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Texas · Local government · $2M-$10M in federal spending

CITY OF ZAVALLA, TEXAS

ZAVALLA, TX

The FY2024 single audit reports 1 finding: 1 significant deficiency.

Score: 3 of 100 (FY2024 audit)

The sum of eight parts, each read from the audit. How the score works.

PartRulePointsMax
Material weaknesses8 points each024
Significant deficiencies3 points each39
Repeat findings5 points each015
Longest repeat chain2 years 3, 3 years 6, 4 years 9, 5+ years 12012
Modified major-program opinionsqualified 8 each; any adverse or disclaimer 15015
Questioned costsknown amount of $25,000 or more, by share and dollars015
Going concernauditor included a going-concern paragraph05
Prior-year latenessprior-year audit late or not filed, scored only with a finding05
Score3100

Federal funding, FY2024

$2,598,656 in federal awards spent, across 1 program. Largest funding agencies:

AgencySpent
Department of Housing and Urban Development$2,598,656

FY2024 audit

FAC record
2024-12-GSAFAC-0000395742
Fiscal year end
December 31, 2024
Accepted by FAC
January 20, 2026; submitted 112 days after its due date (September 30, 2025)
Federal spending
$2,598,656 · 1 program
Major programs
1
Score
3 of 100

Finding 2024-011

significant deficiencyother matters

Program
COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (14.228)
Compliance requirement
Equipment and real property management
FAC record
FY2024 audit on fac.gov
Finding text from the filing

2024-011 Significant Control Deficiency and Noncompliance: Accounting for Capital Assets

CFDA 14.228 – Community Development Block Grants/State Program and Non-Entitlement Grants in Hawaii Federal Agency: U.S. Department of Housing and Urban Development Passed Through: Texas Department of Agriculture/Texas General Land Office Award Number: CL7220530/22-082-017-D219 Award Years: February 1, 2020 to January 31, 2023/ November 19, 2021 to January 31, 2025 Funding Type: Indirect Compliance Requirement: F. Equipment and Real Property Management

Condition. The City of Zavalla does not have a written capital asset management policy consistent with guidelines for federally funded projects.

Criteria or Specific Requirements. As required by the Uniform Guidance, an entity that acquires equipment and/or real property with federal funds must implement an appropriate control system to safeguard and maintain the equipment and to provide for final disposal once the equipment is no longer needed.

Possible Effect. Failure to implement the required policies and procedures could result in improper fixed asset tracking, potential loss or theft of assets, denial of future federal funding, and could subject the City to other penalties imposed by the relevant federal agency.

Questioned Costs. None.

Recommendation. We recommend that the City develop a written capital asset management policy, to be approved by the council, consistent with criteria as noted above (and consistent with the criteria listed in finding 2024-005, noted previously) to ensure compliance with all state and/or federally funded projects.

Views of Responsible Officials and Corrective Action. See Management’s Responses to Findings and Corrective Action Plan on pages 62 to 64.