EIN: 562426454
UEI: K12LNDVXY1D4
Audited by: ALDRIDGE, BORDEN & COMPANY, PC
Oversight agency: 20 [Department of Transportation]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 14, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 14, 2025 (355 days ago).
What is a management decision? →FAC accepted this audit on June 11, 2021 — management decision was due December 11, 2021.
The City of Gadsden (the sponsor) transferred the majority of the airport property to the Gadsden Airport Authority. Therefore, the sponsor of record does not have good title to the airport as required by Grant Assurance 4, Good Title. In addition, Grant Assurance 5, Preserving Rights and Powers, does not allow a sponsor to transfer title for airport property without prior written consent and approval of FAA. Context: This is a condition identified per FAA review of the Authority?s recent land release request regarding release of one acre of land held by the Authority for an existing industrial site expansion. Effect: The sponsor is not in full compliance with grant assurances. Cause: Individuals involved with the 2004 transfer of title are no longer available. The transfer appears to have been the result of actions taken in previous years. Repeat of a Prior-Year Finding: No Recommendation: The FAA has provided three options to address this noncompliance. The sponsor and the Authority have taken the extensive necessary actions to achieve full compliance. The FAA has agreed to the appropriate legal response made by the Gadsden Airport Authority and will resolve the matter in the near future. View of Responsible Officials: The Board and management agree with this finding.
Show full finding ▾Hide full finding ▴Program: U.S. Department of Transportation; Airport Improvement Program, CFDA #20.106, for 10/1/2019 through 9/30/2020. Criteria: A sponsor cannot take any action that may deprive it of its rights and powers to direct and control the airport development and comply with the grant assurances. Condition: The City of Gadsden (the sponsor) transferred the majority of the airport property to the Gadsden Airport Authority. Therefore, the sponsor of record does not have good title to the airport as required by Grant Assurance 4, Good Title. In addition, Grant Assurance 5, Preserving Rights and Powers, does not allow a sponsor to transfer title for airport property without prior written consent and approval of FAA. Context: This is a condition identified per FAA review of the Authority?s recent land release request regarding release of one acre of land held by the Authority for an existing industrial site expansion. Effect: The sponsor is not in full compliance with grant assurances. Cause: Individuals involved with the 2004 transfer of title are no longer available. The transfer appears to have been the result of actions taken in previous years. Repeat of a Prior-Year Finding: No Recommendation: The FAA has provided three options to address this noncompliance. The sponsor and the Authority have taken the extensive necessary actions to achieve full compliance. The FAA has agreed to the appropriate legal response made by the Gadsden Airport Authority and will resolve the matter in the near future. View of Responsible Officials: The Board and management agree with this finding.
Finding: The City of Gadsden (the sponsor) transferred the majority of the airport property to the Gadsden Airport Authority. Therefore, the sponsor of record does not have good title to the airport as required by Grant Assurance 4, Good Title. In addition, Grant Assurance 5, Preserving Rights and Powers, does not allow a sponsor to transfer title for airport property without prior written consent and approval of FAA. Response: In 2004, the City of Gadsden, transferred assets from the City to the Airport Authority, the City firmly believes that this transfer was approved by FAA but no documentation has been found to support such claim. To resolve the non-compliance matter, the City has upon recommendation of a letter from FAA dated December 3, 2020, completed an Assignment & Assumption Agreement that will make the Airport Authority a co-sponsor of the City of Gadsden. Once this agreement has been approved by FAA, the non-compliance matter will be resolved and transfer of title on the one-acre property in question can be completed. This one acre parcel is for an existing industrial site expansion.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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