MADISON AIRPORT BOARD

FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 2019-003 Airport Improvement Program CFDA-20.106 Condition: During the audit, I noted the Airport Board had not filed Federal Aviation Administration (FAA) annual form. Criteria: FAA requires the form SF-425 to be submitted 90 days after year end. Cause: Management was unaware of the reporting requirements. Effect: Not submitting required reports may affect the funding of the grant or future grants. Questioned Costs: None reported. Recommendation: Management should implement procedures that monitors and ensures all reports required by FAA are submitted by applicable due dates. Views of Responsible Officials: Management concurs with the finding and their response to finding 2019-003 is presented in the accompanying Corrective Action Plan.

CORRECTIVE ACTION PLAN March 25, 2020 U.S. Department of Transportation Madison Airport Board, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2019. Sammy K. Lee, P.S.C P.O. Box 958 Berea, KY 40403 The findings from the June 30, 2019 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS ? FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS Finding 2019-001 Financial Statement Preparation Recommendation: Management should continue to engage the audit firm to prepare a draft of the financial statements including the notes to the financial statements and the SEFA or hire an accountant to perform these services. Action taken: Management concurs with the finding, however in the future we will utilize board members to provide the appropriate internal control over preparation of the Board?s financial statements. 2019 - 002 Internal Control Recommendation: The lack of segregation of duties is a common deficiency in entity?s the size of Madison Airport Board, Inc. The Board of Directors should be aware of the increased risk and develop policies and procedures to reduce the effect of the internal control deficiency. Action taken: Management concurs with the finding, however we will ensure appropriate documentation of mitigating controls occurs to alleviate the segregation of duties. FINDINGS-MAJOR FEDERAL AWARD PROGRAM AUDIT 2019-003 Airport Improvement Program CFDA-20.106 Recommendation: Management should implement procedures that monitors and ensures all reports required by FAA are submitted by applicable due dates. Action taken: Management concurs with the finding and will ensure timely submission moving forward.