Audit 405308

FY End
2025-09-30
Total Expended
$68.13M
Findings
16
Programs
18
Organization: City of Hialeah, Florida (FL)
Year: 2025 Accepted: 2026-06-29
Auditor: CBIZ CPAS PC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1220140 2025-005 Material Weakness Yes P
1220141 2025-005 Material Weakness Yes P
1220142 2025-005 Material Weakness Yes P
1220143 2025-005 Material Weakness Yes P
1220144 2025-005 Material Weakness Yes P
1220145 2025-005 Material Weakness Yes P
1220146 2025-005 Material Weakness Yes P
1220147 2025-005 Material Weakness Yes P
1220148 2025-005 Material Weakness Yes P
1220149 2025-005 Material Weakness Yes P
1220150 2025-005 Material Weakness Yes P
1220151 2025-005 Material Weakness Yes P
1220152 2025-005 Material Weakness Yes P
1220153 2025-005 Material Weakness Yes P
1220154 2025-005 Material Weakness Yes P
1220155 2025-005 Material Weakness Yes P

Contacts

Name Title Type
JHLNG8ELLEV5 Pedro De Faria Auditee
3058835863 Moises Ariza Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the “Schedule”) includes the federal and state grant activity of the City of Hialeah (the “City”) for the fiscal year ended September 30, 2025. 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 Auditing Requirements for Federal Awards (Uniform Guidance), and Chapter 10.550, Rules of the Auditor General. Because the Schedule present only a select portion of the operations of the City, it’s not intended to and does not present the financial position, changes in net position/fund balance or cash flows of the City.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for grants which are accounted for in the governmental fund types and on the accrual basis of accounting for grants which are accounted for in the proprietary fund types. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the Rules of the Department of Financial Services; wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available
The City has elected not to use the minimis indirect cost rate allowed under the Uniform Guidance.
The City provided federal awards to subrecipients as follows:
The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by grantor agency as a result of such an audit, any claim for reimbursement to the grantor 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 and state laws and regulations.

Finding Details

SD2025-005 – INACCURATE REPORTING OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FINDING ASSIGNED TO: Federal Award: ALN #14.218 – Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Federal Award: ALN #14.239 – Home Investment Partnerships Program Federal Agency: U.S. Department of Housing and Urban Development Federal Award: ALN #14.231 – Emergency Solutions Grant Program Federal Agency: U.S. Department of Housing and Urban Development Federal Award: ALN #16.922 – Equitable Sharing Program Federal Agency: U.S. Department of Justice Federal Award: ALN #95.001 – High Intensity Drug Trafficking Areas Program Federal Agency: Executive Office of the President Pass-through: Bureau of Alcohol Tobacco Firearms and Explosives/Federal Bureau of Investigation State Award: CSFA #55.039 – Local Transportation Projects State Agency: Florida Department of Transportation Criteria Title 2 U.S, Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that the recipient of grant awards must be able to prepare an accurate schedule of expenditures and be able to identify in its accounts all federal awards and state assistance received and expended. Condition The original Schedule of Expenditures of Federal Awards and State Financial Assistance (“SEFA”) that the City provided erroneously omitted expenditures related to ALN#14.218 (Community Development Block Grant “CDBG”) in the amount of $2,030,601. Accordingly, these adjustments required the auditor to modify its testing procedures in accordance with the Uniform Guidance. Additionally, the original SEFA provided by the City’s staff inaccurately reported expenditures for four (4) additional federal programs as follows: $164,000 for ALN#14.239, $91,376 for ALN#14.231, $52,701 for ALN#16.922, and $53,656 for ALN#95.001. The City subsequently submitted an updated SEFA to the auditors to reflect the necessary corrections. However, this revised SEFA omitted $400,000 of expenditures of state financial assistance related to the Florida Department of Transportation project CSFA#55.039. The City ultimately provided a corrected SEFA and supporting journal entries to record all missing expenditures. Cause Lack of sufficient review controls over the preparation and review of the SEFA. Effect The SEFA was not accurately prepared and could result in incorrect reporting of expenditures to federal and state agencies. Recommendation We recommend that the staff responsible for the preparation of the SEFA and monitoring of Federal and State Awards receive additional training to possess a thorough understanding of grants and their related program requirements. Additionally, the SEFA should be reviewed and approved by management personnel identified by the City who possesses the adequate knowledge and expertise. Such review and approval should take place during the City’s financial close process. Views of Responsible Officials See accompanying Corrective Action Plan.