EVELETH - VIRGINIA AIRPORT AUTHORITYLocal Government

2020-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the Authority?s accounting office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the Authority has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations Authority board members should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Authority Board will continue to monitor all transactions and will structure the duties of office personnel to help ensure as much segregation of duties as possible within the Authority?s staffing limitations and funding constraints.

2019-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the Authority?s accounting office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the Authority has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations Authority board members should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Authority Board will continue to monitor all transactions and will structure the duties of office personnel to help ensure as much segregation of duties as possible within the Authority?s staffing limitations and funding constraints.

2019-003. NONCOMPLIANCE OF CASH MANAGEMENT - REIMBURSEMENT FROM TWO SOURCES Criteria The same invoices/expenditures should not be submitted to two different funding agencies for reimbursement (also known as ?double dipping?). Condition The same invoice/expenditures were submitted for reimbursement from the Iron Range Resources and Rehabilitation Board (IRRRB) and from an Airport Improvement Program grant. When the IRRRB funding was received in 2019, there was $97,247 worth of grant receipts for which the Authority had not yet incurred eligible grant expenditures. At December 31, 2019, grant receipts received over total related project expenditures was $59,004. Effect The Authority received funding from two different sources for the same invoices/expenditures (double dipped). The Authority was not in compliance with cash management grant requirements and the Authority would either have a payable to the IRRRB or deferred revenue at December 31, 2019 as there weren?t enough unreimbursed expenditures to match the grant revenues received. Cause This occurred because the Secretary submitted the same invoice to two different grant agencies and controls to prevent this double dipping were insufficient. Recommendations We recommend the Authority submit new invoices/expenditure backup to the IRRRB for invoices/expenditures that were not already reimbursed by the Airport Improvement Program grant. The Authority?s board should review/update their procedures to ensure controls are in place to prevent requesting reimbursement for the same expenditures from two different funding sources. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Authority will submit new invoices/expenditure backup to the IRRRB for expenditures that were not already reimbursed by the Airport Improvement Program grant and the Authority?s board will update procedures to ensure their controls will prevent similar reporting errors.