FAC Explorer

Audit 32979

FY End
2022-06-30
Total Expended
$1.96M
Findings
2
Programs
2
Organization: City of Rancho Palos Verdes (CA)
Year: 2022 Accepted: 2023-05-23
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33695 2022-001 Significant Deficiency - I
610137 2022-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.80M Yes 1
14.218 Community Development Block Grants/entitlement Grants $2,875 - 0

Contacts

Name Title Type
JNBQJPKHKMF9 Vina Ramos Auditee
3105445210 Robert J Callanan Auditor
No contacts on file

Notes to SEFA

Title: CONTINGENCIES Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includesthe federal award activity of Rancho Palos Verdes (the City) under programs of the federalgovernment as well as federal financial assistance passed through other governmentagencies for the year ended June 30, 2022. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of the City, it is not intended to and does not present the financial statements ofthe City. The Citys reporting entity is defined in Note 1 of the notes to the Citys financialstatements. NOTE 2 BASIS OF ACCOUNTINGThe accompanying Schedule is presented using the modified accrual basis of accounting forgovernmental funds and the accrual basis for proprietary funds, which is described in theNote 1 of the notes to the Citys financial statements. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance for all awards. Theinformation in the SEFA is presented in accordance with the requirements of the UniformGuidance. Therefore, some amounts presented in the SEFA may differ from amountspresented in, or used in the preparation of, the basic financial statements. Pass-throughentity identifying numbers are identified where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Under the terms of federal and state grants, additional audits may be requested by thegrantor agencies and certain costs may be questioned as not being appropriateexpenditures under the terms of the grants. Such audits could lead to a request forreimbursement to the grantor agencies.

Finding Details

Finding 2022-001
2022-001 - Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Title: Corona Virus State and Local Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: CA0210 Pass-Through Agency: N/A Pass-Through Numbers: N/A Award Period: March 3, 2021 to December 31, 2024 Type of Finding: Significant deficiency in internal control over compliance Criteria or Specific Requirement: Pursuant to 31 Code of Federal Regulations section 19.300, prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded. Condition: Even though it appears that the City has internal controls over compliance in place, for some contracts, the City was unable to provide specific supporting documentation of their verification that the contractors were not suspended or debarred prior to entering into the contract. Questioned Costs: None. Context: Based on a statistically valid sample of five, the City was unable to provide specific supporting documentation of the suspension and debarment verification process for three contracts. Cause: The City did not retain specific supporting documentation that the suspension and debarment verification was performed prior to entering into the contract. Effect: There were no instances of noncompliance with the provisions of suspension and debarment; however, specific supporting documentation pertaining to internal controls over compliance with suspension/debarment was incomplete. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City review and modify internal control procedures over compliance to ensure that specific supporting documentation of the suspension and debarment verification is retained. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-001
2022-001 - Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Title: Corona Virus State and Local Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: CA0210 Pass-Through Agency: N/A Pass-Through Numbers: N/A Award Period: March 3, 2021 to December 31, 2024 Type of Finding: Significant deficiency in internal control over compliance Criteria or Specific Requirement: Pursuant to 31 Code of Federal Regulations section 19.300, prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded. Condition: Even though it appears that the City has internal controls over compliance in place, for some contracts, the City was unable to provide specific supporting documentation of their verification that the contractors were not suspended or debarred prior to entering into the contract. Questioned Costs: None. Context: Based on a statistically valid sample of five, the City was unable to provide specific supporting documentation of the suspension and debarment verification process for three contracts. Cause: The City did not retain specific supporting documentation that the suspension and debarment verification was performed prior to entering into the contract. Effect: There were no instances of noncompliance with the provisions of suspension and debarment; however, specific supporting documentation pertaining to internal controls over compliance with suspension/debarment was incomplete. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City review and modify internal control procedures over compliance to ensure that specific supporting documentation of the suspension and debarment verification is retained. View of Responsible Officials: There is no disagreement with the audit finding.