City of Elko, Nevada

2019-001. FAA Records Reporting (CFDA 20.106) Criteria: The Federal Aviation Administration (FAA) requires that an entity which receives money in the Airport Improvement Program (AlP) file certain reports and maintain records and documents reflecting the operating and financial information of the City airport during the period of performance. Condition: We noted that the City properly filed the required FAA form 5100-127 with the FAA. However, the report did not contain accurate information and was not filed within the required time frame. Cause: The City did not follow established controls to initially submit accurate and timely reports to the FAA. Effect: The City is not in compliance with the reporting requirements for the AlP grant received fr:om the FAA. Recommendation: We recommend the City follow the established controls to ensure that all reports are properly and timely prepared and submitted with accurate information.

2019.001 FAA Records Reporting ICFDA 20.106) Criteria: The Federal Aviation Administration (FAA) requires that an entity which receives money in the Airport Improvement Plan (AIP) file certain reports and maintain records and documents reflecting the operating and financial information of the City Airport during the period of performance. Condition: We noted that the City properly filed the required FAA form 5100-127 with the FAA. However, the report did not contain accurate information and was not filed within the required time frame. Corrective Action: The FAA requires all commercial airports to file forms 5100-126 and 5100-127 within 120 days after the end of their fiscal year. Until recently, the Administrative Services Director was responsible for an financial reporting for Elko Regional Airport. On June 24, 2019 the FAA notified us that the fiscal year 2016, 2017 and 2018 Operating and Financial Summary Reports were past due. Upon notification, the Acting Accounting Manager gained access to the FAA Compliance Activity Tracking Systems (CATS) and discovered that the reports for 2016,2017 and 2018 were entered but had not been submitted. Due to the delinquency, City Staff quickly reviewed and submitted the reports to the FAA, assuming they had been accurately prepared by the Administrative Services Director. Unfortunately, the original reports were inaccurate. The City of Elko recognizes the FAA reporting requirements and has allocated additional resources to ensure future compliance. The new Financial Services Director will direct, manage, and oversee financial reporting, general accounting, budget preparation and audit coordination and ensure prior Operating and Financial Summary Reports are accurate and future reports are timely and accurate.