FAC Explorer

Audit 327673

FY End
2020-09-30
Total Expended
$346.93M
Findings
4
Programs
57
Organization: City of Long Beach (CA)
Year: 2020 Accepted: 2024-11-07
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504921 2020-001 Material Weakness - P
504922 2020-001 Material Weakness - P
1081363 2020-001 Material Weakness - P
1081364 2020-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $100.28M Yes 0
21.019 Covid-19 Coronavirus Relief Fund $40.28M Yes 0
20.106 Covid-19 Airport Improvement Program $14.77M - 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $4.84M - 0
15.507 Watersmart (sustain and Manage America�s Resources for Tomorrow) $1.50M - 0
14.241 Housing Opportunities for Persons with Aids $1.36M - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.06M Yes 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $996,355 - 0
16.922 Equitable Sharing Program $979,266 - 0
93.283 Centers for Disease Control and Prevention Investigations and Technical Assistance $893,610 - 0
11.307 Economic Adjustment Assistance $765,435 - 0
14.239 Home Investment Partnerships Program $761,658 - 0
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $748,737 - 0
14.900 Lead Hazard Reduction Grant Program $734,651 - 0
20.106 Airport Improvement Program $659,676 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $620,133 - 0
17.259 Wioa Youth Activities $563,354 - 0
16.734 Special Data Collections and Statistical Studies $500,000 - 0
20.205 Highway Planning and Construction $497,932 Yes 0
93.354 Covid-19 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $451,952 - 0
93.914 Hiv Emergency Relief Project Grants $418,053 - 0
14.231 Emergency Solutions Grant Program $368,715 - 0
97.056 Port Security Grant Program $356,189 - 0
10.559 Summer Food Service Program for Children $338,322 - 0
17.268 H-1b Job Training Grants $317,354 - 0
14.218 Community Development Block Grants/entitlement Grants $261,592 - 0
93.994 Maternal and Child Health Services Block Grant to the States $260,092 - 0
97.067 Homeland Security Grant Program $254,061 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $253,329 - 0
14.871 Covid-19 Section 8 Housing Choice Vouchers $242,796 Yes 0
93.268 Immunization Cooperative Agreements $222,075 - 0
14.896 Family Self-Sufficiency Program $210,214 - 0
20.600 State and Community Highway Safety $196,122 - 0
20.616 National Priority Safety Programs $185,684 - 0
16.320 Services for Trafficking Victims $177,241 - 0
93.917 Hiv Care Formula Grants $152,971 - 0
16.825 Smart Prosecution Initiative $123,542 - 0
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $114,831 - 0
14.267 Continuum of Care Program $113,049 Yes 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $109,171 - 0
21.016 Equitable Sharing $100,000 - 0
66.472 Beach Monitoring and Notification Program Implementation Grants $90,853 - 0
17.260 Wia Dislocated Workers $76,822 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $75,654 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $74,088 - 0
93.197 Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $58,155 - 0
93.917 Covid-19 Hiv Care Formula Grants $52,714 - 0
93.940 Hiv Prevention Activities Health Department Based $45,813 - 0
93.778 Medical Assistance Program $41,716 - 0
15.514 Reclamation States Emergency Drought Relief $29,466 - 0
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $28,572 - 0
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $25,307 - 0
66.802 Superfund State, Political Subdivision, and Indian Tribe Site-Specific Cooperative Agreements $14,853 - 0
15.506 Water Desalination Research and Development $14,771 - 0
93.558 Temporary Assistance for Needy Families $3,897 - 0
17.278 Wioa Dislocated Worker Formula Grants $3,182 - 0
17.258 Wioa Adult Program $2,658 - 0

Contacts

Name Title Type
RXK8HCFVLS49 Stefannie Kodrat Auditee
5625707172 Robert Mahoney Auditor
No contacts on file

Notes to SEFA

Title: Community-Based Loan Programs with Continuing Compliance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal financial assistance programs of the City of Long Beach, California (the City). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through to the City by other government agencies, has been included in the accompanying Schedule. The Schedule did not include federal expenditures of $4,942,900 for the year ended September 30, 2020 of the Long Beach Transportation Company (the Company), a discretely presented component unit of the City, as the Company engaged other auditors to perform audits in accordance with the Uniform Guidance. The City’s reporting entity is defined in note 1 to the City’s basic financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414. The City considers loans advanced to eligible participants for the Home Investment Partnerships Program (HOME) to have continuing compliance requirements. As such, the amounts reported in the accompanying Schedule for the HOME program include current year disbursements as well as the balance of the beginning of the year of loans with continuing compliance requirements. As of September 30, 2020, the balance of loans with continuing compliance requirements for the HOME program was $71,323,461.
Title: Food Instruments/Vouchers Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal financial assistance programs of the City of Long Beach, California (the City). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through to the City by other government agencies, has been included in the accompanying Schedule. The Schedule did not include federal expenditures of $4,942,900 for the year ended September 30, 2020 of the Long Beach Transportation Company (the Company), a discretely presented component unit of the City, as the Company engaged other auditors to perform audits in accordance with the Uniform Guidance. The City’s reporting entity is defined in note 1 to the City’s basic financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414. Food instruments/vouchers expenditures represent the estimated value of the Special Supplemental Nutrition Program for Women, Infants and Children food instruments distributed during the year as communicated by the State of California Department of Health Services. The food instruments/vouchers totaled $10,601,639 but do not represent cash expenditures in the City’s basic financial statements for the year ended September 30, 2020.
Title: Restatement of Schedule of Expenditures of Federal Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal financial assistance programs of the City of Long Beach, California (the City). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through to the City by other government agencies, has been included in the accompanying Schedule. The Schedule did not include federal expenditures of $4,942,900 for the year ended September 30, 2020 of the Long Beach Transportation Company (the Company), a discretely presented component unit of the City, as the Company engaged other auditors to perform audits in accordance with the Uniform Guidance. The City’s reporting entity is defined in note 1 to the City’s basic financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414. The City determined that expenditures of $21,383,260 for the Highway Planning and Construction program (ALN 20.205) were inadvertently omitted from the Schedule. Additionally, the City determined that the Disaster Grants – Public Assistance (Presidentially Declared Disasters) (ALN 97.036) expenditures were inadvertently overstated by $474,231. The net of these amounts resulted in total expenditures of $20,909,029 added to the Schedule for the year ended September 30, 2020.

Finding Details

Finding 2020-001
Finding 2020-001 Federal Program: Highway Planning and Construction CFDA Number: 20.205 Federal Agency: U.S. Department of Transportation Federal Award Year: 2020 Grant numbers: ACNH 7101 (807), BRLS-5108 (137) Pass-Through Entity: State of California Department of Transportation Compliance Requirement: Other – Inaccurate reporting of the Schedule of Expenditures of Federal Awards Criteria: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designated to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the SEFA. Conditions Found: The City did not have adequate internal controls related to the reporting of expenditures on the SEFA for the Highway Planning and Construction program. The Gerald Desmond Bridge (Harbor Bridge) reconstruction was a $1.6 billion design, development, and construction project that included multiple funding sources, including federal, state, and private funds. As part of the completeness and accuracy of the SEFA control, the City needed to timely prepare and review a reconciliation of all of the federal, state, and private funding sources received for the overall Harbor Bridge project year-to-date, and determine at a proper level of precision, which expenditures were being reimbursed with federal funding sources to determine what amounts to report on the SEFA for the year ended September 30, 2020. This overall year-to-date reconciliation was not timely performed and as a result, an additional $21,383,260 of federal expenditures related to the Highway Planning and Construction program should have been reported on the SEFA for the year ended September 30, 2020. Cause and Effect: In discussing these conditions with the City, they stated the error was primarily due to the control over the completeness and accuracy of the SEFA was not timely performed and designed at the appropriate precision level for multi-year and multi-funded construction projects. Failure to establish effective internal controls regarding financial reporting for the preparation of the Schedule may prevent the City from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs: Not applicable. Statistical sampling: Not applicable. Repeat Finding: A similar finding was not reported in the prior year. Recommendation: We recommend the City implement a system of internal control that is designed and operating at a level of precision to ensure the Schedule is complete and accurate. View of Responsible Official: The Harbor Department acknowledges the finding. The Harbor Department believes this omission was the result of an internal miscommunication.
Finding 2020-001
Finding 2020-001 Federal Program: Highway Planning and Construction CFDA Number: 20.205 Federal Agency: U.S. Department of Transportation Federal Award Year: 2020 Grant numbers: ACNH 7101 (807), BRLS-5108 (137) Pass-Through Entity: State of California Department of Transportation Compliance Requirement: Other – Inaccurate reporting of the Schedule of Expenditures of Federal Awards Criteria: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designated to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the SEFA. Conditions Found: The City did not have adequate internal controls related to the reporting of expenditures on the SEFA for the Highway Planning and Construction program. The Gerald Desmond Bridge (Harbor Bridge) reconstruction was a $1.6 billion design, development, and construction project that included multiple funding sources, including federal, state, and private funds. As part of the completeness and accuracy of the SEFA control, the City needed to timely prepare and review a reconciliation of all of the federal, state, and private funding sources received for the overall Harbor Bridge project year-to-date, and determine at a proper level of precision, which expenditures were being reimbursed with federal funding sources to determine what amounts to report on the SEFA for the year ended September 30, 2020. This overall year-to-date reconciliation was not timely performed and as a result, an additional $21,383,260 of federal expenditures related to the Highway Planning and Construction program should have been reported on the SEFA for the year ended September 30, 2020. Cause and Effect: In discussing these conditions with the City, they stated the error was primarily due to the control over the completeness and accuracy of the SEFA was not timely performed and designed at the appropriate precision level for multi-year and multi-funded construction projects. Failure to establish effective internal controls regarding financial reporting for the preparation of the Schedule may prevent the City from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs: Not applicable. Statistical sampling: Not applicable. Repeat Finding: A similar finding was not reported in the prior year. Recommendation: We recommend the City implement a system of internal control that is designed and operating at a level of precision to ensure the Schedule is complete and accurate. View of Responsible Official: The Harbor Department acknowledges the finding. The Harbor Department believes this omission was the result of an internal miscommunication.
Finding 2020-001
Finding 2020-001 Federal Program: Highway Planning and Construction CFDA Number: 20.205 Federal Agency: U.S. Department of Transportation Federal Award Year: 2020 Grant numbers: ACNH 7101 (807), BRLS-5108 (137) Pass-Through Entity: State of California Department of Transportation Compliance Requirement: Other – Inaccurate reporting of the Schedule of Expenditures of Federal Awards Criteria: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designated to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the SEFA. Conditions Found: The City did not have adequate internal controls related to the reporting of expenditures on the SEFA for the Highway Planning and Construction program. The Gerald Desmond Bridge (Harbor Bridge) reconstruction was a $1.6 billion design, development, and construction project that included multiple funding sources, including federal, state, and private funds. As part of the completeness and accuracy of the SEFA control, the City needed to timely prepare and review a reconciliation of all of the federal, state, and private funding sources received for the overall Harbor Bridge project year-to-date, and determine at a proper level of precision, which expenditures were being reimbursed with federal funding sources to determine what amounts to report on the SEFA for the year ended September 30, 2020. This overall year-to-date reconciliation was not timely performed and as a result, an additional $21,383,260 of federal expenditures related to the Highway Planning and Construction program should have been reported on the SEFA for the year ended September 30, 2020. Cause and Effect: In discussing these conditions with the City, they stated the error was primarily due to the control over the completeness and accuracy of the SEFA was not timely performed and designed at the appropriate precision level for multi-year and multi-funded construction projects. Failure to establish effective internal controls regarding financial reporting for the preparation of the Schedule may prevent the City from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs: Not applicable. Statistical sampling: Not applicable. Repeat Finding: A similar finding was not reported in the prior year. Recommendation: We recommend the City implement a system of internal control that is designed and operating at a level of precision to ensure the Schedule is complete and accurate. View of Responsible Official: The Harbor Department acknowledges the finding. The Harbor Department believes this omission was the result of an internal miscommunication.
Finding 2020-001
Finding 2020-001 Federal Program: Highway Planning and Construction CFDA Number: 20.205 Federal Agency: U.S. Department of Transportation Federal Award Year: 2020 Grant numbers: ACNH 7101 (807), BRLS-5108 (137) Pass-Through Entity: State of California Department of Transportation Compliance Requirement: Other – Inaccurate reporting of the Schedule of Expenditures of Federal Awards Criteria: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designated to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the SEFA. Conditions Found: The City did not have adequate internal controls related to the reporting of expenditures on the SEFA for the Highway Planning and Construction program. The Gerald Desmond Bridge (Harbor Bridge) reconstruction was a $1.6 billion design, development, and construction project that included multiple funding sources, including federal, state, and private funds. As part of the completeness and accuracy of the SEFA control, the City needed to timely prepare and review a reconciliation of all of the federal, state, and private funding sources received for the overall Harbor Bridge project year-to-date, and determine at a proper level of precision, which expenditures were being reimbursed with federal funding sources to determine what amounts to report on the SEFA for the year ended September 30, 2020. This overall year-to-date reconciliation was not timely performed and as a result, an additional $21,383,260 of federal expenditures related to the Highway Planning and Construction program should have been reported on the SEFA for the year ended September 30, 2020. Cause and Effect: In discussing these conditions with the City, they stated the error was primarily due to the control over the completeness and accuracy of the SEFA was not timely performed and designed at the appropriate precision level for multi-year and multi-funded construction projects. Failure to establish effective internal controls regarding financial reporting for the preparation of the Schedule may prevent the City from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs: Not applicable. Statistical sampling: Not applicable. Repeat Finding: A similar finding was not reported in the prior year. Recommendation: We recommend the City implement a system of internal control that is designed and operating at a level of precision to ensure the Schedule is complete and accurate. View of Responsible Official: The Harbor Department acknowledges the finding. The Harbor Department believes this omission was the result of an internal miscommunication.