2009 Audit  Status Update
Phases of the Audit
Planning and risk assessment  Done
Assessment of internal controls  Done
Substantive audit procedures   In process
Reporting and presentation of audit results


1

Evaluation of Internal Controls
Internal control is a process designed to provide
reasonable assurance regarding the achievement of
defined objectives
Effectiveness and efficiency of operations
Reliability of financial reporting
Compliance with applicable laws and regulations
Five components of internal control
Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring

2

Our Approach to Internal Control
Testing
Top-down approach
Assess entity-level controls and information
technology related (general computer) controls
Identify significant accounts and processes
Obtain documentation of significant accounts and
processes
Assess design and implementation and perform
walkthroughs of significant controls
Identify "key controls" for testing
Perform tests of controls and compliance

3

Significant Accounts and Processes
Administration of federal awards and related administrative controls
Billings, cash receipts, and receivables
Signatory Lease and Operating Agreement
Procurement, cash disbursements, and payables
Payroll
Capital projects
Treasury and Investments
Debt and related accounts
Pollution remediation obligation and contingencies
Third party management
Financial close and reporting
Information technology (general computer controls)
Budget
4

Administration of federal awards
Major programs are Airport Improvement Program, Transportation
Security Administration Grant, and Department of Homeland
Security Grant
Internal controls and tests of compliance will be performed relative
to the following administrative requirements
Allowable costs
Cash management
Davis-Bacon Act
Equipment management
Matching
Period of availability
Procurement
Real property acquisition
Reporting
Special tests and provisions

5