FAC Explorer

Audit 405294

FY End
2025-09-30
Total Expended
$3.16M
Findings
1
Programs
10
Organization: City of Loxley, Alabama (AL)
Year: 2025 Accepted: 2026-06-29
Auditor: WARREN AVERETT LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1220085 2025-004 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
20.507 FEDERAL TRANSIT FORMULA GRANTS $1.13M Yes 1
87.051 GULF COAST ECOSYSTEM RESTORATION COUNCIL COMPREHENSIVE PLAN COMPONENT PROGRAM $560,221 Yes 0
20.205 HIGHWAY PLANNING AND CONSTRUCTION $416,606 Yes 0
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $385,498 Yes 0
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $221,653 Yes 0
15.435 GOMESA $206,474 Yes 0
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $101,509 Yes 0
16.922 EQUITABLE SHARING PROGRAM $85,851 Yes 0
11.419 COASTAL ZONE MANAGEMENT ADMINISTRATION AWARDS $40,000 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $10,617 Yes 0

Contacts

Name Title Type
VCXLL1E4VB47 Melissa Lawrence Auditee
2519645162 Tara, Godbey Auditor
No contacts on file

Notes to SEFA

The information in the Schedule of Expenditures of Federal Awards (the Schedule) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Since the Schedule presents only a select 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 includes the federal grant activity of the City under programs of the federal government for the year ended September 30, 2025. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The City did not elect to utilize the 15 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The programs shown in the Schedule are subject to audit by grantor agencies. If any expenditures or expenses are disallowed by the grantor agencies as a result of such audit, any claim for reimbursement to the grant agencies would become a liability of the City. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal laws and regulations.

Finding Details

Finding 2025-004
Criteria: The Uniform Guidance requires non-federal entities to maintain written procurement policies and procedures that comply with federal regulations, ensuring procurements are conducted through full and open competition while avoiding conflicts of interest. In addition, unless a waiver is obtained, the City must comply with the Build America, Buy America (BABA) Act's domestic preference provisions for all infrastructure projects. Under Section 70914 of the BABA Act, all iron, steel, manufactured products, and construction materials used in these projects must be produced in the United States. The Uniform Guidance further requires the City to maintain documented procurement procedures and monitor contractor compliance with project agreement terms, including BABA provisions. Condition: During our audit, we identified the City had not adopted documented procurement procedures until after the audit period concluded. As a result, the required policies under the Uniform Guidance (2 CFR Part 200.318) were not in place during the period under audit. Additionally, while the City included BABA provisions in its contract agreements, it failed to establish monitoring policies and procedures to verify contractor compliance with the BABA requirements. Cause: The entity has not developed or implemented written procurement policies and procedures. Additionally, the City did not establish policies and procedures to monitor contractor compliance with BABA requirements. Effect: Without documented procurement policies, there is an increased risk of non-compliance with federal procurement standards, potential conflicts of interest, and inefficient use of federal funds. As a result, the City did not ensure contractors complied with the BABA provisions. Repeat Finding: Similar finding in the prior year. Recommendation We recommend that the entity develop and implement written procurement policies and procedures that comply with the Uniform Guidance. These policies should include standards of conduct covering conflicts of interest, procurement methods, and documentation requirements. Additionally, the City should implement and enforce policies and procedures to monitor infrastructure projects to ensure contractor compliance with BABA requirements.