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PENINSULA AIRPORT COMMISSION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
50
A.
Summary of Auditor’s Results
1. The type of report issued on the basic financial statements: Unmodified opinion
2. Significant deficiencies in internal control disclosed by the audit of the financial statements: Yes
3. Material weaknesses in internal control disclosed by the audit of financial statements: No
4. Noncompliance, which is material to the financial statements: No
5. Significant deficiencies in internal control over major program: None reported
6. Material weaknesses in internal control over major program: No
7. The type of report issued on compliance for major program: Unmodified opinion
8. Any audit findings which are required to be reported under the Uniform Guidance: No
9. The program tested as major programs were:
Assistance Listing Number
Name of Federal Program and Cluster
20.106
Airport Improvement Program
10. Dollar threshold used to distinguish between Type A and Type B programs: $750,000
11. The Peninsula Airport Commission did not qualify as a low-risk auditee under the Uniform Guidance
B.
Findings Relating to the Financial Statements Reported in Accordance with Government
Auditing Standards
2024-001 – Significant Deficiency – Segregation of Duties and Financial Reporting Review
Criteria: Yearly, the Commission’s Finance Department oversees the preparation, processing, and recordation of
thousands of financial transactions that ultimately will be reported externally through its financial statements. The
efficient, effective, and timely preparation of the financial statement depends heavily on finance personnel to
monthly close the Commission’s general ledger, performing appropriate financial analyses and reconciliations of
financial activity, and accumulating the required data for reporting and to ensure Federal Aviation Administration
compliance. To verify the transactions are fairly presented, procedures must be in place and functioning effectively
to ensure the financial and operational information is complete, accurate, and in accordance with U.S. GAAP. Key
to effectively functioning procedures is the segregation of duties throughout the performance of said procedures
to reduce the risk of misstatement due to fraud or error.
Condition: As of June 30, 2024, the Commission does not have adequate segregation of duties over initiating,
recording, and reconciling transactions involving key financial cycles. Although the size of the Commission’s
accounting department limits the extent of separation of duties, we believe certain steps could be taken to separate
duties performed by members of the accounting function. The basic premise is that no one employee or individual
should have access to both physical assets and the related accounting records or to all phases of a transaction.
Specifically, we noted the following examples lacking a segregation of duties:
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