Assistance Listing Number, Federal Agency, and Program Name - ALN 15.916, Department of the Interior, Outdoor Recreation Acquisition, Development and Planning, Outdoor Recreation Acquisition, Development and Planning Grants, and ALN 66.468, Environmental Protection Agency, Drinking Water State Revolving Fund. Federal Award Identification Number and Year - All grants under ALN Pass through Entity - ALN 15.916, Colorado Department of Natural Resources, and ALN 66.468, Colorado Water Resources and Power Development Authority Finding Type - Material weakness Repeat Finding - Yes 2024 002 Criteria - Per 2 CFR Section 200.510(b), the auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502. Condition - The Outdoor Recreation Acquisition, Development and Planning program and the Drinking Water State Revolving Fund program expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate. Questioned Costs - None If Questioned Costs are Not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could Not be Reported Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - The Outdoor Recreation Acquisition, Development and Planning program expenditures of $1,250,000 were omitted. The Drinking Water State Revolving Fund program was overstated by $76,884. The final SEFA has been corrected. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the SEFA was adjusted for two federal programs. This did impact major program determination for Outdoor Recreation Acquisition, Development and Planning. Recommendation - We recommend the City ensure the effectiveness of controls to ensure expenditures reported on the SEFA are complete and accurate. Views of Responsible Officials and Corrective Action Plan - The Finance Department recently hired a new Grants Manager after being without this critical position for almost a year. The Grants Manager, along with the Grant Specialist and the Financial Reporting team accountants, plan to work together to improve the tracking and reconciliation of grant activity. In addition, the City implemented eCivis Euna Grants, a grant application, tracking, and reporting system, in November of 2025. The Grants Team will be working with Departments to document the grants process formally for the City and this will ensure that all grants are accounted for and tracked in the Euna grants system. This renewed capacity and new initiatives, supported by the new administrative cost recovery framework and the City's grants management platform, reflects a broader commitment to managing external funding with the same discipline applied to locally generated revenues.