CITY OF NORTH MIAMI BEACHLocal Government

MW2025-001 – INACCURATE REPORTING OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Federal agency name: U.S. Environmental Protection Agency Federal program title: Water Infrastructure Finance and Innovation (WIFIA) ALN: 66.958 Grant No.: N18118FL Grant Period: October 1, 2024 through September 30, 2025 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 (“SEFA”) provided by the City erroneously omitted the Water Infrastructure Finance and Innovation Act (“WIFIA”) federal loan program (ALN 66.958) in the amount of $44,204,486. As a result of this omission, the auditor was required to modify its audit approach in accordance with Uniform Guidance requirements and perform additional procedures to evaluate the WIFIA program as a major federal program. Accordingly, the WIFIA program was identified and tested as an additional major program under the Single Audit. 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.

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.

SIGNIFICANT DEFICIENCY SD 2024-005 Reporting – Data Collection Form Federal agency name: U.S. Dept. of Justice, U.S. Dept. of Treasury and U.S. Dept. of Homeland Security Federal program title: Public Safety Partnership and Community Policing Grants, Coronavirus State and Local Fiscal Recovery Funds, Edward Byrne Memorial Justice Assistance Grant, Crime Victim Assistance and Disaster Grants – Public Assistance (Presidentially Declared Disasters) ALN: 16.738, 16.710, 16.575, 21.027 and 97.036 Grant No.: 15PBJA-23GG-035257-JAGX, 15COPS-21-GG-02128-SLEM, VOCA-2022-851, Y5233 and Z1143 Grant Period: October 1, 2023 through September 30, 2024 Pass Through Entity: Office of Attorney General and Florida Division of Emergency 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. Condition Due to the delay in financial close of the City's books and records, a federal single audit for fiscal year 2024 was not performed in a timely manner and the DCF was not submitted by its due date of June 30, 2025.Cause Due to significant turnover in the City's finance department, there was a lack of timely reviews of account reconciliations and schedules for year-end closing procedures which ultimately delayed the commencement and completion of the audit. 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.