FAC Explorer

Audit 345631

FY End
2024-06-30
Total Expended
$843,275
Findings
8
Programs
9
Organization: City of Gilroy (CA)
Year: 2024 Accepted: 2025-03-11
Auditor: The Pun Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
526652 2024-001 Significant Deficiency - L
526653 2024-001 Significant Deficiency - L
526654 2024-001 Significant Deficiency - L
526655 2024-001 Significant Deficiency - L
1103094 2024-001 Significant Deficiency - L
1103095 2024-001 Significant Deficiency - L
1103096 2024-001 Significant Deficiency - L
1103097 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $271,398 Yes 1
93.568 Low-Income Home Energy Assistance $72,013 - 0
97.044 Assistance to Firefighters Grant $66,583 - 0
20.600 State and Community Highway Safety $50,741 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $31,940 - 0
20.616 National Priority Safety Programs $24,800 - 0
97.067 Homeland Security Grant Program $17,567 - 0
16.607 Bulletproof Vest Partnership Program $1,719 - 0
97.042 Emergency Management Performance Grants $1,627 - 0

Contacts

Name Title Type
CBM1U23HUPK5 Harjot Sangha Auditee
4088460420 Sophia Kuo Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: Funds received under the various grant programs have been recorded within the special revenue and capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the special revenue and general funds and the accrual basis of accounting for enterprise funds. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elected to use the 10% de minimis cost rate. The financial reporting entity, as defined by the Governmental Accounting Standards Board (“GASB”) Codification, consists of the primary government, City of Gilroy, California (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The City Council acts as the governing body and is able to impose its will on the following organization, establishing financial accountability: Gilroy Public Facilities Financing Authority
Title: Schedule of Expenditures of Federal Awards Accounting Policies: Funds received under the various grant programs have been recorded within the special revenue and capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the special revenue and general funds and the accrual basis of accounting for enterprise funds. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elected to use the 10% de minimis cost rate. The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the State of California Office of Traffic and Safety, California Department of Community Services and Development, and California Governor's Office of Emergency Services, are included in the Schedule. The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.
Title: Subrecipients Accounting Policies: Funds received under the various grant programs have been recorded within the special revenue and capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the special revenue and general funds and the accrual basis of accounting for enterprise funds. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elected to use the 10% de minimis cost rate. During the year ended June 30, 2024, the City provided federal funds to the following subrecipients: 14.218 Community Development Block Grants / Entitlement Grants: Live Oak Adult Day Care Services - $9,704 Rebuilding Together - $209,537 Ryse Up Program (CARAS) - $8,248 Total Community Development Block Grants / Entitlement Grants - $227,489 Total Amount Provided to Subrecipients - $227,489

Finding Details

Finding 2024-001
Finding 2024-001 Reporting - Internal Control and Compliance over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-23-MC-06-0048 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below: See Table Condition: As a result of our test work, we noted that the City did not submit the required Cash on Hand Quarterly Report in a timely manner as follows: See Table Cause: The City contracts with a third party to assist with CDBG program administration and compliance. There was a change in City personnel monitoring the delegated task to the third party of filing the CDBG quarterly reports and related compliance requirement, which resulted in delayed filings. Effect or Potential Effect: Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements. Questioned Costs: None Context: See condition above for the context of the findings. Identification as a Repeating Finding, if applicable: Not Applicable. Recommendation: We recommend that the City strengthen their report submission process and procedures to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval. View of Responsible Officials: Management concurs the finding.
Finding 2024-001
Finding 2024-001 Reporting - Internal Control and Compliance over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-23-MC-06-0048 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below: See Table Condition: As a result of our test work, we noted that the City did not submit the required Cash on Hand Quarterly Report in a timely manner as follows: See Table Cause: The City contracts with a third party to assist with CDBG program administration and compliance. There was a change in City personnel monitoring the delegated task to the third party of filing the CDBG quarterly reports and related compliance requirement, which resulted in delayed filings. Effect or Potential Effect: Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements. Questioned Costs: None Context: See condition above for the context of the findings. Identification as a Repeating Finding, if applicable: Not Applicable. Recommendation: We recommend that the City strengthen their report submission process and procedures to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval. View of Responsible Officials: Management concurs the finding.
Finding 2024-001
Finding 2024-001 Reporting - Internal Control and Compliance over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-23-MC-06-0048 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below: See Table Condition: As a result of our test work, we noted that the City did not submit the required Cash on Hand Quarterly Report in a timely manner as follows: See Table Cause: The City contracts with a third party to assist with CDBG program administration and compliance. There was a change in City personnel monitoring the delegated task to the third party of filing the CDBG quarterly reports and related compliance requirement, which resulted in delayed filings. Effect or Potential Effect: Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements. Questioned Costs: None Context: See condition above for the context of the findings. Identification as a Repeating Finding, if applicable: Not Applicable. Recommendation: We recommend that the City strengthen their report submission process and procedures to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval. View of Responsible Officials: Management concurs the finding.
Finding 2024-001
Finding 2024-001 Reporting - Internal Control and Compliance over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-23-MC-06-0048 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below: See Table Condition: As a result of our test work, we noted that the City did not submit the required Cash on Hand Quarterly Report in a timely manner as follows: See Table Cause: The City contracts with a third party to assist with CDBG program administration and compliance. There was a change in City personnel monitoring the delegated task to the third party of filing the CDBG quarterly reports and related compliance requirement, which resulted in delayed filings. Effect or Potential Effect: Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements. Questioned Costs: None Context: See condition above for the context of the findings. Identification as a Repeating Finding, if applicable: Not Applicable. Recommendation: We recommend that the City strengthen their report submission process and procedures to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval. View of Responsible Officials: Management concurs the finding.
Finding 2024-001
Finding 2024-001 Reporting - Internal Control and Compliance over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-23-MC-06-0048 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below: See Table Condition: As a result of our test work, we noted that the City did not submit the required Cash on Hand Quarterly Report in a timely manner as follows: See Table Cause: The City contracts with a third party to assist with CDBG program administration and compliance. There was a change in City personnel monitoring the delegated task to the third party of filing the CDBG quarterly reports and related compliance requirement, which resulted in delayed filings. Effect or Potential Effect: Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements. Questioned Costs: None Context: See condition above for the context of the findings. Identification as a Repeating Finding, if applicable: Not Applicable. Recommendation: We recommend that the City strengthen their report submission process and procedures to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval. View of Responsible Officials: Management concurs the finding.
Finding 2024-001
Finding 2024-001 Reporting - Internal Control and Compliance over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-23-MC-06-0048 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below: See Table Condition: As a result of our test work, we noted that the City did not submit the required Cash on Hand Quarterly Report in a timely manner as follows: See Table Cause: The City contracts with a third party to assist with CDBG program administration and compliance. There was a change in City personnel monitoring the delegated task to the third party of filing the CDBG quarterly reports and related compliance requirement, which resulted in delayed filings. Effect or Potential Effect: Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements. Questioned Costs: None Context: See condition above for the context of the findings. Identification as a Repeating Finding, if applicable: Not Applicable. Recommendation: We recommend that the City strengthen their report submission process and procedures to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval. View of Responsible Officials: Management concurs the finding.
Finding 2024-001
Finding 2024-001 Reporting - Internal Control and Compliance over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-23-MC-06-0048 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below: See Table Condition: As a result of our test work, we noted that the City did not submit the required Cash on Hand Quarterly Report in a timely manner as follows: See Table Cause: The City contracts with a third party to assist with CDBG program administration and compliance. There was a change in City personnel monitoring the delegated task to the third party of filing the CDBG quarterly reports and related compliance requirement, which resulted in delayed filings. Effect or Potential Effect: Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements. Questioned Costs: None Context: See condition above for the context of the findings. Identification as a Repeating Finding, if applicable: Not Applicable. Recommendation: We recommend that the City strengthen their report submission process and procedures to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval. View of Responsible Officials: Management concurs the finding.
Finding 2024-001
Finding 2024-001 Reporting - Internal Control and Compliance over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-23-MC-06-0048 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below: See Table Condition: As a result of our test work, we noted that the City did not submit the required Cash on Hand Quarterly Report in a timely manner as follows: See Table Cause: The City contracts with a third party to assist with CDBG program administration and compliance. There was a change in City personnel monitoring the delegated task to the third party of filing the CDBG quarterly reports and related compliance requirement, which resulted in delayed filings. Effect or Potential Effect: Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements. Questioned Costs: None Context: See condition above for the context of the findings. Identification as a Repeating Finding, if applicable: Not Applicable. Recommendation: We recommend that the City strengthen their report submission process and procedures to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval. View of Responsible Officials: Management concurs the finding.