Finding Text
2021/2022-001 Airport Fund CFDA Title: Airport Improvement Program CFDA Number: 20.106 Federal Award Number: 3-30-006-007-2020, 3-30-030-014-2020, 3-30-0102-005-2021 Federal Agency: U.S. Department of Transportation Pass-through Entity: Direct Condition: The Airport is a separate entity yet all of the activity of the Airport is accounted for in a County Special Revenue Fund. Context: In analyzing the activity of the County, we noted that the expenditures/expenses of the Airport were not going through the normal claims process as other County governmental funds. Upon investigation, we were given a joint resolution and found that the Airport is a separate entity that is governed jointly by Chouteau County, The City of Fort Benton, the Town of Geraldine and the Town of Big Sandy. None of the Entity?s have a controlling interest in the Airport. The joint airport board consists of 5 members. 2 members are appointed by the County commissioners, 1 by the City Council of Fort Benton, 1 by the Town Council of Geraldine, and 1 by the Town Council of Big Sandy. The County was awarded the FAA grants to be passed through to the Airport. Criteria: An Entity that is a separate Entity apart from the County and that does not meet the requirements to be a blended component unit should be reported as a fiduciary type activity. Effect: Only the activity of the FAA grants and related expenditures that were awarded to the County should be shown as activity in the special revenue fund of the County. The other airport activity should be accounted for in one of the County?s fiduciary funds and reported as part of the custodial funds on the financial statements. Cause: There was a misinterpretation of GASB Statement No. 14 relating to component units, as such, the County was treating the Airport as a blended component unit and accounting for all revenues and expenditures as part of the County. Recommendation: We recommend the County set up fund #7381 as indicated in the Montana BARS Chart of Accounts for Airport Authorities, and the run the activity of the airport, apart from the FAA grants, through that fund.