Audit 301670

FY End
2023-06-30
Total Expended
$46.18M
Findings
2
Programs
37
Organization: County of Sutter (CA)
Year: 2023 Accepted: 2024-04-01

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
391073 2023-002 Significant Deficiency Yes N
967515 2023-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $12.51M Yes 0
93.659 Adoption Assistance $2.67M - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $1.56M - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.09M - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $807,634 - 0
93.658 Foster Care_title IV-E $782,961 - 0
93.268 Immunization Cooperative Agreements $435,684 - 0
93.778 Medical Assistance Program $338,101 Yes 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $265,663 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $238,565 - 0
16.575 Crime Victim Assistance $233,441 - 0
93.558 Temporary Assistance for Needy Families $186,278 Yes 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $160,993 - 0
97.042 Emergency Management Performance Grants $145,344 - 0
93.889 National Bioterrorism Hospital Preparedness Program $144,341 - 0
10.664 Cooperative Forestry Assistance $142,594 - 0
16.606 State Criminal Alien Assistance Program $116,721 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $110,399 - 0
10.551 Supplemental Nutrition Assistance Program $99,957 - 0
93.958 Block Grants for Community Mental Health Services $98,671 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $97,457 Yes 0
93.667 Social Services Block Grant $96,045 - 0
97.067 Homeland Security Grant Program $87,157 - 0
93.779 Centers for Medicare and Medicaid Services (cms) Research, Demonstrations and Evaluations $84,282 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $71,940 - 0
93.110 Maternal and Child Health Federal Consolidated Programs $62,257 - 0
93.150 Projects for Assistance in Transition From Homelessness (path) $60,432 - 0
14.239 Home Investment Partnerships Program $47,775 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $45,799 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $39,466 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $34,810 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $30,888 - 0
93.090 Guardianship Assistance $22,420 - 0
93.197 Childhood Lead Poisoning Prevention Projects_state and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $20,160 - 0
97.044 Assistance to Firefighters Grant $18,036 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $12,332 - 0
16.607 Bulletproof Vest Partnership Program $8,661 - 0

Contacts

Name Title Type
N5VKWJAJBTG1 Nathan Black Auditee
5308227127 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: Note 1: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards a. Scope of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the County of Sutter, California (the “County”) 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 County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County. 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 County 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 County 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 County 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 County of Sutter, California (the “County”) 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 County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County.
Title: Note 2: Medicaid Cluster Accounting Policies: Note 1: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards a. Scope of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the County of Sutter, California (the “County”) 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 County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County. 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 County 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 County 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 County has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Except for Medi-Cal administrative expenditures, Medicaid (Medi-Cal) and Medicare program expenditures are excluded from the Schedule. These expenditures represent fees for services; therefore, neither is considered a federal award program of the County for purposes of the Schedule or in determining major programs. The County assists the State of California in determining eligibility and provides Medi-Cal and Medicare services through County-owned health facilities. Medi-Cal administrative expenditures are included in the Schedule as they do not represent fees for services.
Title: Note 3: Loan Programs with Continuing Compliance Requirements Accounting Policies: Note 1: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards a. Scope of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the County of Sutter, California (the “County”) 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 County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County. 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 County 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 County 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 County has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The following schedule presents the amount of outstanding loans receivable by Assistance Listing number. All loans with continuing compliance requirements are included on the accompanying Schedule. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2023, consists of:

Finding Details

Evaluation of Finding Significant Deficiency/Noncompliance Federal Award Information Assistance Listing Number: 14.228 Program Title: Community Development Block Grant (CDBG) Federal Award Year(s): FY 2022-23 Name of Federal Agency: U.S. Department of Housing and Urban Development Passed through: State of California Department of Housing and Community Development Criteria or Specific Requirement The County is required to meet continuing loan compliance requirements for the loans disbursed under the CDBG grant program. These continuing loan compliance requirements include maintaining loan documentation and obtaining confirmation of insurance and address associated with the loans and their recipients. Condition We noted that of the 19 loan balances we sampled over the course of our audit, the County was unable to provide supporting documentation relating to proof of insurance and/or address for 13 of the selected loans. Cause of the Condition Per our inquiries with the County, due to the significant age of the selected loans, County personnel was unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Effect or Possible Effect Adequate supporting documentation of outstanding loans is not being effectively maintained and archived by County personnel. Additionally, the County was unable to provide proof of confirmation attempts to verify insurance and address associated with the loans and their recipients to meet compliance requirements. Questioned Costs None. Context Without maintaining current information surrounding ongoing loans the County is unable to best monitor grant recipients and evaluate the accuracy and reasonableness of the outstanding loan balances each year. Repeat Finding This is a repeat finding for the year ended June 30, 2022. See prior year finding 2022-001. Recommendation We recommend that management monitors each loan to ensure that the County maintains the most up-to-date information. Additionally, we recommend attempts are made annually to confirm insurance and address associated with the loans and their recipients to meet compliance requirements. Management’s Response and Corrective Action The County agrees with the finding. The Auditor-Controller will work with Development Services to show proof of attempts to collect current insurance certificates and proof of address from loan recipients.
Evaluation of Finding Significant Deficiency/Noncompliance Federal Award Information Assistance Listing Number: 14.228 Program Title: Community Development Block Grant (CDBG) Federal Award Year(s): FY 2022-23 Name of Federal Agency: U.S. Department of Housing and Urban Development Passed through: State of California Department of Housing and Community Development Criteria or Specific Requirement The County is required to meet continuing loan compliance requirements for the loans disbursed under the CDBG grant program. These continuing loan compliance requirements include maintaining loan documentation and obtaining confirmation of insurance and address associated with the loans and their recipients. Condition We noted that of the 19 loan balances we sampled over the course of our audit, the County was unable to provide supporting documentation relating to proof of insurance and/or address for 13 of the selected loans. Cause of the Condition Per our inquiries with the County, due to the significant age of the selected loans, County personnel was unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Effect or Possible Effect Adequate supporting documentation of outstanding loans is not being effectively maintained and archived by County personnel. Additionally, the County was unable to provide proof of confirmation attempts to verify insurance and address associated with the loans and their recipients to meet compliance requirements. Questioned Costs None. Context Without maintaining current information surrounding ongoing loans the County is unable to best monitor grant recipients and evaluate the accuracy and reasonableness of the outstanding loan balances each year. Repeat Finding This is a repeat finding for the year ended June 30, 2022. See prior year finding 2022-001. Recommendation We recommend that management monitors each loan to ensure that the County maintains the most up-to-date information. Additionally, we recommend attempts are made annually to confirm insurance and address associated with the loans and their recipients to meet compliance requirements. Management’s Response and Corrective Action The County agrees with the finding. The Auditor-Controller will work with Development Services to show proof of attempts to collect current insurance certificates and proof of address from loan recipients.