable to Commercial Service Airports, which the County’s airport is, were submitted past the deadlines as follows:
Criteria
FAA Form 5100-127, Operating and Financial Summary (OMB No. 2120-0569): Sponsors of commercial service airports are required to submit this report, which captures revenues and expenditures at the airport, including revenue surplus. Due within 120 days of year ended June 30, 2024, (10/28) and can get 60 day extension to December 27, 2024.
FAA Form 5100-126, Financial Government Payment Report (OMB No. 2120-0569): The FAA is currently requiring submission only from commercial service airports. Commercial service airports are the airports most likely to generate excess revenue that could be diverted to nonairport uses. Due within 120 days of year ended June 30, 2024, (10/28) and can get 60 day extension to December 27, 2024.
Cause
Reports were submitted late due to a lack of calendaring and prioritizing report submission dates.
Effect
Late filing of reports could jeopardize future federal funding.
Recommendation
The County should implement procedures and controls to ensure that the federal reports are completed and submitted prior to the deadline. Such as setting up a tracker for all the required reports, by grant, with deadlines and calendar reminders prior to the deadline.