FAC Explorer

Audit 398155

FY End
2025-09-30
Total Expended
$12.40M
Findings
3
Programs
2
Organization: City of Bruceville-Eddy (TX)
Year: 2025 Accepted: 2026-04-08
Auditor: BROCKWAY GERSBACH FRANKLIN & NIEMEIER PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1206155 2025-002 Material Weakness Yes P
1206156 2025-003 Material Weakness Yes P
1206157 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $12.37M Yes 3
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $27,500 Yes 0

Contacts

Name Title Type
DSYASMLVV7L1 Esther Moreno Auditee
2548595964 Daniel Jones, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Bruceville-Eddy, Texas. The City’s reporting entity is defined in Note I 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. 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. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies is included on the schedule.
In addition to federal awards involving expenditures in 2025, the City has loans in the form of bonds outstanding as of September 30, 2025 with the United States Department of Agriculture. The bonds are related to the Water and Waste Disposal Systems for Rural Communities Program (ALN 10.760). The remaining balances of the bonds at September 30, 2025, are as follows: Series 2024A $ 5,861,000 Series 2024B 3,614,000 Total $ 9,475,000

Finding Details

Finding 2025-002
Condition: The City has not adopted written policies or procedures regarding the determination of allowable costs in accordance with Uniform Guidance. Criteria: CFR 200.302(b)(7) Cause of Condition: Unfamiliarity with requirements stated in 2 CFR 200 of Uniform Guidance. Effect of Condition: Effect is a state of non-compliance which may impact future grant awards or failure to identify and reject un-allowed costs charged to grant programs. Recommendation: Adopt policies and procedures to become compliant with Uniform Guidance.
Finding 2025-003
Condition: The City has not adopted procedures (controls) to ensure compliance with 2 CFR 200 regarding the preparation and completion of the schedule of expenditures of federal awards and the accompanying notes and disclosures required by Uniform Guidance. Criteria: 2 CFR 200.510(b) Cause of Condition: Unfamiliarity with requirements stated in 2 CFR 200 of Uniform Guidance. Effect of Condition: Effect is potential errors in reporting and preparation of the schedule of expenditures of federal awards which could cause non-compliance with 2 CFR 200. Recommendation: Adopt and implement procedures (controls) to become compliant with Uniform Guidance.
Finding 2025-001
Condition: At the end of the fiscal year under audit the funds held in the sewer fund interest and sinking account did not meet the balance requirements under section 7(d) of Ordinance No. O 6-17-2024-1, and the account was under funded by approximately $442,736. Criteria: Requirements under section 7(d) of Ordinance No. O 6-17-2024-1 authorizing the issuance of a Texas combination tax and revenue certificate of obligation with the United States Department of Agriculture. Cause of Condition: Funds were not deposited or transferred into the Revenue bond 2024 interest and sinking account to meet the balance requirements. Effect of Condition: Effect is a state of material non-compliance with the established debt covenants. Recommendation: Deposit or transfer funds from system revenues or ad valorem taxes into the designated interest and sinking account in order to bring the balance of the account into compliance with the debt covenant.