City of Safford, Arizona

Finding Number: 2025‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID‐19 Airports Programs 20.106 E4MSX01C, E4MSY01C N/A Payments for Small Community Air Service Development 20.930 N/A N/A Federal Agency: Department of Transportation Pass‐Through Agency: Arizona Department of Transportation Type of Finding: Noncompliance, Material Weakness Compliance Requirements: Reporting Criteria City management is responsible for establishing and maintaining internal controls over reporting to include controls over completing and submitting federal reports in accordance with CFR 200.305 and CFR 4284.960. Condition Adequate internal controls were not in place to ensure that required federal reports were not completed or submitted. Cause The lack of training and understanding of federal reporting requirements. Effect The City was not in compliance with federal reporting regulations and guidelines. Context While reviewing reporting requirements for federal programs we noted the following:  The City did not complete required reporting requirements for the Airport Improvement Programs by submitting SF‐270, SF‐271, and SF‐425 reports.  The City did not complete required reporting requirements for the Small Community Air Service Development Program by submitting SF‐425 reports. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The City should allocate necessary resources to implement controls and procedures to ensure reporting requirements are being completed and submitted. Views of Responsible Officials See Corrective Action Plan.