Audit 410373

FINDING 2025-004 EQUIPMENT AND REAL PROPERTY MANAGEMENT - SIGNIFICANT DEFICIENCY United States Department of Transportation 20.708 - Natural Gas Distribution Infrastructure Safety and Modernization Grant Program Florida Department of Environmental Protection 37.039 - Statewide Water Quality Restoration Projects Criteria Section 200.313(d) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Florida Single Audit Act, Section 215.97, Florida Statutes, requires an entity to maintain identifying records for property acquired with federal and state funds. Additional equipment and real property requirements are contained in 2 CFR 200.311 and 48 CFR 52.245-1. These requirements state property records must include a description of the property, a serial number or another identification number, the funding source (including the federal or state awarding agency identification number), the title holder, the acquisition date, the cost of the property, the percentage of the federal or state agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Condition The fixed asset listing maintained by the City for assets acquired with federal and state funds did not contain all required elements. Cause The City does not have an established policy that meets the requirements of the criteria noted above. Effect Equipment and real property acquired with federal awards and state financial assistance is not consistently tracked to ensure compliance with applicable regulations. Questioned Costs None Repeat Finding This is not a repeat finding. Context Grant-specific identifying information is not maintained for assets acquired with federal and state funds. As a result, asset records do not independently indicate whether an asset was federally or state funded or reference key grant details, such as the funding source or identification number. Recommendation The City should establish and follow a policy for tracking and identifying fixed assets acquired with federal and state grants. Views of Responsible Officials See management's view and corrective action plan at the end of this report.

FINDING 2025-005 TIMELY SUBMISSION OF SINGLE AUDIT REPORTING PACKAGE - NONCOMPLIANCE Federal Program: All Programs Criteria 2 CFR Section 200.512(a) requires the reporting package and Data Collection Form (DCF) to be submitted to the Federal Audit Clearinghouse (FAC) by the earlier of 30 calendar days after the reports are received from the auditor or nine months after fiscal year end. Condition The City did not meet this filing requirement related to timely submission of the Single Audit reporting package for the fiscal year ended September 30, 2025. Cause Although the City had established policies and procedures requiring the preparation and review of key account reconciliations and financial reporting activities, those controls were not consistently performed during the fiscal year. Effect The City is not in compliance with the Uniform Guidance requirements regarding the filing of the Single Audit reporting package. Questioned Costs None Repeat Finding This is not a repeat finding. Recommendation The City should strengthen its financial reporting processes and ensure key reconciliations are completed and reviewed on a timely basis throughout the year. Timely completion of these reconciliations will assist the City in maintaining accurate accounting records, preparing reliable financial information, and meeting all statutory financial reporting deadlines. Views of Responsible Officials See management's view and corrective action plan at the end of this report.