Finding Text
Finding 2022-04 – 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.