EIN: 956000790
UEI: Q35KCJJNN3J3
Audited by: LSL, LLP
Cognizant agency: 14 [Department of Housing and Urban Development]
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 (26 days from today).
What is a management decision? →FAC accepted this audit on March 28, 2025 — management decision was due September 28, 2025.
Evaluation of Finding Significant Deficiency Criteria Management is responsible for ensuring compliance with the California Water and Wastewater Arrearages Payment Program Guidelines and the Uniform Guidance, including the timely allocation of funds as bill credits within 60 days of receipt. This includes the design, implementation, and maintenance of effective internal controls to ensure that arrearages are allocated in accordance with the program’s requirements. Failure to allocate the Water and Wastewater Arrearages within the required timeframe could result in non-compliance with both state and federal regulations. Recipients of federal awards must maintain accurate records and documentation to support the proper allocation of funds, in line with 2 CFR 200.302, and take corrective actions if allocations are delayed. Condition During the single audit, we found that Wastewater Arrearages claimed were not allocated as bill credits within 60 days of receipt of funds requested in accordance with the California Water and Wastewater Arrearages Payment Program Guidelines. Cause of Condition The delay in allocating the wastewater arrearages within the required 60-day period was due to challenges in the internal controls and monitoring processes that impacted the timely allocation. The tracking systems in place did not fully support the prompt allocation in accordance with the California Water and Wastewater Arrearages Payment Program Guidelines. Additionally, there were delays in ensuring that the 60-day requirement was consistently met. As a result, the allocation did not occur within the required timeframe, leading to a non-compliance issue with both state and federal regulations. Effect or Potential Effect of Condition The delay in allocating the wastewater arrearages within the required 60-day period may lead to non-compliance with both state and federal regulations, which could result in the disallowance of the funds. This could also impact the agency’s eligibility for future funding or support under the program and may result in increased scrutiny during future audits or reviews. Questioned Costs None Context The City applied the funding properly for the purpose of the program, but due to the previously mentioned causes, missed the 60-day timeframe to apply the customer credits. We do not believe this to be indicative of a systemic noncompliance in the program, when taken as a whole, and is likely not to be repeated in future years. Repeat Finding No Recommendation To prevent future occurrences of the deficiency, it is recommended that the City implement a more robust tracking system for monitoring the receipt and allocation of funds under the California Water and Wastewater Arrearages Payment Program. Given that this is a one-time grant program, the City should also ensure that all staff involved fully understand the specific requirements and deadlines unique to such programs. This can be achieved by providing targeted training on one-time grant programs and establishing clear procedures to ensure compliance with time-sensitive allocations. Regular reviews should be conducted to ensure ongoing understanding of program requirements and reinforce accountability. These measures will help ensure prompt and compliant fund allocation for both current and future one-time programs.
Show full finding ▾Hide full finding ▴Evaluation of Finding Significant Deficiency Criteria Management is responsible for ensuring compliance with the California Water and Wastewater Arrearages Payment Program Guidelines and the Uniform Guidance, including the timely allocation of funds as bill credits within 60 days of receipt. This includes the design, implementation, and maintenance of effective internal controls to ensure that arrearages are allocated in accordance with the program’s requirements. Failure to allocate the Water and Wastewater Arrearages within the required timeframe could result in non-compliance with both state and federal regulations. Recipients of federal awards must maintain accurate records and documentation to support the proper allocation of funds, in line with 2 CFR 200.302, and take corrective actions if allocations are delayed. Condition During the single audit, we found that Wastewater Arrearages claimed were not allocated as bill credits within 60 days of receipt of funds requested in accordance with the California Water and Wastewater Arrearages Payment Program Guidelines. Cause of Condition The delay in allocating the wastewater arrearages within the required 60-day period was due to challenges in the internal controls and monitoring processes that impacted the timely allocation. The tracking systems in place did not fully support the prompt allocation in accordance with the California Water and Wastewater Arrearages Payment Program Guidelines. Additionally, there were delays in ensuring that the 60-day requirement was consistently met. As a result, the allocation did not occur within the required timeframe, leading to a non-compliance issue with both state and federal regulations. Effect or Potential Effect of Condition The delay in allocating the wastewater arrearages within the required 60-day period may lead to non-compliance with both state and federal regulations, which could result in the disallowance of the funds. This could also impact the agency’s eligibility for future funding or support under the program and may result in increased scrutiny during future audits or reviews. Questioned Costs None Context The City applied the funding properly for the purpose of the program, but due to the previously mentioned causes, missed the 60-day timeframe to apply the customer credits. We do not believe this to be indicative of a systemic noncompliance in the program, when taken as a whole, and is likely not to be repeated in future years. Repeat Finding No Recommendation To prevent future occurrences of the deficiency, it is recommended that the City implement a more robust tracking system for monitoring the receipt and allocation of funds under the California Water and Wastewater Arrearages Payment Program. Given that this is a one-time grant program, the City should also ensure that all staff involved fully understand the specific requirements and deadlines unique to such programs. This can be achieved by providing targeted training on one-time grant programs and establishing clear procedures to ensure compliance with time-sensitive allocations. Regular reviews should be conducted to ensure ongoing understanding of program requirements and reinforce accountability. These measures will help ensure prompt and compliant fund allocation for both current and future one-time programs.
Management agrees with the finding and recommendations, but also has determined that this finding will not be repeated in future years, as the arrearages program has come to a close.
FAC accepted this audit on March 28, 2024 — management decision was due September 28, 2024.
FAC accepted this audit on March 22, 2023 — management decision was due September 22, 2023.
FAC accepted this audit on April 3, 2022 — management decision was due October 3, 2022.
FAC accepted this audit on March 4, 2021 — management decision was due September 4, 2021.
FAC accepted this audit on March 29, 2020 — management decision was due September 29, 2020.
FAC accepted this audit on March 24, 2019 — management decision was due September 24, 2019.
FAC accepted this audit on March 22, 2018 — management decision was due September 22, 2018.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on February 26, 2017 — management decision was due August 26, 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.
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