HomeMy WebLinkAboutSingle Audit Report September 30, 2021
CITY OF FRIENDSWOOD, TEXAS
FEDERAL SINGLE AUDIT REPORT
For the Fiscal Year Ended
September 30, 2021
CITY OF FRIENDSWOOD, TEXAS
TABLE OF CONTENTS
City of Friendswood 2021 SA
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; Report on
Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance 3
Schedule of Findings and Questioned Costs 7
Schedule of Expenditures of Federal Awards 9
Notes to Schedule of Expenditures of Federal Awards 10
Summary Schedule of Prior Audit Findings 11
Corrective Action Plan 12
Houston Office
3737 Buffalo Speedway
Suite 1600
Houston, Texas 77098
713.621.1515 Main
whitleypenn.com
1 City of Friendswood 2021 SA
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 and Members
of the City Council
City of Friendswood, 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, the aggregately
discretely presented component units, each major fund, and the aggregate remaining fund information of the City of
Friendswood, Texas (the “City”), as of and for the year ended September 30, 2021, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated
March 22, 2022. Our report includes a reference to other auditors who audited the financial statements of West Ranch
Management District, as described in our report on the City’s financial statement. The financial statements of West Ranch
Management District were not audited in accordance with Government Auditing Standards.
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 the audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions 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 entity’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 may exist that have not been identified.
To the Honorable Mayor and Members
of the City Council
City of Friendswood, Texas
2 City of Friendswood 2021 SA
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 financial statement. 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.
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 entity’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 entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Houston, Texas
March 22, 2022
Houston Office
3737 Buffalo Speedway
Suite 1600
Houston, Texas 77098
713.621.1515 Main
whitleypenn.com
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED
BY THE UNIFORM GUIDANCE
To the Honorable Mayor and Members
of the City Council
City of Friendswood, Texas
Report on Compliance for Each Major Federal Program
We have audited the City of Friendswood, Texas’ (the “City”) compliance with the types of requirements described in the
U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each
of the City’s major federal programs for the year ended September 30, 2021. 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.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and terms and conditions of its federal
awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit
of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with
auditing standards generally accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States; 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). Those standards and the Uniform Guidance require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit
includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program.
However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Each Major Federal Program
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, 2021.
To the Honorable Mayor and Members
of the City Council
City of Friendswood, Texas
4 City of Friendswood 2021 SA
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with the
types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered
the City’s internal control over compliance with the types of requirements that could have a direct and material effect on
each major federal program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program 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 internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the
City’s 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 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 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 first paragraph of this
section and was not designed to identify all deficiencies in internal control over compliance that might be material
weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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, the aggregately
discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of and
for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the
City’s basic financial statements. We issued our report thereon dated March 22, 2022, which contained unmodified
opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial
statements that collectively comprise the basic 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
basic financial statements.
To the Honorable Mayor and Members
of the City Council
City of Friendswood, Texas
5 City of Friendswood 2021 SA
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.
Houston, Texas
March 22, 2022
6 City of Friendswood 2021 SA
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CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended September 30, 2021
I. Summary of Auditors’ Results
Financial Statements
Type of auditor’s report issued Unmodified
Internal control over financial reporting:
Material weakness (es) identified? No
Significant deficiency (ies) identified that are not considered to be
material weaknesses? None reported
Noncompliance material to the financial statements noted? No
Federal Awards
Internal controls over major programs:
Material weakness (es) identified? No
Significant deficiency (ies) identified that are not considered to be
material weaknesses? None reported
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in
accordance with section 2 CFR 200.516(a)? No
Identification of Major Programs:
Name of Federal Program or Cluster Federal Assistance Listing Number
Community Development Block Grant/State’s Program 14.228
Flood Mitigation Assistance 97.029
Dollar threshold used to distinguish Between Type A
and Type B federal programs: $750,000
Auditee qualified as low‐risk auditee? Yes
CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
For the Year Ended September 30, 2021
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II. Financial Statement Findings
None Noted
III. Federal Award Findings and Questioned Costs
None Noted
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CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended September 30, 2021
Federal
ALN
Pass‐Through
Entity Identifying
Number
Federal
Expenditures
U.S. Department of Housing and Urban Development
Passed through the Texas General Land Office
Community Development Block Grant/State's Program 14.228 19‐147‐002‐B409 180,122$
Community Development Block Grant/State's Program 14.228 19‐147‐002‐B490 793,064
Community Development Block Grant/State's Program 14.228 20‐065‐134‐C451 134,955
Community Development Block Grant/State's Program 14.228 20‐066‐045‐C444 34,788
Total ALN 14.228 1,142,929
Total U.S. Department of Housing and Urban Development 1,142,929
U.S. Department of Justice
Direct:
Bulletproof Vest Partnership Program ‐ FY 18 16.607 None 458
Bulletproof Vest Partnership Program ‐ FY 19 16.607 None 3,120
Total ALN 16.607 3,578
Passed through the Texas Office of the Governor ‐ Criminal Justice Division:
Crime Victim Assistance 16.575 2018‐V2‐GX‐0040 73,063
Total U.S. Department of Justice 76,641
U.S. Department of Treasury
Passed through Harris County:
COVID‐19 ‐ CARES Act ‐ Coronavirus Relief Fund (CRF)21.019 None 307,570
Total U.S. Department of Treasury 307,570
U.S. National Endowment for the Humanities
Passed through the Texas State Library & Archives Commission
ILMS Reimbursement Program 45.310 LS‐246193‐OLS‐20 4,494
Total U.S. National Endowment for the Humanities 4,494
U.S. Department of Homeland Security
Flood Mitigation Assistance 97.029 FMA‐PJ‐06‐TX‐2018‐009 1,979,213
Disaster Grants ‐ Public Assistance 97.036 DR‐4332 2,178,418
HMGP Acquisition and Demolition Project 97.039 DR‐4332‐056 742,447
HSGP ‐ Friendswood Casualty Training 97.067 EMW‐2019‐SS‐000034‐S01 4,480
Total U.S. Department of Homeland Security 4,904,558
Total Expenditures of Federal Awards 6,436,192$
Federal Grantor/Pass‐Through Grantor/Program Title
Passed through the Texas Office of the Governor
Passed through the Texas Department of Public Safety/TDEM:
Passed through the Texas Water Development Board:
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CITY OF FRIENDSWOOD, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended September 30, 2021
Note 1 ‐ Summary of Significant Accounting Policies
The City accounts for awards under federal programs in the General and Special Revenue governmental funds.
In the Governmental funds, these programs are accounted for using a current financial resources measurement focus. With
this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating
statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures
and other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited to reimbursement. Pass‐through entity identifying numbers are
presented where available.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and,
accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally, unused
balances are returned to the grantor at the close of specified project periods. The City has elected not to use the 10 percent
de minimis indirect cost rate allowed under the Uniform Guidance.
Note 2 ‐ Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the
City under programs of the federal government for the year ended September 30, 2021. The information in this schedule is
presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance.
Because the schedule presents on a selected portion of the operations of the City, it is not intended to and does not
present the financial position, changes in net position or cash flows of the City.
11 City of Friendswood 2021 SA
CITY OF FRIENDSWOOD, TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended September 30, 2021
Federal regulations, Title 2 U.S. Code of Federal Regulations §200.511 states, “The auditee is responsible for follow‐up and
corrective action on all audit findings. As part of this responsibility, the auditee must prepare a summary schedule of prior
audit findings.” The summary schedule of prior audit findings must report the status of the following:
All audit findings included in the prior audit’s schedule of findings and questioned costs and
All audit findings reported in the prior audit’s summary schedule of prior audit findings except audit findings listed
as corrected.
I. Prior Audit Findings
None reported
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CITY OF FRIENDSWOOD, TEXAS
CORRECTIVE ACTION PLAN
For the Year Ended September 30, 2021
Federal regulations, Title 2 U.S. Code of Federal Regulations §200.511 states, “At the completion of the audit, the auditee
must prepare, in a document separate from the auditor's findings described in §200.516 Audit findings, a corrective action
plan to address each audit finding included in the current year auditor's reports.”
I. Corrective Action Plan
Not applicable