FAC Explorer

Audit 303100

FY End
2022-09-30
Total Expended
$4.55M
Findings
6
Programs
5
Organization: City of Rockport (TX)
Year: 2022 Accepted: 2024-04-09
Auditor: Park Fowler & CO PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
392745 2022-001 Significant Deficiency - L
392746 2022-001 Significant Deficiency - L
392747 2022-001 Significant Deficiency - L
969187 2022-001 Significant Deficiency - L
969188 2022-001 Significant Deficiency - L
969189 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.34M Yes 1
97.067 Homeland Security Grant Program $80,932 Yes 1
16.738 Edward Byrne Memorial Justice Assistance Grant Program $63,885 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $47,836 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $12,700 - 0

Contacts

Name Title Type
D33QE53A2V54 Robbie Sorrell Auditee
3617292213 Pamela De La Pena Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Governmental fund expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Proprietary fund expenses reported on the Schedule are reported on the accrual basis of accounting. The City’s summary of significant accounting policies is presented in Note 1 to the City’s basic financial statements for the year ended September 30, 2022. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, other applicable regulatory guidance or State of Texas Uniform Grant Management Standards (UGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards (Schedule) includes the federal and state award activity of the primary government of the City of Alice, Texas (City) under programs of the federal and state government for the year ended September 30, 2022. The City’s reporting entity is defined in Note 1 in the City’s basic financial statements for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Texas Uniform Grant Management Standards (UGMS) issued by the Texas Comptroller of Public Accounts. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position/fund balance or cash flows of the City.
Title: Significant Accounting Policies Accounting Policies: Governmental fund expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Proprietary fund expenses reported on the Schedule are reported on the accrual basis of accounting. The City’s summary of significant accounting policies is presented in Note 1 to the City’s basic financial statements for the year ended September 30, 2022. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, other applicable regulatory guidance or State of Texas Uniform Grant Management Standards (UGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Governmental fund expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Proprietary fund expenses reported on the Schedule are reported on the accrual basis of accounting. The City’s summary of significant accounting policies is presented in Note 1 to the City’s basic financial statements for the year ended September 30, 2022. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, other applicable regulatory guidance or State of Texas Uniform Grant Management Standards (UGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Indirect Cost Rate Accounting Policies: Governmental fund expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Proprietary fund expenses reported on the Schedule are reported on the accrual basis of accounting. The City’s summary of significant accounting policies is presented in Note 1 to the City’s basic financial statements for the year ended September 30, 2022. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, other applicable regulatory guidance or State of Texas Uniform Grant Management Standards (UGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Finding 2022-001: Single Audit Submission to the Federal Audit Clearinghouse Program: 14.228 – Community Development Block Grants 97.067 – Homeland Security Grant Criteria: Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organi-zations, §.320, requires APCD to submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after fiscal year-end, unless the federal oversight agency approves an extension of this deadline. Condition: The federal reporting deadline for the City of Rockport’s Single Audit Reporting Package was June 30, 2023; however, the City of Rockport did not issue its Single Audit Reporting Package until March 2024. Cause: The single audit was not completed by June 30, 2023, because the Annual Financial Report was not ready until March 2024. Due to the unforeseen turnover of critical finance department staff, the City experienced delays in completing the audit and issuing the Annual Financial Report. Effect: The late submission affects the federal programs. This finding is a significant deficiency in internal control over compli-ance and noncompliance with the Uniform Guidance. Recommendation: The City should improve its financial reporting process so that it can submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after the fiscal year-end.
Finding 2022-001
Finding 2022-001: Single Audit Submission to the Federal Audit Clearinghouse Program: 14.228 – Community Development Block Grants 97.067 – Homeland Security Grant Criteria: Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organi-zations, §.320, requires APCD to submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after fiscal year-end, unless the federal oversight agency approves an extension of this deadline. Condition: The federal reporting deadline for the City of Rockport’s Single Audit Reporting Package was June 30, 2023; however, the City of Rockport did not issue its Single Audit Reporting Package until March 2024. Cause: The single audit was not completed by June 30, 2023, because the Annual Financial Report was not ready until March 2024. Due to the unforeseen turnover of critical finance department staff, the City experienced delays in completing the audit and issuing the Annual Financial Report. Effect: The late submission affects the federal programs. This finding is a significant deficiency in internal control over compli-ance and noncompliance with the Uniform Guidance. Recommendation: The City should improve its financial reporting process so that it can submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after the fiscal year-end.
Finding 2022-001
Finding 2022-001: Single Audit Submission to the Federal Audit Clearinghouse Program: 14.228 – Community Development Block Grants 97.067 – Homeland Security Grant Criteria: Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organi-zations, §.320, requires APCD to submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after fiscal year-end, unless the federal oversight agency approves an extension of this deadline. Condition: The federal reporting deadline for the City of Rockport’s Single Audit Reporting Package was June 30, 2023; however, the City of Rockport did not issue its Single Audit Reporting Package until March 2024. Cause: The single audit was not completed by June 30, 2023, because the Annual Financial Report was not ready until March 2024. Due to the unforeseen turnover of critical finance department staff, the City experienced delays in completing the audit and issuing the Annual Financial Report. Effect: The late submission affects the federal programs. This finding is a significant deficiency in internal control over compli-ance and noncompliance with the Uniform Guidance. Recommendation: The City should improve its financial reporting process so that it can submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after the fiscal year-end.
Finding 2022-001
Finding 2022-001: Single Audit Submission to the Federal Audit Clearinghouse Program: 14.228 – Community Development Block Grants 97.067 – Homeland Security Grant Criteria: Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organi-zations, §.320, requires APCD to submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after fiscal year-end, unless the federal oversight agency approves an extension of this deadline. Condition: The federal reporting deadline for the City of Rockport’s Single Audit Reporting Package was June 30, 2023; however, the City of Rockport did not issue its Single Audit Reporting Package until March 2024. Cause: The single audit was not completed by June 30, 2023, because the Annual Financial Report was not ready until March 2024. Due to the unforeseen turnover of critical finance department staff, the City experienced delays in completing the audit and issuing the Annual Financial Report. Effect: The late submission affects the federal programs. This finding is a significant deficiency in internal control over compli-ance and noncompliance with the Uniform Guidance. Recommendation: The City should improve its financial reporting process so that it can submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after the fiscal year-end.
Finding 2022-001
Finding 2022-001: Single Audit Submission to the Federal Audit Clearinghouse Program: 14.228 – Community Development Block Grants 97.067 – Homeland Security Grant Criteria: Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organi-zations, §.320, requires APCD to submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after fiscal year-end, unless the federal oversight agency approves an extension of this deadline. Condition: The federal reporting deadline for the City of Rockport’s Single Audit Reporting Package was June 30, 2023; however, the City of Rockport did not issue its Single Audit Reporting Package until March 2024. Cause: The single audit was not completed by June 30, 2023, because the Annual Financial Report was not ready until March 2024. Due to the unforeseen turnover of critical finance department staff, the City experienced delays in completing the audit and issuing the Annual Financial Report. Effect: The late submission affects the federal programs. This finding is a significant deficiency in internal control over compli-ance and noncompliance with the Uniform Guidance. Recommendation: The City should improve its financial reporting process so that it can submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after the fiscal year-end.
Finding 2022-001
Finding 2022-001: Single Audit Submission to the Federal Audit Clearinghouse Program: 14.228 – Community Development Block Grants 97.067 – Homeland Security Grant Criteria: Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organi-zations, §.320, requires APCD to submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after fiscal year-end, unless the federal oversight agency approves an extension of this deadline. Condition: The federal reporting deadline for the City of Rockport’s Single Audit Reporting Package was June 30, 2023; however, the City of Rockport did not issue its Single Audit Reporting Package until March 2024. Cause: The single audit was not completed by June 30, 2023, because the Annual Financial Report was not ready until March 2024. Due to the unforeseen turnover of critical finance department staff, the City experienced delays in completing the audit and issuing the Annual Financial Report. Effect: The late submission affects the federal programs. This finding is a significant deficiency in internal control over compli-ance and noncompliance with the Uniform Guidance. Recommendation: The City should improve its financial reporting process so that it can submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after the fiscal year-end.