FAC Explorer

Audit 16565

FY End
2022-06-30
Total Expended
$2.41M
Findings
8
Programs
4
Organization: City of Willows (CA)
Year: 2022 Accepted: 2023-02-12
Auditor: Smith and Newell CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12271 2022-002 - Yes J
12272 2022-002 - Yes J
12273 2022-001 - Yes J
12274 2022-001 - Yes J
588713 2022-002 - Yes J
588714 2022-002 - Yes J
588715 2022-001 - Yes J
588716 2022-001 - Yes J

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.62M Yes 1
14.239 Home Investment Partnerships Program $442,760 - 1
21.019 Coronavirus Relief Fund $75,212 - 0
11.300 Investments for Public Works and Economic Development Facilities $1,000 - 0

Contacts

Name Title Type
KHFZM43KRD53 Marti Brown Auditee
5309347041 Norman Newell, CPA Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 1.REPORTING ENTITYThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Willows, California (City). The Citys reporting entity is defined in Note 1 to the Citys basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.2.BASIS OF ACCOUNTINGBasis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The accompanying Schedule of Expenditures of Federal Awards, is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in the notes to the City financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursements. In addition, the outstanding balance of prior years loans that have significant continuing compliance requirements have been included in total federal expenditures.3.INDIRECT COST RATEThe City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.4.RELATIONSHIP TO FEDERAL FINANCIAL REPORTSThe amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the related federal financial assistance reports.5.RELATIONSHIP TO BASIC FINANCIAL STATEMENTSThe amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the Citys basic financial statements.6.PASS-THROUGH ENTITIES IDENTIFYING NUMBERWhen federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (14.228) - Balances outstanding at the end of the audit period were 174197. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 79653.

Finding Details

Finding 2022-002
2022-002 Name: Community Development Block Grant/State?s Program and Non- Entitlement Grants in Hawaii CFDA #: 14.228 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria The CDBG Annual Performance Report was required to be filed with the State Department of Housing and Community Development by August 2, 2022. Condition The City had not filed the CDBG Annual Performance Report, including Attachment A ? Program Income, by the required date. Cause There was not adequate monitoring of CDBG filing requirements related to the CDBG Annual Performance Report to ensure that it was filed by the required due date. Effect The City did not file the CDBG Annual Performance Report by the required due date. Questioned Cost No questioned costs were identified as a result of our procedures. Context The CDBG Annual Performance Report was unavailable for review. Repeat Finding This is a repeat of prior year finding 2021-002. Recommendation We recommend that the City develop procedures to ensure that the CDBG Annual Performance Report is filed by the required due date. 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.
Finding 2022-002
2022-002 Name: Community Development Block Grant/State?s Program and Non- Entitlement Grants in Hawaii CFDA #: 14.228 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria The CDBG Annual Performance Report was required to be filed with the State Department of Housing and Community Development by August 2, 2022. Condition The City had not filed the CDBG Annual Performance Report, including Attachment A ? Program Income, by the required date. Cause There was not adequate monitoring of CDBG filing requirements related to the CDBG Annual Performance Report to ensure that it was filed by the required due date. Effect The City did not file the CDBG Annual Performance Report by the required due date. Questioned Cost No questioned costs were identified as a result of our procedures. Context The CDBG Annual Performance Report was unavailable for review. Repeat Finding This is a repeat of prior year finding 2021-002. Recommendation We recommend that the City develop procedures to ensure that the CDBG Annual Performance Report is filed by the required due date. 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.
Finding 2022-001
2022-001 Name: Home Investment Partnership Program CFDA #: 14.239 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria The loan documents require that recipients of HOME loans continue to own and reside in their homes that were acquired using HOME funding. Condition During our test of loan monitoring procedures, we noted that all of the loans tested did not include verification documentation regarding loan recipients were the home owners during the 2021-2022 fiscal year. We also noted verification that the loan recipients occupied the homes obtained with HOME funding was missing. Cause The City did not have formalized loan monitoring policies and procedures in place to ensure that loans were monitored on an annual basis in accordance with the loan agreements. Effect Documentation was not provided to verify that the loan recipients were in compliance with the requirements of their loan agreements. Questioned Cost No questioned costs were identified as a result of our procedures. Context We randomly selected one of the two HOME loan recipients to test loan monitoring procedures. Sampling was a statistically valid sample. We noted that the recipient was not in compliance with the HOME loan agreements. Repeat Finding This is a repeat of prior year finding 2021-001. Recommendation We recommend that the City develop and maintain policies and procedures regarding loan monitoring and ensure that all documentation of loan monitoring be maintained on an annual basis. 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.
Finding 2022-001
2022-001 Name: Home Investment Partnership Program CFDA #: 14.239 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria The loan documents require that recipients of HOME loans continue to own and reside in their homes that were acquired using HOME funding. Condition During our test of loan monitoring procedures, we noted that all of the loans tested did not include verification documentation regarding loan recipients were the home owners during the 2021-2022 fiscal year. We also noted verification that the loan recipients occupied the homes obtained with HOME funding was missing. Cause The City did not have formalized loan monitoring policies and procedures in place to ensure that loans were monitored on an annual basis in accordance with the loan agreements. Effect Documentation was not provided to verify that the loan recipients were in compliance with the requirements of their loan agreements. Questioned Cost No questioned costs were identified as a result of our procedures. Context We randomly selected one of the two HOME loan recipients to test loan monitoring procedures. Sampling was a statistically valid sample. We noted that the recipient was not in compliance with the HOME loan agreements. Repeat Finding This is a repeat of prior year finding 2021-001. Recommendation We recommend that the City develop and maintain policies and procedures regarding loan monitoring and ensure that all documentation of loan monitoring be maintained on an annual basis. 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.
Finding 2022-002
2022-002 Name: Community Development Block Grant/State?s Program and Non- Entitlement Grants in Hawaii CFDA #: 14.228 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria The CDBG Annual Performance Report was required to be filed with the State Department of Housing and Community Development by August 2, 2022. Condition The City had not filed the CDBG Annual Performance Report, including Attachment A ? Program Income, by the required date. Cause There was not adequate monitoring of CDBG filing requirements related to the CDBG Annual Performance Report to ensure that it was filed by the required due date. Effect The City did not file the CDBG Annual Performance Report by the required due date. Questioned Cost No questioned costs were identified as a result of our procedures. Context The CDBG Annual Performance Report was unavailable for review. Repeat Finding This is a repeat of prior year finding 2021-002. Recommendation We recommend that the City develop procedures to ensure that the CDBG Annual Performance Report is filed by the required due date. 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.
Finding 2022-002
2022-002 Name: Community Development Block Grant/State?s Program and Non- Entitlement Grants in Hawaii CFDA #: 14.228 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria The CDBG Annual Performance Report was required to be filed with the State Department of Housing and Community Development by August 2, 2022. Condition The City had not filed the CDBG Annual Performance Report, including Attachment A ? Program Income, by the required date. Cause There was not adequate monitoring of CDBG filing requirements related to the CDBG Annual Performance Report to ensure that it was filed by the required due date. Effect The City did not file the CDBG Annual Performance Report by the required due date. Questioned Cost No questioned costs were identified as a result of our procedures. Context The CDBG Annual Performance Report was unavailable for review. Repeat Finding This is a repeat of prior year finding 2021-002. Recommendation We recommend that the City develop procedures to ensure that the CDBG Annual Performance Report is filed by the required due date. 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.
Finding 2022-001
2022-001 Name: Home Investment Partnership Program CFDA #: 14.239 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria The loan documents require that recipients of HOME loans continue to own and reside in their homes that were acquired using HOME funding. Condition During our test of loan monitoring procedures, we noted that all of the loans tested did not include verification documentation regarding loan recipients were the home owners during the 2021-2022 fiscal year. We also noted verification that the loan recipients occupied the homes obtained with HOME funding was missing. Cause The City did not have formalized loan monitoring policies and procedures in place to ensure that loans were monitored on an annual basis in accordance with the loan agreements. Effect Documentation was not provided to verify that the loan recipients were in compliance with the requirements of their loan agreements. Questioned Cost No questioned costs were identified as a result of our procedures. Context We randomly selected one of the two HOME loan recipients to test loan monitoring procedures. Sampling was a statistically valid sample. We noted that the recipient was not in compliance with the HOME loan agreements. Repeat Finding This is a repeat of prior year finding 2021-001. Recommendation We recommend that the City develop and maintain policies and procedures regarding loan monitoring and ensure that all documentation of loan monitoring be maintained on an annual basis. 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.
Finding 2022-001
2022-001 Name: Home Investment Partnership Program CFDA #: 14.239 Federal Grantor: U.S. Department of Housing and Urban Development Pass Through Entity: State Department of Housing and Community Development Award No.: Various Year: 2021/2022 Compliance Requirement: Program Income Criteria The loan documents require that recipients of HOME loans continue to own and reside in their homes that were acquired using HOME funding. Condition During our test of loan monitoring procedures, we noted that all of the loans tested did not include verification documentation regarding loan recipients were the home owners during the 2021-2022 fiscal year. We also noted verification that the loan recipients occupied the homes obtained with HOME funding was missing. Cause The City did not have formalized loan monitoring policies and procedures in place to ensure that loans were monitored on an annual basis in accordance with the loan agreements. Effect Documentation was not provided to verify that the loan recipients were in compliance with the requirements of their loan agreements. Questioned Cost No questioned costs were identified as a result of our procedures. Context We randomly selected one of the two HOME loan recipients to test loan monitoring procedures. Sampling was a statistically valid sample. We noted that the recipient was not in compliance with the HOME loan agreements. Repeat Finding This is a repeat of prior year finding 2021-001. Recommendation We recommend that the City develop and maintain policies and procedures regarding loan monitoring and ensure that all documentation of loan monitoring be maintained on an annual basis. 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.