FAC Explorer

Audit 343710

FY End
2024-06-30
Total Expended
$4.86M
Findings
4
Programs
6
Organization: City of Carson (CA)
Year: 2024 Accepted: 2025-02-25
Auditor: Vasquez & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
524428 2024-001 - - L
524429 2024-002 - - N
1100870 2024-001 - - L
1100871 2024-002 - - N

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.35M Yes 0
14.218 Community Development Block Grants/entitlement Grants $1.10M Yes 2
14.239 Home Investment Partnerships Program $311,944 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $57,000 - 0
97.039 Hazard Mitigation Grant $40,425 - 0
20.205 Highway Planning and Construction $5,584 - 0

Contacts

Name Title Type
YMEYLK3W3YH5 Hnin Phyu Auditee
3108307600 Cristy Canieda Auditor
No contacts on file

Notes to SEFA

Title: NOTE 4 RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the City of Carson, California (the City). For purposes of this schedule, financial awards include federal awards received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portions of program expenditures reimbursable with federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum reimbursement authorized, if any, or the portion of the program expenditures that were funded with other state, local or other non-federal funds are excluded from the accompanying schedule. The information in the SEFA 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 SEFA presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City. The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial statements. 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-percent de minimis indirect cost rate allowed under the Uniform Guidance. Grant expenditure reports for the year ended June 30, 2024, which have been submitted to grantor agencies, will, in some cases, differ from the amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of the year-end accruals.
Title: NOTE 5 RELATIONSHIP TO ANNUAL COMPREHENSIVE FINANCIAL REPORT Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the City of Carson, California (the City). For purposes of this schedule, financial awards include federal awards received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portions of program expenditures reimbursable with federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum reimbursement authorized, if any, or the portion of the program expenditures that were funded with other state, local or other non-federal funds are excluded from the accompanying schedule. The information in the SEFA 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 SEFA presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City. The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial statements. 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-percent de minimis indirect cost rate allowed under the Uniform Guidance. Amounts reported in the accompanying SEFA agree, in all material respects, to amounts reported within the City’s Annual Comprehensive Financial Report.
Title: NOTE 6 LOANS RECEIVABLE Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the City of Carson, California (the City). For purposes of this schedule, financial awards include federal awards received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portions of program expenditures reimbursable with federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum reimbursement authorized, if any, or the portion of the program expenditures that were funded with other state, local or other non-federal funds are excluded from the accompanying schedule. The information in the SEFA 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 SEFA presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City. The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial statements. 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-percent de minimis indirect cost rate allowed under the Uniform Guidance. The City participates in HOME program that sponsor revolving loan programs which are administered by the City. The funds are returned to the program upon repayment of the principal and interest. In accordance with 2 CFR section 200.502(b), the value of new loans made, the beginning balance of loans from previous years and any interest subsidy, cash or administrative cost allowance received are included in the SEFA. Loans made with HOME funds of $307,551 are outstanding as of June 30, 2024. During the fiscal year ended June 30, 2024, there were no new loans made with HOME funds.

Finding Details

Finding 2024-001
Criteria Per OMB Compliance Supplement and Compliance and Reporting Guidelines issued by the U.S. Department of Housing and Urban Development, the Quarterly CDBG Cash on Hand Report is due 30 days after the end of each quarter. Condition The City was unable to meet the due date for the Quarterly CDBG Cash on Hand Report for Quarter 4. The report was submitted on August 8, 2024, which was 9 days past the deadline. Cause This lapse resulted from the reassignment of staff duties and was an oversight. Effect Delayed or non-submission of the report is considered non-compliance with the program requirements and may result in sanctions. Questioned Costs None. Recommendation We recommend that the City adhere strictly to the report submission deadlines established by the U.S. Department of Housing and Urban Development. Views of responsible officials and planned corrective actions The report was filed late due to changes in the Accountant's assigned duties and responsibilities. This issue has been communicated to the team, and quarterly reminders have been established to ensure timely report submissions. An accountant has been specifically assigned to the CDBG fund, and reminders are in place to file all required reports on time. A Corrective Action Plan (CAP) has been implemented as of June 30, 2024. The staff responsible for the CAP are the Accounting Manager, Hnin Phyu and the Accountant, Janelle Morris.
Finding 2024-002
Criteria CDBG funds (and local funds to be reimbursed with CDBG funds) cannot be obligated or expended before receiving HUD's approval of a Request for Release of Funds (RROF) and environmental certification, except for exempt activities under 24 CFR section 58.34 and categorically excluded activities under section 58.35(b) (24 CFR section 58.22). Condition The City was unable to provide a copy of the Release of Funds or document the Authority to Use Grant Funds (AUGF) and the Environmental Review Assessments. Although the City conduct to provide its RROF or AUGF for the activities reviewed, HUD verify within its records that the City submitted an RROF and that HUD sent the City an AUGF for its single-family rehabilitation program. However, it recieves the City’s responsibility to maintain both documents for its records. Cause This lapse resulted from staff turnover and inadequate oversight. Effect Non-compliance with HUD environmental review requirements. Questioned Costs None. Recommendation We recommend that the City strictly monitor and maintain copies of the required certifications, HUD approvals, and environmental reviews set forth by the U.S. Department of Housing and Urban Development. Views of responsible officials and planned corrective actions The City will ensure the implementation of the following corrective action plan: • Conduct training sessions and designate primary and backup staff responsible for filing and submitting the HUD reports. • Require management review and approval of all reports prior to submission to HUD. The Corrective Action Plan (CAP) has been implemented as of June 30th, 2024. The staff responsible for the CAP are the Accounting Manager, Hnin Phyu and the Housing Specialist, Debra Scott.
Finding 2024-001
Criteria Per OMB Compliance Supplement and Compliance and Reporting Guidelines issued by the U.S. Department of Housing and Urban Development, the Quarterly CDBG Cash on Hand Report is due 30 days after the end of each quarter. Condition The City was unable to meet the due date for the Quarterly CDBG Cash on Hand Report for Quarter 4. The report was submitted on August 8, 2024, which was 9 days past the deadline. Cause This lapse resulted from the reassignment of staff duties and was an oversight. Effect Delayed or non-submission of the report is considered non-compliance with the program requirements and may result in sanctions. Questioned Costs None. Recommendation We recommend that the City adhere strictly to the report submission deadlines established by the U.S. Department of Housing and Urban Development. Views of responsible officials and planned corrective actions The report was filed late due to changes in the Accountant's assigned duties and responsibilities. This issue has been communicated to the team, and quarterly reminders have been established to ensure timely report submissions. An accountant has been specifically assigned to the CDBG fund, and reminders are in place to file all required reports on time. A Corrective Action Plan (CAP) has been implemented as of June 30, 2024. The staff responsible for the CAP are the Accounting Manager, Hnin Phyu and the Accountant, Janelle Morris.
Finding 2024-002
Criteria CDBG funds (and local funds to be reimbursed with CDBG funds) cannot be obligated or expended before receiving HUD's approval of a Request for Release of Funds (RROF) and environmental certification, except for exempt activities under 24 CFR section 58.34 and categorically excluded activities under section 58.35(b) (24 CFR section 58.22). Condition The City was unable to provide a copy of the Release of Funds or document the Authority to Use Grant Funds (AUGF) and the Environmental Review Assessments. Although the City conduct to provide its RROF or AUGF for the activities reviewed, HUD verify within its records that the City submitted an RROF and that HUD sent the City an AUGF for its single-family rehabilitation program. However, it recieves the City’s responsibility to maintain both documents for its records. Cause This lapse resulted from staff turnover and inadequate oversight. Effect Non-compliance with HUD environmental review requirements. Questioned Costs None. Recommendation We recommend that the City strictly monitor and maintain copies of the required certifications, HUD approvals, and environmental reviews set forth by the U.S. Department of Housing and Urban Development. Views of responsible officials and planned corrective actions The City will ensure the implementation of the following corrective action plan: • Conduct training sessions and designate primary and backup staff responsible for filing and submitting the HUD reports. • Require management review and approval of all reports prior to submission to HUD. The Corrective Action Plan (CAP) has been implemented as of June 30th, 2024. The staff responsible for the CAP are the Accounting Manager, Hnin Phyu and the Housing Specialist, Debra Scott.