FAC Explorer

Audit 401224

FY End
2025-12-31
Total Expended
$1.51M
Findings
3
Programs
2
Organization: East Rio Hondo Water Supply Corporation (TX)
Year: 2025 Accepted: 2026-05-12
Auditor: ADAMSON & COMPANY LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1214545 2025-001 Material Weakness Yes I
1214546 2025-001 Material Weakness Yes I
1214547 2025-001 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
66.458 CLEAN WATER STATE REVOLVING FUND $375,572 Yes 1
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $88,152 Yes 0

Contacts

Name Title Type
V6M4L6NJE3E4 Norma Castro Auditee
9567482605 Caitlin Chupe Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of East Rio Hondo Water Supply Corporation, for the year ended December 31, 2025. The information in this schedule is presented in accordance iwth the requirements of the Uniform Guidance, and Audits of State, Local Governments, and Non-Profit Organizations. In accordance with Governmental Accounting Standards Board requirements, the Corporation has reviewed other entities and activities for possible inclusion in the reporting entity and determined that there are none; however, federal financial assistance passed through other governmental agencies is included on the schedule.
The financial statements of the Corporation are prepared using the accrual basis of accounting. Under this basis, revenues are recognized when earned and expenses are recognized when incurred.
During the year ended December 31, 2025, the Corporation had no sub-recipients.
During the year ended December 31, 2025, the Corporation had outstanding federal loan balances related to programs administered by the United States Department of Agriculture (USDA). These loans are not included in the Schedule of Expenditures of Federal Awards (SEFA) as no current-year federal expenditures were recognized to these loans. The Corporation had no outstanding federal outstanding loan guarantees as of December 31, 2025.
During the year ended December 31, 2025, the Corporation had no federally funded insurance.
During the year ended December 31, 2025, the Corporation did not receive any non-cash federal awards.
The Corporation does not utilize the de minimus 10% indirect cost rate. Indirect costs, where applicable, are negotiated with the agency providing the grant award to the Corporation.

Finding Details

Finding 2025-001
Procurement Suspension and Debarment (EPA Clean Water State Revolving Fund Assistance Listing 66.458) Condition: The Corporation did not perform verification of vendors against the System for Award Management (SAM.gov) to ensure vendors were not suspended or debarred prior to the award of contracts or payments for services. Criteria: In accordance with 2 CFR 200.214 and 2 CFR 200.318, non-federal entities are prohibited from contracting with or making subawards to parties that are suspended or debarred. Entities are required to verify that vendors are not suspended or debarred, which may be accomplished through review of SAM.gov or by obtaining appropriate certifications from vendors. Effect: The Corporation is at risk of contracting with or making payments to vendors that are suspended or debarred, which could result in noncompliance with federal requirements and potential disallowance of costs. Questioned Costs: None Noted. Recommendation: We recommend that the Corporation implement procedures to verify vendor eligibility prior to awarding contracts or making payments using SAM.gov or by obtaining appropriate certifications from vendors. Documentation of this verification should be retained. Views of Responsible Officials: Management agrees with the finding and will implement procedures to verify vendor eligibility through SAM.gov or equivalent methods for applicable vendors.