FAC Explorer

Audit 20625

FY End
2022-09-30
Total Expended
$1.57M
Findings
2
Programs
4
Organization: City of Gonzales, Texas (TX)
Year: 2022 Accepted: 2023-06-28
Auditor: Abip

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20455 2022-001 - - L
596897 2022-001 - - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $609,691 Yes 1
97.067 Homeland Security Grant Program $37,679 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $23,849 Yes 0
15.904 Historic Preservation Fund Grants-in-Aid $14,222 Yes 0

Contacts

Name Title Type
GNFCLDMG4JN7 Laura Zella Auditee
8306722815 Janet Pitman Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1 Basis of presentationThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City ofGonzales, Texas (the City), and is presented on the modified accrual basis of accounting. The information in thisschedule is presented in accordance with the requirements of the Uniform Guidance.Note 2 Summary of significant accounting policiesExpenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance.Note 3 Indirect cost rateThe City has not elected to use the 10% de minimis indirect cost rate.Note 4 SubrecipientsOf the Federal expenditures presented in the Schedule, the City did not provide any federal awards to anysubrecipients.Note 5 ContingenciesThe City participates in numerous state and federal grant programs governed by various rules and regulations of thegrantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantoragencies; therefore, to the extent the City has not complied with the rules and regulations governing the grants, ifany, refunds of any money received may be required and the collectability of any related receivable at September30, 2022 may be impaired. In the opinion of the City, there are no significant contingent liabilities relating tocompliance with the rules and regulations governing the respective grants; therefore, no provision has been recordedin the accompanying financial statements for such contingency. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
2022-001 ? Reporting Type of Finding ? Other ALN No. 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFR) Questioned Costs - $89,150 Criteria: Federal program expenditures incurred from March 3, 2021 through March 31, 2022 must be reported through the Project and Expenditure Report as outlined in the federal program?s grant agreement. Condition: Expenditures totaling $89,150 were incurred during the period March 3, 2021 through March 31, 2022 were not reported in the Project and Expenditure Report submission. Cause: Expenditure invoices were incurred with CSLFR funds were not properly identified by management and subject to the reporting compliance requirement. Recommendation: We recommend that the City implement procedures to identify invoices to be funded by CSLFR funds and report them in the Project and Expenditure Report submission. Planned Correction Action Response: The City of Gonzales recognizes and agrees with the recommendation to implement procedures. Our Finance Director will review invoices funded by CSLFR funds and ensure the Project and Expenditure Report includes all expenditures incurred in the appropriate reporting period. Responsible Persons: Laura Zella, Finance Director
Finding 2022-001
2022-001 ? Reporting Type of Finding ? Other ALN No. 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFR) Questioned Costs - $89,150 Criteria: Federal program expenditures incurred from March 3, 2021 through March 31, 2022 must be reported through the Project and Expenditure Report as outlined in the federal program?s grant agreement. Condition: Expenditures totaling $89,150 were incurred during the period March 3, 2021 through March 31, 2022 were not reported in the Project and Expenditure Report submission. Cause: Expenditure invoices were incurred with CSLFR funds were not properly identified by management and subject to the reporting compliance requirement. Recommendation: We recommend that the City implement procedures to identify invoices to be funded by CSLFR funds and report them in the Project and Expenditure Report submission. Planned Correction Action Response: The City of Gonzales recognizes and agrees with the recommendation to implement procedures. Our Finance Director will review invoices funded by CSLFR funds and ensure the Project and Expenditure Report includes all expenditures incurred in the appropriate reporting period. Responsible Persons: Laura Zella, Finance Director