EIN: 956000690
UEI: KVBYLRZMAGJ9
Audited by: Rogers, Anderson, Malody & Scott, LLP
Cognizant agency: 21 [Department of the Treasury]
View federal awards & risk assessment →
Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 31, 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 October 1, 2026 (29 days from today).
What is a management decision? →FAC accepted this audit on March 19, 2025 — management decision was due September 19, 2025.
FAC accepted this audit on March 28, 2024 — management decision was due September 28, 2024.
FAC accepted this audit on March 29, 2023 — management decision was due September 29, 2023.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on May 1, 2022 — management decision was due November 1, 2022.
FAC accepted this audit on June 1, 2021 — management decision was due December 1, 2021.
FAC accepted this audit on September 29, 2020 — management decision was due March 29, 2021.
Finding 2019-004 ? Allowable Costs/Cost Principles Noncompliance/Material Weakness Federal Award Information CFDA Number: 14.218 Program Title: Community Development Block Grant Federal Award Number: B-14-MC-060540; B-15-MC-060540; B-16-MC-060540; B-17-MC-060540; B-18-MC-060540 Federal Award Year: 2014; 2015; 2016; 2017; 2018 Name of Federal Agency: U.S. Department of Housing and Urban Development Criteria or Specific Requirement The 2 CFR section 200.430 Compensation ? personal services require that compensation for personal services for services of employees rendered during the period of performance under the Federal award is reasonable for the services rendered, follows an appointment made in accordance with a non-Federal entity?s laws and/or rules, and is determined and supported as provided in Standards for Documentation of Personnel Expenses. Condition The auditor noted through the test work that payroll costs were charged to the program by hour but lacked supporting documentation to determine the reasonableness of the expenditure as direct costs. Cause of the Condition Staff did not utilize Project Accounting system to regularly enter time charged to the program, and time entered into Project Accounting was not signed by the employee or reviewed by their supervisor. Effect or Possible Effect This condition resulted in payroll costs charged to the program to be insufficiently supported by appropriate documentation. Questioned Costs The payroll direct costs charged to the program for the year ended June 30, 2019 was $403,622. Context We examined the time charged to the program for all employees who charged time to the program over ten pay periods. We noted inconsistent time entry into Project Accounting for some employees with others only entering time one or twice during the fiscal year. These entries were not supported by hour reports that were signed by the employee and supervisor. Repeat Finding This is a new finding for the fiscal year ended June 30, 2019. Recommendation We recommend that staff enter any time charged to federal award programs promptly, and regularly ? at a minimum monthly. Hour reports from Project Accounting should also be generated and signed by both the employee who charged time to the grant program but also certified by their immediate supervisor. Management Response and Corrective Action Project Accounting, separate from our financial system MUNIS, is utilized to track hours spent on projects eligible for grant reimbursement. Finance sets up new employees as requested from other departments to Project Accounting in order to track eligible hours by project code for grant reimbursements. Each department is responsible to ensure that the hours reported in Project Accounting are valid and that sufficient documentation is maintained to support the hours entered for each available project code. In addition, Management strengthened its internal controls by requiring all departments send Finance Staff Time Reports signed by both the employee and supervisor/manager to approve the hours reported in Project Accounting. A separate review is done by the Finance Department to ensure all signed forms are on file for all staff who have hours reported in Project Accounting.
Show full finding ▾Hide full finding ▴Finding 2019-004 ? Allowable Costs/Cost Principles Noncompliance/Material Weakness Federal Award Information CFDA Number: 14.218 Program Title: Community Development Block Grant Federal Award Number: B-14-MC-060540; B-15-MC-060540; B-16-MC-060540; B-17-MC-060540; B-18-MC-060540 Federal Award Year: 2014; 2015; 2016; 2017; 2018 Name of Federal Agency: U.S. Department of Housing and Urban Development Criteria or Specific Requirement The 2 CFR section 200.430 Compensation ? personal services require that compensation for personal services for services of employees rendered during the period of performance under the Federal award is reasonable for the services rendered, follows an appointment made in accordance with a non-Federal entity?s laws and/or rules, and is determined and supported as provided in Standards for Documentation of Personnel Expenses. Condition The auditor noted through the test work that payroll costs were charged to the program by hour but lacked supporting documentation to determine the reasonableness of the expenditure as direct costs. Cause of the Condition Staff did not utilize Project Accounting system to regularly enter time charged to the program, and time entered into Project Accounting was not signed by the employee or reviewed by their supervisor. Effect or Possible Effect This condition resulted in payroll costs charged to the program to be insufficiently supported by appropriate documentation. Questioned Costs The payroll direct costs charged to the program for the year ended June 30, 2019 was $403,622. Context We examined the time charged to the program for all employees who charged time to the program over ten pay periods. We noted inconsistent time entry into Project Accounting for some employees with others only entering time one or twice during the fiscal year. These entries were not supported by hour reports that were signed by the employee and supervisor. Repeat Finding This is a new finding for the fiscal year ended June 30, 2019. Recommendation We recommend that staff enter any time charged to federal award programs promptly, and regularly ? at a minimum monthly. Hour reports from Project Accounting should also be generated and signed by both the employee who charged time to the grant program but also certified by their immediate supervisor. Management Response and Corrective Action Project Accounting, separate from our financial system MUNIS, is utilized to track hours spent on projects eligible for grant reimbursement. Finance sets up new employees as requested from other departments to Project Accounting in order to track eligible hours by project code for grant reimbursements. Each department is responsible to ensure that the hours reported in Project Accounting are valid and that sufficient documentation is maintained to support the hours entered for each available project code. In addition, Management strengthened its internal controls by requiring all departments send Finance Staff Time Reports signed by both the employee and supervisor/manager to approve the hours reported in Project Accounting. A separate review is done by the Finance Department to ensure all signed forms are on file for all staff who have hours reported in Project Accounting.
Finding(s): 2019-004 Name of Contact Person: David Bilby-Finance Director, Pascal Saghbini- Finance Manager Corrective Action: Project Accounting, separate from our financial system MUNIS, is utilized to track hours spent on projects eligible for grant reimbursement. Finance sets up new employees as requested from other departments to Project Accounting in order to track eligible hours by project code for grant reimbursements. Each department is responsible to ensure that the hours reported in Project Accounting are valid and that sufficient documentation is maintained to support the hours entered for each available project code. In addition, Management strengthened its internal controls by requiring all departments send Finance Staff Time Reports signed by both the employee and supervisor/manager to approve the hours reported in Project Accounting. A separate review is done by the Finance Department to ensure all signed forms are on file for all staff who have hours reported in Project Accounting. Proposed Completion Date: 06/30/2021
Finding 2019-005 ? Allowable Costs/Cost Principles Noncompliance/Significant Deficiency Federal Award Information CFDA Number: 20.205 Program Title: Highway Planning and Construction Federal Award Number: BHLS-5203 (016) Federal Award Year: 2017 Name of Federal Agency: U.S. Department of Transportation Pass-Through Entity: California State Transportation Agency Criteria or Specific Requirement The non-federal entity is required to adhere to compliance guidelines, including the appropriateness and accuracy of payroll transactions that are charged to the program. Condition The City charges salaries and benefits to those who perform administrative work for the program. It was noted during our audit procedures that employee rates being charged to the program were not being monitored and updated throughout the year. Such as, when an employee was promoted but the rate charged to the program was not changed to the appropriate amount. Cause of the Condition Inaccurate rates of pay were being charged to the program. Effect or Possible Effect The City is charging improper amount to the federal program. Questioned Costs No questioned costs were reported. Context Payroll rates in the system were not updated resulting in improper amounts being charged to the federal program. In addition, there was no revised Fully Burdened Hourly Rate calculation done for calendar year 2019. The City used rates calculated during 2018 without alteration of the hourly rate and overhead charges for the department and citywide. Repeat Finding This is a new finding for the fiscal year ended June 30, 2019. Recommendation We recommend that the City creates a system of communication between those in charge of overseeing its grant programs, the finance department, and payroll system that allows for streamlined communication and availability of information in order to ensure the appropriateness of charges to its federal award program. Management Response and Corrective Action The fully burdened hourly rates (FBHRs) for FY 2019 were not updated due to limitations encountered from obtaining the information from our new ERP system. This was the first fiscal year since implementation that we did not run parallel payroll processes using our legacy system. Management has rectified the situation and established specific reports in the new ERP system to generate the data needed to update the FBHR for the fiscal year.
Show full finding ▾Hide full finding ▴Finding 2019-005 ? Allowable Costs/Cost Principles Noncompliance/Significant Deficiency Federal Award Information CFDA Number: 20.205 Program Title: Highway Planning and Construction Federal Award Number: BHLS-5203 (016) Federal Award Year: 2017 Name of Federal Agency: U.S. Department of Transportation Pass-Through Entity: California State Transportation Agency Criteria or Specific Requirement The non-federal entity is required to adhere to compliance guidelines, including the appropriateness and accuracy of payroll transactions that are charged to the program. Condition The City charges salaries and benefits to those who perform administrative work for the program. It was noted during our audit procedures that employee rates being charged to the program were not being monitored and updated throughout the year. Such as, when an employee was promoted but the rate charged to the program was not changed to the appropriate amount. Cause of the Condition Inaccurate rates of pay were being charged to the program. Effect or Possible Effect The City is charging improper amount to the federal program. Questioned Costs No questioned costs were reported. Context Payroll rates in the system were not updated resulting in improper amounts being charged to the federal program. In addition, there was no revised Fully Burdened Hourly Rate calculation done for calendar year 2019. The City used rates calculated during 2018 without alteration of the hourly rate and overhead charges for the department and citywide. Repeat Finding This is a new finding for the fiscal year ended June 30, 2019. Recommendation We recommend that the City creates a system of communication between those in charge of overseeing its grant programs, the finance department, and payroll system that allows for streamlined communication and availability of information in order to ensure the appropriateness of charges to its federal award program. Management Response and Corrective Action The fully burdened hourly rates (FBHRs) for FY 2019 were not updated due to limitations encountered from obtaining the information from our new ERP system. This was the first fiscal year since implementation that we did not run parallel payroll processes using our legacy system. Management has rectified the situation and established specific reports in the new ERP system to generate the data needed to update the FBHR for the fiscal year.
Finding(s): 2019-005 Name of Contact Person: David Bilby-Finance Director, Pascal Saghbini- Finance Manager Corrective Action: The fully burdened hourly rates (FBHRs) for FY 2019 were not updated due to limitations encountered from obtaining the information from our new ERP system. This was the first fiscal year since implementation that we did not run parallel payroll processes using our legacy system. Management has rectified the situation and established specific reports in the new ERP system to generate the data needed to update the FBHR for the fiscal year. Proposed Completion Date: 09/01/2019
FAC accepted this audit on March 30, 2019 — management decision was due September 30, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
FAC accepted this audit on March 29, 2018 — management decision was due September 29, 2018.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on March 28, 2017 — management decision was due September 28, 2017.
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.
Browse other Single Audit organizations in California →
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and filing records.
Start monitoring →© 2026 Single Audit Intelligence. All data is public domain.
