FAC Explorer

Audit 336309

FY End
2024-06-30
Total Expended
$2.87M
Findings
2
Programs
3
Organization: City of Laguna Niguel (CA)
Year: 2024 Accepted: 2025-01-07
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
518004 2024-001 Significant Deficiency - I
1094446 2024-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.48M Yes 1
14.218 Community Development Block Grants/entitlement Grants $233,941 - 0
97.046 Fire Management Assistance Grant $25,706 - 0

Contacts

Name Title Type
FWD9QAANNZ65 Trevor Agrelius Auditee
9493624358 Tiffany Fung Auditor
No contacts on file

Notes to SEFA

Title: Contingencies 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 Laguna Niguel (the City) under programs of the federal government for the year ended June 30, 2024. 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 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. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.

Finding Details

Finding 2024-001
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 were not able to verify that the City performed the suspension and debarment verification. Questioned Costs: None. Context: The City did not maintain documentation of the suspension and debarment verification for four out of the five samples tested. However, none of the sampled vendors were suspended or debarred as of the City’s verification performed during the audit. Cause: The City did not have controls in place to maintain the proper documentation. Effect: There is a potential the City could contract with a disbarred or suspended entity if the verification is not performed. Recommendation: We recommend the City perform suspension and debarment procedures on all vendors with which it plans to enter into a covered transaction and maintain the documentation as evidence that the requirement was fulfilled. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2024-001
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 were not able to verify that the City performed the suspension and debarment verification. Questioned Costs: None. Context: The City did not maintain documentation of the suspension and debarment verification for four out of the five samples tested. However, none of the sampled vendors were suspended or debarred as of the City’s verification performed during the audit. Cause: The City did not have controls in place to maintain the proper documentation. Effect: There is a potential the City could contract with a disbarred or suspended entity if the verification is not performed. Recommendation: We recommend the City perform suspension and debarment procedures on all vendors with which it plans to enter into a covered transaction and maintain the documentation as evidence that the requirement was fulfilled. View of Responsible Officials: There is no disagreement with the audit finding.