FAC Explorer

Audit 26059

FY End
2022-06-30
Total Expended
$26.04M
Findings
4
Programs
19
Organization: City of Santa Barbara (CA)
Year: 2022 Accepted: 2023-03-30
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20469 2022-001 Significant Deficiency - I
20470 2022-002 Significant Deficiency Yes L
596911 2022-001 Significant Deficiency - I
596912 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $10.43M Yes 0
20.106 Airport Improvement Program $6.30M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $572,764 Yes 0
14.231 Emergency Solutions Grant Program $542,517 Yes 0
97.039 Hazard Mitigation Grant $508,702 - 0
14.218 Community Development Block Grants/entitlement Grants $443,055 - 0
15.507 Watersmart (sustaining and Manage America's Resources for Tomorrow) $370,324 - 0
14.239 Home Investment Partnerships Program $246,350 - 0
15.514 Reclamation States Emergency Drought Relief $138,978 - 0
20.600 State and Community Highway Safety $78,123 - 0
45.310 Grants to States $51,930 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $48,792 - 0
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $34,984 - 0
15.904 Historic Preservation Fund Grants-in-Aid $34,948 - 0
45.024 Promotion of the Arts_grants to Organizations and Individuals $20,000 - 0
16.607 Bulletproof Vest Partnership Program $9,216 - 0
97.067 Homeland Security Grant Program $7,441 - 0
45.129 Promotion of the Humanities_federal/state Partnership $5,000 - 0
10.664 Cooperative Forestry Assistance $794 - 0

Contacts

Name Title Type
JLLURHK1G6N4 Keith Demartini Auditee
8055645528 Nitin Patel Auditor
No contacts on file

Notes to SEFA

Title: Contingencies Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Santa Barbara (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 2 BASIS OF ACCOUNTING The accompanying Schedule is presented using the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in the 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. The information in the SEFA is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements. Pass-through entity identifying numbers are identified where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.

Finding Details

Finding 2022-001
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 suspension and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was not able to provide supporting documentation that the City verified the vendor was not suspended or debarred prior to entering the transaction. Questioned costs: None. Context: There were two vendors during FY 21-22 that were a covered transaction for this program. Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into a contract. Effect: The auditor noted no instances of noncompliance with the provisions of suspension, and debarment; however, we were not able to verify that the City followed their internal controls to ensure the vendor was not suspended or debarred prior to entering the transaction. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement procedures to ensure that verification documentation for suspension and debarment is maintained to support the City's internal control over compliance. Views of responsible officials: The City agrees with the recommendation. Despite understanding of these requirements, the City failed to document verification of suspension and debarment findings. We have taken immediate action to incorporate standards to ensure that these measures are documented and maintained appropriately moving forward.
Finding 2022-002
Criteria or specific requirement: The interim report was due by August 31, 2021, or sixty days after receiving funding, if funding was received by October 15, 2021, and should include all expenditures by category incurred. Condition: The City did not include any of the $10,918,762 of expenditures by category required with the submission of the interim report. Questioned costs: None Context: The City was required to submit an interim report by August 31, 2021, that included expenditures incurred by category. The report did not include any of the $10,918,762 of expenditures that had been incurred as of the report date. Cause: The City interpreted guidance related to the reporting that if utilizing the lost revenue category to cover the entire $10,918,762 the requirement to include the applicable expenditures by category was not applicable. Effect: The City was not in compliance with reporting requirements. Repeat Finding: Yes. Recommendation: We recommend the City implement procedures to ensure compliance with all reporting requirements. Views of responsible officials: The City agrees with the recommendation. SLRF reporting was a new requirement for the City in 2021. Despite review, preparers missed the expenditure line item on the report. The City has since implemented more robust review processes to assure each line item is properly addressed before submittal.
Finding 2022-001
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 suspension and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was not able to provide supporting documentation that the City verified the vendor was not suspended or debarred prior to entering the transaction. Questioned costs: None. Context: There were two vendors during FY 21-22 that were a covered transaction for this program. Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into a contract. Effect: The auditor noted no instances of noncompliance with the provisions of suspension, and debarment; however, we were not able to verify that the City followed their internal controls to ensure the vendor was not suspended or debarred prior to entering the transaction. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement procedures to ensure that verification documentation for suspension and debarment is maintained to support the City's internal control over compliance. Views of responsible officials: The City agrees with the recommendation. Despite understanding of these requirements, the City failed to document verification of suspension and debarment findings. We have taken immediate action to incorporate standards to ensure that these measures are documented and maintained appropriately moving forward.
Finding 2022-002
Criteria or specific requirement: The interim report was due by August 31, 2021, or sixty days after receiving funding, if funding was received by October 15, 2021, and should include all expenditures by category incurred. Condition: The City did not include any of the $10,918,762 of expenditures by category required with the submission of the interim report. Questioned costs: None Context: The City was required to submit an interim report by August 31, 2021, that included expenditures incurred by category. The report did not include any of the $10,918,762 of expenditures that had been incurred as of the report date. Cause: The City interpreted guidance related to the reporting that if utilizing the lost revenue category to cover the entire $10,918,762 the requirement to include the applicable expenditures by category was not applicable. Effect: The City was not in compliance with reporting requirements. Repeat Finding: Yes. Recommendation: We recommend the City implement procedures to ensure compliance with all reporting requirements. Views of responsible officials: The City agrees with the recommendation. SLRF reporting was a new requirement for the City in 2021. Despite review, preparers missed the expenditure line item on the report. The City has since implemented more robust review processes to assure each line item is properly addressed before submittal.