FAC Explorer

Audit 34731

FY End
2022-06-30
Total Expended
$7.80M
Findings
4
Programs
16
Organization: City of La Habra (CA)
Year: 2022 Accepted: 2023-03-30
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38830 2022-001 Significant Deficiency - G
38831 2022-002 Significant Deficiency - I
615272 2022-001 Significant Deficiency - G
615273 2022-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
17.259 Wia Youth Activities $1.52M Yes 1
10.558 Child and Adult Care Food Program $1.40M - 0
15.507 Watersmart (sustaining and Manage America's Resources for Tomorrow) $500,000 - 0
93.600 Head Start $424,600 - 0
93.575 Child Care and Development Block Grant $382,814 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $353,188 - 0
21.016 Equitable Sharing $219,351 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $169,054 Yes 0
14.218 Community Development Block Grants/entitlement Grants $89,565 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $62,518 - 0
45.301 Museums for America $57,638 - 0
20.600 State and Community Highway Safety $53,989 - 0
20.205 Highway Planning and Construction $10,723 - 0
97.042 Emergency Management Performance Grants $8,648 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $7,709 - 0
16.607 Bulletproof Vest Partnership Program $5,293 - 0

Contacts

Name Title Type
LM2VLKJB8NT9 Mary Ann Sy Auditee
5623834051 Kassie Radermacher Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of La Habra (the City) under programs of the federal government as well as federal financial assistance passed through other government agencies for the year ended June 30, 2022. 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 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in Note 1 of the notes to the City's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Criteria or Specific Requirement: WIOA section 129(a)(4)(A), 128 Stat. 1506, states that a minimum of 75% of Youth Activity funds allocated to the local areas must be used to provide services to out of school youth (OSY). Condition: The City spent 70% of total youth expenditures on OSY activity. Questioned Costs: None. Context: The City was awarded $2,180,915 of which $1,635,686 was budgeted to be spent on OSY activity to meet the 75% requirement. However, the City only spent $1,516,368 of the total award of which $1,062,480 was spent on OSY activity. Cause: In-school youth (ISY) is easier to place into work experience (WEX) than OSY. The City registered more ISY into WEX than OSY and exhausted ISY WEX funding before the end of the year. The City tried to mitigate the allocation issue by not offering additional ISY WEX services until more OSY was placed into WEX but was unable to enroll enough OSY to meet the 75% requirement. Effect: The City was not in compliance with the 75% minimum requirement on OSY activity. Recommendation: We recommend the City implement procedure to ensure actual program expenditures stay in line with the earmarking requirements throughout the year. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002
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 noted the City did not perform the suspension and debarment verification for one of the samples tested. Questioned Costs: None. Context: There were only two vendors subject to suspension and debarment testing for FY 21-22. While the City did not perform the suspension and debarment verification for one of these vendors tested, that vendor was not on the suspended and debarred listing. Cause: The vendor is a subsidiary of Motorola Solutions with whom the City has ongoing contracts. The City was under the impression that a separate verification of this vendor was not necessary. Effect: Internal control procedures over suspension and debarment compliance were 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. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-001
Criteria or Specific Requirement: WIOA section 129(a)(4)(A), 128 Stat. 1506, states that a minimum of 75% of Youth Activity funds allocated to the local areas must be used to provide services to out of school youth (OSY). Condition: The City spent 70% of total youth expenditures on OSY activity. Questioned Costs: None. Context: The City was awarded $2,180,915 of which $1,635,686 was budgeted to be spent on OSY activity to meet the 75% requirement. However, the City only spent $1,516,368 of the total award of which $1,062,480 was spent on OSY activity. Cause: In-school youth (ISY) is easier to place into work experience (WEX) than OSY. The City registered more ISY into WEX than OSY and exhausted ISY WEX funding before the end of the year. The City tried to mitigate the allocation issue by not offering additional ISY WEX services until more OSY was placed into WEX but was unable to enroll enough OSY to meet the 75% requirement. Effect: The City was not in compliance with the 75% minimum requirement on OSY activity. Recommendation: We recommend the City implement procedure to ensure actual program expenditures stay in line with the earmarking requirements throughout the year. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002
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 noted the City did not perform the suspension and debarment verification for one of the samples tested. Questioned Costs: None. Context: There were only two vendors subject to suspension and debarment testing for FY 21-22. While the City did not perform the suspension and debarment verification for one of these vendors tested, that vendor was not on the suspended and debarred listing. Cause: The vendor is a subsidiary of Motorola Solutions with whom the City has ongoing contracts. The City was under the impression that a separate verification of this vendor was not necessary. Effect: Internal control procedures over suspension and debarment compliance were 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. View of Responsible Officials: There is no disagreement with the audit finding.