Finding 583688 (2023-002)

2023-002 U.S. Department of Transportation COVID 19 - Airport Improvement Program Federal Financial Assistance Listing Number 20.106 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR Part 200 (Uniform Guidance) requires that reports submitted to the Federal Awarding agency include all activity of the reporting period and are presented in accordance with applicable program requirements. Condition: During our audit testing of reporting over the federal fiscal year ended September 30, 2022 SA-425, Federal Financial Report, we noted that two out of the three reports due 90 days after the federal fiscal year end of September 30th, were not submitted by the City of Wells’ during the fiscal year. Cause: The City of Wells did not have adequate controls to ensure that the required SF- 425s were submitted. Effect: The required SF-425s were not submitted in accordance with the program requirements. Questioned Costs: None reported. Context/Sampling: All reports were selected for testing. Repeat Finding from Prior Year: No. Recommendation: We recommend the City of Wells enhance controls to provide for the submission of required program reports. Views of Responsible Officials: Management agrees with the finding.