HALL COUNTY AIRPORT AUTHORITYLocal Government

2020-003 - RELIANCE UPON THE AUDITOR - AIRPORT IMPROVEMENT PROGRAM 20.106 - CRITERIA - AS DESCRIBED IN OUR ENGAGEMENT LETTER, MANAGEMENT IS RESPONSIBLE FOR ESTABLISHING AND MAINTAINING INTERNAL CONTROLS, INCLUDING MONITORING, AND FOR THE FAIR PRESENTATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA), INCLUDING THE NOTES TO THE SEFA, IN CONFORMITY WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. CONDITION AND CONTEXT - MANAGEMENT SHOULD POSSESS THE EXPERTISE TO PREPARE THE SEFA AND RELATED DISCLOSURES IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA WITHOUT ASSISTANCE FROM THE AUDITORS. DURING OUR AUDIT, WE COMPILED A LIST OF THE FEDERAL AWARDS FROM FINANCIAL AND OTHER RECORDS PROVIDED BY THE AUTHORITY AND DRAFTED THE SEFA AND RELATED NOTE DISCLOSURES. CAUSE - THE AIRPORT AUTHORITY PERSONNEL DO NOT OBTAIN THE EXPERIENCE NECESSARY TO PROVIDE THE AUDITORS WITH A SEFA, IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND TO DRAFT THE NOTES TO THE SEFA. POTENTIAL EFFECT - THE POTENTIAL EXISTS THAT A MATERIAL MISSTATEMENT OF THE SEFA COULD OCCUR AND NOT BE PREVENTED OR DETECTED BY THE AIRPORT AUTHORITY'S INTERNAL CONTROL. RECOMMENDATION - WE RECOMMEND THAT THE AIRPORT AUTHORITY REVIEW AND APPROVE THE PROPOSED AUDITOR ADJUSTING ENTRIES AND WORKPAPERS AND THE ADEQUACY OF SEFA DISCLOSURES PREPARED BY THE AUDITOR AND APPLY ANALYTIC PROCEDURES OF THE DRAFT FINANCIAL STATEMENTS AND OTHER RECORDS TO ENSURE THAT ALL EXPENDITURES OF FEDERAL PROGRAMS OF THE AIRPORT AUTHORITY ARE PROPERLY RECORDED, AMONG OTHER PROCEDURES AS CONSIDERED NECESSARY BY MANAGEMENT. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION - THE AIRPORT AUTHORITY RELIES ON THE AUDITOR TO PROPOSE ADJUSTMENTS AND PROVIDE WORKPAPERS NECESSARY TO PREPARE THE SEFA INCLUDING THE RELATED NOTE DISCLOSURES FOR THE CURRENT YEAR DUE TO PERSONNEL CHANGES WITHIN THE AUTHORITY. AFTER GAINING NECESSARY EXPERIENCE IN THE NEXT YEAR, THE AIRPORT AUTHORITY IS EXPECTING TO PROVIDE THE AUDITORS WITH AN APPROPRIATE SEFA AND RELATED DISCLOSURES.

2019-003 PROCUREMENT POLICIES - AIRPORT IMPROVEMENT PROGRAM 20.106 Criteria - CFR 200.320(b) states that procurement for small purchase proce-dures be followed for expenditures over the micro-purchase threshold of $3,500 and under the simplified acquisition threshold of $150,000. For purchases within this range, price or rate quotations must be obtained from an adequate number of qualified sources. Condition and Context - The Authority follows the procurement policies of Hall County which does not require obtaining price or rate quotations for expenditures less than $10,000. Cause - The Authority does not have its own written procurement policies for its own specific needs. Potential Effect - Expenditures between $3,500 and $10,000 could be purchased without obtaining required price or rate quotations. Recommendation - We recommend that the Airport Authority approve its own procurement policies which reflect its specific needs. Views of Responsible Officials and Planned Corrective Action - The Airport Authority will approve a written procurement policy to ensure that federal regulations will be followed in the next fiscal year.

2019-004 RELIANCE UPON THE AUDITOR - AIRPORT IMPROVEMENT PROGRAM 20.106 Criteria - As described in our engagement letter, management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation of the schedule of expenditures of federal awards (SEFA), including the notes to the SEFA, in conformity with ac-counting principles generally accepted in the United States of America. Condition and Context - Management should possess the expertise to prepare the SEFA and related disclosures in accordance with accounting principles generally accepted in the United States of America without assistance from the auditors. During our audit, we compiled a list of the federal awards from financial and other records provided by the Authority and drafted the SEFA and related note disclosures. Cause - The Airport Authority personnel do not obtain the experience necessary to provide the auditors with a SEFA, in accordance with accounting prin-ciples generally accepted in the United States of America and to draft the notes to the SEFA. Potential Effect - The potential exists that a material misstatement of the SEFA could occur and not be prevented or detected by the Airport Authority's internal control. Recommendation - We recommend that the Airport Authority review and approve the pro-posed auditor adjusting entries and workpapers and the adequacy of SEFA disclosures prepared by the auditors and apply analytic procedures of the draft financial statements and other records to ensure that all expenditures of federal programs of the Airport Authority are properly recorded, among other procedures as considered necessary by management. Views of Responsible Officials and Planned Corrective Action - The Airport Authority relies on the auditor to propose adjustments and provide workpapers necessary to prepare the SEFA including the related note disclosures for the current year due to personnel changes within the Authority. After gaining necessary experience in the next year, the Airport Authority is expecting to provide the auditors with an appropriate SEFA and related disclosures.

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