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Audit Report - Oig 26 026 Audit Of Air Carrier Worker Support Certifications Ameriflight Llc

Summary

Department of the Treasury Office of Inspector General Audit Report OIG-26-026, Audit of Air Carrier Worker Support Certifications - Ameriflight, LLC, dated March 13, 2026, under the heading Coronavirus Disease 2019 Pandemic Relief Programs. The contents list Results in Brief, Background including a PSP1 Interim Audit Report and Ameriflight, LLC, and Audit Results with a finding titled Inaccurate Compilation of the PSP1 Application Awardable Amount. The appendices include the objective, scope and methodology, Ameriflight and Treasury management responses, major contributors and report distribution. An abbreviations list defines terms including CARES Act, PSP1, PSP2 and PSP3.

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Oig 26 026 Audit Of Air Carrier Worker Support Certifications Ameriflight Llc

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“Audit Report - Oig 26 026 Audit Of Air Carrier Worker Support Certifications Ameriflight Llc.” Original at oig.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/oig-26-026-audit-of-air-carrier-worker-support-certifications-ameriflight-llc/, SHA-256 0fdf1362445e8408aae9ef46134f95966f78025082611f9ebad79c2ec70f9d3d.

Full text

  SENSITIVE BUT
  UNCLASSIFIED
                         (SBU)
                                                 asu   ry
                                            T r e
                                       U.S.




                     SBU Cover Sheet




For further information, refer to the
Treasury Security Manual (TD P 15-71) at
http://intranet.treas.gov/security/

  TD F 15-05.11 (3/07)
Audit Report




OIG-26-026


CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF
PROGRAMS


Audit of Air Carrier Worker Support
Certifications – Ameriflight, LLC
March 13, 2026




Office of Inspector General
Department of the Treasury
This Page Intentionally Left Blank
Contents

Audit Report
Results in Brief .............................................................................................. 2

Background ................................................................................................... 3

                   PSP1 Interim Audit Report .......................................................... 5
                   Ameriflight, LLC ........................................................................ 6

Audit Results................................................................................................. 7

    Finding        Inaccurate Compilation of the PSP1 Application Awardable Amount 8


Appendices
Appendix 1: Objective, Scope, and Methodology ............................................. 11
Appendix 2: Ameriflight Management Response .............................................. 15
Appendix 3: Treasury Management Response ................................................. 16
Appendix 4: Major Contributors to This Report ................................................ 19
Appendix 5: Report Distribution ..................................................................... 20


Abbreviations
Ameriflight                   Ameriflight, LLC
CARES Act                     Coronavirus Aid, Relief, and Economic Security Act
DOT                           Department of Transportation
Guidelines                    Guidelines and Application Procedures for Payroll Support to
                                Air Carriers and Contractors under Division A, Title IV,
                                Subtitle B of the Coronavirus Aid, Relief, and Economic
                                Security Act
IRS                           Internal Revenue Service
OIG                           Treasury Office of Inspector General
PSP1                          Payroll Support Program, CARES Act
PSP2                          Payroll Support Program Extension, Consolidated
                                Appropriations Act, 2021
PSP3                          Payroll Support Program 3, American Rescue Plan Act of
                                2021
SOC 1                         System and Organizational Controls
Treasury                      Department of the Treasury



                                                                                                                i
This Page Intentionally Left Blank
                        March 13, 2026

                        Jeffrey Stout
                        Acting Chief Program Officer
                        Department of the Treasury

                        This report presents the results of our audit of Ameriflight,
                        LLC’s (Ameriflight) certifications made to the Department of the
                        Treasury (Treasury) as part of its participation in the Air Carrier
                        Payroll Support Program (PSP1). This audit was mandated by
                        Title IV, Subtitle B, Air Carrier Worker Support, of the
                        Coronavirus Aid, Relief, and Economic Security Act (CARES
                        Act). 1 Under the CARES Act, Treasury was to provide
                        $32 billion in financial assistance to passenger air carriers,
                        cargo air carriers, and certain contractors to be exclusively used
                        for the continuation of payment of employee wages, salaries,
                        and benefits, in response to the economic impact of the
                        Coronavirus Disease 2019.2 Furthermore, the Treasury Office of
                        Inspector General (OIG) is required to audit certifications made
                        by passenger and cargo air carriers that do not report salaries
                        and benefits to the Department of Transportation (DOT)
                        (hereinafter referred to as non-241 air carriers) 3 and contractors.

                        Our audit objective was to assess the accuracy, completeness,
                        and sufficiency of Ameriflight’s sworn financial statement or
                        other data used to certify the wages, salaries, benefits, and
                        other compensation amounts submitted and approved by
                        Treasury for PSP1. The scope of our audit covered the period
                        from April 1, 2019, through September 30, 2019, and included
                        the certified PSP1 Application, sworn financial statement, tax


1
    P.L. 116–136 (March 27, 2020)
2
    The financial assistance provided under the CARES Act was split between passenger air carriers
    ($25 billion), cargo air carriers ($4 billion), and contractors ($3 billion).
3
    Passenger and cargo air carriers that are not required to report salaries and wages to DOT under
    14 CFR Part 241, “Uniform System of Accounts and Reports for Large Certificated Air Carriers.”



                        Audit of Air Carrier Worker Support Certifications –
                        Ameriflight, LLC (OIG-26-026)                                              1
                        returns, and other documentation submitted to Treasury on
                        April 3, 2020. 4

                        To accomplish the objective, we reviewed applicable laws,
                        regulations, and Treasury’s policies and procedures, including
                        but not limited to, Title IV, Subtitle B, Air Carrier Worker
                        Support of the CARES Act; Guidelines and Application
                        Procedures for Payroll Support to Air Carriers and Contractors
                        under Division A, Title IV, Subtitle B of the Coronavirus Aid,
                        Relief, and Economic Security Act (Guidelines); PSP1
                        Agreement; and Frequently Asked Questions: Application
                        Procedures for Payroll Support to Air Carriers and Contractors.
                        We interviewed key personnel from Ameriflight, Treasury, and
                        contracted consultants engaged by Treasury to evaluate
                        certified company applications. We conducted our fieldwork
                        from October 2020 through May 2024. Appendix 1 contains a
                        more detailed description of our objective, scope, and
                        methodology.


Results in Brief

                        We found that Ameriflight, a cargo air carrier, reported correct
                        information for three of the four sections reviewed on its PSP1
                        Application. 5 These sections are: (1) Applicant Information,
                        (2) Applicant Type, and (3) Certification; however, Ameriflight
                        incorrectly reported information in the Awardable Amounts
                        section of the PSP1 Application.

                        Ameriflight overstated its awardable amount by $1,039,936.
                        Specifically, we found (1) the inclusion of employer-side payroll
                        taxes, resulting in a $           overstatement, and
                        (2) unsupported pilot medical expenses, resulting in a $
                        overstatement. The overstatements were entirely offset by
                        $3,795,604 due to differences between the accrual-based
                        financial information used and the actual amounts paid; and

4
    Ameriflight submitted its PSP1 Application and related supporting documentation on
    April 3, 2020.
5
    The PSP1 Application is comprised of eight sections. Four sections were not reviewed because
    the Taxpayer Protection section generally does not apply to non-241 air carriers, and the
    Employment Levels, Financial Institution Information, and Additional Information sections had no
    impact on Treasury’s determination of recipients’ award amounts.



                        Audit of Air Carrier Worker Support Certifications –
                        Ameriflight, LLC (OIG-26-026)                                              2
             exclusion of PSP1-eligible employees’ compensation. Overall,
             Ameriflight understated its requested amount by $2,755,668
             and did not over-request PSP1 financial assistance despite
             partial non-compliance with application requirements. As a
             result, we are not making a recommendation.

             As part of our reporting process, we provided Ameriflight
             management with an opportunity to comment on a draft of this
             report. In a written response, Ameriflight management stated
             they have reviewed the report and agreed with the results.
             Ameriflight management’s response, in its entirety, is included
             as appendix 2 of this report.

             In a written response, Treasury management noted that the OIG
             found no amounts were owed back to Treasury. Management
             appreciates the OIG’s work on this engagement and looks
             forward to working with the OIG to protect the integrity of the
             PSP and other recovery programs. Treasury management’s
             response, in its entirety, is included as appendix 3 of this report.


Background

             Title IV, Subtitle B, of the CARES Act, Air Carrier Worker
             Support, requires Treasury to provide financial assistance to air
             carriers and contractors that must exclusively be used for the
             continuation of payments of employees’ wages, salaries, and
             benefits. Financial assistance is to be provided to:

                (1) passenger air carriers, in an aggregate amount up to
                    $25 billion;
                (2) cargo air carriers, in an aggregate amount up to $4 billion;
                    and
                (3) contractors, in an aggregate amount up to
                    $3 billion.

             According to the CARES Act, Treasury is required to provide
             financial assistance to air carriers that report salaries and




             Audit of Air Carrier Worker Support Certifications –
             Ameriflight, LLC (OIG-26-026)                                       3
                        benefits to DOT (referred to as 241 air carriers), 6 in an amount
                        equal to the salaries and benefits reported to DOT for the period
                        April 1, 2019, through September 30, 2019. For air carriers
                        that do not report such data to DOT (referred to as non-241 air
                        carriers) and contractors, financial assistance is required to be in
                        an amount that the air carrier or contractor certifies using sworn
                        financial statements or other appropriate data as the amount of
                        wages, salaries, benefits, and other compensation paid to
                        employees during the period of April 1, 2019, through
                        September 30, 2019. The amounts submitted on the application
                        to Treasury were considered sworn financial statements. To be
                        eligible for payments, air carriers and contractors must enter
                        into agreements with Treasury certifying that they meet certain
                        required assurances, terms, and conditions.

                        On March 30, 2020, Treasury posted on its website the
                        Guidelines, which included the PSP1 Application. The PSP1
                        Application is comprised of eight sections:

                            1. Applicant Information ─ (1) applicant name; (2) taxpayer
                               identification number and address; and (3) contact
                               person’s name, title, phone number, and email address.

                            2. Applicant Type ─ selection of applicant type whether it is
                               passenger air carrier, cargo air carrier, or contractor.
                               Additionally, if the applicant is a contractor, this section
                               would identify the contractor’s service functions and the
                               name of the air carrier or airport to which services are
                               provided. Finally, this section includes affiliate and parent
                               company information.

                            3. Financial Institution Information ─ (1) the applicant’s
                               account number and routing number; and (2) the financial
                               institution’s name, address, and telephone number.



6
    14 CFR Part 241, “Uniform System of Accounts and Reports for Large Certificated Air Carriers”
    defines “Air carrier, large certificated” as an air carrier holding a certificate issued under 49
    U.S.C. 41102, as amended, that: (1) operates aircraft designed to have a maximum passenger
    capacity of more than 18,000 pounds; or (2) conducts operations where one or both terminals of
    a flight stage are outside the 50 states of the United States, the District of Columbia, the
    Commonwealth of Puerto Rico, and the U.S. Virgin Islands. These air carriers are required to
    report financial information to DOT. Ameriflight is not a Large Certificated Air Carrier.



                        Audit of Air Carrier Worker Support Certifications –
                        Ameriflight, LLC (OIG-26-026)                                              4
                            4. Employment Levels ─ applicant’s average number of
                               employees for 2019 and number of involuntary
                               reductions after March 1, 2020.

                            5. Awardable Amounts ─ applicant’s sworn financial
                               statement consisting of salaries, wages, benefits, and
                               other compensation for the period April 1, 2019, through
                               September 30, 2019.

                            6. Taxpayer Protection ─ a table that outlines in detail the
                               proposed financial instrument to be issued to the
                               Treasury.

                            7. Additional Information ─ applicant’s verification of
                               submitting its Internal Revenue Service (IRS) Form 941,
                               Employer’s Quarterly Federal Tax Return, 7 covering the
                               period April 1, 2019, through September 30, 2019, along
                               with the PSP1 Application submitted to Treasury.

                            8. Certification ─ names, titles, and signatures of two
                               certifying officials 8 and the applicant’s name and
                               application submission date.

                        On April 18, 2020, Treasury published a sample PSP1
                        Agreement on its website, which provided definitions, terms,
                        and conditions for participation in PSP1, and required applicants
                        to submit completed applications by April 27, 2020. After
                        Treasury reviewed and approved an application, both parties
                        were required to sign the PSP1 Agreement.

                        PSP1 Interim Audit Report
                        In a prior audit report, 9 OIG identified two systemic issues
                        affecting the payment amounts administered to all PSP1
                        recipients for non-241 air carriers and contractors. Specifically,
                        some of the recipients audited included unallowable employer-

7
    IRS Form 941 is a tax form that businesses file quarterly to report income taxes, Social Security
    taxes, and Medicare taxes they withheld from employees’ paychecks.
8
    The certifying officials attested under penalty of perjury that the information and certifications
    provided in the application and its attachments are true and correct.
9
    Treasury OIG, Interim Audit Update: Air Carrier and Contractor Certifications for Payroll Support
    Program (Interim Audit), OIG-21-025 (March 31, 2021)



                        Audit of Air Carrier Worker Support Certifications –
                        Ameriflight, LLC (OIG-26-026)                                                    5
                       side payroll taxes and/or corporate officer compensation in their
                       calculation of the awardable amounts on their PSP1
                       applications. Treasury management acknowledged these issues
                       and agreed to (1) review payments issued under PSP1 to ensure
                       awarded amounts are allowable per the CARES Act and
                       Treasury guidance; and (2) remedy the incorrect amounts
                       awarded under PSP1. Based on our recommendations, in March
                       2022 Treasury implemented a PSP1 recertification process
                       whereby recipients had to certify whether they excluded
                       employer-side payroll taxes and corporate officer compensation
                       in their calculation of the awardable amounts on their PSP1
                       applications. Treasury’s goal was to determine if overpayments
                       were made to recipients based on inaccurate information
                       included in PSP1 applications.

                       Treasury officials told us that if recoupment was necessary for
                       an applicant’s inclusion of unallowable expenses such as
                       corporate officer compensation and employer-side payroll taxes
                       in the application, the recoupment method was dependent on
                       timing. Any overpayment was first offset against the approved
                       top-off payment. If an overpayment remained, or the
                       overpayment was identified after all PSP1 disbursements were
                       made, and the recipient was entitled to Payroll Support Program
                       Extension (PSP2) 10 or Payroll Support Program 3 (PSP3) 11
                       funding, the overpayment was offset against the PSP2 and/or
                       PSP3 awards prior to issuance. All remaining PSP1
                       overpayments not previously collected where the recipient did
                       not qualify for, or apply for, PSP2 and PSP3 funding, were
                       required to be repaid to Treasury.

                       Ameriflight, LLC
                       Headquartered in Dallas, Texas, Ameriflight is a cargo air carrier
                       that operates scheduled and contract cargo services to


10
   The Consolidated Appropriations Act, 2021 (P.L. 116–260), enacted on December 27, 2020,
   created the Airline Worker Support Extension for passenger air carriers and certain contractors.
   Treasury referred to this as Payroll Support Program Extension (PSP2).
11
   The American Rescue Plan of 2021 (P.L. 117–2), enacted on March 11, 2021, created the Air
   Transportation Payroll Support Program Extension authorizing Treasury to provide additional
   assistance to passenger air carriers and contractors that received financial assistance under
   PSP2. Treasury referred to this as Payroll Support Program 3 (PSP3).



                       Audit of Air Carrier Worker Support Certifications –
                       Ameriflight, LLC (OIG-26-026)                                                  6
                destinations throughout the United States, Canada, Mexico, the
                Caribbean, and South America.

                Ameriflight submitted its PSP1 Application totaling
                $15,804,274 on April 3, 2020, all of which was awarded by
                Treasury. Disbursements to Ameriflight were as follows:

                   •   June 10, 2020: $7,902,136.88

                   •   July 21, 2020: $2,634,045.62

                   •   August 3, 2020: $2,634,045.62

                   •   September 1, 2020: $2,634,045.63


Audit Results

                We found that Ameriflight reported correct information for three
                of the four sections reviewed on its PSP1 Application. These
                sections are: (1) Applicant Information, (2) Applicant Type, and
                (3) Certification. We compared information provided in each
                section of the PSP1 Application to supporting documentation
                including general ledger data, executive-level business charts,
                payroll registers, IRS Form 941, and third-party benefit invoices.

                We also found that Ameriflight reported incorrect information in
                the Awardable Amounts section. The company included
                unallowable employer-side payroll taxes and unsupported pilot
                medical expenses, resulting in an overstatement of $1,039,936.
                The overstatements were entirely offset by $3,795,604 due to
                differences between the accrual-based financial information
                used to prepare the application and the actual amounts paid;
                and exclusion of PSP1-eligible employees’ compensation.
                Overall, Ameriflight understated its requested amount by
                $2,755,668 and did not over-request PSP1 financial assistance
                despite partial non-compliance with application requirements.




                Audit of Air Carrier Worker Support Certifications –
                Ameriflight, LLC (OIG-26-026)                                    7
Finding   Inaccurate Compilation of the PSP1 Application
          Awardable Amount
          Treasury’s Guidelines define wages, salaries, benefits, and other
          compensation as:

             remuneration paid by the applicant to its employees for
             personal services and includes salaries, wages, overtime pay,
             cost-of-living differentials, and other similar compensation,
             as distinguished from per diem allowances or reimbursement
             for expenses incurred by personnel for the benefit of the
             applicant.

          The PSP1 Agreement defines salary as:

             without duplication of any amounts counted as benefits, a
             predetermined regular payment, typically paid on a weekly or
             less frequent basis but which may be expressed as an
             hourly, weekly, annual or other rate, as well as cost-of-living
             differentials, vacation time, paid time off, sick leave, and
             overtime pay, paid by the recipient to its employees, but
             excluding any federal, state, or local payroll taxes paid by
             the recipient.

          Both the CARES Act and Treasury’s Guidelines define
          “employee” as “an individual, other than a corporate officer,
          who is employed by an air carrier or contractor in the United
          States (including its territories and possessions).”

          Ameriflight incorrectly certified the PSP1 awardable amount,
          resulting in a $1,039,936 overstatement. Specifically, the
          company included:

             •   Unallowable employer-side payroll taxes resulted in an
                 overstatement of $          ; and

             •   Unsupported pilot medical expenses resulted in an
                 overstatement of $      .

          The overstatements were entirely offset due to (1) differences
          between actual amounts paid and the application figures
          compiled using accrual-based financial information, totaling
          $        , and (2) exclusion of support function personnel,



          Audit of Air Carrier Worker Support Certifications –
          Ameriflight, LLC (OIG-26-026)                                    8
which were eligible for PSP1, totaling $         . As a result,
Ameriflight understated its requested PSP1 amount by
$2,755,668. Table 1 illustrates the aggregate understatement.


Table 1. Aggregate Understatement

 Description                                                       Amount
 PSP1 Application Requested Amount                     $15,804,274
     Less Employer-Side Payroll Taxes                  $
     Less Unsupported Pilot Medical Expenses                   $
     Plus Differences in Accrual-based financial
                                                               $
     information
     Plus Exclusion of Eligible Employee
                                                           $
     Compensation
 OIG PSP1 Calculated Amount                            $18,559,942

 Understatement                                        ($2,755,668)
Source: OIG Calculation of Awardable Amount

Ameriflight’s management explained that the company was
rushing to complete the application and unintentionally included
taxes in the awardable amount calculation. Management also
stated that the company no longer has access to the system to
generate the medical expense reports. In addition, management
stated they used accrual-based financial information, as
opposed to actual compensation paid, because this method was
faster than converting to cash basis. Furthermore, management
stated that they excluded some employees’ compensation in
error due to time constraints and uncertainty during the initial
PSP1 Application process.

To remedy the findings noted in the prior OIG audit report (see
footnote 9), Treasury required cargo recipients to recertify their
PSP1 awardable amounts via a recertification portal. On
May 28, 2021, Ameriflight erroneously recertified to Treasury
that it did not include employer-side payroll taxes in its PSP1
Application. Although the recertification was inaccurate, the
company requested less than the allowable PSP1 financial
assistance. As a result, we are not making a recommendation.

                             ******


Audit of Air Carrier Worker Support Certifications –
Ameriflight, LLC (OIG-26-026)                                           9
We appreciate the courtesies and cooperation provided to our
staff during the audit. If you wish to discuss the report, you
may contact me at (202) 439-6354 or Christopher Culbreath,
the Acting Audit Manager, at (202) 927-6305. Major
contributors to this report are listed in appendix 4. A distribution
list for this report is provided as appendix 5.

/s/

Julie Wong
Acting Deputy Assistant Inspector General for Audit




Audit of Air Carrier Worker Support Certifications –
Ameriflight, LLC (OIG-26-026)                                    10
Appendix 1: Objective, Scope, and Methodology

             Our objective was to assess the accuracy, completeness, and
             sufficiency of Ameriflight, LLC’s (Ameriflight) sworn financial
             statement or other data used to certify the wages, salaries,
             benefits, and other compensation amounts submitted and
             approved by the Department of the Treasury (Treasury) for the
             Payroll Support Program (PSP1).

             The scope of our audit covered the period from April 1, 2019,
             through September 30, 2019, and included the certified PSP1
             Application, sworn financial statement, tax returns, and other
             documentation submitted to Treasury on April 3, 2020.

             To accomplish this objective, we performed the following
             activities during audit fieldwork conducted remotely from
             October 2020 through May 2024:

             •   Reviewed applicable laws and regulations, including:
                    o Title IV, Subtitle B, Air Carrier Worker Support, of the
                      Coronavirus Aid, Relief, and Economic Security Act
                      (CARES Act); and
                    o 14 CFR Part 241, Uniform System of Accounts and
                      Reports for Large Certificated Air Carriers, amended
                      May 31, 2024.
             •   Reviewed Treasury’s policies, procedures, and guidelines
                 related to PSP1:
                    o Guidelines and Application Procedures for Payroll
                      Support to Air Carriers and Contractors under Division
                      A, Title IV, Subtitle B of the Coronavirus Aid, Relief,
                      and Economic Security Act, which included the PSP1
                      Application, March 30, 2020;
                    o PSP1 Agreement;
                    o Question and Answer: Payroll Support to Air Carriers
                      and Contractors, (April 2, 2020, April 3, 2020, and
                      April 20, 2020, versions); and
                    o Frequently Asked Questions: Application Procedures
                      for Payroll Support to Air Carriers and Contractors,
                      April 3, 2020.



             Audit of Air Carrier Worker Support Certifications –
             Ameriflight, LLC (OIG-26-026)                                   11
Appendix 1: Objective, Scope, and Methodology

                        •   Performed 100 percent testing for four of the eight sections
                            of the PSP1 Application—specifically, the Applicant
                            Information, Applicant Type, Awardable Amounts, and
                            Certification sections. The other four sections were not
                            reviewed because the Taxpayer Protection section generally
                            does not apply to non-241 air carriers; the Employment
                            Levels, Financial Institution Information, and Additional
                            Information sections had no impact on Treasury’s
                            determination of recipients’ award amounts.
                        •   Interviewed key Treasury personnel and contracted
                            consultants engaged by Treasury to aid in its evaluation of
                            the air carriers’ and the contractors’ certified applications
                            and other data.
                        •   Interviewed Ameriflight’s representatives responsible for the
                            completion and submission of the sworn financial statement.
                            The amounts submitted in the Awardable Amounts section
                            of the PSP1 Application were considered the sworn financial
                            statement.
                        •   Reviewed sworn financial statement and documents to
                            support the requested payroll support amount. The
                            documentation included, but was not limited to, (1) PSP1
                            Application; (2) Internal Revenue Service Form 941,
                            Employer’s Quarterly Federal Tax Return; (3) 2019
                            organizational charts; (4) April 2019 through
                            September 2019 payroll registers; (5) PSP1 Agreement; and
                            (6) third-party benefit invoices.
                        •   Reviewed Government Accountability Office’s Standards for
                            Internal Control in the Federal Government to identify the
                            components of internal control that are significant to the
                            audit objective. Understanding internal control within the
                            context of an entity’s internal control framework can help
                            auditors determine whether internal control deficiencies
                            exist. We concluded that one of the five internal control
                            components, Control Activities, as related to Ameriflight’s
                            payroll systems, was significant to the audit objective.12 This
                            component states that control activities are the actions
                            management establishes through policies and procedures to
                            achieve objectives and respond to risks in the internal control

12
     The five components of internal control are Control Environment, Risk Assessment, Control
     Activities, Information and Communication, and Monitoring.



                        Audit of Air Carrier Worker Support Certifications –
                        Ameriflight, LLC (OIG-26-026)                                            12
Appendix 1: Objective, Scope, and Methodology

                           system, which includes the entity’s information system. To
                           assess the controls over Ameriflight’s payroll systems, we
                           examined Ameriflight’s response to Data Supplier
                           Questionnaires, 13 reviewed System and Organizational
                           Controls 1 (SOC 1) 14 reports, and interviewed Ameriflight’s
                           management responsible for generating and using the data.
                           Additional details regarding our assessment of the reliability
                           of the data is reported in the section below.
                       •   Reviewed Government Accountability Office’s Assessing
                           Data Reliability guidance, which states that a data reliability
                           determination does not involve attesting to the overall
                           reliability of the data or database. For this audit, the audit
                           team has only determined the reliability of the specific data
                           sources needed to support the findings, conclusions, or
                           recommendations in the context of the audit objective.
                           Ameriflight prepared the PSP1 Application using payroll and
                           benefit information from the accrual-based financial system
                           of record. We compared details generated from payroll
                           registers at the individual employee level, as well as third-
                           party vendor benefit invoices from April 2019 through
                           September 2019 to the amounts presented in the Awardable
                           Amounts section of the PSP1 Application.
                           To assess the reliability of the company’s payroll systems,
                           we (1) reviewed the completed Data Supplier Questionnaires
                           for Ameriflight’s payroll systems; (2) reviewed the payroll
                           provider’s SOC 1 reports; (3) ensured system generated data
                           were within the expected date range;15 and (4) interviewed
                           Ameriflight’s representatives responsible for generating and
                           using the data. Based on our assessment, we determined
                           that the data were sufficiently reliable to support the findings
                           and conclusions to answer the objective of this audit.
                       We conducted this performance audit in accordance with
                       generally accepted government auditing standards. Those
                       standards require that we plan and perform the audit to obtain
                       sufficient, appropriate evidence to provide a reasonable basis

13
   A Data Reliability Assessment is completed to assess the reliability of data originating from a
   system to determine if it is reliable for the purposes of the audit. The Data Supplier Questionnaire
   would be one of the tools used during the Data Reliability Assessment.
14
   SOC 1 report addresses a company’s internal control over financial reporting, which pertains to
   the application of checks-and-limits. Essentially, it is the audit of a third-party vendor’s
   accounting and financial controls.
15
   The payroll registers had a date range from April 1, 2019, through September 30, 2019.



                       Audit of Air Carrier Worker Support Certifications –
                       Ameriflight, LLC (OIG-26-026)                                                13
Appendix 1: Objective, Scope, and Methodology

               for our findings and conclusions based on our audit objective.
               We believe that the evidence obtained provides a reasonable
               basis for our findings and conclusions based on our audit
               objective.




               Audit of Air Carrier Worker Support Certifications –
               Ameriflight, LLC (OIG-26-026)                                    14
Appendix 2: Ameriflight Management Response




             Audit of Air Carrier Worker Support Certifications –
             Ameriflight, LLC (OIG-26-026)                          15
Appendix 3: Treasury Management Response




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Audit of Air Carrier Worker Support Certifications –
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Audit of Air Carrier Worker Support Certifications –
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Appendix 4: Major Contributors to This Report

                 Olivia Scott, Acting Director
                 Christopher Culbreath, Acting Audit Manager
                 Raymond Brooks II, Auditor-in-Charge
                 Maria McLean, Referencer




              Audit of Air Carrier Worker Support Certifications –
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Appendix 5: Report Distribution

              Department of the Treasury
                Deputy Secretary
                Treasury Audit Liaison
                Office of Strategy, Planning and Performance Improvement
                Office of the Deputy Chief Financial Officer, Risk and Control
                  Group
              Ameriflight, LLC
                Chief Executive Officer
                Corporate Controller
              Office of Management and Budget
                OIG Budget Examiner
              United States Senate
                Committee on Homeland Security and Governmental Affairs
                Committee on Finance
                Committee on Banking, Housing, and Urban Affairs
                Committee on Commerce, Science, and Transportation
                Committee on Appropriations
                Committee on the Budget

              United States House of Representatives
                Committee on Oversight and Government Reform
                Committee on Financial Services
                Committee on the Budget
                Committee on Transportation and Infrastructure




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