Audit 396839

FY End

2025-09-30

Total Expended

$2.80M

Findings

Programs

Organization: City of Richardson (TX)

Year: 2025 Accepted: 2026-03-31

Auditor: CROWE LLP

Organization Exclusion Status:

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Findings

ID	Ref	Severity	Repeat	Requirement
1205185	2025-001	Material Weakness	Yes	N

Programs

ALN	Program	Spent	Major	Findings
20.205	HIGHWAY PLANNING AND CONSTRUCTION	$290,319	Yes	1
20.939	SAFE STREETS AND ROADS FOR ALL	$99,911	Yes	0
97.067	HOMELAND SECURITY GRANT PROGRAM	$80,726	Yes	0
16.034	CORONAVIRUS EMERGENCY SUPPLEMENTAL FUNDING PROGRAM	$75,456	Yes	0
81.128	ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG)	$70,675	Yes	0
97.036	DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS)	$21,797	Yes	0
16.922	EQUITABLE SHARING PROGRAM	$17,507	Yes	0
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$9,367	Yes	0

Contacts

Name	Title	Type
EH1HGEKMM6W3	Herman Chavez	Auditee
9724744474	Jeff Jensen	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Richardson, Texas (the City) under programs of the federal government for the year ended September 30, 2025. The City’s reporting entity is defined in Note 1 to the City’s financial statements. The information in this Schedule is presented 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the 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.

The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City’s financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Cost Rate: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Subrecipients: Of the Federal expenditures presented in the schedule, the City did not provide any Federal awards to subrecipients. Non-Cash Assistance: The City did not receive any non-cash assistance during the year. Federal Insurance: The City had no Federal insurance in force during the year. Loan Activity: The City had no loan activity during the year and no loans outstanding as of year-end.

Grant expenditure reports as of September 30, 2025, which have been submitted to grantor agencies will, in some cases, differ from amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of the year-end accruals. The reports will agree at termination of the grant as the discrepancies noted are timing differences.

Finding Details

Finding 2025-001

Finding 2025-001: Special Tests – Wage Rate Requirements – Significant Deficiency Program: Highway Planning and Construction Assistance Listing No.: 20.205 Federal Agency: U.S. Department of Transportation Pass-through entity: Texas Department of Transportation Award No.: CSJ0918-24-268 Award Year: Fiscal year 2024-2025 Category of Finding: Special Tests – Wage Rate Requirements 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 3141–3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements 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: In two out of seven selections tested for required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2025, the certified payrolls were not obtained by the City until subsequent to audit fieldwork. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Cause: Policies and procedures were not in place to ensure that certified payrolls are obtained from contractors during the year. Effect: Certified payrolls were not obtained or reviewed in a timely manner for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Questioned Costs: None. Context: There were two contracts included for projects under this program. Certified payrolls were not obtained from one of the contractors until subsequent to audit fieldwork. Identification of a repeat finding: Not a repeat finding. Recommendation: The City should design and implement internal controls to ensure compliance with the program’s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Management Response: See Corrective Action Plan.