Finding Text
2022-006 (originally 2021-009) – Matching and Financial Reporting (Material Weakness in Internal
Controls over Compliance) (repeated/modified)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: The City submitted 9 financial reports not approved by the Airport Manager and did not provide
supporting backup documentation to test accuracy on 3 of the financial reports.
Management’s Progress on Repeat Findings: The 2021 audit was completed in June of 2023. As such, the
City was unable to take corrective action during fiscal year 2022 that would result in progress towards
resolving this finding.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with
access to books, records, supporting documentation, and other information as needed for the auditor to
perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching
funds, must be accepted as part of the non-Federal entities matching when the following criteria is met
(1) Are verifiable from the non-Federal entities records.
Cause: The City did not have sufficient controls in place to review and approve reports ensuring accuracy
of reports to the grantor agency.
Questioned Cost: None
Effect: Lack of proper review for accuracy of reports can result in improper reporting which could lead to
disallowed costs. However, our audit disclosed no instances of unallowable costs.