DALLAS FORT WORTH INTERNATIONAL AIRPORT BOARDLocal Government

Assistance Listing Number, Federal Agency Number, and Program Name ALN 20.106, U.S. Department of Transportation Federal Aviation Administration (FAA), Airport Improvement Program (AIP) Federal Award Identification Number and Year N/A Pass through Entity N/A Finding Type Significant deficiency Repeat Finding No Criteria The FAA requires organizations to file FAA Form 5100 126, The Financial Government Payment Report, annually within 120 days after the Airport's fiscal year end. Condition There were no controls in place for the annual report for the fiscal year ended September 30, 2025 to ensure the report contained accurate information and was sent timely to the appropriate FAA airports office. Questioned Costs N/A If Questioned Costs Are Not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could Not Be Reported N/A Identification of How Questioned Costs Were Computed N/A Context Although the report was complete and accurate and filed timely, there was no documented control in place to ensure the annual report was submitted accurately and timely. Cause and Effect The lack of a control to ensure timely submission of a complete and accurate annual report to the appropriate FAA office could result in the Airport submitting incomplete, inaccurate, and/or late reports. Recommendation We recommend the Airport ensure internal controls are in place to ensure complete and accurate annual reports are submitted timely. Views of Responsible Officials and Corrective Action Plan A review of FAA Form 5100 126 will be conducted with ap propriate personnel, such as the Controller or Vice President, Treasury Management prior to submitting to the FAA. Review and timely submission will be evidenced via time stamped DocuSign or other electronic means such as an acknowledgment via email.

Assistance Listing Number, Federal Agency, and Program Name ALN 20.106, U.S. Department of Transportation Federal Aviation Administration (FAA), Airport Improvement Program (AIP) Federal Award Identification Number and Year 3 48 0064 161 2025 Pass through Entity N/A Finding Type Significant deficiency Repeat Finding No Criteria The Code of Federal Regulations, specifically 2 CFR 200.303, requires grant recipients establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition The controls in place to review the final grant packet, including the grant drawdown template and the drawdown invoice detail, prior to final processing of the drawdown were not operating as designed. Questioned Costs $21,452 If Questioned Costs Are Not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could Not Be Reported N/A Identification of How Questioned Costs Were Computed The questioned costs represent the total of all nonconforming costs reduced by the Airport's 25 percent match that were charged to the grant. Context Although the two invoice packets properly identified the $28,603 of non conforming costs out of $25,412,561 incurred, the grant drawdown template that was prepared did not exclude these ineligible costs and the review of the grant drawdown template did not identify the error prior to final processing of the drawdown. Cause and Effect The ineffective control to ensure accuracy of the grant drawdown template prior to final processing of the drawdown resulted in unallowable costs. Recommendation We recommend the Airport ensure internal controls are in place to ensure accurate information is included in the final processing of the drawdown. Views of Responsible Officials and Planned Corrective Actions Treasury will work with PMM and DCC departments to out line a process to ensure accurate reporting of eligible expenses when invoices are re viewed for compliance with grant program requirements. The process will be documented and adhered to once agreed by all departments. A review process for the final drawdown submission will also be adopted to ensure costs that are identified as ineligible are appropriately excluded from the final submission.

Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.

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