Finding Text
2022-001 INTERNAL CONTROLS OVER ALLOWABILITY (REPEAT OF PRIOR YEAR FINDINGS 2021-001 AND 2020-001) Federal Program Information: Federal Agency and Program Name: U.S. Department of Transportation Airport Improvement Program Grant Number: AIP #3-54-0003-063-2018; AIP #3-54-0003-067-2019; AIP #3-54-0003-068-2020; AIP #3-54-0003-069-2020; AIP #3-54-0003-070-2020; AIP #3-54-0003-071-2020; AIP #3-54-0003-072-2021; AIP #3-54-0003-073-2021; AIP #3-54-0003-076-2022 Federal Assistance Listing Number 20.106/COVID-19 20.106 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity 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 and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: For one of the forty payroll transactions selected for testing, the expenditure was not properly reviewed and approved. Questioned Costs: Not Applicable Context: Total federal expenditures for the Airport Improvement Program were $13,800,823 for the year ended June 30, 2022. Cause: The Authority did not follow the policies and procedures in place to ensure all payroll transactions are reviewed and approved. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Expenditures may be paid that are not allowable. Recommendation: We recommend that the Authority implement controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.