EIN: 946000295
UEI: EU2ATPHDLMM8
Audited by: EIDE BAILLY LLP
Oversight agency: 21 [Department of the Treasury]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 17, 2026. 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 September 17, 2026 (17 days from today).
What is a management decision? →We identified that the City’s purchasing and contracting policy in effect during fiscal year 2025 does not require the verification of the debarment and suspension status of vendors prior to entering into agreements. We also noted that the City did not maintain documentation that they verified that the contractor was not suspended or debarred prior to entering into a covered transaction. Cause: The City’s policy does not require the verification of the debarment and suspension of a vendor prior to entering into a covered transaction, nor does it address on what type of documentation should be maintained to ensure they are not suspended and debarred. Effect: Noncompliance with these requirements could result in disbursements of Federal funds to suspended and debarred parties. Questioned Costs: None reported. Context/Sampling: We selected 3 out of 10 of the City’s procurement transactions associated with the program. Repeat Finding from Prior Year(s): Yes. Recommendation: We recommend that the City include policies and procedures within their procurement policy to check whether or not vendors are suspended and debarred and to maintain that documentation within the procurement file. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
Show full finding ▾Hide full finding ▴Program: Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing No.: 21.027 Federal Agency: U.S. Department of Treasury Passed-through: California Department of Finance Award Number and Year: CSLFRF, 2022 Compliance Requirement: Procurement, Suspension, and Debarment Type of Finding: Material Weakness in Internal Control over Compliance, Instances of Noncompliance Criteria: Per 2 CFR part 200, subpart D, section 200.303, the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award is compliance with federal statues, regulations, and the terms and conditions of the federal award. Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition: We identified that the City’s purchasing and contracting policy in effect during fiscal year 2025 does not require the verification of the debarment and suspension status of vendors prior to entering into agreements. We also noted that the City did not maintain documentation that they verified that the contractor was not suspended or debarred prior to entering into a covered transaction. Cause: The City’s policy does not require the verification of the debarment and suspension of a vendor prior to entering into a covered transaction, nor does it address on what type of documentation should be maintained to ensure they are not suspended and debarred. Effect: Noncompliance with these requirements could result in disbursements of Federal funds to suspended and debarred parties. Questioned Costs: None reported. Context/Sampling: We selected 3 out of 10 of the City’s procurement transactions associated with the program. Repeat Finding from Prior Year(s): Yes. Recommendation: We recommend that the City include policies and procedures within their procurement policy to check whether or not vendors are suspended and debarred and to maintain that documentation within the procurement file. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Planned Corrective Action: The City implemented a Vendor’s Doing Business Policy in FY 2025-26 requiring all new vendors be searched on SAM.gov and California Secretary of State prior to executing a contract, with emphasis on federal awards. Anticipated Completion Date: March 9, 2026 Responsible Contact Person: Gretchen Hoskins, Finance Director
2024-003
We noted that the supporting documentation provided did not have evidence of segregation of duties for the preparation and approval of the submitted report. Cause: The City’s internal control environment was impacted by a shortage of staff necessary to fully conduct the program. Effect: The City’s reports on the awards did not have segregation of duties between the preparer and reviewer of the reports. Questioned Costs: None reported. Context/Sampling: We selected 100% of the City’s reports for the program. Repeat Finding from Prior Year(s): Yes. Recommendation: We recommend that the City continue to strengthen its policies and procedures over reporting to ensure that there is segregation of duties between the preparer and reviewer of reports. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
Show full finding ▾Hide full finding ▴Program: Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing No.: 21.027 Federal Agency: U.S. Department of Treasury Passed-through: California Department of Finance Award Number and Year: CSLFRF, 2022 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) requires that the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: We noted that the supporting documentation provided did not have evidence of segregation of duties for the preparation and approval of the submitted report. Cause: The City’s internal control environment was impacted by a shortage of staff necessary to fully conduct the program. Effect: The City’s reports on the awards did not have segregation of duties between the preparer and reviewer of the reports. Questioned Costs: None reported. Context/Sampling: We selected 100% of the City’s reports for the program. Repeat Finding from Prior Year(s): Yes. Recommendation: We recommend that the City continue to strengthen its policies and procedures over reporting to ensure that there is segregation of duties between the preparer and reviewer of reports. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
Coronavirus State and Local Recovery Funds Reporting Planned Corrective Action: The City has adjusted the procedures to develop and submit the annual report to include segregation of duties. Anticipated Completion Date: March 1, 2026 Responsible Contact Person: Gretchen Hoskins, Finance Director
2024-004
FAC accepted this audit on February 3, 2025 — management decision was due August 3, 2025.
We found that although the City charged 50% of the budgeted amount of an employees compensation to the program, the City did not perform a lookback to ensure that only 50% of the employees actual compensation was charged to the program. Cause: The City did not have procedures in place to perform a lookback of budgeted costs charged to grant programs. Effect: The City overcharged the program by the excess of the budgeted costs against the actual costs. Questioned Costs: None reported. Context/Sampling: We selected 100% of the City’s payroll costs of the program. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City establish procedures to perform a lookback of budgeted expenditures charged to grants. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
Show full finding ▾Hide full finding ▴Program: Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing No.: 21.027 Federal Agency: U.S. Department of Treasury Passed-through: California Department of Finance Award Number and Year: CSLFRF Compliance Requirement: Allowable Costs Type of Finding: Material Weakness in Internal Control over Compliance, Instance of Noncompliance Criteria: 2 CFR 200.430(g)(vii) states that budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: a) the system for establishing the estimates produces reasonable approximations of the activity performed; b) significant changes in the related work activity (as defined by the recipient’s written policies) are promptly identified and entered in to the records, and c) the recipient’s system of internal controls includes processes to perform periodic after-the-fact reviews of interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition: We found that although the City charged 50% of the budgeted amount of an employees compensation to the program, the City did not perform a lookback to ensure that only 50% of the employees actual compensation was charged to the program. Cause: The City did not have procedures in place to perform a lookback of budgeted costs charged to grant programs. Effect: The City overcharged the program by the excess of the budgeted costs against the actual costs. Questioned Costs: None reported. Context/Sampling: We selected 100% of the City’s payroll costs of the program. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City establish procedures to perform a lookback of budgeted expenditures charged to grants. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
Planned Corrective Action: The City will ensure actual costs are charged to the program as part of the annual reporting process. Anticipated Completion Date: December 30, 2024 Responsible Contact Person: Gretchen Johnson, Finance Director
We identified that the City’s purchasing and contracting policy does not require the verification of the debarment and suspension status of vendors prior to entering into agreements. We also noted that the City did not maintain documentation that they verified that the contractor was not suspended or debarred prior to entering into a covered transaction. Cause: The City’s policy does not require the verification of the debarment and suspension of a vendor prior to entering into a covered transaction, nor does it address on what type of documentation should be maintained to ensure they are not suspended and debarred. Effect: Noncompliance with these requirements could result in disbursements of Federal funds to suspended and debarred parties. Questioned Costs: None reported. Context/Sampling: We selected 2 out of 4 of the City’s procurement transactions associated with the program. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City include policies and procedures within their procurement policy to check whether or not vendors are suspended and debarred and to maintain that documentation within the procurement file. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
Show full finding ▾Hide full finding ▴Program: Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing No.: 21.027 Federal Agency: U.S. Department of Treasury Passed-through: California Department of Finance Award Number and Year: CSLFRF Compliance Requirement: Procurement Type of Finding: Material Weakness in Internal Control over Compliance, Instance of Noncompliance Criteria: Per 2 CFR part 200, subpart D, section 200.303, the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award is compliance with federal statues, regulations, and the terms and conditions of the federal award. Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition: We identified that the City’s purchasing and contracting policy does not require the verification of the debarment and suspension status of vendors prior to entering into agreements. We also noted that the City did not maintain documentation that they verified that the contractor was not suspended or debarred prior to entering into a covered transaction. Cause: The City’s policy does not require the verification of the debarment and suspension of a vendor prior to entering into a covered transaction, nor does it address on what type of documentation should be maintained to ensure they are not suspended and debarred. Effect: Noncompliance with these requirements could result in disbursements of Federal funds to suspended and debarred parties. Questioned Costs: None reported. Context/Sampling: We selected 2 out of 4 of the City’s procurement transactions associated with the program. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City include policies and procedures within their procurement policy to check whether or not vendors are suspended and debarred and to maintain that documentation within the procurement file. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
Planned Corrective Action: The City is aware it needs a contract administration process to capture the status of vendors prior to entering into a contract. The drafting of a procedure will include this component. Anticipated Completion Date: December 31, 2025 Responsible Contact Person: Gretchen Johnson, Finance Director
We noted that the supporting documentation provided did not tie to the annual report submitted by the City or evidence of review. Cause: The City’s internal control environment was impacted by a shortage of staff necessary to fully conduct the program. Effect: The City’s reports on the awards were not reviewed for accuracy. Questioned Costs: None reported. Context/Sampling: We selected 100% of the City’s reports for the program. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City continue to strengthen its policies and procedures over reporting to ensure that that the supporting documentation and evidence of review is maintained. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
Show full finding ▾Hide full finding ▴Program: Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing No.: 21.027 Federal Agency: U.S. Department of Treasury Passed-through: California Department of Finance Award Number and Year: CSLFRF Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance, Instance of Noncompliance Criteria: 2 CFR 200.303(a) requires that the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: We noted that the supporting documentation provided did not tie to the annual report submitted by the City or evidence of review. Cause: The City’s internal control environment was impacted by a shortage of staff necessary to fully conduct the program. Effect: The City’s reports on the awards were not reviewed for accuracy. Questioned Costs: None reported. Context/Sampling: We selected 100% of the City’s reports for the program. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City continue to strengthen its policies and procedures over reporting to ensure that that the supporting documentation and evidence of review is maintained. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.
The City has documented in its reporting procedures to ensure supporting financial information is kept with the submitted report. The report that was compiled to procedure the report in FY 2023-24 was overwritten as ongoing expenses were being tracked in the report. Anticipated Completion Date: December 30, 2024 Responsible Contact Person: Gretchen Johnson, Finance Director
FAC accepted this audit on July 8, 2024 — management decision was due January 8, 2025.
FAC accepted this audit on July 19, 2023 — management decision was due January 19, 2024.
FAC accepted this audit on March 29, 2022 — management decision was due September 29, 2022.
FAC accepted this audit on March 9, 2021 — management decision was due September 9, 2021.
FAC accepted this audit on February 27, 2020 — management decision was due August 27, 2020.
FAC accepted this audit on March 25, 2019 — management decision was due September 25, 2019.
FAC accepted this audit on September 9, 2018 — management decision was due March 9, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2016-004
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on January 27, 2017 — management decision was due July 27, 2017.
GSA_MIGRATION
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GSA_MIGRATION
2015-005
GSA_MIGRATION
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GSA_MIGRATION
2015-006
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