Finding Text
ALN, Federal Agency, and Program Name 20.106 Federal Aviation Administration - Airport Improvement Program State CFSA Number, State Agency, and Program Name - 55.004 Florida Department of Transportation Aviation Development Grants Federal Award Identification Number and Year N/A Pass through Entity N/A Finding Type Material weakness Repeat Finding Yes Criteria Per 2 CFR 200.508 (b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee?s financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expended Condition The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on and excluded from the SEFA related to ALN 20.106 (Airport Improvement Program) and State CFSA 55.004 (FDOT Aviation Development Grants). Cause and Effect Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in the Authority's schedule of expenditures of federal awards provided to the auditors being inaccurate. Recommendation Internal control procedures should be initiated and enforced to ensure the proper expenditures are reported on the schedule of expenditures of federal awards. Views of Responsible Officials and Corrective Action Plan - The Authority will strengthen its controls around the grant review process. In addition to the second-level review and approval process for grant revenue, the Authority will implement a quarterly review to identify eligible expenditures for federal and state grant reimbursements to ensure revenue is recognized in the proper period.