FAC Explorer

Audit 341226

FY End
2023-06-30
Total Expended
$11.05M
Findings
2
Programs
9
Organization: City of Turlock (CA)
Year: 2023 Accepted: 2025-02-04
Auditor: Brown Armstrong Accountancy Corporation

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
521997 2023-001 Significant Deficiency Yes L
1098439 2023-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
20.507 Federal Transit Formula Grants $3.12M - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.29M Yes 0
20.205 Highway Planning and Construction $1.66M - 0
14.239 Home Investment Partnerships Program $670,034 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $213,898 Yes 1
16.710 Public Safety Partnership and Community Policing Grants $166,667 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $26,846 - 0
20.600 State and Community Highway Safety $24,479 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $19,031 - 0

Contacts

Name Title Type
JDYXAB12QLG1 Michael Lenhardt Auditee
2096685570 Eric Xin Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – REPORTING ENTITY Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. All proprietary funds and fiduciary funds are accounted for using the accrual basis of accounting. Expenditures of federal awards reported on the Schedule are recognized when incurred. 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 The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City of Turlock, California, (the City) and its component units as disclosed in the notes to the Basic Financial Statements.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. All proprietary funds and fiduciary funds are accounted for using the accrual basis of accounting. Expenditures of federal awards reported on the Schedule are recognized when incurred. 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 Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. All proprietary funds and fiduciary funds are accounted for using the accrual basis of accounting. Expenditures of federal awards reported on the Schedule are recognized when incurred.
Title: NOTE 3 – INDIRECT COST ELECTION Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. All proprietary funds and fiduciary funds are accounted for using the accrual basis of accounting. Expenditures of federal awards reported on the Schedule are recognized when incurred. 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 The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding Reference Number: SA2023-001 – Suspension and Debarment for Contracts and Subcontracts Assistance Listing Numbers: 21.027 Assistance Listing Title: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of Treasury Pass Through Entity: California State Water Resources Control Board Federal Award Identification Number: SLFRP4371 – 266737 Criteria: The Award Terms and Conditions in the City of Turlock’s (the City) Coronavirus Local Fiscal Recovery Funds Agreement with the U.S. Department of the Treasury requires that the City comply with Office of Management and Budget (OMB) Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 CFR Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 CFR Part 180, subpart B) that the award is subject to 2 CFR Part 180 and Treasury’s implementing regulation at 31 CFR Part 19. In addition, the OMB Compliance Supplement requires that 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 pursuant to 31 CFR section 19.300. Condition: During the 2021 audit, the auditor selected 19 transactions for testing that included six different vendors where the City did not verify that the vendors were not suspended, debarred, or otherwise excluded prior to entering into the agreements. The auditor verified that City staff determined that as of April 8, 2024, none of the six vendors were on the exclusions list on SAM.gov. The City subsequently has drafted an updated citywide procurement policy that includes the requirement to be compliant with 2 C.F.R Part 180 and was expected to be approved in March 2024 as part of the City’s corrective action plan. In conjunction with the updated procurement policy, the purchasing department of the City will check for suspension and debarment for contracts and subcontracts as part of the request for proposal process and notify all departments to check vendors when utilizing Federal funds. However, the updated citywide procurement policy has not been approved as of January 29, 2025. Cause: The delay in approving the updated citywide procurement policy was due to staff turnover issues. Identification as a Repeat Finding: Yes, since 2021. Effect: The City is not in compliance with the grant Award Terms and Conditions. Recommendation: The City should approve and implement the updated citywide procurement policy in accordance with the corrective action plan. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding 2023-001
Finding Reference Number: SA2023-001 – Suspension and Debarment for Contracts and Subcontracts Assistance Listing Numbers: 21.027 Assistance Listing Title: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of Treasury Pass Through Entity: California State Water Resources Control Board Federal Award Identification Number: SLFRP4371 – 266737 Criteria: The Award Terms and Conditions in the City of Turlock’s (the City) Coronavirus Local Fiscal Recovery Funds Agreement with the U.S. Department of the Treasury requires that the City comply with Office of Management and Budget (OMB) Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 CFR Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 CFR Part 180, subpart B) that the award is subject to 2 CFR Part 180 and Treasury’s implementing regulation at 31 CFR Part 19. In addition, the OMB Compliance Supplement requires that 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 pursuant to 31 CFR section 19.300. Condition: During the 2021 audit, the auditor selected 19 transactions for testing that included six different vendors where the City did not verify that the vendors were not suspended, debarred, or otherwise excluded prior to entering into the agreements. The auditor verified that City staff determined that as of April 8, 2024, none of the six vendors were on the exclusions list on SAM.gov. The City subsequently has drafted an updated citywide procurement policy that includes the requirement to be compliant with 2 C.F.R Part 180 and was expected to be approved in March 2024 as part of the City’s corrective action plan. In conjunction with the updated procurement policy, the purchasing department of the City will check for suspension and debarment for contracts and subcontracts as part of the request for proposal process and notify all departments to check vendors when utilizing Federal funds. However, the updated citywide procurement policy has not been approved as of January 29, 2025. Cause: The delay in approving the updated citywide procurement policy was due to staff turnover issues. Identification as a Repeat Finding: Yes, since 2021. Effect: The City is not in compliance with the grant Award Terms and Conditions. Recommendation: The City should approve and implement the updated citywide procurement policy in accordance with the corrective action plan. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.