Audit 415002

Single Audit Process Criteria – Title 2, U.S. Code of Federal Regulations §200.501 states an entity that expends $1,000,000 or more during the non-Federal entity’s fiscal year in Federal awards, must have a single audit or program-specific audit conducted for that year in accordance with the provision in §200.501. Condition – The City did not provide an accurate listing of federal awards expended even though they were aware of the single audit requirement. Cause – The City’s management did not track expenditures of federal awards for the year ended June 30, 2026 to determine what federal audit requirements applied if any. Effect – The City’s internal control over compliance with federal audit requirements was inadequate. Recommendation – The City should establish a process to track the dollar amount of federal expenditures that were spent during the year to determine if an audit in accordance with uniform guidance is required. This should be done and communicated with the auditors before audit work begins. Response and Corrective Action Planned – The City will work on a formal process for tracking all federal grants. Conclusion – Response accepted.