Finding Text
Federal Program Name: Airport Improvement Program (AIP)
Federal Agency: Federal Aviation Administration
Federal Assistance Listing Title and Number: 20.106
Award Year: January 1, 2023 – December 31, 2023
Criteria or Specific Requirement: Equipment and Real Property Management
Condition: The Authority applied the incorrect federal participation rate when calculating the federal funds to be reinvested in the program resulting from a sale of property previously acquired using AIP funds.
Questioned Costs: $216,491
Context: The Authority applied an 80% participation rate to three parcels that were sold during 2023, when the actual federal participation rate was 90%.
Effect: The impact of applying the incorrect participation rate resulted in the Authority understating the amount to be reinvested in the program or returned to the FAA.
Cause: The Authority has a process to track the funding sources of all capital assets acquired with federal funds. During the implementation of a new system, certain participation percentages were identified as being incorrect, the result of a partially manual process.
Repeat Finding: No
Recommendation: We recommend the Authority verify that the participation percentages used in the calculation of federal funds to be reinvested or returned to the federal agency by verified by comparing to the actual grant source documents.
Views of Responsible Officials: The Authority agrees with the finding and has already take the necessary steps to mitigate this risk in future transactions.