FAC Explorer

Audit 30240

FY End
2022-06-30
Total Expended
$919,489
Findings
2
Programs
2
Organization: City of Solvang (CA)
Year: 2022 Accepted: 2023-02-13
Auditor: Badawi & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34896 2022-002 Significant Deficiency - L
611338 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $698,287 Yes 1
20.509 Formula Grants for Rural Areas and Tribal Transit Program $221,202 - 0

Contacts

Name Title Type
HA48MQ84MJ33 Brad Vidro Auditee
8056885575 Ahmed Badawi Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Funds received under the various grant programs have been recorded within the general and transit enterprise funds of the City. The City utilizes the modified accrual basis of accounting for the general, special revenue, and capital projects funds and accrual basis of accounting for all other funds. Expenditures of federal awards reported on the Schedule of Expenditures of Federal Awards (Schedule) are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
2022-002?Reporting. Program: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, U.S. Department of Treasury, Direct Program. Criteria: Per the State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, Performance and Expenditure Reports required by the program includes providing cumulative obligations and expenditures. Internal controls over reporting compliance should ensure accurate, complete, and timely submission of all required reports. Condition: During the audit of the program, we noted the City did not report any expenditures in the annual performance and expenditure report submitted during the year. Cause: The City did not know expenditure reporting was required when submitting the performance and expenditure report under revenue replacement. Effect: The City did not accurately report expenditures for the program in the performance and expenditure report. Questioned Costs: None. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the City update policies and procedures over reporting, such as including additional independent reviews to ensure accurate completion. Management Response: The City will make the needed corrections in the next annual performance and expenditure report.
Finding 2022-002
2022-002?Reporting. Program: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, U.S. Department of Treasury, Direct Program. Criteria: Per the State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, Performance and Expenditure Reports required by the program includes providing cumulative obligations and expenditures. Internal controls over reporting compliance should ensure accurate, complete, and timely submission of all required reports. Condition: During the audit of the program, we noted the City did not report any expenditures in the annual performance and expenditure report submitted during the year. Cause: The City did not know expenditure reporting was required when submitting the performance and expenditure report under revenue replacement. Effect: The City did not accurately report expenditures for the program in the performance and expenditure report. Questioned Costs: None. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the City update policies and procedures over reporting, such as including additional independent reviews to ensure accurate completion. Management Response: The City will make the needed corrections in the next annual performance and expenditure report.