Audit 30245

FY End
2022-06-30
Total Expended
$4.09M
Findings
8
Programs
3
Organization: Stockton Port District (CA)
Year: 2022 Accepted: 2023-03-05
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
31263 2022-002 Significant Deficiency - I
31264 2022-003 Significant Deficiency - L
31265 2022-002 Significant Deficiency - I
31266 2022-003 Significant Deficiency - L
607705 2022-002 Significant Deficiency - I
607706 2022-003 Significant Deficiency - L
607707 2022-002 Significant Deficiency - I
607708 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
20.823 Port Infrastructure Development Program (b) $3.44M - 0
97.056 Port Security Grant Program $332,435 Yes 2
20.205 Highway Planning and Construction $-326,629 - 0

Contacts

Name Title Type
SL2CBWRVW5B5 Michelle Bowling Auditee
2099460246 Kinnaly Soukhaseum Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Stockton Port District (District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 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 District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts represent adjustments to items reported as expenditures in prior years. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Procurement Type of Finding: Significant Deficiency, Instance of Non-compliance Criteria: 2 CFR 200.327 requires that the non-federal entity?s contracts must contain the applicable provisions described in appendix II of 2 CFR 200. Condition: We identified 3 instances in which contracts (agreements, purchases, etc.) did not include the applicable provisions from appendix II of 2 CFR 200. The contracts did not include provision (B) requiring that all contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement. Cause: The District?s procurement procedures did not ensure that all required provisions were included in the contract. Effect: The District did not comply with the requirements of 2 CFR 200.327. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 5 procurement actions out of a population of 13 procurement actions were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the District strengthen its procurement procedures to ensure that all required provisions are included in its contracts. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Reporting Type of Finding: Significant Deficiency Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports. Condition: We identified 2 instances in which the District did not retain evidence to document the individual preparing the District?s required performance reports. Cause: The District?s procedures did not include documentation to evidence the individual that prepared the reports. Effect: The District did not comply with the requirements of 2 CFR 200.303. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 2 semi-annual performance reports out of a population of 4 semi-annual performance reports were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the District revise its procedures to include documenting the individual that prepared the semi-annual performance reports. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Procurement Type of Finding: Significant Deficiency, Instance of Non-compliance Criteria: 2 CFR 200.327 requires that the non-federal entity?s contracts must contain the applicable provisions described in appendix II of 2 CFR 200. Condition: We identified 3 instances in which contracts (agreements, purchases, etc.) did not include the applicable provisions from appendix II of 2 CFR 200. The contracts did not include provision (B) requiring that all contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement. Cause: The District?s procurement procedures did not ensure that all required provisions were included in the contract. Effect: The District did not comply with the requirements of 2 CFR 200.327. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 5 procurement actions out of a population of 13 procurement actions were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the District strengthen its procurement procedures to ensure that all required provisions are included in its contracts. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Reporting Type of Finding: Significant Deficiency Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports. Condition: We identified 2 instances in which the District did not retain evidence to document the individual preparing the District?s required performance reports. Cause: The District?s procedures did not include documentation to evidence the individual that prepared the reports. Effect: The District did not comply with the requirements of 2 CFR 200.303. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 2 semi-annual performance reports out of a population of 4 semi-annual performance reports were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the District revise its procedures to include documenting the individual that prepared the semi-annual performance reports. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Procurement Type of Finding: Significant Deficiency, Instance of Non-compliance Criteria: 2 CFR 200.327 requires that the non-federal entity?s contracts must contain the applicable provisions described in appendix II of 2 CFR 200. Condition: We identified 3 instances in which contracts (agreements, purchases, etc.) did not include the applicable provisions from appendix II of 2 CFR 200. The contracts did not include provision (B) requiring that all contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement. Cause: The District?s procurement procedures did not ensure that all required provisions were included in the contract. Effect: The District did not comply with the requirements of 2 CFR 200.327. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 5 procurement actions out of a population of 13 procurement actions were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the District strengthen its procurement procedures to ensure that all required provisions are included in its contracts. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Reporting Type of Finding: Significant Deficiency Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports. Condition: We identified 2 instances in which the District did not retain evidence to document the individual preparing the District?s required performance reports. Cause: The District?s procedures did not include documentation to evidence the individual that prepared the reports. Effect: The District did not comply with the requirements of 2 CFR 200.303. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 2 semi-annual performance reports out of a population of 4 semi-annual performance reports were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the District revise its procedures to include documenting the individual that prepared the semi-annual performance reports. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Procurement Type of Finding: Significant Deficiency, Instance of Non-compliance Criteria: 2 CFR 200.327 requires that the non-federal entity?s contracts must contain the applicable provisions described in appendix II of 2 CFR 200. Condition: We identified 3 instances in which contracts (agreements, purchases, etc.) did not include the applicable provisions from appendix II of 2 CFR 200. The contracts did not include provision (B) requiring that all contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement. Cause: The District?s procurement procedures did not ensure that all required provisions were included in the contract. Effect: The District did not comply with the requirements of 2 CFR 200.327. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 5 procurement actions out of a population of 13 procurement actions were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the District strengthen its procurement procedures to ensure that all required provisions are included in its contracts. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Reporting Type of Finding: Significant Deficiency Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports. Condition: We identified 2 instances in which the District did not retain evidence to document the individual preparing the District?s required performance reports. Cause: The District?s procedures did not include documentation to evidence the individual that prepared the reports. Effect: The District did not comply with the requirements of 2 CFR 200.303. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 2 semi-annual performance reports out of a population of 4 semi-annual performance reports were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the District revise its procedures to include documenting the individual that prepared the semi-annual performance reports. Views of Responsible Officials: Management Agrees. See separate corrective action plan.