Audit 296069

FY End
2023-06-30
Total Expended
$18.75M
Findings
2
Programs
4
Organization: City of Dixon (CA)
Year: 2023 Accepted: 2024-03-20

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
382366 2023-002 Significant Deficiency - E
958808 2023-002 Significant Deficiency - E

Contacts

Name Title Type
QE5XPBRM4L97 Kate Zawadzki Auditee
7076787000 Brandon Young Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards Accounting Policies: A. Scope of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Dixon under programs of the federal government for the year ended June 30, 2023. 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 of Dixon, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Dixon. B. Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. A. Scope of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Dixon under programs of the federal government for the year ended June 30, 2023. 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 of Dixon, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Dixon. B. Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Loan Programs with Continuing Compliance Requirements Accounting Policies: A. Scope of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Dixon under programs of the federal government for the year ended June 30, 2023. 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 of Dixon, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Dixon. B. Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The City participates in certain federal award programs that sponsor revolving loan programs, which are administered by the City. These programs required servicing arrangements with the City. The funds are returned to the programs upon repayment of the principal and interest. Current year transactions relating to these programs are included in the schedule of expenditures of federal awards. See the Notes to the SEFA for chart/table.

Finding Details

Criteria or Specific Requirement: Management is required to establish and maintain effective internal controls over each federal award, allowing management to evaluate and monitor compliance with statutes, regulations, and terms of the federal award, per Uniform Guidance section 200.303 Internal Controls. Condition: The City has not established internal controls over the program monitoring requirement of this federal award. Cause of Condition: The City has engaged third party specialists to oversee this program and its compliance requirements, however, the City has not established and maintained internal controls surrounding the work being completed by the specialists to ensure federal award requirements are being followed. Effect or Potential Effect of Condition: Without established controls within the City to review the work performed by the specialist engaged to monitor the federal program the City may be unaware of potential noncompliance with grant requirements, causing noncompliance by the City. If noncompliance occurs, the City could be at risk of reduced funding. Context: The City has not established internal controls over the program monitoring requirement of this federal award. Questioned Costs: None. Repeat Finding: This is a new finding for the fiscal year ended June 30, 2023. Recommendation: The City should establish and maintain a review of procedures performed by third party specialists the City has engaged to oversee any federal program, to ensure all appropriate federal award requirements are being implemented and completed. Management Response and Corrective Action: The City of Dixon will be hiring an Economic Development Specialist that will oversee this grant program. The Specialist will review the report from the consultant to ensure that all procedures were completed and submitted to the State.
Criteria or Specific Requirement: Management is required to establish and maintain effective internal controls over each federal award, allowing management to evaluate and monitor compliance with statutes, regulations, and terms of the federal award, per Uniform Guidance section 200.303 Internal Controls. Condition: The City has not established internal controls over the program monitoring requirement of this federal award. Cause of Condition: The City has engaged third party specialists to oversee this program and its compliance requirements, however, the City has not established and maintained internal controls surrounding the work being completed by the specialists to ensure federal award requirements are being followed. Effect or Potential Effect of Condition: Without established controls within the City to review the work performed by the specialist engaged to monitor the federal program the City may be unaware of potential noncompliance with grant requirements, causing noncompliance by the City. If noncompliance occurs, the City could be at risk of reduced funding. Context: The City has not established internal controls over the program monitoring requirement of this federal award. Questioned Costs: None. Repeat Finding: This is a new finding for the fiscal year ended June 30, 2023. Recommendation: The City should establish and maintain a review of procedures performed by third party specialists the City has engaged to oversee any federal program, to ensure all appropriate federal award requirements are being implemented and completed. Management Response and Corrective Action: The City of Dixon will be hiring an Economic Development Specialist that will oversee this grant program. The Specialist will review the report from the consultant to ensure that all procedures were completed and submitted to the State.