FAC Explorer

Finding 59590 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-02
Audit: 54437
Organization: City of Kansas City, Missouri (MO)
Auditor: Allen Gibbs & Houlik L C

AI Summary

  • Core Issue: The City is using airport land for non-airport purposes without verifying if the rental rate is fair and reasonable.
  • Impacted Requirements: Compliance with 49 U.S. Code §47017(b) and §47133, which mandate that airport revenue must be used appropriately.
  • Recommended Follow-up: Management should conduct an analysis to confirm the rental rate's fairness and reasonableness.

Finding Text

Program: Airport Improvement Program Federal Agency: Department of Transportation (DOT)/Federal Aviation Administration (FAA) AL #: 20.106 Federal Award Identification Number and Year: Various ? See SEFA Pass-through Entity: N/A Type of Compliance Finding: N ? Special Tests and Provisions Criteria - Per 49 U.S. Code ?47017(b) and ?47133, sponsors are required to use airport revenue for the capital or operating costs of the airport, the local airport system, or other local facilities that are directly and substantially related to air transportation of passengers or property. The U.S. Department of Transportation/Federal Aviation Administration - National Policy (Order 5100.38D, Change 1), Airport Improvement Handbook, effective February 29, 2019 provides the policy on the use of airport revenue. Among other things the policy prohibits the use of airport revenue for: ? Direct or indirect payments that exceed the fair and reasonable value of those services and facilities provided to the airport. Condition/Context - The City utilizes 745,190 square feet of land owned by the Aviation Department for the City?s Fire Department and Police Station serving the north Kansas City community including the Kansas City airport. The City pays ground rent of $0.168 per square foot per year based on a rate study done in 2003. Cause - Management did not perform analysis to verify the fair and reasonableness of the rental rate. Effect - The City?s direct costs charged, or credits given to the Aviation Department may not be commensurate to the services provided or products received by the airport. Questioned Costs - Unknown Is the finding a repeat finding Yes ? Finding 2021-002 and 2020-007 Recommendations - We recommend that management perform analysis to verify the fair and reasonableness of the rental rate. Views of Responsible Officials/ Planned Corrective Actions - Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.

Categories

Special Tests & Provisions Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 59573 2022-001
    Material Weakness Repeat
  • 59574 2022-001
    Material Weakness Repeat
  • 59575 2022-001
    Material Weakness Repeat
  • 59576 2022-001
    Material Weakness Repeat
  • 59577 2022-001
    Material Weakness Repeat
  • 59578 2022-001
    Material Weakness Repeat
  • 59579 2022-001
    Material Weakness Repeat
  • 59580 2022-001
    Material Weakness Repeat
  • 59581 2022-002
    Significant Deficiency Repeat
  • 59582 2022-002
    Significant Deficiency Repeat
  • 59583 2022-002
    Significant Deficiency Repeat
  • 59584 2022-002
    Significant Deficiency Repeat
  • 59585 2022-002
    Significant Deficiency Repeat
  • 59586 2022-002
    Significant Deficiency Repeat
  • 59587 2022-002
    Significant Deficiency Repeat
  • 59588 2022-002
    Significant Deficiency Repeat
  • 59589 2022-002
    Significant Deficiency Repeat
  • 59591 2022-002
    Significant Deficiency Repeat
  • 59592 2022-002
    Significant Deficiency Repeat
  • 59593 2022-002
    Significant Deficiency Repeat
  • 59594 2022-002
    Significant Deficiency Repeat
  • 59595 2022-002
    Significant Deficiency Repeat
  • 59596 2022-002
    Significant Deficiency Repeat
  • 59597 2022-002
    Significant Deficiency Repeat
  • 636015 2022-001
    Material Weakness Repeat
  • 636016 2022-001
    Material Weakness Repeat
  • 636017 2022-001
    Material Weakness Repeat
  • 636018 2022-001
    Material Weakness Repeat
  • 636019 2022-001
    Material Weakness Repeat
  • 636020 2022-001
    Material Weakness Repeat
  • 636021 2022-001
    Material Weakness Repeat
  • 636022 2022-001
    Material Weakness Repeat
  • 636023 2022-002
    Significant Deficiency Repeat
  • 636024 2022-002
    Significant Deficiency Repeat
  • 636025 2022-002
    Significant Deficiency Repeat
  • 636026 2022-002
    Significant Deficiency Repeat
  • 636027 2022-002
    Significant Deficiency Repeat
  • 636028 2022-002
    Significant Deficiency Repeat
  • 636029 2022-002
    Significant Deficiency Repeat
  • 636030 2022-002
    Significant Deficiency Repeat
  • 636031 2022-002
    Significant Deficiency Repeat
  • 636032 2022-002
    Significant Deficiency Repeat
  • 636033 2022-002
    Significant Deficiency Repeat
  • 636034 2022-002
    Significant Deficiency Repeat
  • 636035 2022-002
    Significant Deficiency Repeat
  • 636036 2022-002
    Significant Deficiency Repeat
  • 636037 2022-002
    Significant Deficiency Repeat
  • 636038 2022-002
    Significant Deficiency Repeat
  • 636039 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $79.63M
20.500 Federal Transit_capital Investment Grants $17.15M
97.117 Tsa Electronic Baggage Screening Program $12.94M
21.023 Emergency Rental Assistance Program $12.21M
14.218 Community Development Block Grants/entitlement Grants $4.71M
14.239 Home Investment Partnerships Program $1.17M
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $1.15M
93.917 Hiv Care Formula Grants $1.08M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $825,645
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $762,910
16.034 Coronavirus Emergency Supplemental Funding Program $547,237
20.205 Highway Planning and Construction $526,606
20.507 Federal Transit_formula Grants $524,657
14.889 Choice Neighborhoods Implementation Grants $490,793
93.767 Children's Health Insurance Program $480,104
93.137 Community Programs to Improve Minority Health Grant Program $477,472
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $441,177
93.268 Immunization Cooperative Agreements $407,413
14.231 Emergency Solutions Grant Program $390,166
97.044 Assistance to Firefighters Grant $373,695
14.238 Shelter Plus Care $287,101
81.128 Energy Efficiency and Conservation Block Grant Program (eecbg) $253,880
14.256 Neighborhood Stabilization Program $226,445
93.069 Public Health Emergency Preparedness $221,595
81.086 Conservation Research and Development $212,783
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $212,180
14.267 Continuum of Care Program $197,105
97.072 National Explosives Detection Canine Team Program $177,929
93.940 Hiv Prevention Activities_health Department Based $156,311
16.582 Crime Victim Assistance/discretionary Grants $114,846
97.042 Emergency Management Performance Grants $79,882
14.241 Housing Opportunities for Persons with Aids $75,745
16.588 Violence Against Women Formula Grants $73,189
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $67,528
16.812 Second Chance Act Reentry Initiative $66,708
93.310 Trans-Nih Research Support $62,116
16.738 Edward Byrne Memorial Justice Assistance Grant Program $55,515
16.827 Justice Reinvestment Initiative $55,458
20.106 Airport Improvement Program $52,546
97.024 Emergency Food and Shelter National Board Program $50,573
93.994 Maternal and Child Health Services Block Grant to the States $47,383
93.914 Hiv Emergency Relief Project Grants $31,933
93.575 Child Care and Development Block Grant $31,340
93.834 Capacity Building Assistance (cba) for High-Impact Hiv Prevention $25,000
14.401 Fair Housing Assistance Program_state and Local $20,962
29.001 Clearinghouse Services, Civil Rights Discrimination Complaints $20,367
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $17,275
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $7,320
10.559 Summer Food Service Program for Children $5,935
97.075 Rail and Transit Security Grant Program $5,360
14.902 Lead Technical Studies Grants $5,346
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3,733
93.103 Food and Drug Administration_research $3,000
21.019 Coronavirus Relief Fund $2,480
81.042 Weatherization Assistance for Low-Income Persons $99