Audit 292898

FY End
2023-06-30
Total Expended
$2.86M
Findings
2
Programs
10
Organization: City of Santa Clara (CA)
Year: 2023 Accepted: 2024-02-29

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
371206 2023-001 - - C
947648 2023-001 - - C

Contacts

Name Title Type
RK62GLSXRUK9 Linh Lam Auditee
4086152345 Grace Zhang Auditor
No contacts on file

Notes to SEFA

Title: REPORTING ENTITY Accounting Policies: Basis 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 governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City of Santa Clara, California, and its component units as disclosed in the notes to the Basic Financial Statements, except for federal awards of the Santa Clara Stadium Authority (Stadium Authority). Federal awards expended by the Stadium Authority, if any, are excluded from the Schedule and are subject to a separate Single Audit performed by other auditors.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis 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 governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Basis 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 governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred.
Title: INDIRECT COST ELECTION Accounting Policies: Basis 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 governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

The U.S. Department of Housing and Urban Development San Francisco Regional Office reviewed Santa Clara’s compliance with requirements for carrying out a CDBG Program in a timely manner and noticed the City of the following conditions: • Prior to the next 60-day test to be conducted on May 2, 2024, it was calculated that the City’s community has an adjusted line of credit balance of 3.07 times its annual grant. • The last 60-day test conducted on May 2, 2023, indicated an adjusted line of credit balance of 2.38 times its annual grant. • On May 2, 2022, the City had an adjusted line of credit balance of 1.90 times its annual grant. Therefore, the Office notified the City that it is at risk of non-compliance with the 1.5 performance standard for the third consecutive year.
The U.S. Department of Housing and Urban Development San Francisco Regional Office reviewed Santa Clara’s compliance with requirements for carrying out a CDBG Program in a timely manner and noticed the City of the following conditions: • Prior to the next 60-day test to be conducted on May 2, 2024, it was calculated that the City’s community has an adjusted line of credit balance of 3.07 times its annual grant. • The last 60-day test conducted on May 2, 2023, indicated an adjusted line of credit balance of 2.38 times its annual grant. • On May 2, 2022, the City had an adjusted line of credit balance of 1.90 times its annual grant. Therefore, the Office notified the City that it is at risk of non-compliance with the 1.5 performance standard for the third consecutive year.