FAC Explorer

Audit 382652

FY End
2024-12-31
Total Expended
$2.60M
Findings
2
Programs
1
Organization: CITY OF ZAVALLA, TEXAS (TX)
Year: 2024 Accepted: 2026-01-20
Auditor: TODD HAMAKER & JOHNSON LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1169655 2024-011 Material Weakness Yes F
1169656 2024-011 Material Weakness Yes F

Programs

ALN Program Spent Major Findings
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $2.52M Yes 1

Contacts

Name Title Type
P7U7X7QC7MN5 Viry Byerly Auditee
9368973311 Kim Johnson Auditor
No contacts on file

Notes to SEFA

General. The Schedule includes the federal grant activity of the City of Zavalla, Texas under programs of the federal government for the year ended December 31, 2024. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the City of Zavalla, Texas, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Zavalla, Texas. Relationship to Federal Financial Reports. For some grants, amounts included in federal financial reports filed by the City with grantor agencies are reported on the cash basis. Accordingly, the related cash basis reports may not agree with amounts reported in the accompanying Schedule of Expenditures of Federal Awards. Relationship to Federal Financial Reports. For some grants, amounts included in federal financial reports filed by the City with grantor agencies are reported on the cash basis. Accordingly, the related cash basis reports may not agree with amounts reported in the accompanying Schedule of Expenditures of Federal Awards.
Pass-through entity identifying numbers are presented where available.

Finding Details

Finding 2024-011
2024-011 Significant Control Deficiency and Noncompliance: Accounting for Capital Assets CFDA 14.228 – Community Development Block Grants/State Program and Non-Entitlement Grants in Hawaii Federal Agency: U.S. Department of Housing and Urban Development Passed Through: Texas Department of Agriculture/Texas General Land Office Award Number: CL7220530/22-082-017-D219 Award Years: February 1, 2020 to January 31, 2023/ November 19, 2021 to January 31, 2025 Funding Type: Indirect Compliance Requirement: F. Equipment and Real Property Management Condition. The City of Zavalla does not have a written capital asset management policy consistent with guidelines for federally funded projects. Criteria or Specific Requirements. As required by the Uniform Guidance, an entity that acquires equipment and/or real property with federal funds must implement an appropriate control system to safeguard and maintain the equipment and to provide for final disposal once the equipment is no longer needed. Possible Effect. Failure to implement the required policies and procedures could result in improper fixed asset tracking, potential loss or theft of assets, denial of future federal funding, and could subject the City to other penalties imposed by the relevant federal agency. Questioned Costs. None. Recommendation. We recommend that the City develop a written capital asset management policy, to be approved by the council, consistent with criteria as noted above (and consistent with the criteria listed in finding 2024-005, noted previously) to ensure compliance with all state and/or federally funded projects. Views of Responsible Officials and Corrective Action. See Management’s Responses to Findings and Corrective Action Plan on pages 62 to 64.