FAC Explorer

Audit 333735

FY End
2022-09-30
Total Expended
$821,288
Findings
2
Programs
1
Organization: City of Simonton, Texas (TX)
Year: 2022 Accepted: 2024-12-19
Auditor: Breedlove & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
515860 2022-001 - - L
1092302 2022-001 - - L

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $821,288 Yes 1

Contacts

Name Title Type
LYNMJJTHWE31 Laurie Boudreaux Auditee
2815339809 Natalie Ridley Auditor
No contacts on file

Notes to SEFA

Title: NOTE (1) BASIS OF PRESENTATION Accounting Policies: NOTE (1) BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Simonton, Texas and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The City has not elected to use the 10% de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Simonton, Texas and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The City has not elected to use the 10% de minimis indirect cost rate.

Finding Details

Finding 2022-001
Finding # 2022 C.1 – Failure to comply with financial reporting requirements. Community Development Block Grant/State’s Program and Non-Entitlement Grants in Hawaii – ALN# 14.228 Material weakness and noncompliance material to major federal award programs. Condition: The City has not complied with financial reporting requirements by failing to engage an independent auditor on an annual basis to conduct and submit audited financial statements to the reporting agencies. Criteria or Specific Requirement: The City is required to submit timely audited financial information electronically to the Federal Audit Clearinghouse (FAC) within 9 months of the City’s fiscal year end for those fiscal years when the City expends more than $750,000 of federal funds. Questioned Costs: No questioned costs Effect: Failure to report the annual financial statements within the time parameters can result in the City being unable to apply or qualify for additional federal funding. Cause: The City did not contract with an independent auditor to conduct an audit of the financial statements in a timely manner. Recommendation: The City needs to engage an independent auditor on an annual basis and ensure that the audited financial statements are submitted to FAC within the allotted time frame. Response: Subsequent to the year end the City engaged in a service contract with an independent auditor.
Finding 2022-001
Finding # 2022 C.1 – Failure to comply with financial reporting requirements. Community Development Block Grant/State’s Program and Non-Entitlement Grants in Hawaii – ALN# 14.228 Material weakness and noncompliance material to major federal award programs. Condition: The City has not complied with financial reporting requirements by failing to engage an independent auditor on an annual basis to conduct and submit audited financial statements to the reporting agencies. Criteria or Specific Requirement: The City is required to submit timely audited financial information electronically to the Federal Audit Clearinghouse (FAC) within 9 months of the City’s fiscal year end for those fiscal years when the City expends more than $750,000 of federal funds. Questioned Costs: No questioned costs Effect: Failure to report the annual financial statements within the time parameters can result in the City being unable to apply or qualify for additional federal funding. Cause: The City did not contract with an independent auditor to conduct an audit of the financial statements in a timely manner. Recommendation: The City needs to engage an independent auditor on an annual basis and ensure that the audited financial statements are submitted to FAC within the allotted time frame. Response: Subsequent to the year end the City engaged in a service contract with an independent auditor.