Finding Text
Condition
Condition
The Authority did not have controls in place to monitor completion of reporting forms FAA Form 5100-126 and FAA Form 5100-127. At the time of the audit, the Authority was not aware that the forms were not completed.
Criteria
Federal guidelines require the auditee must establish and maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the conditions of the federal award. Management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair representation in the financial statements in accordance with GAAP. Management is responsible for the accuracy and completeness of all financial records and related information.
Effect
The lack of internal controls over reporting could result in the Authority reporting incorrect or incomplete information.
Cause
The Authority contracts the completion of the forms by a third party accountant. The Authority did not monitor the completion or accuracy of the form.
Repeat Finding
2020-004
Recommendation
We recommend management implement policies and procedures to monitor proper completion reporting forms.