FAC Explorer

Audit 22947

FY End
2022-06-30
Total Expended
$2.64M
Findings
4
Programs
5
Organization: City of Placenita (CA)
Year: 2022 Accepted: 2023-08-07
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
16102 2022-003 Significant Deficiency - I
16103 2022-004 Significant Deficiency - L
592544 2022-003 Significant Deficiency - I
592545 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $904,755 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $887,114 Yes 2
14.218 Community Development Block Grants/entitlement Grants $409,819 - 0
16.922 Equitable Sharing Program $153,674 - 0
16.609 Project Safe Neighborhoods $5,203 - 0

Contacts

Name Title Type
WN5YQKL2QFZF Jennifer Lampman Auditee
7149938229 Robert J Callanan Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Placentia (the City) under programs of the federal government as well as federal financial assistance passed through other government agencies for the year ended June 30, 2022. 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 statements of the City. The Citys reporting entity is defined in Note 1 of the notes to the Citys financial statements.NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in Note 1 of the notes to the Citys financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-003
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, the City was unable to provide evidence that suspension and debarment verification was performed. Questioned Costs: None. Context: There were five vendors subject to suspension and debarment testing for FY 21-22. While the City did not perform the suspension and debarment verification for these vendors tested, the vendors were not on the suspended and debarred listing. Cause: Procedures were not in place to retain evidence of debarment status check. Effect: The city is unable to prove that internal control procedures over suspension and debarment compliance were performed. Recommendation: We recommend that management review is procedures for retaining evidence debarment status being checked prior to entering into purchase agreements.
Finding 2022-004
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Post Federal Award Requirements requires that the financial management system of a non-Federal entity provide for accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with reporting requirements. Condition: During our testing, we noted the City?s submitted Project and Expenditure Report for the quarter ended December 31, 2021, included inaccurate information. Questioned Costs: None. Context: The report indicated that $9,083,054 of expenditures had been incurred during the period, under the revenue loss provisions of the award. This amount was indicated as this was the City?s full award amount and the City had elected the $10 million standard allowance for revenue loss. While the amounts had been obligated, the City had not expended the full award amount. Cause: Reporting parameters were not understood at the time the report was submitted. Effect: The Project and Expenditure Report submitted included inaccurate information. Recommendation: We recommend that the City review its procedures for the preparation and review of reporting for Federal grants, whereby amounts included on reports are reconciled to the City's accounting records.
Finding 2022-003
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, the City was unable to provide evidence that suspension and debarment verification was performed. Questioned Costs: None. Context: There were five vendors subject to suspension and debarment testing for FY 21-22. While the City did not perform the suspension and debarment verification for these vendors tested, the vendors were not on the suspended and debarred listing. Cause: Procedures were not in place to retain evidence of debarment status check. Effect: The city is unable to prove that internal control procedures over suspension and debarment compliance were performed. Recommendation: We recommend that management review is procedures for retaining evidence debarment status being checked prior to entering into purchase agreements.
Finding 2022-004
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Post Federal Award Requirements requires that the financial management system of a non-Federal entity provide for accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with reporting requirements. Condition: During our testing, we noted the City?s submitted Project and Expenditure Report for the quarter ended December 31, 2021, included inaccurate information. Questioned Costs: None. Context: The report indicated that $9,083,054 of expenditures had been incurred during the period, under the revenue loss provisions of the award. This amount was indicated as this was the City?s full award amount and the City had elected the $10 million standard allowance for revenue loss. While the amounts had been obligated, the City had not expended the full award amount. Cause: Reporting parameters were not understood at the time the report was submitted. Effect: The Project and Expenditure Report submitted included inaccurate information. Recommendation: We recommend that the City review its procedures for the preparation and review of reporting for Federal grants, whereby amounts included on reports are reconciled to the City's accounting records.