CITY OF CLAREMONT

EIN: 956000692

UEI: DGVWH4PSMR98

Data as of August 24, 2026

CITY OF CLAREMONT2 audit years3 findings
2
Audit Years
3
Total Findings
0
Repeat Findings

FY 2021-06-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on September 12, 2022. 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 March 12, 2023 (1261 days ago).

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2021-001
Reporting

During the audit, we noted that the third quarterly performance report due April 30, 2021, for programs 602215-19, 602216-19, and 602222-20 were not submitted before the deadline. Cause: The City failed to submit required reports in a timely manner. Effect: The City did not have the necessary information to provide their third-party consultant to prepare and submit the reports in a timely manner. Questioned Costs: No questioned costs. Identification as a Repeat Finding This is not a repeat finding. Recommendation: We recommend the City maintain necessary information for reporting in a shared drive to be readily accessible for reporting purposes. Views of Responsible Officials: See attached Corrective Action Plan.

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2021-001 ? Performance Reporting Noncompliance Federal Program: Community Development Block Grant (CDBG), Assistance Listing No. 14.218 Criteria: Per Section 2 L 2 Performance Reporting, a quarterly performance report is due quarterly to help HUD and Congress track expenditures and performance for individual activities. Condition: During the audit, we noted that the third quarterly performance report due April 30, 2021, for programs 602215-19, 602216-19, and 602222-20 were not submitted before the deadline. Cause: The City failed to submit required reports in a timely manner. Effect: The City did not have the necessary information to provide their third-party consultant to prepare and submit the reports in a timely manner. Questioned Costs: No questioned costs. Identification as a Repeat Finding This is not a repeat finding. Recommendation: We recommend the City maintain necessary information for reporting in a shared drive to be readily accessible for reporting purposes. Views of Responsible Officials: See attached Corrective Action Plan.

Corrective Action Plan

CITY OF CLAREMONT Laura Arvizum CPA Rogers, Anderson, Malody & Scott, LLP 735 E. Carnegie Dr. Suite 100 San Bernardino, CA 92408 Corrective Action Plan In response to the Single Audit Report dated Aug 25, 2022 regarding Federal Awards for fiscal year ended 2020-21, the City of Claremont is providing the following corrective action plan to address significant deficiencies identified in internal controls. 1. Name of the contact person responsible for corrective actions: a. Primary Responsibility: Marcus Tapia, Accountant or designee b. Ultimate Responsibility: Supervisor(s) and City Management 2. Corrective Action Plan (CAP) for each audit finding in the Single Audit Report is elaborated below. Management acknowledges the importance of completing timely and accurate grant reporting. To that end, Management has communicated to staff the importance of maintaining a system of controls that ensures City staff is aware of the types of reports that are due for the various grant funds received by the City. a. Community Development Block Grant, Assistance Listing No. 14.218: i. CAP 2021-001 : City staff will maintain necessary information in a shared drive that is readily accessible for reporting purposes and can be provided to third-party consultants (if employed) in a timely fashion to prepare and submit grant reports. ii. CAP 2021-002: City staff will implement controls to ensure it submits required reports on schedule. These will include, but is not limited to developing an internal tracking mechanism to log calendar dates and cross-train staff to submit reports on time. b. CARES Act, Assistance Listing No. 21 .019 i. CAP 2021-003: City staff will implement controls to ensure that documentation is maintained regarding decisions taken for list of allowable and unallowable grant expenditures and that staff is provided with related and any necessary grant information. Such reports may take the form of staff reports to council and other departments or internal documents that detail breakdown of reimbursable activities under the federal award. 3. Anticipated completion date: June 2023 Please contact Accounting Supervisor, Bibi Ameer (bameer@ci.claremont.ca.us) for any related questions. Sincerely Nishil Bali Finance Director City of Claremont nbali@ci.claremont.ca.us

About Reporting →
2021-002
Reporting

During the audit, we noted that the third quarterly performance report due April 30, 2021, for programs 602215-19, 602216-19, and 602222-20, were not submitted before the deadline. Cause: The City did not have effectively designed controls to ensure reporting was performed in a timely manner. Effect: The City submitted the required quarterly reports after the deadline. Questioned Costs: No questioned costs. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement controls to ensure it submits required reports in a timely manner. Views of Responsible Officials: See attached Corrective Action Plan.

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2021-002 ? Performance Reporting Significant Deficiency Federal Program: Community Development Block Grant (CDBG), Assistance Listing No. 14.218 Criteria: Per Section 2 L 2 Performance Reporting, a quarterly performance report is due quarterly to help HUD and Congress track expenditures and performance for individual activities. Condition: During the audit, we noted that the third quarterly performance report due April 30, 2021, for programs 602215-19, 602216-19, and 602222-20, were not submitted before the deadline. Cause: The City did not have effectively designed controls to ensure reporting was performed in a timely manner. Effect: The City submitted the required quarterly reports after the deadline. Questioned Costs: No questioned costs. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement controls to ensure it submits required reports in a timely manner. Views of Responsible Officials: See attached Corrective Action Plan.

Corrective Action Plan

CITY OF CLAREMONT Laura Arvizum CPA Rogers, Anderson, Malody & Scott, LLP 735 E. Carnegie Dr. Suite 100 San Bernardino, CA 92408 Corrective Action Plan In response to the Single Audit Report dated Aug 25, 2022 regarding Federal Awards for fiscal year ended 2020-21, the City of Claremont is providing the following corrective action plan to address significant deficiencies identified in internal controls. 1. Name of the contact person responsible for corrective actions: a. Primary Responsibility: Marcus Tapia, Accountant or designee b. Ultimate Responsibility: Supervisor(s) and City Management 2. Corrective Action Plan (CAP) for each audit finding in the Single Audit Report is elaborated below. Management acknowledges the importance of completing timely and accurate grant reporting. To that end, Management has communicated to staff the importance of maintaining a system of controls that ensures City staff is aware of the types of reports that are due for the various grant funds received by the City. a. Community Development Block Grant, Assistance Listing No. 14.218: i. CAP 2021-001 : City staff will maintain necessary information in a shared drive that is readily accessible for reporting purposes and can be provided to third-party consultants (if employed) in a timely fashion to prepare and submit grant reports. ii. CAP 2021-002: City staff will implement controls to ensure it submits required reports on schedule. These will include, but is not limited to developing an internal tracking mechanism to log calendar dates and cross-train staff to submit reports on time. b. CARES Act, Assistance Listing No. 21 .019 i. CAP 2021-003: City staff will implement controls to ensure that documentation is maintained regarding decisions taken for list of allowable and unallowable grant expenditures and that staff is provided with related and any necessary grant information. Such reports may take the form of staff reports to council and other departments or internal documents that detail breakdown of reimbursable activities under the federal award. 3. Anticipated completion date: June 2023 Please contact Accounting Supervisor, Bibi Ameer (bameer@ci.claremont.ca.us) for any related questions. Sincerely Nishil Bali Finance Director City of Claremont nbali@ci.claremont.ca.us

About Reporting →
2021-003
Activities Allowed or Unallowed

During the audit, we noted that documentation regarding internal controls over the control environment and information and communication in regard to allowable and unallowable expenditures regarding CARES act funding was not maintained. Cause: The City?s internal control was not effectively designed to document that responsible staff for determining allowed and unallowed costs under federal awards were provided with the necessary information. Effect: The City could not provide documentation to perform a test of controls. Questioned Costs: No questioned costs. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement internal controls to ensure documentation is maintained and that staff is appropriately provided with a list of allowable and unallowable expenditures for the grant, as well as other necessary grant information to determine whether activities allocated to the grant are allowed and allowable costs under the federal award. Views of Responsible Officials: See attached Corrective Action Plan.

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2021-003 ? Documentation of the Controls Over Control Environment and Information and Communication Significant Deficiency Federal Program: CARES Act, Assistance Listing No. 21.019 Criteria: Per 2 CRF Section 200.514(c)4, when internal control over some or all of the compliance requirements for a major program are likely to be ineffective in preventing or detecting noncompliance, the planning and performing of testing described in paragraph (c)(3) of this section are not required for those compliance requirements. However, the auditor must report a significant deficiency or material weakness in accordance with ? 200.516. Condition: During the audit, we noted that documentation regarding internal controls over the control environment and information and communication in regard to allowable and unallowable expenditures regarding CARES act funding was not maintained. Cause: The City?s internal control was not effectively designed to document that responsible staff for determining allowed and unallowed costs under federal awards were provided with the necessary information. Effect: The City could not provide documentation to perform a test of controls. Questioned Costs: No questioned costs. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement internal controls to ensure documentation is maintained and that staff is appropriately provided with a list of allowable and unallowable expenditures for the grant, as well as other necessary grant information to determine whether activities allocated to the grant are allowed and allowable costs under the federal award. Views of Responsible Officials: See attached Corrective Action Plan.

Corrective Action Plan

CITY OF CLAREMONT Laura Arvizum CPA Rogers, Anderson, Malody & Scott, LLP 735 E. Carnegie Dr. Suite 100 San Bernardino, CA 92408 Corrective Action Plan In response to the Single Audit Report dated Aug 25, 2022 regarding Federal Awards for fiscal year ended 2020-21, the City of Claremont is providing the following corrective action plan to address significant deficiencies identified in internal controls. 1. Name of the contact person responsible for corrective actions: a. Primary Responsibility: Marcus Tapia, Accountant or designee b. Ultimate Responsibility: Supervisor(s) and City Management 2. Corrective Action Plan (CAP) for each audit finding in the Single Audit Report is elaborated below. Management acknowledges the importance of completing timely and accurate grant reporting. To that end, Management has communicated to staff the importance of maintaining a system of controls that ensures City staff is aware of the types of reports that are due for the various grant funds received by the City. a. Community Development Block Grant, Assistance Listing No. 14.218: i. CAP 2021-001 : City staff will maintain necessary information in a shared drive that is readily accessible for reporting purposes and can be provided to third-party consultants (if employed) in a timely fashion to prepare and submit grant reports. ii. CAP 2021-002: City staff will implement controls to ensure it submits required reports on schedule. These will include, but is not limited to developing an internal tracking mechanism to log calendar dates and cross-train staff to submit reports on time. b. CARES Act, Assistance Listing No. 21 .019 i. CAP 2021-003: City staff will implement controls to ensure that documentation is maintained regarding decisions taken for list of allowable and unallowable grant expenditures and that staff is provided with related and any necessary grant information. Such reports may take the form of staff reports to council and other departments or internal documents that detail breakdown of reimbursable activities under the federal award. 3. Anticipated completion date: June 2023 Please contact Accounting Supervisor, Bibi Ameer (bameer@ci.claremont.ca.us) for any related questions. Sincerely Nishil Bali Finance Director City of Claremont nbali@ci.claremont.ca.us

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