FAC Explorer

Audit 299436

FY End
2023-06-30
Total Expended
$1.53M
Findings
2
Programs
7
Organization: City of Bell, California (CA)
Year: 2023 Accepted: 2024-03-28
Auditor: The Pun Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
387148 2023-004 Significant Deficiency Yes I
963590 2023-004 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $963,863 Yes 1
14.218 Community Development Block Grants/entitlement Grants $87,600 - 0
20.600 State and Community Highway Safety $28,392 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $19,611 - 0
21.016 Equitable Sharing $17,657 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $12,467 - 0
20.205 Highway Planning and Construction $11,819 - 0

Contacts

Name Title Type
F1VDLCPAT2J3 Rickey Manbahal Auditee
3235886211 Frances J. Kuo Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: The activity of the City’s federal award programs is reported within the General Fund, the special revenue funds and the capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the General Fund, the special revenue funds and the capital projects funds as described in Note 1 to the City’s basic financial statements. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis cost rate. The financial reporting entity, as defined by the Governmental Accounting Standards Board (“GASB”) Codification, consists of the primary government, which is the City of Bell, California (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The City Council acts as the governing body and is able to impose its will on the following organizations, establishing financial accountability: - Bell Surplus Property Authority - Bell Public Financing Authority - Bell Community Housing Authority - Bell Solid Waste and Recycling Authority
Title: Schedule of Expenditures of Federal Awards Accounting Policies: The activity of the City’s federal award programs is reported within the General Fund, the special revenue funds and the capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the General Fund, the special revenue funds and the capital projects funds as described in Note 1 to the City’s basic financial statements. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis cost rate. The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the County of Los Angeles, the California Department of Transportation, and the State of California Office of Traffic Safety, are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.
Title: Assistance Listing Numbers Accounting Policies: The activity of the City’s federal award programs is reported within the General Fund, the special revenue funds and the capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the General Fund, the special revenue funds and the capital projects funds as described in Note 1 to the City’s basic financial statements. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis cost rate. The assistance listing numbers included in the accompanying Schedule were determined based on the program name, review of grant contract information, and the Office of Management and Budget’s Catalog of Federal Domestic Assistance.

Finding Details

Finding 2023-004
Identification of the Federal Program: Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Agency: U.S. Department of the Treasury Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition: During the audit, we noticed that the City did not perform suspension and debarment checks on the contractors that they hired with CSLFRF monies. Cause: The City does not have formal policies and procedures in place to ensure the suspension and debarment review process over vendors that provides goods or services to the City’s programs was conducted prior to entering into a contract. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Yes, see prior year finding 2022-002. Recommendation: We recommended the City develop policies and procedures to incorporate the suspension and debarment verification prior to awarding contracts. Views of Responsible Officials: Management concurs with the finding and agrees to implement necessary corrective procedures.
Finding 2023-004
Identification of the Federal Program: Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Agency: U.S. Department of the Treasury Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition: During the audit, we noticed that the City did not perform suspension and debarment checks on the contractors that they hired with CSLFRF monies. Cause: The City does not have formal policies and procedures in place to ensure the suspension and debarment review process over vendors that provides goods or services to the City’s programs was conducted prior to entering into a contract. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Yes, see prior year finding 2022-002. Recommendation: We recommended the City develop policies and procedures to incorporate the suspension and debarment verification prior to awarding contracts. Views of Responsible Officials: Management concurs with the finding and agrees to implement necessary corrective procedures.