Audit 399365

Project expenditures are subject to audit and adjustment. If any expenditures were to be disallowed by the grantor agency as a result of such an audit, any claim for reimbursement to the grantor agency would become a liability of the City. In the opinion of management, all Project expenditures included on the accompanying schedule complied the terms of the project agreements and applicable federal and state laws and regulations.

During the previous three fiscal years, the City incurred substantial costs related to Hurricane Ian, Hurricane Nicole, and Hurricane Milton. Per the OMB Compliance Supplement, any reimbursements from the Federal Emergency Management Agency (FEMA) under CFDA 97.036 are not to be recognized as expenditures for purposes of the Schedule of Expenditures of Federal Awards until the respective Project Worksheets (PW) have been approved. At September 30, 2025, $6,842 of the federal amounts from the City of Port Orange, Florida’s PWs from Hurricane Ian have been approved by FEMA and are recognized on the Schedule of Expenditures of Federal Awards for the year ended September 30, 2025. State match amounts have also been approved and recorded for financial statement purposes. There are approximately $1,166,000 of expenditures for which no related revenues have been recorded for financial statement purposes and have not been included on the Schedule of Expenditures of Federal Awards; these expenditures will be recognized on the Schedule of Expenditures of Federal Awards in future years once approved by FEMA. At September 30, 2025, no additional federal amounts of the City of Port Orange, Florida’s PWs from Hurricane Nicole had been approved by FEMA, and thus are recognized on the Schedule of Expenditures of Federal Awards for the year ended September 30, 2025. There are approximately $8,000 of expenditures for which no related revenues have been recorded for financial statement purposes and have not been included on the Schedule of Expenditures of Federal Awards; these expenditures will be recognized on the Schedule of Expenditures of Federal Awards in future years once approved by FEMA. At September 30, 2025, $1,234,210 of the federal amounts of the City of Port Orange, Florida’s PWs from Hurricane Milton had been approved by FEMA, and thus are recognized on the Schedule of Expenditures of Federal Awards for the year ended September 30, 2025. There are no remaining expenditures to be recorded for financial statement purposes or for recognition in the Schedule of Expenditures of Federal Awards.