FAC Explorer

Audit 319159

FY End
2023-09-30
Total Expended
$5.94M
Findings
4
Programs
7
Organization: City of Orange, Texas (TX)
Year: 2023 Accepted: 2024-09-09
Auditor: Brookswatson & CO PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496219 2023-001 Significant Deficiency - L
496220 2023-001 Significant Deficiency - L
1072661 2023-001 Significant Deficiency - L
1072662 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.94M Yes 0
14.218 Community Development Block Grants/entitlement Grants $107,279 - 0
97.127 Cybersecurity Education and Training Assistance Program (cetap) $35,303 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $13,095 - 0
16.607 Bulletproof Vest Partnership Program $4,614 - 0
45.129 Promotion of the Humanities_federal/state Partnership $1,888 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $508 Yes 1

Contacts

Name Title Type
Y42KF6BHDWJ5 Cheryl Zeto Auditee
4098831041 Michael Brooks Auditor
No contacts on file

Notes to SEFA

Title: Basis of Accounting Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Orange, Texas and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Cost Principles for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Orange, Texas and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Cost Principles for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Orange, Texas and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Cost Principles for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Information on the Federal Program: Assistance Listing Number 14.228 - Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii. Pass-Through Entity: Texas General Land Office. Award Number: 20-065-140-C594. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency in Internal Control Over Compliance. Criteria: Program requirements state that the City is to submit monthly monitoring reports that contain the total grant funds expended to date. In addition, the City’s contract with the Texas General Land Office (“GLO”) requires grant expenditures to be submitted for reimbursement within 120 days of incurring the expenditure. Condition: For the year ended September 30, 2023, we reviewed the current period grant expenditures and found the HUD monthly monitoring reports to be incomplete. In addition, several material grant expenditures were not submitted for reimbursement within 120 days following the date of expenditure. Cause: Several expenditures relating to the grant were not properly captured by the grant administrators and therefore not submitted for reimbursement or included in monthly reporting. Effect or Potential Effect: As a result, the City risks being denied reimbursement by the GLO and may rely on inaccurate budget to actual data regarding grant expenditures to date. Questioned Costs: $290,692. Recommendation: The City should address this matter by implementing additional control activities over the review of draw requests and monthly reports by reconciling them to the detail grant expenditures contained in the City’s financial accounting system. Views of Responsible Official: Management of the City of Orange, Texas, concurs with the audit finding.
Finding 2023-001
Information on the Federal Program: Assistance Listing Number 14.228 - Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii. Pass-Through Entity: Texas General Land Office. Award Number: 20-065-140-C594. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency in Internal Control Over Compliance. Criteria: Program requirements state that the City is to submit monthly monitoring reports that contain the total grant funds expended to date. In addition, the City’s contract with the Texas General Land Office (“GLO”) requires grant expenditures to be submitted for reimbursement within 120 days of incurring the expenditure. Condition: For the year ended September 30, 2023, we reviewed the current period grant expenditures and found the HUD monthly monitoring reports to be incomplete. In addition, several material grant expenditures were not submitted for reimbursement within 120 days following the date of expenditure. Cause: Several expenditures relating to the grant were not properly captured by the grant administrators and therefore not submitted for reimbursement or included in monthly reporting. Effect or Potential Effect: As a result, the City risks being denied reimbursement by the GLO and may rely on inaccurate budget to actual data regarding grant expenditures to date. Questioned Costs: $290,692. Recommendation: The City should address this matter by implementing additional control activities over the review of draw requests and monthly reports by reconciling them to the detail grant expenditures contained in the City’s financial accounting system. Views of Responsible Official: Management of the City of Orange, Texas, concurs with the audit finding.
Finding 2023-001
Information on the Federal Program: Assistance Listing Number 14.228 - Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii. Pass-Through Entity: Texas General Land Office. Award Number: 20-065-140-C594. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency in Internal Control Over Compliance. Criteria: Program requirements state that the City is to submit monthly monitoring reports that contain the total grant funds expended to date. In addition, the City’s contract with the Texas General Land Office (“GLO”) requires grant expenditures to be submitted for reimbursement within 120 days of incurring the expenditure. Condition: For the year ended September 30, 2023, we reviewed the current period grant expenditures and found the HUD monthly monitoring reports to be incomplete. In addition, several material grant expenditures were not submitted for reimbursement within 120 days following the date of expenditure. Cause: Several expenditures relating to the grant were not properly captured by the grant administrators and therefore not submitted for reimbursement or included in monthly reporting. Effect or Potential Effect: As a result, the City risks being denied reimbursement by the GLO and may rely on inaccurate budget to actual data regarding grant expenditures to date. Questioned Costs: $290,692. Recommendation: The City should address this matter by implementing additional control activities over the review of draw requests and monthly reports by reconciling them to the detail grant expenditures contained in the City’s financial accounting system. Views of Responsible Official: Management of the City of Orange, Texas, concurs with the audit finding.
Finding 2023-001
Information on the Federal Program: Assistance Listing Number 14.228 - Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii. Pass-Through Entity: Texas General Land Office. Award Number: 20-065-140-C594. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency in Internal Control Over Compliance. Criteria: Program requirements state that the City is to submit monthly monitoring reports that contain the total grant funds expended to date. In addition, the City’s contract with the Texas General Land Office (“GLO”) requires grant expenditures to be submitted for reimbursement within 120 days of incurring the expenditure. Condition: For the year ended September 30, 2023, we reviewed the current period grant expenditures and found the HUD monthly monitoring reports to be incomplete. In addition, several material grant expenditures were not submitted for reimbursement within 120 days following the date of expenditure. Cause: Several expenditures relating to the grant were not properly captured by the grant administrators and therefore not submitted for reimbursement or included in monthly reporting. Effect or Potential Effect: As a result, the City risks being denied reimbursement by the GLO and may rely on inaccurate budget to actual data regarding grant expenditures to date. Questioned Costs: $290,692. Recommendation: The City should address this matter by implementing additional control activities over the review of draw requests and monthly reports by reconciling them to the detail grant expenditures contained in the City’s financial accounting system. Views of Responsible Official: Management of the City of Orange, Texas, concurs with the audit finding.