FAC Explorer

Audit 347665

FY End
2024-06-30
Total Expended
$1.85M
Findings
8
Programs
4
Organization: City of Yreka (CA)
Year: 2024 Accepted: 2025-03-24
Auditor: Smith & Newell CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529724 2024-001 - - P
529725 2024-001 - - P
529726 2024-001 - - P
529727 2024-001 - - P
1106166 2024-001 - - P
1106167 2024-001 - - P
1106168 2024-001 - - P
1106169 2024-001 - - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $449,617 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $310,773 Yes 1
11.307 Economic Adjustment Assistance $146,206 - 0
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $140,480 - 0

Contacts

Name Title Type
NW6EWPZR1516 Emily Aldrich Auditee
5308412323 Carrie Schroeder, CPA Auditor
No contacts on file

Notes to SEFA

Title: 1. Reporting Entity Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Yreka, California (City). The City's reporting entity is defined in Note 1 of the City's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information is 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 position, changes in net position or cash flows of the City. 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 accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Yreka, California (City). The City's reporting entity is defined in Note 1 of the City's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information is 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 position, changes in net position or cash flows of the City.
Title: 2. Basis of Accounting Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Yreka, California (City). The City's reporting entity is defined in Note 1 of the City's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information is 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 position, changes in net position or cash flows of the City. 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. 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. The accompanying Schedule of Expenditures of Federal Awards, is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in the notes to the City financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursements. In addition, the outstanding balance of prior years' loans that have significant continuing compliance requirements have been included in total federal expenditures.
Title: 3. Indirect Cost Rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Yreka, California (City). The City's reporting entity is defined in Note 1 of the City's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information is 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 position, changes in net position or cash flows of the City. 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 has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 4. Relationship to Federal Financial Reports Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Yreka, California (City). The City's reporting entity is defined in Note 1 of the City's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information is 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 position, changes in net position or cash flows of the City. 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 amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the related federal financial assistance reports.
Title: 5. Relationship to Basic Financial Statements Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Yreka, California (City). The City's reporting entity is defined in Note 1 of the City's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information is 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 position, changes in net position or cash flows of the City. 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 amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the City's basic financial statements.
Title: 6. Pass-Through Entities' Identifying Number Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Yreka, California (City). The City's reporting entity is defined in Note 1 of the City's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information is 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 position, changes in net position or cash flows of the City. 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. When federal awards are received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain the identifying number from the pass-through entity.
Title: 7. Loans With Continuing Compliance Requirements Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Yreka, California (City). The City's reporting entity is defined in Note 1 of the City's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information is 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 position, changes in net position or cash flows of the City. 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 certain federal award programs that sponsor revolving loan programs, which are administered by the City. These programs require servicing arrangements with the City. The funds are returned to the programs upon repayment of the principal and interest. In accordance with Section 200.510 of the Uniform Guidance, the City has reported the outstanding balance of loans from previous years that have significant continuing compliance requirements as of June 30, 2024, along with the value of total outstanding and new loans made during the current year. The programs listed below had the following aggregate, federally funded loans outstanding at June 30, 2024: 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii balance at 07/01/23 $310,773 and at 06/30/24 $226,994.

Finding Details

Finding 2024-001
Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: U.S. Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that the City provide accurate Federal expenditure information to the City Auditor timely. Condition - During out test of major programs we noted that the SEFA provided by the City at the beginning of audit fieldwork we contained errors in the federal expenditures. Expenditures included in the SEFA provided at the beginning of the audit were less than actual expenditures by $621,669 in the major program listed above. Cause - The City did not reconcile the federal expenditure claims to the SEFA that was provided to us at the start of the audit. Effect -Federal expenditures reported on the original SEFA provided at the beginning of fieldwork was not materially correct and expenditures were understated by $621,669 in the major program listed above. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reconciling federal expenditures to the SEFA. Repeat Finding - This is not a repeat finding. Recommendation - We recommend that the City reconcile federal expenditures claimed to the City’s general ledger and SEFA. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Finding 2024-001
Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: U.S. Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that the City provide accurate Federal expenditure information to the City Auditor timely. Condition - During out test of major programs we noted that the SEFA provided by the City at the beginning of audit fieldwork we contained errors in the federal expenditures. Expenditures included in the SEFA provided at the beginning of the audit were less than actual expenditures by $621,669 in the major program listed above. Cause - The City did not reconcile the federal expenditure claims to the SEFA that was provided to us at the start of the audit. Effect -Federal expenditures reported on the original SEFA provided at the beginning of fieldwork was not materially correct and expenditures were understated by $621,669 in the major program listed above. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reconciling federal expenditures to the SEFA. Repeat Finding - This is not a repeat finding. Recommendation - We recommend that the City reconcile federal expenditures claimed to the City’s general ledger and SEFA. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Finding 2024-001
Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: U.S. Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that the City provide accurate Federal expenditure information to the City Auditor timely. Condition - During out test of major programs we noted that the SEFA provided by the City at the beginning of audit fieldwork we contained errors in the federal expenditures. Expenditures included in the SEFA provided at the beginning of the audit were less than actual expenditures by $621,669 in the major program listed above. Cause - The City did not reconcile the federal expenditure claims to the SEFA that was provided to us at the start of the audit. Effect -Federal expenditures reported on the original SEFA provided at the beginning of fieldwork was not materially correct and expenditures were understated by $621,669 in the major program listed above. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reconciling federal expenditures to the SEFA. Repeat Finding - This is not a repeat finding. Recommendation - We recommend that the City reconcile federal expenditures claimed to the City’s general ledger and SEFA. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Finding 2024-001
Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: U.S. Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that the City provide accurate Federal expenditure information to the City Auditor timely. Condition - During out test of major programs we noted that the SEFA provided by the City at the beginning of audit fieldwork we contained errors in the federal expenditures. Expenditures included in the SEFA provided at the beginning of the audit were less than actual expenditures by $621,669 in the major program listed above. Cause - The City did not reconcile the federal expenditure claims to the SEFA that was provided to us at the start of the audit. Effect -Federal expenditures reported on the original SEFA provided at the beginning of fieldwork was not materially correct and expenditures were understated by $621,669 in the major program listed above. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reconciling federal expenditures to the SEFA. Repeat Finding - This is not a repeat finding. Recommendation - We recommend that the City reconcile federal expenditures claimed to the City’s general ledger and SEFA. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Finding 2024-001
Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: U.S. Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that the City provide accurate Federal expenditure information to the City Auditor timely. Condition - During out test of major programs we noted that the SEFA provided by the City at the beginning of audit fieldwork we contained errors in the federal expenditures. Expenditures included in the SEFA provided at the beginning of the audit were less than actual expenditures by $621,669 in the major program listed above. Cause - The City did not reconcile the federal expenditure claims to the SEFA that was provided to us at the start of the audit. Effect -Federal expenditures reported on the original SEFA provided at the beginning of fieldwork was not materially correct and expenditures were understated by $621,669 in the major program listed above. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reconciling federal expenditures to the SEFA. Repeat Finding - This is not a repeat finding. Recommendation - We recommend that the City reconcile federal expenditures claimed to the City’s general ledger and SEFA. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Finding 2024-001
Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: U.S. Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that the City provide accurate Federal expenditure information to the City Auditor timely. Condition - During out test of major programs we noted that the SEFA provided by the City at the beginning of audit fieldwork we contained errors in the federal expenditures. Expenditures included in the SEFA provided at the beginning of the audit were less than actual expenditures by $621,669 in the major program listed above. Cause - The City did not reconcile the federal expenditure claims to the SEFA that was provided to us at the start of the audit. Effect -Federal expenditures reported on the original SEFA provided at the beginning of fieldwork was not materially correct and expenditures were understated by $621,669 in the major program listed above. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reconciling federal expenditures to the SEFA. Repeat Finding - This is not a repeat finding. Recommendation - We recommend that the City reconcile federal expenditures claimed to the City’s general ledger and SEFA. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Finding 2024-001
Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: U.S. Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that the City provide accurate Federal expenditure information to the City Auditor timely. Condition - During out test of major programs we noted that the SEFA provided by the City at the beginning of audit fieldwork we contained errors in the federal expenditures. Expenditures included in the SEFA provided at the beginning of the audit were less than actual expenditures by $621,669 in the major program listed above. Cause - The City did not reconcile the federal expenditure claims to the SEFA that was provided to us at the start of the audit. Effect -Federal expenditures reported on the original SEFA provided at the beginning of fieldwork was not materially correct and expenditures were understated by $621,669 in the major program listed above. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reconciling federal expenditures to the SEFA. Repeat Finding - This is not a repeat finding. Recommendation - We recommend that the City reconcile federal expenditures claimed to the City’s general ledger and SEFA. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.
Finding 2024-001
Name: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. ALN: 14.228. Federal Grantor: U.S. Department of Housing and Urban Development. Pass-Through Entity: State State Department of Housing and Community Development. Award No.: Various. Year: 2023/2024. Compliance Requirement: Other. Criteria - Internal control over the Schedule of Expenditures of Federal Awards (SEFA) requires that the City provide accurate Federal expenditure information to the City Auditor timely. Condition - During out test of major programs we noted that the SEFA provided by the City at the beginning of audit fieldwork we contained errors in the federal expenditures. Expenditures included in the SEFA provided at the beginning of the audit were less than actual expenditures by $621,669 in the major program listed above. Cause - The City did not reconcile the federal expenditure claims to the SEFA that was provided to us at the start of the audit. Effect -Federal expenditures reported on the original SEFA provided at the beginning of fieldwork was not materially correct and expenditures were understated by $621,669 in the major program listed above. Questioned Cost - No questioned costs were identified as a result of our procedures. Context - The condition noted above was identified during our procedures related to reconciling federal expenditures to the SEFA. Repeat Finding - This is not a repeat finding. Recommendation - We recommend that the City reconcile federal expenditures claimed to the City’s general ledger and SEFA. Views of Responsible Officials and Planned Corrective Action - Refer to separate Management's Corrective Action Plan for views of responsible officials and management’s responses.