FAC Explorer

Audit 311642

FY End
2023-06-30
Total Expended
$14.70M
Findings
4
Programs
17
Organization: City of La Habra (CA)
Year: 2023 Accepted: 2024-07-03
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
406481 2023-002 Significant Deficiency Yes I
406482 2023-003 Significant Deficiency Yes G
982923 2023-002 Significant Deficiency Yes I
982924 2023-003 Significant Deficiency Yes G

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $1.49M - 0
17.259 Wia Youth Activities $1.20M - 1
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $577,938 Yes 0
93.575 Child Care and Development Block Grant $354,592 Yes 0
21.016 Equitable Sharing $265,420 - 0
14.218 Community Development Block Grants/entitlement Grants $193,374 Yes 0
20.205 Highway Planning and Construction $110,400 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $56,533 - 0
93.499 Low Income Household Water Assistance Program $44,235 - 0
20.600 State and Community Highway Safety $35,623 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $29,942 Yes 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $24,808 - 0
15.507 Watersmart (sustaining and Manage America's Resources for Tomorrow) $18,673 - 0
97.042 Emergency Management Performance Grants $9,706 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $9,362 - 0
16.607 Bulletproof Vest Partnership Program $3,463 - 0
16.922 Equitable Sharing Program $1,737 - 0

Contacts

Name Title Type
LM2VLKJB8NT9 Jack Ponvanit Auditee
5623834051 Tiffany Fung Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of La Habra (the City) under programs of the federal government as well as federal financial assistance passed through other government agencies 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 City, it is not intended to and does not present the financial statements of the City. The City’s reporting entity is defined in Note 1 of the notes to the City’s financial statements. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in Note 1 of the notes to the City’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City did not use the de minimis cost rate.

Finding Details

Finding 2023-002
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the City did not perform the suspension and debarment verification. Questioned Costs: None. Context: The City did not perform suspension and debarment verification for four out of the five samples tested. Cause: The department was not aware of the compliance requirement. Effect: There is a potential the City could contract with a disbarred or suspended entity if the verification is not performed. Repeat Finding: This is a repeat of a finding from the immediately prior year, finding number 2022 002. Recommendation: We recommend the City perform suspension and debarment procedures on all vendors with which it plans to enter into a covered transaction. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
Criteria or Specific Requirement: WIOA section 129(a)(4)(A), 128 Stat. 1506, states that a minimum of 75% of Youth Activity funds allocated to the local areas must be used to provide services to out of school youth (OSY). Condition: The City spent 72% of total youth expenditures on OSY activity. Questioned Costs: None. Context: Total program expenditures was $1,195,839, of which $861,439 was spent on OSY activity. Cause: The same finding in the prior year was issued in March 2023 and, due to staff turn over, was difficult for the City to correct by June 30, 2023. Effect: The City was not in compliance with the 75% minimum requirement on OSY activity. Repeat Finding: This is a repeat of a finding from the immediately prior year, finding number 2022 001. Recommendation: We recommend the City implement procedure to ensure actual program expenditures stay in line with the earmarking requirements throughout the year. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-002
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the City did not perform the suspension and debarment verification. Questioned Costs: None. Context: The City did not perform suspension and debarment verification for four out of the five samples tested. Cause: The department was not aware of the compliance requirement. Effect: There is a potential the City could contract with a disbarred or suspended entity if the verification is not performed. Repeat Finding: This is a repeat of a finding from the immediately prior year, finding number 2022 002. Recommendation: We recommend the City perform suspension and debarment procedures on all vendors with which it plans to enter into a covered transaction. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
Criteria or Specific Requirement: WIOA section 129(a)(4)(A), 128 Stat. 1506, states that a minimum of 75% of Youth Activity funds allocated to the local areas must be used to provide services to out of school youth (OSY). Condition: The City spent 72% of total youth expenditures on OSY activity. Questioned Costs: None. Context: Total program expenditures was $1,195,839, of which $861,439 was spent on OSY activity. Cause: The same finding in the prior year was issued in March 2023 and, due to staff turn over, was difficult for the City to correct by June 30, 2023. Effect: The City was not in compliance with the 75% minimum requirement on OSY activity. Repeat Finding: This is a repeat of a finding from the immediately prior year, finding number 2022 001. Recommendation: We recommend the City implement procedure to ensure actual program expenditures stay in line with the earmarking requirements throughout the year. View of Responsible Officials: There is no disagreement with the audit finding.