FAC Explorer

Audit 353340

FY End
2024-09-30
Total Expended
$7.34M
Findings
2
Programs
7
Organization: City of Cedar Park, Texas (TX)
Year: 2024 Accepted: 2025-04-10
Auditor: Weaver and Tidwell LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554720 2024-001 - - N
1131162 2024-001 - - N

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $2.34M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.69M Yes 0
16.575 Crime Victim Assistance $59,774 - 0
16.922 Equitable Sharing Program $13,927 - 0
16.588 Violence Against Women Formula Grants $11,708 - 0
20.600 State and Community Highway Safety $10,329 - 0
16.607 Bulletproof Vest Partnership Program $6,400 - 0

Contacts

Name Title Type
EDM2D3P76V31 Erica Solis Auditee
5124015156 Rebecca Darling Auditor
No contacts on file

Notes to SEFA

Title: Basis of Accounting Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of all applicable federal awards of the City of Cedar Park, Texas (the City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in this schedule. The information on this schedule is prepared 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). De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental fund types are accounted for using a current financial resources measurement focus. All federal grant funds were accounted for in a special revenue fund, a component of the governmental fund type or general fund. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing resources) and decreases (i.e. expenditures and other financing uses) in fund balance. The modified accrual basis of accounting is used for the governmental fund types. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual (i.e., both measurable and available); and, expenditures in the accounting period in which the fund liability is incurred, if measurable. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly when such funds are received, they are recorded as unearned revenues until earned.
Title: Program Cost/Matching Contributions Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of all applicable federal awards of the City of Cedar Park, Texas (the City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in this schedule. The information on this schedule is prepared 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). De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The amounts shown as current year expenditures represent only the federal portion of the program costs. Entire program costs, including the City of Cedar Park’s portion, may be more than shown.
Title: Relationship to Federal Financial Reports Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of all applicable federal awards of the City of Cedar Park, Texas (the City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in this schedule. The information on this schedule is prepared 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). De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Grant expenditure reports as of September 30, 2024, which have been submitted to grantor agencies will, in some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of year-end accruals. The reports will agree at termination of the grant as the discrepancies noted are timing differences.

Finding Details

Finding 2024-001
2024-001 20.205 Highway Planning and Construction Special Tests and Provisions Type of Finding: Non-Compliance Criteria All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Condition The City had one active construction contractor during the fiscal year under the Highway Planning and Construction project. The contract between the City and the contractor contained a provision that the contractor comply with the wage rate requirements provisions, however, it did not have language which specifically discussed the contractor’s requirement to submit weekly certified payrolls. The City was only collecting these certified payrolls when requested from the Texas Department of Transportation, the pass-through entity for the grant. As such, the City collected only three weeks of certified payrolls during the fiscal year at the request of the pass-through entity. Upon request from the auditors, the City was able to obtain from the contractor the additional six haphazardly selected weeks of certified payrolls for the audit test work with no exceptions noted. Cause The City was not aware of the requirement to collect the certified payrolls on a weekly basis, only to do so at the request of the pass-through entity. Effect or Potential Effect The City could be using federal funding to pay contractors that are not complying with the prevailing wage rates by the Department of Labor. Recommendation The City should add specific language in its federal grant construction contracts the requirement of the contractor to submit to the City a copy of the weekly payroll and a statement of compliance (certified payrolls) for each week in which any contract work is performed. Additionally, the City should have processes and procedures in place to ensure receipt of these week certified payrolls to track compliance. Views of Responsible Officials and Planned Corrective Actions See corrective action plan. Prior Year Findings No findings reported for fiscal year ending September 30, 2023.
Finding 2024-001
2024-001 20.205 Highway Planning and Construction Special Tests and Provisions Type of Finding: Non-Compliance Criteria All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Condition The City had one active construction contractor during the fiscal year under the Highway Planning and Construction project. The contract between the City and the contractor contained a provision that the contractor comply with the wage rate requirements provisions, however, it did not have language which specifically discussed the contractor’s requirement to submit weekly certified payrolls. The City was only collecting these certified payrolls when requested from the Texas Department of Transportation, the pass-through entity for the grant. As such, the City collected only three weeks of certified payrolls during the fiscal year at the request of the pass-through entity. Upon request from the auditors, the City was able to obtain from the contractor the additional six haphazardly selected weeks of certified payrolls for the audit test work with no exceptions noted. Cause The City was not aware of the requirement to collect the certified payrolls on a weekly basis, only to do so at the request of the pass-through entity. Effect or Potential Effect The City could be using federal funding to pay contractors that are not complying with the prevailing wage rates by the Department of Labor. Recommendation The City should add specific language in its federal grant construction contracts the requirement of the contractor to submit to the City a copy of the weekly payroll and a statement of compliance (certified payrolls) for each week in which any contract work is performed. Additionally, the City should have processes and procedures in place to ensure receipt of these week certified payrolls to track compliance. Views of Responsible Officials and Planned Corrective Actions See corrective action plan. Prior Year Findings No findings reported for fiscal year ending September 30, 2023.