EIN: 946000400
UEI: M8MQTFM6J514
Audited by: Smith & Newell CPAs
Oversight agency: 20 [Department of Transportation]
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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 13, 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 13, 2026 (15 days from today).
What is a management decision? →The City did not submit the required Federal Financial Reports (SF-425) for the fiscal year ended June 30, 2025.; Cause: The entity was not aware of the requirement.; Effect: Noncompliance with reporting requirements can lead to delayed closeout of federal funds, and in extreme cases, the withholding of future grant funds.; Questioned Cost: No questioned costs were identified as a result of our procedures.; Context: Our sample testing included four AIP projects, and for two, the annual SF-425 reporting packages were not submitted.; Repeat Finding: This is not a repeat finding.; Recommendation: We recommend that the City establish a tracking system to monitor all required reports and their due dates to ensure timely submission.; Views of Responsible Officials and Planned Corrective Action: Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.
Show full finding ▾Hide full finding ▴Name: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airport Programs; ASL#: 20.106; Federal Grantor: U.S. Department of Transportation; Pass Through Entity: State Department of Transportation; Award No.: 3-06-0193-020, 3-06-0193-021; Year: 2024/2025; Compliance Requirement: Reporting; Criteria: 2CFR 200.328 (Monitoring and Reporting Program Performance) and the FAA AIP Grant Assurances. Reports must be submitted by the deadlines specified in the grant agreement.; Condition: The City did not submit the required Federal Financial Reports (SF-425) for the fiscal year ended June 30, 2025.; Cause: The entity was not aware of the requirement.; Effect: Noncompliance with reporting requirements can lead to delayed closeout of federal funds, and in extreme cases, the withholding of future grant funds.; Questioned Cost: No questioned costs were identified as a result of our procedures.; Context: Our sample testing included four AIP projects, and for two, the annual SF-425 reporting packages were not submitted.; Repeat Finding: This is not a repeat finding.; Recommendation: We recommend that the City establish a tracking system to monitor all required reports and their due dates to ensure timely submission.; Views of Responsible Officials and Planned Corrective Action: Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.
Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Aiport Programs; We recommend that the City establish a tracking system to monitor all required reports and their due dates to ensure timely submission. Management's Response: City of Red Bluff contracts out airport grant compliance to a third-party contractor. The scope of services in that contract end at the completion and submittal of the grant closeout documents. Delays in the Federal Government review and comment of grant closeout documents have left a period where the final closeout documents have been submitted but the grant is not closed. In the period when the final closeout documents have been submitted but the grant was not closed, the City was required to submit annual SF-425 reporting package and will continue to be required to file the annual SF-425 reporting package until the Federal Government can process the closeout documents. This period was erroneously left out of the scope of services for the third-party contractor grant compliance, and the City failed to submit the proper reports.; Responsible Individual: Scott Miller, Public Works Director; Corrective Action Plan: The City will add to the scope of services template language to add compliance period of between submittal of the grant closeout documents and acceptance of those documents. The City will then monitor the contract for these new services. The City will also file the missing SF-425 forms.; Anticipated Completion Date: 4-30-2026
During testing of payroll expenditures, we reviewed the one employee’s time that was charged to the FAA grant (ALN 20.106). We noted that the City did not maintain itemized, signed timesheet detailing the specific hours worked on FAA project tasks versus other projects or administrative duties.; Cause: The City did not have established control procedures to ensure that employees working on multiple projects maintained detailed, itemized timesheets tracking time to specific grant and non-grant projects.; Effect: The City is not in compliance with 2CFR 200.430. The lack of proper documentation results in questioned costs, as the federal program may have been charged for time spent on non-federal activities.; Questioned Cost: $9,004.46 (Total payroll charged to 20.106 for the sampled employee during the period); Context: Our sample testing included the payroll charged to the grant for the one employee included in the payroll expenditures for the grant.; Repeat Finding: This is not a repeat finding.; Recommendation: We recommend that the City implement a reporting system that requires all employees paid with federal funds to complete itemized, signed timesheets detailing the specific hours worked on each grant or project on a daily or weekly basis. These timesheets must be reviewed and approved by a supervisor with firsthand knowledge of the work performed.; Views of Responsible Officials and Planned Corrective Action Plan: Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.
Show full finding ▾Hide full finding ▴Name: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airport Programs; ASL#: 20.106; Federal Grantor: U.S. Department of Transportation; Pass Through Entity: State Department of Transportation; Award No.: 3-06-0193-017, 3-06-0193-019, 3-06-0193-020, 3-06-0193-021; Year: 2024/2025; Compliance Requirement: Allowable Costs/Cosst Principles; Criteria: According to 2CFR 200.430(i)(1) (Standards for Documentation of Personal Expenses), charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. For employees that work on multiple activities or cost objectives (e.g., FAA grant and non-grant activities), documentation must support the distribution of their time.; Condition: During testing of payroll expenditures, we reviewed the one employee’s time that was charged to the FAA grant (ALN 20.106). We noted that the City did not maintain itemized, signed timesheet detailing the specific hours worked on FAA project tasks versus other projects or administrative duties.; Cause: The City did not have established control procedures to ensure that employees working on multiple projects maintained detailed, itemized timesheets tracking time to specific grant and non-grant projects.; Effect: The City is not in compliance with 2CFR 200.430. The lack of proper documentation results in questioned costs, as the federal program may have been charged for time spent on non-federal activities.; Questioned Cost: $9,004.46 (Total payroll charged to 20.106 for the sampled employee during the period); Context: Our sample testing included the payroll charged to the grant for the one employee included in the payroll expenditures for the grant.; Repeat Finding: This is not a repeat finding.; Recommendation: We recommend that the City implement a reporting system that requires all employees paid with federal funds to complete itemized, signed timesheets detailing the specific hours worked on each grant or project on a daily or weekly basis. These timesheets must be reviewed and approved by a supervisor with firsthand knowledge of the work performed.; Views of Responsible Officials and Planned Corrective Action Plan: Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.
Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airport Programs; We recommend that the City implement a reporting system that requires all employees paid with federal funds to complete itemized, signed timesheets detailing the specific hours worked on each grant or project on a daily or weekly basis. These timesheets must be reviewed and approved by a supervisor with firsthand knowledge of the work performed.; Management's Response: The City of Red Bluff has used a log of time spent on the grant including date, description of activity, and time worked on the grant. The logs failed to account for non-grant related time as required by 2 CFR 200.430(g)(1)(iv).; Responsible Individual: Leanna Pearson, Assistant Finance Director; Corrective Action Plan: The City will set up separate tracking within the job category in the City’s payroll timekeeping software for grants. The employee will split the time in the timekeeping software and add notes describing the activities and grants worked on.; Anticipated Completion Date: 3-4-2026.
FAC accepted this audit on March 23, 2023 — management decision was due September 23, 2023.
FAC accepted this audit on January 22, 2018 — management decision was due July 22, 2018.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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