EIN: 746000953
UEI: DMK4KF19LYW5
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 28, 2025. 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 February 28, 2026 (175 days ago).
What is a management decision? →The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Show full finding ▾Hide full finding ▴Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
The City concurs with the recommendation. The City’s Corrective Action Plan to address the condition is that offsetting controls will be continued, with additional controls to be implemented. The additional controls will include the review of journal entries and bank reconciliations by someone other than the preparer. Also, management will review details of significant asset and liability balances monthly. Invoices will be noted with reviewer approval before dual signature is obtained.The City Secretary and Mayor will be responsible for ensuring that the Corrective Action Plan is implemented.The anticipated completion date is September 30, 2026.
The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Show full finding ▾Hide full finding ▴Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
The City concurs with the recommendation. The City’s Corrective Action Plan to address the condition is to remedy finding 2022-001 and 2022-002 and as a result of proper document retention and additional review controls, future FAC submissions will be completed within the required time period.The City Secretary and Mayor will be responsible for ensuring that the Corrective Action Plan is implemented.The anticipated completion date is September 30, 2026.
The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Show full finding ▾Hide full finding ▴Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
The City concurs with the recommendation. The City’s Corrective Action Plan to address the condition is to remedy finding 2022-002 and as a result of additional review controls, the City will be able to provide a reconciled SEFA each fiscal year. To ensure this, reconciliations of grant expenses and grant revenues will be completed monthly. In addition, complete and accurate files will be maintained for each grant so that an accurate and complete SEFA can be prepared at year-end that agrees to the general ledger.The City Secretary and Mayor will be responsible for ensuring that the Corrective Action Plan is implemented.The anticipated completion date is September 30, 2026.
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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