Finding Text
2023-004 U.S. Department of Transportation Federal Financial Assistance Listing 20.106
Airport Improvement Grant
3-16-0018-048-2020, 3-16-0018-049-2021, 3-16-0018-054-2021, 3-16-0018-055-2021, 3-16-0018-056-2022
Compliance Requirement - Reporting
Significant Deficiency in Internal Control over Compliance
Criteria:
2 CFR §200.328, Financial Reporting, mandates that information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances.
Condition:
During our testing of the required annual reports, SF-425 report, it was noted some of the annual reports required to be submitted by December 31, 2022, were submitted late on January 3, 2023.
Cause:
During the period under audit, there was a changeover in personnel at the airport, including the individual who was responsible for reviewing and submitting the reports.
Effect:
The reports were submitted to and accepted by the FAA; however, they were late.
Questioned Costs:
None reported.
Context/Sampling:
Sampling was not used. 100% of the required reports were tested. Of the 11 reports required to be submitted by December 31, 2022, 5 of them were late.
Repeat Finding from Prior Year(s):
Yes, 2022-001
Recommendation:
The City should review its current policies and processes to ensure that the controls operate effectively, even in the event of a change in personnel.
Views of Responsible Officials:
The City concurs with the auditor’s findings.