Audit 379376

FY End
2024-09-30
Total Expended
$10.69M
Findings
1
Programs
8
Organization: City of Seadrift Texas (TX)
Year: 2024 Accepted: 2026-01-06

Organization Exclusion Status:

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Contacts

Name Title Type
GNFGPEULRTE4 Alysa Jarvis Auditee
3612509533 Donald Goldman Auditor
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Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federalaward activity of City of Seadrift, Texas under programs of the federal government for the year endedSeptember 30, 2024. The information in this Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operation of City of Seadrift, Texas, it isnot intended to be and does not present the financial position, changes in net assets, or cash flows of the City of Seadrift, Texas.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The City of Seadrift, Texas did not elect to use the 10% de Minimis indirect cost rate as allowed under the Uniform Guidance.
Of the $8,745,551 in federal expenditures listed on the Schedule, $104,940 were expended during the fiscal year ended 2023.

Finding Details

In the course of the audit, it was determined that the city’s third-party grant administrators submitted signed reimbursement requests in which they certified that the required certified payrolls were on file. However, when requested during the audit, the city and the third-party grant administrators were unable to provide copies of the certified payrolls to support these claims. Additionally, it was found that construction contract for the project did not include the required prevailing wage rate clauses as mandated by the Davia-Bacon Act and related federal regulations. These deficiencies constitute noncompliance with the federal status, regulations, and terms and conditions of the grant award.