EIN: 741671169
UEI: KM63BRCTG5J6
Audited by: Neffendorf & Blocker, P.C.
Oversight agency: 66 [Environmental Protection Agency]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 25, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 25, 2024 (680 days ago).
What is a management decision? →Failure to file annual financial reports with the Texas Water Development Board in accordance with bond covenants. Criteria: Filing annual financial reports on time with regulatory agencies is required to maintain compliance with debt convenants. Effect: The City's annual financial report was delinquent. Cause: Lack of monitoring by management and those charged with governace for compliance of debt covenants. Recommendation: We recommend the City monitor compliance requirements for all debt issued to ensure that reports are filed timely and the City remains in compliance with covenants.
Show full finding ▾Hide full finding ▴Condition: Failure to file annual financial reports with the Texas Water Development Board in accordance with bond covenants. Criteria: Filing annual financial reports on time with regulatory agencies is required to maintain compliance with debt convenants. Effect: The City's annual financial report was delinquent. Cause: Lack of monitoring by management and those charged with governace for compliance of debt covenants. Recommendation: We recommend the City monitor compliance requirements for all debt issued to ensure that reports are filed timely and the City remains in compliance with covenants.
Finding Summary: Failure to file annual financial report with the Texas Water Development Board in accordance with bond covenants. Responsible Individuals: City Treasurer Corrective Action Plan: The Treasurer worked closely with the auditors to get the audit done by the TWDB deadline of 3/31/2024 but unfortunately fell a few days short. We are confident that next year's audit will be done by the deadline.
2022-007
FAC accepted this audit on April 25, 2024 — management decision was due October 25, 2024.
The City did not record and reconcile the escrow bank accounts containing the TWDB loan funds. The costs were recorded in the expense accounts and the deposits from the escrow bank accounts were recorded as grant revenue. Criteria: Uniform Guidance Compliance Supplement- Section C- Cash Management. Cause of Condition: THe City's lack of control policies and procedures over cash acccounts. Potential Effect of Condition: The grant revenue is overstated when the City records the escorw deposits as revenue in teh c apital projects fund and the assets are understated due to the City not recording the restricted cash escrow accounts. Recommendation: The City should record all bank accounts in the general ledger. Bank reconciliations should be prepared for all bank accounts. Monthly review and approval of the bank reconciliations and general ledger acccounts should be doen by someone in a supervisory role other than the person preparing the records.
Show full finding ▾Hide full finding ▴Condition: The City did not record and reconcile the escrow bank accounts containing the TWDB loan funds. The costs were recorded in the expense accounts and the deposits from the escrow bank accounts were recorded as grant revenue. Criteria: Uniform Guidance Compliance Supplement- Section C- Cash Management. Cause of Condition: THe City's lack of control policies and procedures over cash acccounts. Potential Effect of Condition: The grant revenue is overstated when the City records the escorw deposits as revenue in teh c apital projects fund and the assets are understated due to the City not recording the restricted cash escrow accounts. Recommendation: The City should record all bank accounts in the general ledger. Bank reconciliations should be prepared for all bank accounts. Monthly review and approval of the bank reconciliations and general ledger acccounts should be doen by someone in a supervisory role other than the person preparing the records.
Treasurer is now reconciling escrow accounts and recording the revenues and expenses correctly.
Failure to file annual financial reports with the Texas Water Development Board in accordanc with bond covenants. Criteria: Filing annual financail reports on time with regulatory agencies is required to maintain compliance with debt covenants. Effect: The City's annual financail report was deliquent. Cause: Lack of monitoring by management and those charge with governance for compliance of debt covenants. Recommendation: We recommend the City monitor compliance requirements for all debt issued to ensure that reports are filed timely and the city remains in compliance with convenants.
Show full finding ▾Hide full finding ▴Condition: Failure to file annual financial reports with the Texas Water Development Board in accordanc with bond covenants. Criteria: Filing annual financail reports on time with regulatory agencies is required to maintain compliance with debt covenants. Effect: The City's annual financail report was deliquent. Cause: Lack of monitoring by management and those charge with governance for compliance of debt covenants. Recommendation: We recommend the City monitor compliance requirements for all debt issued to ensure that reports are filed timely and the city remains in compliance with convenants.
Treasurer will ensure audits are done in a timely manner moving forward.
2021-002
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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