Finding 966251 (2023-001)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300702
Auditor: Msl

AI Summary

  • Core Issue: A formula error led to an incorrect calculation of the nonfederal share, resulting in a 100% match instead of the required 90%.
  • Impacted Requirements: Compliance with 2 CFR Part 200.306 and 49 USC 47109 regarding matching funds for the Airport Improvement Program.
  • Recommended Follow-Up: Contact the grantor agency to correct the overpayment and review internal controls to ensure compliance with matching requirements.

Finding Text

Finding 2023-001 Significant Deficiency – Matching Federal Assistance Listing No. 20.106 U.S. Department of Transportation Airport Improvement Program Criteria: All match funding must be provided in compliance with the requirements of 2 CFR Part 200.306. The Authority’s share of projects costs on an Airport Improvement Grant is defined in 49 USC 47109 and set forth in the grant agreement. The nonfederal share was 10 percent. Condition: Grant number 3-12-0053-040-2022 request for reimbursement number 4 included the nonfederal share for one invoice. Cause: The form used by the Authority contained a formula error that resulted in the Airport Improvement Program share to calculate at 100 percent instead of the required 90 percent. The error was not identified in the Authority’s review process of reimbursement number 4. It was subsequently identified by the Authority during the preparation of a subsequent grant draw. Effect: This condition resulted in an overpayment to the Authority of $62,469. If not corrected in future drawdowns, the grantor agency could deem the Authority to be non-compliant. Questioned Costs: Not applicable. Recommendation: We recommend that the Authority contact the grantor agency to correct the overpayment and also review its internal controls as it relates to complying with matching requirements.

Categories

Cash Management Matching / Level of Effort / Earmarking Significant Deficiency

Other Findings in this Audit

  • 389809 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $327,195