Audit 353076

FY End
2024-09-30
Total Expended
$11.57M
Findings
2
Programs
14
Organization: City of Edinburg (TX)
Year: 2024 Accepted: 2025-04-08

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
554416 2024-003 Significant Deficiency Yes L
1130858 2024-003 Significant Deficiency Yes L

Contacts

Name Title Type
KXYWWJZLA2Y9 Ascencion Alonzo Auditee
9563881895 Alfredo Vera, Jr., CPA Auditor
No contacts on file

Notes to SEFA

Title: 1. BASIS OF ACCOUNTING AND PRESENTATION Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of the City of Edinburg, Texas (the “City”) for the year ended September 30, 2024. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and is presented on the modified 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 basic financial statements. Because this 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, or cash flows of the City. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate. No grants received by the City for the year ended September 30, 2024 were provided for reimbursement of indirect costs. The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of the City of Edinburg, Texas (the “City”) for the year ended September 30, 2024. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and is presented on the modified 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 basic financial statements. Because this 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, or cash flows of the City.
Title: 2. INDIRECT COST RATE Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of the City of Edinburg, Texas (the “City”) for the year ended September 30, 2024. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and is presented on the modified 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 basic financial statements. Because this 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, or cash flows of the City. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate. No grants received by the City for the year ended September 30, 2024 were provided for reimbursement of indirect costs. The City has elected to use the 10% de minimis indirect cost rate. No grants received by the City for the year ended September 30, 2024 were provided for reimbursement of indirect costs.
Title: 3. PROGRAM COSTS/MATCHING CONTRIBUTIONS Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of the City of Edinburg, Texas (the “City”) for the year ended September 30, 2024. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and is presented on the modified 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 basic financial statements. Because this 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, or cash flows of the City. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate. No grants received by the City for the year ended September 30, 2024 were provided for reimbursement of indirect costs. The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the City’s portion, may be more than shown.
Title: 4. FEDERAL LOANS AND LOAN GUARANTEES Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of the City of Edinburg, Texas (the “City”) for the year ended September 30, 2024. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and is presented on the modified 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 basic financial statements. Because this 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, or cash flows of the City. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate. No grants received by the City for the year ended September 30, 2024 were provided for reimbursement of indirect costs. During the year ended September 30, 2024, the City had no outstanding federal loans payable or loan guarantees.
Title: 5. NONCASH AWARDS Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of the City of Edinburg, Texas (the “City”) for the year ended September 30, 2024. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and is presented on the modified 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 basic financial statements. Because this 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, or cash flows of the City. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate. No grants received by the City for the year ended September 30, 2024 were provided for reimbursement of indirect costs. During the year ended September 30, 2024, the City received 200 5-gallon trees, a noncash assistance, with an estimated cash value of $4,000, from the Apache Corporation Tree Grant Program.
Title: 6. FEDERALLY FUNDED INSURANCE Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of the City of Edinburg, Texas (the “City”) for the year ended September 30, 2024. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and is presented on the modified 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 basic financial statements. Because this 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, or cash flows of the City. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate. No grants received by the City for the year ended September 30, 2024 were provided for reimbursement of indirect costs. During the year ended September 30, 2024, the City did not have insurance that was federally funded.
Title: 7. PROGRAM INCOME Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of the City of Edinburg, Texas (the “City”) for the year ended September 30, 2024. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and is presented on the modified 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 basic financial statements. Because this 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, or cash flows of the City. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate. No grants received by the City for the year ended September 30, 2024 were provided for reimbursement of indirect costs. Community Development Block Grants, ALN 14.218, reported program income in the amount of $94,877 for the year ended September 30, 2024.

Finding Details

Finding 2024-003 Performance Reporting Federal Program: Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 Federal Agency: U.S. Department of Treasury Federal Award Year: 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The American Rescue Plan Act (ARPA) was signed into law and established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, which together make up the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program. Per review of the Compliance and Reporting Guidance for the SLFRF program, metropolitan cities with a population below 250,000 residents that are allocated less than $10 million in SLRFR funding are required to submit a quarterly Project and Expenditure Report. Condition: During our review of the federal program, we noted that the City submitted the Quarter 4 (2023) report late. Cause: The City lacks internal controls over the reporting deadlines for the program. Effect: Without proper internal controls, the City cannot prevent or detect reporting deadlines. Failure to submit the Project and Expenditure Report timely may lead to noncompliance with federal requirements. Questioned Costs: $0 Recommendation: We recommend the City adhere to the Compliance and Reporting Guidance for the SLFRF program and establish internal controls to ensure the City submits required reports when they are due. Management’s views: Management agrees with the finding. See corrective action plan on page 154.
Finding 2024-003 Performance Reporting Federal Program: Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 Federal Agency: U.S. Department of Treasury Federal Award Year: 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The American Rescue Plan Act (ARPA) was signed into law and established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, which together make up the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program. Per review of the Compliance and Reporting Guidance for the SLFRF program, metropolitan cities with a population below 250,000 residents that are allocated less than $10 million in SLRFR funding are required to submit a quarterly Project and Expenditure Report. Condition: During our review of the federal program, we noted that the City submitted the Quarter 4 (2023) report late. Cause: The City lacks internal controls over the reporting deadlines for the program. Effect: Without proper internal controls, the City cannot prevent or detect reporting deadlines. Failure to submit the Project and Expenditure Report timely may lead to noncompliance with federal requirements. Questioned Costs: $0 Recommendation: We recommend the City adhere to the Compliance and Reporting Guidance for the SLFRF program and establish internal controls to ensure the City submits required reports when they are due. Management’s views: Management agrees with the finding. See corrective action plan on page 154.