KEYSTONE AIRPARK AUTHORITYLocal Government

Finding #2019-001: Keystone Airpark Authority improperly charged $152,446 to the Airport Improvement Program Federal Awarding Agency: Federal Aviation Administration (FAA) Pass-through Entity: None CFDA Number and Title: 20.106 Airport Improvement Program Applicable Compliance Component: Reporting Known Questioned Cost Amount: $152,446 Criteria: Amounts included on the request for reimbursement reports should only include those allowable costs incurred and paid. Condition: Some reimbursement requests to the FAA incorrectly included the retainage amounts of the related construction costs. Since these retainage amounts had not been paid, they should not have been included in the reimbursement requests. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 200.53 Improper Payment, states: Improper payment means any payment that should not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. Questioned Costs: As a result, the amount of questioned costs is $152,446. Recommendation: Establish internal controls to ensure that the contractor retainages are not included in the reimbursement requests.