SOMERSET PULASKI COUNTY AIRPORT BOARDLocal Government

2025-001: Untimely Completion and Submission of Single Audit Reporting Package Assistance Listing Number: 20.106 Federal Agency: U.S. Department ofTransportation Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require the auditee to submit the Single Audit reporting package and Data Collection Form to the Federal Audit Clearinghouse within the earlier of (1) 30 calendar days after receipt of the auditor's report(s) or (2) nine months after the end of the audit period. Condition: For the fiscal year ended June 30, 2025, the Somerset-Pulaski County Airport Board did not complete and submit its Single Audit reporting package by the required due date of March 31 , 2026. Cause: Management indicated that the Somerset-Pulaski County Airport Board initially engaged an auditor who began the audit process; however, the Somerset-Pulaski County Airport Board did not adequately monitor the progress of the engagement or establish clear timelines and follow-up procedures. As a result, delays occurred in identifying that the audit was not proceeding as planned. The Somerset-Pulaski County Airport Board then took additional time to procure and engage a replacement auditor. Due to the timing of the request, the replacement auditor was unable to complete the Single Audit until after the required due date, which contributed to the untimely completion and submission of the reporting package. Effect: Untimely completion and submission of the Single Audit reporting package constitutes noncompliance with federal reporting requirements. Delays may reduce the timeliness and usefulness of audit information for federal agencies and pass-through entities, may affect oversight and monitoring activities, and may increase the risk of follow-up or enforcement actions by cognizant or oversight agencies. Known Questioned Costs: None. Recommendation: We recommend that the Somerset-Pulaski County Airport Board strengthen internal controls and administrative procedures over Single Audit coordination to help ensure timely completion and submission of future reporting packages. At a minimum, the Somerset-Pulaski County Airport Board should: • Establish and maintain a written year-end close and audit readiness calendar with assigned responsibilities and internal deadlines that precede the federal submission due date. • Implement periodic status meetings and documented monitoring to track completion of the SEFA, financial statements, and auditor-requested supporting documentation. • Assign responsibility for FAC submission and implement a secondary review to confirm that the reporting package and Data Collection Form are submitted by the due date. • Evaluate staffing, training, and/or use of external resources needed to meet reporting timelines.Views of Responsible Officials: Management concurs with the finding. Management acknowledges that the delay in completing and submitting the Single Audit reporting package resulted from the unexpected transition to a new external auditor after being informed that the previous auditor would no longer perform audit services. This transition required additional time for procurement and onboarding, which contributed to the missed submission deadline. Management recognizes the importance of timely audit completion and submission and is committed to strengthening oversight and internal processes to prevent recurrence. Planned Corrective Action: Management plans to implement the following corrective actions: Responsible party: Kellie Baker, Airport Manager and Shawn Daughtery, Treasurer Corrective action: Management will develop and implement a formal year-end closing and Single Audit preparation calendar. This calendar will include clearly defined responsibilities and internal deadlines established in advance of the federal submission due date to ensure adequate time for review and completion. Management will conduct regular status meetings throughout the audit process to monitor progress, promptly address any delays, and ensure timely completion of all required schedules, supporting documentation, and financial statements. Additionally, management will strengthen oversight of external auditors by requiring documented engagement timelines, milestone tracking, and periodic progress updates. Responsibility for submission to the Federal Audit Clearinghouse will be formally assigned, and a secondary review process will be implemented to verify the timely and accurate submission of the reporting package and Data Collection Form. Implementation date: June 30, 2026