FAC Explorer

Audit 300114

FY End
2023-06-30
Total Expended
$22.59M
Findings
6
Programs
11
Organization: City of Fontana (CA)
Year: 2023 Accepted: 2024-03-28
Auditor: Davis Farr LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388324 2023-002 Significant Deficiency Yes I
388325 2023-002 Significant Deficiency Yes I
388326 2023-002 Significant Deficiency Yes I
964766 2023-002 Significant Deficiency Yes I
964767 2023-002 Significant Deficiency Yes I
964768 2023-002 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
16.922 Equitable Sharing Program $2.73M - 0
14.231 Emergency Solutions Grant Program $599,963 - 0
14.218 Community Development Block Grants/entitlement Grants $343,982 Yes 0
16.710 Public Safety Partnership and Community Policing Grants $304,603 - 0
20.600 State and Community Highway Safety $235,863 - 0
14.239 Home Investment Partnerships Program $144,710 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $131,499 Yes 1
20.219 Recreational Trails Program $69,122 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $54,365 - 0
97.067 Homeland Security Grant Program $26,050 - 0
21.023 Emergency Rental Assistance Program $1,214 - 0

Contacts

Name Title Type
WLF8LH1TH3P8 Marlene Galvan Auditee
9093507611 Jonathan Foster Auditor
No contacts on file

Notes to SEFA

Title: Scope of Presentation Accounting Policies: GAAP De Minimis Rate Used: N Rate Explanation: The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance The accompanying schedule presents only the expenditures incurred by the City that are reimbursable by agencies providing federal assistance. For the purposes of this schedule, federal financial assistance includes both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. The City did not use the 10% de minimis indirect cost rate covered in section 200.414 of the Uniform Guidance.
Title: Basis of Accounting Accounting Policies: GAAP De Minimis Rate Used: N Rate Explanation: The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. Expenditures reported include any property or equipment acquisitions incurred under the federal program.

Finding Details

Finding 2023-002
2023-002 Methods of procurement to be followed Federal Agency: Department of Treasury CFDA Cluster Nos.: 21.027 Federal Program Cluster: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Methods of procurement to be followed Type of Finding: Significant Deficiency Questioned Costs: $0 Criteria: 2 CFR 200.320 Methods of procurement to be followed Condition: In two instances, the City did not follow the procurement method to be followed under Uniform Guidance. In the first instance, the City claimed a higher threshold for Micro-purchases, up to $50,000 as allowed by self-certification, however evidence of the self-certification was not available. In the second instance, the City exceeded the $50,000 threshold required for method of procurement for Micro-purchases. Cause: Inaccurate interpretation of Uniform Guidance. Effect: The City’s method of procurement was not in compliance with the methods prescribed by 2 CFR 200.320 Methods of procurement to be followed. Recommendation: We recommend the City follow the methods of procurement as prescribed by 2 CFR 200.320 Methods of procurement to be followed. In addition, the City should self-certify annually and retain evidence of the self-certification for the increases threshold of Micro-purchases. Management’s Response Regarding Corrective Action Taken or Planned The City concurs with the second instance in which the City exceeds the $50,000 threshold required for the method of procurement for Micro-Purchases. The City corrected the public works contract template using federal funds not to exceed $50,000 and has updated the City internal website to reflect the updated contract templates and provide guidelines for public work projects using federal funds under the micro-purchase thresholds. For the first instance, the City believes some form of self-certification was performed as the procurement policy was updated and reviewed by internal management level and was approved by the council in FY2023. However, moving forward, the city will include an approved annual memo on the review of the purchasing policy to further strengthen the self-certification documentation.
Finding 2023-002
2023-002 Methods of procurement to be followed Federal Agency: Department of Treasury CFDA Cluster Nos.: 21.027 Federal Program Cluster: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Methods of procurement to be followed Type of Finding: Significant Deficiency Questioned Costs: $0 Criteria: 2 CFR 200.320 Methods of procurement to be followed Condition: In two instances, the City did not follow the procurement method to be followed under Uniform Guidance. In the first instance, the City claimed a higher threshold for Micro-purchases, up to $50,000 as allowed by self-certification, however evidence of the self-certification was not available. In the second instance, the City exceeded the $50,000 threshold required for method of procurement for Micro-purchases. Cause: Inaccurate interpretation of Uniform Guidance. Effect: The City’s method of procurement was not in compliance with the methods prescribed by 2 CFR 200.320 Methods of procurement to be followed. Recommendation: We recommend the City follow the methods of procurement as prescribed by 2 CFR 200.320 Methods of procurement to be followed. In addition, the City should self-certify annually and retain evidence of the self-certification for the increases threshold of Micro-purchases. Management’s Response Regarding Corrective Action Taken or Planned The City concurs with the second instance in which the City exceeds the $50,000 threshold required for the method of procurement for Micro-Purchases. The City corrected the public works contract template using federal funds not to exceed $50,000 and has updated the City internal website to reflect the updated contract templates and provide guidelines for public work projects using federal funds under the micro-purchase thresholds. For the first instance, the City believes some form of self-certification was performed as the procurement policy was updated and reviewed by internal management level and was approved by the council in FY2023. However, moving forward, the city will include an approved annual memo on the review of the purchasing policy to further strengthen the self-certification documentation.
Finding 2023-002
2023-002 Methods of procurement to be followed Federal Agency: Department of Treasury CFDA Cluster Nos.: 21.027 Federal Program Cluster: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Methods of procurement to be followed Type of Finding: Significant Deficiency Questioned Costs: $0 Criteria: 2 CFR 200.320 Methods of procurement to be followed Condition: In two instances, the City did not follow the procurement method to be followed under Uniform Guidance. In the first instance, the City claimed a higher threshold for Micro-purchases, up to $50,000 as allowed by self-certification, however evidence of the self-certification was not available. In the second instance, the City exceeded the $50,000 threshold required for method of procurement for Micro-purchases. Cause: Inaccurate interpretation of Uniform Guidance. Effect: The City’s method of procurement was not in compliance with the methods prescribed by 2 CFR 200.320 Methods of procurement to be followed. Recommendation: We recommend the City follow the methods of procurement as prescribed by 2 CFR 200.320 Methods of procurement to be followed. In addition, the City should self-certify annually and retain evidence of the self-certification for the increases threshold of Micro-purchases. Management’s Response Regarding Corrective Action Taken or Planned The City concurs with the second instance in which the City exceeds the $50,000 threshold required for the method of procurement for Micro-Purchases. The City corrected the public works contract template using federal funds not to exceed $50,000 and has updated the City internal website to reflect the updated contract templates and provide guidelines for public work projects using federal funds under the micro-purchase thresholds. For the first instance, the City believes some form of self-certification was performed as the procurement policy was updated and reviewed by internal management level and was approved by the council in FY2023. However, moving forward, the city will include an approved annual memo on the review of the purchasing policy to further strengthen the self-certification documentation.
Finding 2023-002
2023-002 Methods of procurement to be followed Federal Agency: Department of Treasury CFDA Cluster Nos.: 21.027 Federal Program Cluster: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Methods of procurement to be followed Type of Finding: Significant Deficiency Questioned Costs: $0 Criteria: 2 CFR 200.320 Methods of procurement to be followed Condition: In two instances, the City did not follow the procurement method to be followed under Uniform Guidance. In the first instance, the City claimed a higher threshold for Micro-purchases, up to $50,000 as allowed by self-certification, however evidence of the self-certification was not available. In the second instance, the City exceeded the $50,000 threshold required for method of procurement for Micro-purchases. Cause: Inaccurate interpretation of Uniform Guidance. Effect: The City’s method of procurement was not in compliance with the methods prescribed by 2 CFR 200.320 Methods of procurement to be followed. Recommendation: We recommend the City follow the methods of procurement as prescribed by 2 CFR 200.320 Methods of procurement to be followed. In addition, the City should self-certify annually and retain evidence of the self-certification for the increases threshold of Micro-purchases. Management’s Response Regarding Corrective Action Taken or Planned The City concurs with the second instance in which the City exceeds the $50,000 threshold required for the method of procurement for Micro-Purchases. The City corrected the public works contract template using federal funds not to exceed $50,000 and has updated the City internal website to reflect the updated contract templates and provide guidelines for public work projects using federal funds under the micro-purchase thresholds. For the first instance, the City believes some form of self-certification was performed as the procurement policy was updated and reviewed by internal management level and was approved by the council in FY2023. However, moving forward, the city will include an approved annual memo on the review of the purchasing policy to further strengthen the self-certification documentation.
Finding 2023-002
2023-002 Methods of procurement to be followed Federal Agency: Department of Treasury CFDA Cluster Nos.: 21.027 Federal Program Cluster: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Methods of procurement to be followed Type of Finding: Significant Deficiency Questioned Costs: $0 Criteria: 2 CFR 200.320 Methods of procurement to be followed Condition: In two instances, the City did not follow the procurement method to be followed under Uniform Guidance. In the first instance, the City claimed a higher threshold for Micro-purchases, up to $50,000 as allowed by self-certification, however evidence of the self-certification was not available. In the second instance, the City exceeded the $50,000 threshold required for method of procurement for Micro-purchases. Cause: Inaccurate interpretation of Uniform Guidance. Effect: The City’s method of procurement was not in compliance with the methods prescribed by 2 CFR 200.320 Methods of procurement to be followed. Recommendation: We recommend the City follow the methods of procurement as prescribed by 2 CFR 200.320 Methods of procurement to be followed. In addition, the City should self-certify annually and retain evidence of the self-certification for the increases threshold of Micro-purchases. Management’s Response Regarding Corrective Action Taken or Planned The City concurs with the second instance in which the City exceeds the $50,000 threshold required for the method of procurement for Micro-Purchases. The City corrected the public works contract template using federal funds not to exceed $50,000 and has updated the City internal website to reflect the updated contract templates and provide guidelines for public work projects using federal funds under the micro-purchase thresholds. For the first instance, the City believes some form of self-certification was performed as the procurement policy was updated and reviewed by internal management level and was approved by the council in FY2023. However, moving forward, the city will include an approved annual memo on the review of the purchasing policy to further strengthen the self-certification documentation.
Finding 2023-002
2023-002 Methods of procurement to be followed Federal Agency: Department of Treasury CFDA Cluster Nos.: 21.027 Federal Program Cluster: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Methods of procurement to be followed Type of Finding: Significant Deficiency Questioned Costs: $0 Criteria: 2 CFR 200.320 Methods of procurement to be followed Condition: In two instances, the City did not follow the procurement method to be followed under Uniform Guidance. In the first instance, the City claimed a higher threshold for Micro-purchases, up to $50,000 as allowed by self-certification, however evidence of the self-certification was not available. In the second instance, the City exceeded the $50,000 threshold required for method of procurement for Micro-purchases. Cause: Inaccurate interpretation of Uniform Guidance. Effect: The City’s method of procurement was not in compliance with the methods prescribed by 2 CFR 200.320 Methods of procurement to be followed. Recommendation: We recommend the City follow the methods of procurement as prescribed by 2 CFR 200.320 Methods of procurement to be followed. In addition, the City should self-certify annually and retain evidence of the self-certification for the increases threshold of Micro-purchases. Management’s Response Regarding Corrective Action Taken or Planned The City concurs with the second instance in which the City exceeds the $50,000 threshold required for the method of procurement for Micro-Purchases. The City corrected the public works contract template using federal funds not to exceed $50,000 and has updated the City internal website to reflect the updated contract templates and provide guidelines for public work projects using federal funds under the micro-purchase thresholds. For the first instance, the City believes some form of self-certification was performed as the procurement policy was updated and reviewed by internal management level and was approved by the council in FY2023. However, moving forward, the city will include an approved annual memo on the review of the purchasing policy to further strengthen the self-certification documentation.