Finding 1226423 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-13
Audit: 409026
Organization: City of North Miami Beach (FL)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The fiscal year 2025 Single Audit missed including the WIFIA federal loan program, leading to delays in completion.
  • Impacted Requirements: This omission violates 2 CFR Part 200, affecting compliance with federal reporting standards.
  • Recommended Follow-Up: Management should enhance review controls to ensure timely financial reporting and audit completion.

Finding Text

SD 2025-005 Reporting – Data Collection Form (REPEAT FINDING – SD2024-005) Federal agency name: U.S. Dept. of Justice, U.S. Dept. of Transportation, U.S. Dept. of Housing and Urban Development, U.S. Dept. of Treasury, and U.S. Environmental Protection Agency Federal program title: Edward Byrne Memorial Justice Assistance Grant, Safe Streets and Roads for All, Community Development Block Grants/State’s program and Non-Entitlement Grants in Hawaii, Coronavirus State and Local Fiscal Recovery Funds, and Water Infrastructure Finance and Innovation ALN: 14.228, 16.738, 20.939, 21.027 and 66.958 Grant No.: 15PBJA-23-GG-035257-JAGX, 6N219, 15PBJA-22-02441-JAGX, 15PBJA-24-GG-05601- JAGX, 693JJ32340316, MT054, Y5233 and N18118FL Condition During the completion of the fiscal year 2025 Single Audit, it was determined that the original SEFA omitted the WIFIA federal loan program (ALN 66.958) totaling $44,204,486. Upon identification of the omission, the SEFA was revised, and the auditor was required to perform additional audit procedures in accordance with Uniform Guidance, including testing the WIFIA program as an additional major program. The additional procedures required to address the omitted federal program resulted in the Single Audit not being completed by the June 30, 2026 reporting deadline. Cause Lack of sufficient review controls over the preparation and review of the SEFA. Effect The City is not in compliance with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Recommendation Management should implement policies to ensure timely financial reporting and ensure the timely completion of an audit. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan. Grant Period: October 1, 2024 through September 30, 2025 Pass Through Entity: Florida Depart. of Transportation and Florida Depart. of Economic Opportunity Criteria 2 CFR Section 200.512(a) requires the reporting package and Data Collection Form (“DCF”) to be submitted to the Federal Audit Clearinghouse the earlier of thirty calendar days after the reports are received from the auditor or nine months after the end of the audit period.

Corrective Action Plan

SD 2025-005 REPORTING - DATA COLLECTION FORM (REPEAT FINDING PREVIOUSLY REPORTED AS - SD2024-005) Current Year Corrective Actio1t Response: Management concurs with the findings . Management will implement policie s and procedures as per the auditor' s recommendation.

Categories

Reporting Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1226414 2025-001
    Material Weakness Repeat
  • 1226415 2025-005
    Material Weakness Repeat
  • 1226416 2025-005
    Material Weakness Repeat
  • 1226417 2025-005
    Material Weakness Repeat
  • 1226418 2025-005
    Material Weakness Repeat
  • 1226419 2025-005
    Material Weakness Repeat
  • 1226420 2025-005
    Material Weakness Repeat
  • 1226421 2025-005
    Material Weakness Repeat
  • 1226422 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.958 WATER INFRASTRUCTURE FINANCE AND INNOVATION (WIFIA) $44.20M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $5.54M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $4.06M
20.939 SAFE STREETS AND ROADS FOR ALL $125,970
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $23,945