EIN: 956005848
UEI: ME8LG18RT6M9
Audited by: Davis Farr LLP
Cognizant agency: 14 [Department of Housing and Urban Development]
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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 30, 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 30, 2026 (31 days from today).
What is a management decision? →FAC accepted this audit on March 31, 2025 — management decision was due October 1, 2025.
FAC accepted this audit on March 29, 2024 — management decision was due September 29, 2024.
FAC accepted this audit on March 29, 2023 — management decision was due September 29, 2023.
FAC accepted this audit on March 24, 2022 — management decision was due September 24, 2022.
The City submitted their Interim Report over CSLFRF funding for the period March 3, 2021 through July 31, 2021. The City reported expenditures of $27,540,274 of police salary costs. However, the City subsequently modified the use of the funding to cover both police and fire costs, adding another $3,945,827 in costs for the period March 3, 2021 through June 30, 2021. These additional costs were not reported on the Interim Report. Criteria 2 CFR 200.302, Financial Management, states, in part: ?(b) The financial management system of each non-Federal entity must provide for the following: (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?? 200.328 and 200.329. If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient must not be required to establish an accrual accounting system. This recipient may develop accrual data for its reports on the basis of an analysis of the documentation on hand. Similarly, a pass-through entity must not require a subrecipient to establish an accrual accounting system and must allow the subrecipient to develop accrual data for its reports on the basis of an analysis of the documentation on hand. CITY OF GARDEN GROVE SUMMARY OF FINDINGS AND QUESTIONED COSTS (Continued) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation.? Cause: The City correctly applied eligible police safety costs through July 31, 2021 and reported the amount in the Interim Report. Since the Treasury updated the CSLFRF Compliance and Reporting Guidelines after the Interim Report due date, the City revised its application of the CSLFRF, and included certain fire safety costs for the reporting period between March 3, 2021 and July 31, 2021, resulting in under reporting eligible costs on the Interim Report. Effect: The interim report, as it is currently stated, doesn?t represent the actual costs that the City used the funding on. Questioned Costs: There were no questioned costs. Recommendation: We recommend that the City reflect revised cost information on subsequent Project and Expenditure Reports. Management?s Response Regarding Corrective Action Taken or Planned: The City was allocated a total of $48.4 million in the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) and received $24.2 million in May 2021. To comply with the reporting requirements established by the U.S. Treasury, the City submitted its Interim Report on August 30, 2021, and reported $27.5 million as Category 1.9 Payroll Costs for Public Health, Safety, and Other Public Sector Staff Responding to COVID-19. The $27.5 million represented payroll expenses for our Police safety personnel for the period between March 3, 2021 and July 31, 2021. In January 2022, the U.S. Department of Treasury published its Final Rule for the CSLFRF, allowing a standard allowance for revenue loss of $10 million. The City since made a revision to its original application of the CSLFRF to include cost for providing governmental service in addition to Police Safety payroll, such as Emergency Medical Service and other community services. Some of these additional costs were not reflected in the Interim Report, which resulted in under-reporting of eligible expenditures on the Interim Report. Per online training provided by the Treasury, revisions to the Interim Report are not necessary nor allowed, all revisions should be reflected in the subsequent quarterly Project and Expenditure Report (P&E Report) submissions. The City submitted its first quarterly P&E Report for reporting period between March 3, 2021 and December 31, 2021 on January 31, 2022, and properly reflected the change from its Interim Report.
Show full finding ▾Hide full finding ▴2021-001: Federal Awards ? Reporting Federal Agency: U.S. Department of Treasury CFDA No.: 21.027 Federal Program: Coronavirus State and Local Fiscal Recovery Funds Federal Award Program No.: 20-1892-0-1-806 Federal Award Year: 2021 Control Category: Reporting Questioned Costs: $0 Condition: The City submitted their Interim Report over CSLFRF funding for the period March 3, 2021 through July 31, 2021. The City reported expenditures of $27,540,274 of police salary costs. However, the City subsequently modified the use of the funding to cover both police and fire costs, adding another $3,945,827 in costs for the period March 3, 2021 through June 30, 2021. These additional costs were not reported on the Interim Report. Criteria 2 CFR 200.302, Financial Management, states, in part: ?(b) The financial management system of each non-Federal entity must provide for the following: (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?? 200.328 and 200.329. If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient must not be required to establish an accrual accounting system. This recipient may develop accrual data for its reports on the basis of an analysis of the documentation on hand. Similarly, a pass-through entity must not require a subrecipient to establish an accrual accounting system and must allow the subrecipient to develop accrual data for its reports on the basis of an analysis of the documentation on hand. CITY OF GARDEN GROVE SUMMARY OF FINDINGS AND QUESTIONED COSTS (Continued) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation.? Cause: The City correctly applied eligible police safety costs through July 31, 2021 and reported the amount in the Interim Report. Since the Treasury updated the CSLFRF Compliance and Reporting Guidelines after the Interim Report due date, the City revised its application of the CSLFRF, and included certain fire safety costs for the reporting period between March 3, 2021 and July 31, 2021, resulting in under reporting eligible costs on the Interim Report. Effect: The interim report, as it is currently stated, doesn?t represent the actual costs that the City used the funding on. Questioned Costs: There were no questioned costs. Recommendation: We recommend that the City reflect revised cost information on subsequent Project and Expenditure Reports. Management?s Response Regarding Corrective Action Taken or Planned: The City was allocated a total of $48.4 million in the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) and received $24.2 million in May 2021. To comply with the reporting requirements established by the U.S. Treasury, the City submitted its Interim Report on August 30, 2021, and reported $27.5 million as Category 1.9 Payroll Costs for Public Health, Safety, and Other Public Sector Staff Responding to COVID-19. The $27.5 million represented payroll expenses for our Police safety personnel for the period between March 3, 2021 and July 31, 2021. In January 2022, the U.S. Department of Treasury published its Final Rule for the CSLFRF, allowing a standard allowance for revenue loss of $10 million. The City since made a revision to its original application of the CSLFRF to include cost for providing governmental service in addition to Police Safety payroll, such as Emergency Medical Service and other community services. Some of these additional costs were not reflected in the Interim Report, which resulted in under-reporting of eligible expenditures on the Interim Report. Per online training provided by the Treasury, revisions to the Interim Report are not necessary nor allowed, all revisions should be reflected in the subsequent quarterly Project and Expenditure Report (P&E Report) submissions. The City submitted its first quarterly P&E Report for reporting period between March 3, 2021 and December 31, 2021 on January 31, 2022, and properly reflected the change from its Interim Report.
Auditing Finding The City correctly applied eligible police safety costs through July 31, 2021 and reported the amount in the Interim Report. Since the Treasury updated the CSLFRF Compliance and Reporting Guidelines after the Interim Report due date, the City revised its application of the CSLFRF, and included certain fire safety costs for the reporting period between March 3, 2021 and July 31, 2021, resulting in under reporting eligible costs on the Interim Report. Corrective Action Plan The City will reflect revised cost information on subsequent Project and Expenditure Reports. Name of responsible official Patricia Song, Director of Finance Anticipated completion date January 31, 2022
FAC accepted this audit on March 2, 2021 — management decision was due September 2, 2021.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on February 5, 2019 — management decision was due August 5, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on January 12, 2018 — management decision was due July 12, 2018.
FAC accepted this audit on January 29, 2017 — management decision was due July 29, 2017.
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