HomeMy WebLinkAboutFY 2022 Single Audit ReportCity of Euless, Texas
Single Audit Report
For the Fiscal Year Ended September 30, 2022
weaver
Assurance•
CONTENTS
Page
Independent Auditor's Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards...........................................................................................................1
Independent Auditor's Report on Compliance for Each Major
Federal Program and Report on Internal Control over Compliance
in Accordance with the Uniform Guidance, and on the Schedule
of Expenditures of Federal Awards.......................................................................................................3
Schedule of Expenditures of Federal Awards..............................................................................6
Notes to Schedule of Expenditures of Federal Awards...............................................................................7
Schedule of Findings and Questioned Costs................................................................................................8
weaver
Independent Auditor's Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
To the Honorable Mayor, City Council and City Manager
City of Euless, Texas
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business -type activities, each major fund and the aggregate remaining fund information of
the City of Euless, Texas (the City) as of and for the year ended September 30, 2022, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements, and
have issued our report thereon dated February 27, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) as a basis for designing procedures that are appropriate
in the circumstances for the purpose of expressing our opinion on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we
do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the City's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Weaver and Tidwell, L.L.P.
2821 West 7th Street, Suite 700 1 Fort Worth, Texas 76107
1 Main: 817.332.7905
CPAs AND ADVISORS I WEAVER.COM
The Honorable Mayor, City Council and City Manager
City of Euless, Texas
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 27, 2023
2
weaver
Independent Auditor's Report on Compliance for
Each Major Federal Program and Report on Internal Control over
Compliance in Accordance with the Uniform Guidance, and on the
Schedule of Expenditures of Federal Awards
To the Honorable Mayor, City Council and City Manager
City of Euless, Texas
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Euless, Texas' (the City's) compliance with the types of compliance
requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct
and material effect on each of City's major federal programs for the year ended September 30, 2022.
The City's major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for
the year ended September 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal determination of the City's compliance with
the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's
federal programs.
Weaver and Tidwell, L.L.P.
2821 West 7th Street, Suite 700 1 Fort Worth, Texas 76107
Main: 817.332.7905
3 CPAs AND ADVISORS I WEAVER.COM
The Honorable Mayor, City Council and City Manager
City of Euless, Texas
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the report
on compliance about the City's compliance with the requirements of each major federal program as a
whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City's compliance with the compliance
requirements referred to above and performing such other procedures as we considered necessary
in the circumstances.
• Obtain an understanding of the City's internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report
on internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control
over compliance with a type of compliance requirement of a federal program that is less severe than a
4
The Honorable Mayor, City Council and City Manager
City of Euless, Texas
material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify
all deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the City as of September 30, 2022,
and the related notes to the financial statements, which collectively comprise the City's basic statements.
We issued our report thereon dated February 27, 2023, which contained an unmodified opinion on those
financial statements. Our audit was conducted for the purpose of forming an opinion on the financial
statements. The accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by the Uniform Guidance and is not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedule of
expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
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WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 27, 2023
5
City of Euless, Texas
Schedule of Expenditures of Federal Awards
For The Fiscal Year Ended September 30, 2022
Federal Grantor/
Pass-Tbrough Grantor/
Program Title
U.S. DEPARTMENT OF JUSTICE
Direct Awards
Bulletproof Vest Partnership Program
Edward Byrne Memorial Justice Assistance Grant Program
Total U.S. Department of Justice
NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION
Passed through Texas Department of Transportation
STEP Comprehensive
Total National Highway Traffic Safety Administration
U.S. DEPARTMENT OF TREASURY
Direct Awards
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Total U.S. Department of Treasury
ENVIRONMENTAL PROTECTION AGENCY
Passed through Texas Water Development Board
2019 Drinking Water Loan
Total Environmental Protection Agency
U.S. DEPARTMENT OF HOMELAND SECURITY
Passed through Texas Department of Public Safety
Night Vision Water Rescue
Passed through Tarrant County
FEMA - NETC Vaccination Clinic
Passed through Texas Department of Emergency Management
FEMA - Winter Storm Uri
Total Federal Assistance Listing Number 97.036
Total U.S. Department of Homeland Security
TOTAL EXPENDITURES OF FEDERAL AWARDS
Assistance Pass -Through
Listing Entity Identifying Federal
Number Number Expenditures
16.607 N/A $ 11,700
16.738 N/A 87
11,787
20.600 2021-Euless-S- IYG-0001 4 45,816
45,816
21.027 N/A 942,868
942,868
66.468 62647 404,498
404,498
97.067 39662-01 17,600
97.036 EM2102 410,846
97.036 ENE 115 134,788
545,634
563,234
$ 1,968,203
6
City of Euless, Texas
Notes to Schedule of Expenditures of Federal Awards
Note 1— General
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of the
federal award programs of the City of Euless, Texas (the City). The City's reporting entity is defined in
Note 1 to its basic financial statements. The SEFA includes all federal awards received directly from
federal agencies and federal awards passed -through other governmental agencies. In addition, the SEFA
includes local, state and other expenditures matched along with the federal award expenditures.
Note 2 — Basis of Presentation
The accompanying schedule is presented using the modified accrual basis of accounting for program
expenditures accounted for in the governmental funds and the accrual basis of accounting for program
expenditures accounted for in the proprietary funds as described in Note 1 to the City's basic financial
statements.
For reimbursable grants, the City recognizes revenues commencing on the date of grant approval
(provided all eligibility requirements are met) since this is when the City is eligible to claim
expenditures for reimbursements. Pass -through entity identifying numbers are presented where
available. The City has elected not to use the 10% de minimis indirect cost rate as allowed under the
Uniform Guidance.
During the fiscal year ended September 30, 2022, the City was awarded grants under Federal Assistance
Listing Number 97.036, which included reimbursement for expenditures incurred in previous fiscal
years. The total amount of expenditures incurred in a prior year reported on the fiscal year SEFA under
these grants is $545,634.
Note 3 — Contingencies
The City participates in several grant programs, which are governed by various rules and regulations of
the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment
by the grantor agencies. Therefore, to the extent that the City has not complied with the rules and
regulations governing the grants, refunds of any money received may be required, and the collectability
of any related receivable at September 30, 2022 may be impaired. In the opinion of management, there
are no significant contingent liabilities relating to compliance with the rules and regulations governing
the respective grants.
Note 4 — Outstanding Loans
The City has outstanding loan commitments under the Drinking Water State Revolving Loan Fund from
the Texas Water Development Board (TWDB) as a pass -through agency for the Environmental
Protection Agency (Assistance Listing No. 66.468). As of September 30, 2022, the outstanding loan
payable balance was: TWDB Series 2019 $8,475,000.
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City of Euless, Texas
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended September 30, 2022
Section I — Summary of Auditors' Results
Financial Statements
An unmodified opinion was issued on the financial statements.
Internal control over financial reporting:
• Material weakness(es) identified? Yes X No
• Significant deficiencies identified that are not considered
to be material weakness(es)? Yes X None reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified? Yes X No
• Significant deficiencies identified that are not considered
to be material weakness(es)? Yes X None reported
An unmodified opinion was issued on compliance for
major federal programs.
Any audit findings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a)? Yes X No
Identification of major programs:
21.027 COVID-19 - Coronavirus State and
Local Fiscal Recovery Funds
Dollar threshold used to distinguish between type A and type B
programs? $750,000
Auditee qualified as low -risk auditee? Yes X No
City of Euless, Texas
Schedule of Findings and Questioned Costs - Continued
For the Fiscal Year Ended September 30, 2022
Section II — Financial Statement Findings
None
Section III — Federal Award Findings and Questioned Costs
None
Section IV — Prior Audit Findings
None