EIN: 946000318
UEI: KS8RFKRF6ZE6
Audited by: Maze & Associates
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 February 10, 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 August 10, 2026 (21 days ago).
What is a management decision? →FAC accepted this audit on March 27, 2025 — management decision was due September 27, 2025.
FAC accepted this audit on March 29, 2024 — management decision was due September 29, 2024.
We selected ten contracts and two subrecipient agreements for testing and noted that City did not include a term or condition related to compliance with debarment and suspension compliance provisions and we understand that the City did not verify the contractors and subrecipient were not suspended, debarred, or otherwise excluded prior to entering into the agreements. We did note that City staff did have documentation of checking the status of seven of the vendors in April or September 2023. For the remaining three vendors, City staff could not locate the earlier documentation, so they provided documentation that the vendors were not included on the exclusions list on SAM.gov as of March 2024. Cause: We understand that staff was not aware of the requirement to include the debarment and suspension provisions in the contracts and the requirement to verify the status of contractors or subrecipients prior to entering into agreements with the entities. City staff became aware of the requirements in March 2023 and established a policy effective April 1, 2023. Effect: The City is not in compliance with the award terms and conditions and the OMB Compliance Supplement requirements of the Coronavirus State and Local Fiscal Recovery Funds program. Identification as a repeat finding: Yes, since 2022 Recommendation: The City should ensure compliance with debarment and suspension provisions of the grant award terms and conditions and the OMB Compliance Supplement of the Coronavirus State and Local Fiscal Recovery Funds program prior to entering into contracts and retain documentation in the grant project files to provide evidence of compliance. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding Reference Number: SA2023-001 Suspension and Debarment Documentation for Contracts and Subcontracts Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Federal Award Identification Number: SLFRP2686 68-0281986 Name of Pass-Through Entity: California State Water Resources Control Board Criteria: The award terms and conditions of the Coronavirus State and Local Fiscal Recovery Funds agreement with the Department of the Treasury requires that the City comply with OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury’s implementing regulation at 31 C.F.R. Part 19. In addition, the OMB Compliance Supplement for the Program requires that 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 selected ten contracts and two subrecipient agreements for testing and noted that City did not include a term or condition related to compliance with debarment and suspension compliance provisions and we understand that the City did not verify the contractors and subrecipient were not suspended, debarred, or otherwise excluded prior to entering into the agreements. We did note that City staff did have documentation of checking the status of seven of the vendors in April or September 2023. For the remaining three vendors, City staff could not locate the earlier documentation, so they provided documentation that the vendors were not included on the exclusions list on SAM.gov as of March 2024. Cause: We understand that staff was not aware of the requirement to include the debarment and suspension provisions in the contracts and the requirement to verify the status of contractors or subrecipients prior to entering into agreements with the entities. City staff became aware of the requirements in March 2023 and established a policy effective April 1, 2023. Effect: The City is not in compliance with the award terms and conditions and the OMB Compliance Supplement requirements of the Coronavirus State and Local Fiscal Recovery Funds program. Identification as a repeat finding: Yes, since 2022 Recommendation: The City should ensure compliance with debarment and suspension provisions of the grant award terms and conditions and the OMB Compliance Supplement of the Coronavirus State and Local Fiscal Recovery Funds program prior to entering into contracts and retain documentation in the grant project files to provide evidence of compliance. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2022-001 Suspension and Debarment Documentation for Contracts and Subcontracts Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Federal Award Identification Number: SLFRP2686 68-0281986 Name of Pass-Through Entity: California State Water Resources Control Board • Fiscal Year of Initial Finding: 2022 • Name(s) of the contact person: Cheresa Wang, Financial Services Manager • Corrective Action Plan: City staff will better comply with this rule going forward by either checking the exclusions list for suspensions or debarments for proposed contractors and subrecipients or by including suspension and debarment language in contracts. Finance staff communicated this new procedure to the appropriate project managers in April 2023. In addition, Finance staff developed a new Suspension and Debarment Policy, dated 12/4/23, to provide guidance to project managers on how to comply with this rule. • Anticipated Completion Date: 06/30/24
2022-001
We noted that the payroll costs for three employees were charged to the program based on a flat rate percentage of the payroll and benefits costs, rather than based on the actual hours worked. Although we understand the housing staff periodically reviews the estimates to ensure they were supported and did not need adjustment, there is no formal documentation of the review and conclusions reached. City staff did provide us with the annual timesheet reconciliation worksheets for two of the employees that showed that on average over fiscal year 2023, the employees spent more actual time than was allocated via the flat percentage rate to the grant program. Effect: The City is not in compliance with the payroll documentation requirements set forth in 2 CFR Part 200.430(i). Cause: We understand that grant program staff were not aware of the payroll documentation requirement. Recommendation: The City should establish procedures to ensure that payroll costs charged to the program are documented in accordance with 2 CFR Part 200.430 for the CDBG program and all federal grant programs. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding Reference Number: SA2023-002 Documenting Payroll Costs Charged to Grant Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant – Entitlement Grants COVID-19 - Community Development Block Grants/Entitlement Grants-CV Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-22-MC-06-0010 COVID-19 - B-20-MW-06-0010 Criteria: 2 CFR Part 200.430(i), “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” requires that grantees adhere to the following, “Payroll systems must be based on records that accurately reflect the work performed” and “be supported by a system of internal controls that provides reasonable assurances that charges are accurate, allowable, and properly allocated...” The payroll records must be a part of the official record, reflect the employee’s total activity and show if the specific activity of the person is being paid by more than one federal award. Section 200.430(i)(viii) indicates that budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that the system for establishing the estimates produces reasonable approximations of the activity actually performed, among other requirements. Condition: We noted that the payroll costs for three employees were charged to the program based on a flat rate percentage of the payroll and benefits costs, rather than based on the actual hours worked. Although we understand the housing staff periodically reviews the estimates to ensure they were supported and did not need adjustment, there is no formal documentation of the review and conclusions reached. City staff did provide us with the annual timesheet reconciliation worksheets for two of the employees that showed that on average over fiscal year 2023, the employees spent more actual time than was allocated via the flat percentage rate to the grant program. Effect: The City is not in compliance with the payroll documentation requirements set forth in 2 CFR Part 200.430(i). Cause: We understand that grant program staff were not aware of the payroll documentation requirement. Recommendation: The City should establish procedures to ensure that payroll costs charged to the program are documented in accordance with 2 CFR Part 200.430 for the CDBG program and all federal grant programs. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2023-002 Documenting Payroll Costs Charged to Grant Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant – Entitlement Grants COVID-19 - Community Development Block Grants/Entitlement Grants-CV Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-22-MC-06-0010 COVID-19 - B-20-MW-06-0010 • Fiscal Year of Initial Finding: 2023 • Name(s) of the contact person: Betsy ZoBell, Housing and Community Development Manager • Corrective Action Plan: ECD staff will perform periodic review of estimates to confirm that payroll allocations are supported by timesheet documentation of actual hours worked. • Anticipated Completion Date: 06/30/24
We selected eight non-payroll disbursements related to projects and subgrants for testing and noted two disbursement in April 2023 and June 2023 totaling $268,439 had been charged to the CDBG program in the amount of $282.567. The difference of $14,128 was the retention payable to the vendor, which was not paid in cash until after June 30, 2023. However, the City included the retentions payable in the grant drawdowns filed and received in May 2023 and September 2023. We also noted that total retentions payable charged to the CDBG program for the project were $17,301 as of June 30, 2023. Cause: We understand that the retentions were included in the grant drawdowns due to staff oversight. Questioned Costs: We question costs in the amount of $17,301. Effect: Drawing down funds in advance does not minimize the time elapsing between receipt of funds and expenditures and is not in compliance with the cash management provisions of 2 CFR 200.305 and the CDBG program. Recommendation: The City should not draw down funds until expenditures have been paid in cash and in the event, drawdowns occur prior to disbursement, ensure that the time elapsing between the draw down and the expenditure is minimized. In addition, the City should determine whether the interest earned on the grant funds advanced need to be returned to the grantor. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding Reference Number: SA2023-003 Cash Management - Draw Down of Community Development Block Grant Funds in Advance of Disbursement Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant – Entitlement Grants COVID-19 - Community Development Block Grants/Entitlement Grants-CV Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-22-MC-06-0010 COVID-19 - B-20-MW-06-0010 Criteria: Under 2 CFR 200.305, a CDBG grantee is prohibited from drawing funds down from its line of credit in advance of cash need, and must minimize the time elapsing between the transfer of funds from its line of credit, and the disbursement of the funds. Advance payment must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the grantee or subrecipient carrying out an eligible activity. Condition: We selected eight non-payroll disbursements related to projects and subgrants for testing and noted two disbursement in April 2023 and June 2023 totaling $268,439 had been charged to the CDBG program in the amount of $282.567. The difference of $14,128 was the retention payable to the vendor, which was not paid in cash until after June 30, 2023. However, the City included the retentions payable in the grant drawdowns filed and received in May 2023 and September 2023. We also noted that total retentions payable charged to the CDBG program for the project were $17,301 as of June 30, 2023. Cause: We understand that the retentions were included in the grant drawdowns due to staff oversight. Questioned Costs: We question costs in the amount of $17,301. Effect: Drawing down funds in advance does not minimize the time elapsing between receipt of funds and expenditures and is not in compliance with the cash management provisions of 2 CFR 200.305 and the CDBG program. Recommendation: The City should not draw down funds until expenditures have been paid in cash and in the event, drawdowns occur prior to disbursement, ensure that the time elapsing between the draw down and the expenditure is minimized. In addition, the City should determine whether the interest earned on the grant funds advanced need to be returned to the grantor. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2023-003 Cash Management - Draw Down of Community Development Block Grant Funds in Advance of Disbursement Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant – Entitlement Grants COVID-19 - Community Development Block Grants/Entitlement Grants-CV Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-22-MC-06-0010 COVID-19 - B-20-MW-06-0010 • Fiscal Year of Initial Finding: 2023 • Name(s) of the contact person: Traci Cho, Accountant • Corrective Action Plan: The City will review the retentions payable when preparing the IDIS drawdown to ensure that retentions are not included in the drawdown amount. • Anticipated Completion Date: 06/30/24
FAC accepted this audit on March 30, 2023 — management decision was due September 30, 2023.
We selected three contracts and one subrecipient agreement for testing and noted that City did not include a term or condition related to compliance with debarment and suspension compliance provisions and we understand that the City did not verify the contractors and subrecipient were not suspended, debarred, or otherwise excluded prior to entering into the agreements. We did note that as of March 24, 2023, the four entities were not included on the exclusions list on SAM.gov. Cause: We understand that staff was not aware of the requirement to include the debarment and suspension provisions in the contracts and the requirement to verify the status of contractors or subrecipients prior to entering into agreements with the entities. Effect: The City is not in compliance with the award terms and conditions and the OMB Compliance Supplement requirements of the Coronavirus State and Local Fiscal Recovery Funds program. Recommendation: The City should develop procedures to ensure compliance with debarment and suspension provisions of the grant award terms and conditions and the OMB Compliance Supplement of the Coronavirus State and Local Fiscal Recovery Funds program. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding Reference Number: SA2022-001 Suspension and Debarment Documentation for Contracts and Subcontracts Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Federal Award Identification Number: SLFRP2686 68-0281986 Name of Pass-Through Entity: California State Water Resources Control Board Criteria: The award terms and conditions of the Coronavirus State and Local Fiscal Recovery Funds agreement with the Department of the Treasury requires that the City comply with OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury?s implementing regulation at 31 C.F.R. Part 19. In addition, the OMB Compliance Supplement for the Program requires that 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 selected three contracts and one subrecipient agreement for testing and noted that City did not include a term or condition related to compliance with debarment and suspension compliance provisions and we understand that the City did not verify the contractors and subrecipient were not suspended, debarred, or otherwise excluded prior to entering into the agreements. We did note that as of March 24, 2023, the four entities were not included on the exclusions list on SAM.gov. Cause: We understand that staff was not aware of the requirement to include the debarment and suspension provisions in the contracts and the requirement to verify the status of contractors or subrecipients prior to entering into agreements with the entities. Effect: The City is not in compliance with the award terms and conditions and the OMB Compliance Supplement requirements of the Coronavirus State and Local Fiscal Recovery Funds program. Recommendation: The City should develop procedures to ensure compliance with debarment and suspension provisions of the grant award terms and conditions and the OMB Compliance Supplement of the Coronavirus State and Local Fiscal Recovery Funds program. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2022-001 Suspension and Debarment Documentation for Contracts and Subcontracts AL Number: 21.027 AL Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agency: Department of the Treasury Federal Award Identification Number: SLFRP2686 68-0281986 Name of Pass-Through Entity: California State Water Resources Control Board ? Fiscal Year of Initial Finding: 2022 ? Name(s) of the contact person: Abby Veeser, Deputy Director of Finance ? Corrective Action Plan: City staff will better comply with this rule going forward by either checking the exclusions list for suspensions or debarments for proposed contractors and subrecipients or by including suspension and debarment language in contracts. Finance staff will communicate this new procedure to the appropriate project managers. ? Anticipated Completion Date: 06/30/23
FAC accepted this audit on June 27, 2022 — management decision was due December 27, 2022.
During our testing of payroll expenditures charged to the grant, we noted one public safety employee?s sick leave during the period March 21, 2020 to September 30, 2020 in the amount of $1,359 was charged to the federal funding under both the Public Safety salaries component and under the paid medical leave component of the Coronavirus Relief Fund program. In addition, the sick leave for eight Parks and Recreation employees during the same period in the amount of $4,163 was charged to the Coronavirus Relief Fund program and also reimbursed by the Aging Cluster program. We understand that the employees were not paid twice, but during the process of accumulating the expenditure detail for the federal program, the payroll costs were duplicated. Questioned Costs: We question costs in the amount of $5,522. Effect: The City charged the Coronavirus Relief Fund program twice for the same program expenses and charged the program for costs that were also reimbursed by a different federal program. Cause: We understand that City staff did not compare the paid medical leave payroll report to the payroll reports and worksheets used to accumulate costs charged to the Coronavirus Relief Fund program and the Aging Cluster program to ensure that there was no duplication of employees and amounts between the reports and programs. Identification as a repeat finding: No Recommendation: The City should develop procedures to ensure that expenditures and the detail related to them are reviewed thoroughly to ensure that costs included in reports do not overlap and contain the same components. In addition, the City should work with the grantor to determine if other eligible costs could replace the duplicate charges, or if the amount needs to be returned to the grantor. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding SA2021-001 Duplicate Payroll Costs Charged to Grant AL Number: 21.019 AL Title: COVID?19 Coronavirus Relief Fund Federal Agency: Department of Treasury Federal Award Identification Number and Year: SLT0043 and SLT0252, 2020 Name of Pass-Through Entity: California Department of Finance Criteria: The City should have processes and procedures to ensure that charges to federal programs do not include duplicate transactions. Condition: During our testing of payroll expenditures charged to the grant, we noted one public safety employee?s sick leave during the period March 21, 2020 to September 30, 2020 in the amount of $1,359 was charged to the federal funding under both the Public Safety salaries component and under the paid medical leave component of the Coronavirus Relief Fund program. In addition, the sick leave for eight Parks and Recreation employees during the same period in the amount of $4,163 was charged to the Coronavirus Relief Fund program and also reimbursed by the Aging Cluster program. We understand that the employees were not paid twice, but during the process of accumulating the expenditure detail for the federal program, the payroll costs were duplicated. Questioned Costs: We question costs in the amount of $5,522. Effect: The City charged the Coronavirus Relief Fund program twice for the same program expenses and charged the program for costs that were also reimbursed by a different federal program. Cause: We understand that City staff did not compare the paid medical leave payroll report to the payroll reports and worksheets used to accumulate costs charged to the Coronavirus Relief Fund program and the Aging Cluster program to ensure that there was no duplication of employees and amounts between the reports and programs. Identification as a repeat finding: No Recommendation: The City should develop procedures to ensure that expenditures and the detail related to them are reviewed thoroughly to ensure that costs included in reports do not overlap and contain the same components. In addition, the City should work with the grantor to determine if other eligible costs could replace the duplicate charges, or if the amount needs to be returned to the grantor. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2021-001 Duplicate Payroll Costs Charged to Grant AL Number: 21.019 AL Title: COVID?19 Coronavirus Relief Fund Federal Agency: Department of Treasury Federal Award Identification Number and Year: SLT0043 and SLT0252, 2020 Name of Pass-Through Entity: California Department of Finance ? Fiscal Year of Initial Finding: 2021 ? Name(s) of the contact person: Abby Veeser, Deputy Director of Finance ? Corrective Action Plan: The City plans to develop procedures to ensure that expenditures reported to grants within the City do not overlap. This will include more coordination between Finance and the Departments around grant reporting. This will also include greater scrutiny of one-time grants such as the CARES Act funding and the American Rescue Plan Act funding. The City will also correct the specific finding by updating its reporting on the CARES Act funding. The City will update its internal reporting and will work to update its external reporting so that we no longer claim FFCRA hours for reimbursement from the CARES Act funding. Instead, the City will increase the amount being reimbursed for public safety salaries by $118,398.17, as there are sufficient public safety salary costs to support this change. ? Anticipated Completion Date: 06/30/22
FAC accepted this audit on August 16, 2021 — management decision was due February 16, 2022.
During our testing of grant drawdown requests during fiscal year 2020, we noted delays in the filing of IDIS drawdowns as follows: o May 6, 2020, May 11, 2020, and May 18, 2020 drawdowns were for expenditures incurred in October 2019. o May 22, 2020 drawdown was for expenditures incurred in November 2019. o May 27, 2020 drawdown was for expenditures incurred in January 2020. o June 1, 2020 drawdown was for expenditures incurred in January 2020. o September 17, 2020 drawdown was for expenditures incurred in April 2020. The City submitted the drawdown requests in the IDIS, more than three months after the program expenditures were incurred. Effect: The City is not matching expenditures with associated revenues throughout the fiscal year as expenditures are incurred and is at risk of being out of compliance with the provisions of 24 CFR 570.902. Cause: We understand that due to turnover in Finance staff, withdrawals were not processed timely. Identification as a repeat finding: Yes, since 2018. Recommendation: The City should develop procedures to ensure that drawdown requests are submitted more frequently, at least on a quarterly basis. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding SA2020-001 Community Development Block Grant Program Cash Management CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development Federal Award Identification number and year: B-19-MC-06-0010 (2019) Criteria: 24 CFR 570.902 indicates that the Department of Housing and Urban Development will review the performance of each entitlement, HUD-administered small cities, and Insular Areas recipient to determine whether each recipient is carrying out its CDBG-assisted activities in a timely manner. One of the factors in determining timeliness is the timing of the use of entitlement grant funds and the amount of undisbursed entitlement grant funds that remain in the Integrated Disbursement Information System (IDIS). Therefore, the City should submit drawdown requests in the IDIS system throughout the fiscal year as costs are incurred. Those drawdown requests should be completed at least quarterly, depending on the volume of program activity, to improve the cash management for the program and to match expenditures with associated revenues throughout the fiscal year. Condition: During our testing of grant drawdown requests during fiscal year 2020, we noted delays in the filing of IDIS drawdowns as follows: o May 6, 2020, May 11, 2020, and May 18, 2020 drawdowns were for expenditures incurred in October 2019. o May 22, 2020 drawdown was for expenditures incurred in November 2019. o May 27, 2020 drawdown was for expenditures incurred in January 2020. o June 1, 2020 drawdown was for expenditures incurred in January 2020. o September 17, 2020 drawdown was for expenditures incurred in April 2020. The City submitted the drawdown requests in the IDIS, more than three months after the program expenditures were incurred. Effect: The City is not matching expenditures with associated revenues throughout the fiscal year as expenditures are incurred and is at risk of being out of compliance with the provisions of 24 CFR 570.902. Cause: We understand that due to turnover in Finance staff, withdrawals were not processed timely. Identification as a repeat finding: Yes, since 2018. Recommendation: The City should develop procedures to ensure that drawdown requests are submitted more frequently, at least on a quarterly basis. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: 2020-01 - Preparing General Ledger Data for Audit ? Fiscal Year of Initial Finding: 2020 ? Name(s) of the contact person: Daneca Halvorson ? Corrective Action Plan: Implementation is in progress for Fiscal Year 2021 The Department is currently implementing a restructuring plan in order to provide balance in day to day tasks for control of accounting activity and the General Ledger reconciliations. Finance Management has created a calendar for posting journal entries into the General Ledger, as well as reconciliation processes. The City targets closing each period during the third week following the last day of the month except for an extended two-month process at year-end. On April 17, 2021, our financial system was migrated to a new platform. We?ve been working with our vendor to ensure that we are able to export our financial reports to Excel. ? Anticipated Completion Date: In progress
2019-002
FAC accepted this audit on August 13, 2020 — management decision was due February 13, 2021.
We noted that the City filed the quarterly SF 425 reports for the quarters ending September 30, 2018 and December 31, 2018 in April 2019, more than 90 days after the submission deadline. Effect: The City is not in compliance with the program reporting requirements for the CDBG grant. Cause: We understand that the reports were not filed timely due to staff turnover in the Finance department. Identification as a repeat finding: Yes, since 2018. Recommendation: The City should develop a process to ensure timely submission of future reports. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding SA 2019-001 Timely Filing of the SF-425 Federal Financial Reports CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development Federal Award Identification number and year: B-18-MC-06-0010 Criteria: The Compliance Supplement (2 CFR Part 200, Appendix XI) for the CDBG program requires the submission of SF-425 Federal Financial Reports and the U.S. Department of Housing and Urban Development (Notice CPD-12-012) requires reporting on a quarterly basis. Condition: We noted that the City filed the quarterly SF 425 reports for the quarters ending September 30, 2018 and December 31, 2018 in April 2019, more than 90 days after the submission deadline. Effect: The City is not in compliance with the program reporting requirements for the CDBG grant. Cause: We understand that the reports were not filed timely due to staff turnover in the Finance department. Identification as a repeat finding: Yes, since 2018. Recommendation: The City should develop a process to ensure timely submission of future reports. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2019-001 Timely Filing of SF-425 Federal Financial Reports CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development ? Name(s) of the contact person: Todd High, Finance Director ? Corrective Action Plan: Due to turnover in Finance staff, SF-425?s were not filed timely for the periods ended September 30, 2018 and December 31, 2018. HUD was advised of the oversight and all reports were completed by April 30, 2019. Staff has now been assigned for this report. ? Anticipated Completion Date: Implemented
2018-001
During our testing of grant drawdown requests during fiscal year 2019, we noted that a drawdown made in November 2018 was for July 2018 and August 2018 expenditures and the drawdown made in October 2019 was for June 2019 expenditures. The City submitted the drawdown requests in the IDIS over three months after the program expenditures were incurred. Effect: The City is not matching expenditures with associated revenues throughout the fiscal year as expenditures are incurred and is at risk of being out of compliance with the provisions of 24 CFR 570.902. Cause: We understand that the drawdowns were delayed due to staff turnover in the Finance department. Identification as a repeat finding: Yes, since 2018. Recommendation: The City should develop procedures to ensure that drawdown requests are submitted more frequently, at least on a quarterly basis. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding SA 2019-002 Community Development Block Grant Program Cash Management CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-18-MC-06-0010 Criteria: 24 CFR 570.902 indicates that the Department of Housing and Urban Development will review the performance of each entitlement, HUD-administered small cities, and Insular Areas recipient to determine whether each recipient is carrying out its CDBG-assisted activities in a timely manner. One of the factors in determining timeliness is the timing of the use of entitlement grant funds and the amount of undisbursed entitlement grant funds that remain in the Integrated Disbursement Information System (IDIS). Therefore, the City should submit drawdown requests in the IDIS system throughout the fiscal year as costs are incurred. Those drawdown requests should be completed at least quarterly, depending on the volume of program activity, to improve the cash management for the program and to match expenditures with associated revenues throughout the fiscal year. Condition: During our testing of grant drawdown requests during fiscal year 2019, we noted that a drawdown made in November 2018 was for July 2018 and August 2018 expenditures and the drawdown made in October 2019 was for June 2019 expenditures. The City submitted the drawdown requests in the IDIS over three months after the program expenditures were incurred. Effect: The City is not matching expenditures with associated revenues throughout the fiscal year as expenditures are incurred and is at risk of being out of compliance with the provisions of 24 CFR 570.902. Cause: We understand that the drawdowns were delayed due to staff turnover in the Finance department. Identification as a repeat finding: Yes, since 2018. Recommendation: The City should develop procedures to ensure that drawdown requests are submitted more frequently, at least on a quarterly basis. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2019-002 Community Development Block Grant Program Cash Management CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development ? Name(s) of the contact person: Todd High, Finance Director Betsy Zobell, HCD Supervisor ? Corrective Action Plan: Due to turnover in Finance staff, monthly withdrawals were not processed. Staff has now been assigned to keep the withdrawals on a regular cycle. ? Anticipated Completion Date: Implemented in fiscal year 2020.
2018-005
The City did not file a HUD 60002 Section 3 summary report in fiscal year 2019 for the CDBG program. Effect: The City is not in compliance with the performance reporting requirements of the CDBG program. Cause: We understand that the delay in filing the report is due to shortage of staff time overseeing the grant program. Recommendation: The City must file the delinquent report and develop procedures to ensure timely compliance with all grant reporting requirements. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding SA 2019-003 Annual Filing of HUD 60002 Performance Report CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-18-MC-06-0010 Criteria: Section L(2) Performance Reporting of the Compliance Supplement (2 CFR Part 200, Appendix XI) for the CDBG Program and 24 CFR Sections 135.3(a)(1) and 135.90 require the annual filing of the HUD 60002 Section 3 Summary Report for each grant for which the amount of assistance exceeds $200,000 in a program year on housing rehabilitation, housing construction, or other public construction. Condition: The City did not file a HUD 60002 Section 3 summary report in fiscal year 2019 for the CDBG program. Effect: The City is not in compliance with the performance reporting requirements of the CDBG program. Cause: We understand that the delay in filing the report is due to shortage of staff time overseeing the grant program. Recommendation: The City must file the delinquent report and develop procedures to ensure timely compliance with all grant reporting requirements. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2019-003 Annual Filing of HUD 60002 Performance Report CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development ? Name(s) of the contact person: Todd High, Finance Director Lenelle Suliguin, Housing Coordinator ? Corrective Action Plan: The reports were completed on March 12, 2020 and May 7, 2020. The filing date requirement is scheduled on the calendar. ? Anticipated Completion Date: Implemented
During our review of the 2018 PR26 report for fiscal year 2019, we noted that the data in the PR26 report was inconsistent with the data extracted from IDIS and the Consolidated Annual Performance and Evaluation Report (CAPER) and the City?s general ledger. For example, the program expenditures included in the PR26 report of $873,852 should have been $994,874, which affected other amounts and calculations reported. Effect: The City is not in compliance with the performance reporting requirements of the CDBG program and expenditures in the PR26 report were understated by $121,022. Cause: We understand that the errors were due to the inclusion of fiscal year 2018 data in the fiscal year 2019 PR26 report. Recommendation: The City should develop procedures to ensure that all financial reports are reviewed for accuracy prior to submission. In addition, the City should submit a corrected 2018 PR26 report. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding SA 2019-004 Accurate Financial Reporting in the Annual PR26 Report CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-18-MC-06-0010 Criteria: OMB No. 2506-0077 requires all grantees to submit a PR26 ? CDBG Financial Summary Report for the CDBG entitlement Program within 90 days after the year end of the grantee?s program year. The PR26 ? CDBG Financial Summary Report is a report that contains summary information from the Integrated Disbursement Information System (IDIS) for the grantee?s program year. Condition: During our review of the 2018 PR26 report for fiscal year 2019, we noted that the data in the PR26 report was inconsistent with the data extracted from IDIS and the Consolidated Annual Performance and Evaluation Report (CAPER) and the City?s general ledger. For example, the program expenditures included in the PR26 report of $873,852 should have been $994,874, which affected other amounts and calculations reported. Effect: The City is not in compliance with the performance reporting requirements of the CDBG program and expenditures in the PR26 report were understated by $121,022. Cause: We understand that the errors were due to the inclusion of fiscal year 2018 data in the fiscal year 2019 PR26 report. Recommendation: The City should develop procedures to ensure that all financial reports are reviewed for accuracy prior to submission. In addition, the City should submit a corrected 2018 PR26 report. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2019-004 Accurate Financial Reporting in the Annual PR 26 Report CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development ? Name(s) of the contact person: Todd High, Finance Director Betsy Zobell, HCD Supervisor Lenelle Suliguin, Housing Coordinator ? Corrective Action Plan: Due to turnover in Finance staff, the report wasn?t presented on time, once it was filed, City staff revised the PR26 report to correct for errors in the amount reported. Staff resubmitted the report to HUD and provided an explanation of adjustments and corrections made. ? Anticipated Completion Date: Implemented in Fiscal Year 2020.
In fiscal year 2019, City staff discovered that non-CDBG program income totaling $87,663 had been recorded as CDBG program income in the City?s general ledger and included in the Integrated Disbursement Information System (IDIS) drawdowns between fiscal years 2012 through 2019. Effect: The City is not in compliance with the program income provisions of the Compliance Supplement (2 CFR Part 200, Appendix XI) and 24 CFR section 570.504. Cause: We understand that the CalHOME program income was recorded as CDBG program income due to staff oversight. Recommendation: The City should develop procedures to ensure that all program income is accurately accounted for in the City?s general ledger and IDIS. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Show full finding ▾Hide full finding ▴Finding SA 2019-005 Accounting for Program Income CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-18-MC-06-0010 Criteria: The Compliance Supplement (2 CFR Part 200, Appendix XI) and 24 CFR section 570.504 require that the grantee accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules. Condition: In fiscal year 2019, City staff discovered that non-CDBG program income totaling $87,663 had been recorded as CDBG program income in the City?s general ledger and included in the Integrated Disbursement Information System (IDIS) drawdowns between fiscal years 2012 through 2019. Effect: The City is not in compliance with the program income provisions of the Compliance Supplement (2 CFR Part 200, Appendix XI) and 24 CFR section 570.504. Cause: We understand that the CalHOME program income was recorded as CDBG program income due to staff oversight. Recommendation: The City should develop procedures to ensure that all program income is accurately accounted for in the City?s general ledger and IDIS. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2019-005 Accounting for Program Income CFDA Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants (CDBG) Federal Agency: Department of Housing and Urban Development ? Name(s) of the contact person: Todd High, Finance Director Betsy Zobell, HCD Supervisor ? Corrective Action Plan: When performing internal analysis, Housing Department staff identified State program income which had been miscoded as Federal. Housing worked with HUD and Finance to process corrections in during 2019 and prevent future miscoding?s. ? Anticipated Completion Date: Implemented in Fiscal Year 2020
FAC accepted this audit on March 27, 2019 — management decision was due September 27, 2019.
GSA_MIGRATION
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GSA_MIGRATION
GSA_MIGRATION
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GSA_MIGRATION
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on January 29, 2018 — management decision was due July 29, 2018.
FAC accepted this audit on March 21, 2017 — management decision was due September 21, 2017.
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