Finding 8957 (2023-002)

Material Weakness

Requirement

Questioned Costs

Year

2023

Accepted

2024-01-18

Audit: 12251

Organization: Helena Regional Airport Authority (MT)

Auditor: Rudd & Company PLLC

AI Summary

Core Issue: The SEFA for fiscal year 2023 inaccurately included costs from fiscal year 2022, overstating federal expenditures.
Impacted Requirements: This violates Uniform Guidance §200.510(b), which mandates accurate reporting of federal awards for the correct fiscal period.
Recommended Follow-Up: Review and strengthen SEFA preparation controls to ensure accurate reporting of expenditures in the appropriate fiscal year.

Finding Text

Criteria Uniform Guidance §200.510(b) requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with §200.502 of the Uniform Guidance, “Basis for Determining Federal Awards Expended.” Condition Airport Improvement Project No. 3-30-0042-062-2021 (AIP 62) included fiscal year 2022 costs on the fiscal year 2023 SEFA. The SEFA reported total federal expenditures during the year of $5,232,340, but $1,980,430 were related to fiscal year 2022. Cause SEFA preparation controls were not operating appropriately. Context/Sampling Only one grant with these specific circumstances. Effect AIP 62 expenditures overstated the fiscal year 2023 SEFA and were improperly excluded on the fiscal year 2022 SEFA. Questioned Costs None reported.

Corrective Action Plan

The Authority will ensure all federal grant expenditures are thoroughly reviewed to ensure the expenditures are recorded in the proper fiscal year’s SEFA. Based on inquiries with the Federal Aviation Administration, the Authority has included the fiscal year 2022 expenses on the 2023 Schedule of Expenditures of Federal Awards.

Other Findings in this Audit

585399 2023-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
20.106	Airport Improvement Program	$42,318