Audit 350245

FY End
2024-06-30
Total Expended
$92.19M
Findings
6
Programs
59
Organization: City of Pasadena (CA)
Year: 2024 Accepted: 2025-03-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
540428 2024-002 Significant Deficiency - P
540429 2024-002 Significant Deficiency - P
540430 2024-002 Significant Deficiency - P
1116870 2024-002 Significant Deficiency - P
1116871 2024-002 Significant Deficiency - P
1116872 2024-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.218 Beginning Loan Balances $27.16M Yes 1
14.871 Section 8 Housing Choice Vouchers $19.33M Yes 0
14.239 Beginning Loan Balances $13.96M - 0
14.267 Continuum of Care Program* $3.50M - 0
14.871 Covid-19 Section 8 Housing Choice Vouchers (cares Act) $2.63M Yes 0
93.323 Covid-19 Epidemiology Laboratory Capacity $2.00M - 0
20.205 Highway Planning and Construction - Cordova Street Enhancement * $1.74M - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.68M - 0
16.922 Equitable Sharing Program - Justice $1.62M - 0
14.218 Community Development Block Grants/entitlement Grants $1.57M Yes 1
14.239 Home Investment Partnership Program* $1.55M - 0
17.258 Wioa Adult Program $1.30M Yes 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants and Children $1.01M - 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds - Extended Water and Wastewater Arrearage Payment Program $898,792 - 0
17.259 Wioa Youth Activities $897,800 Yes 0
20.205 Highway Planning and Construction - Union Street Cycle Track * $805,609 - 0
93.268 Covid-19 Immunization Cooperative Agreements $694,052 - 0
17.277 Wioa Dislocated Worker Formula Grants $680,083 - 0
97.067 Homeland Security Grant Program - Fy 2020 Urban Areas Security Initiative $652,602 - 0
93.994 Maternal and Child Health Services Block Grant to the States $619,464 - 0
16.827 Justice Reinvestment Initiative $593,408 - 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds - Port* $578,194 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance (cds) $416,750 - 0
14.248 Community Development Block Grants Section 108 Loan Guarantees $416,325 - 0
14.218 Covid-19 Community Development Block Grants/entitlement Grants $346,128 Yes 1
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds Health Equity* $327,184 - 0
20.205 Federal Transit Capital Investment Grants - Intelligent Transportation System * $322,467 - 0
93.778 Medical Assistance Program $297,273 - 0
93.391 Cdc Work Force Development $292,419 - 0
17.278 Wioa Dislocated Worker Formula Grants - Rapid Response $292,170 Yes 0
93.354 Public Health Emergency Preparedness $282,404 - 0
93.940 Hiv Prevention Activities Health Department Based $282,267 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated - Ots Selective Traffic Enforcement Program (step) $266,655 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $239,284 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $237,498 - 0
14.241 Home Opportunities for Persons with Aids $232,294 - 0
93.967 Cdc Ph Infrastructure $226,837 - 0
17.278 Wioa Quest National Dislocated Worker Disaster Relief $208,362 Yes 0
17.278 Wioa Dislocated Worker Formula Grants - Calworks $207,634 Yes 0
17.278 Wioa Dislocated Worker Formula Grants - Foothill Caltech $205,404 Yes 0
14.231 Emergency Solutions Grant Program $161,696 - 0
93.354 Cdc Disparities $133,613 - 0
20.600 State and Community Highway Safety $124,503 - 0
93.391 State Health Disparity Grant - Ceri $122,540 - 0
93.778 Chouer Program $92,524 - 0
93.197 Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $91,031 - 0
20.205 Highway Planning and Construction - Holly Street Bridge Seismic Retrofit * $85,699 - 0
17.278 Wioa Dislocated Worker Formula Grants - Prison to Employment $84,140 Yes 0
93.977 Dis Workforce Development $72,641 - 0
93.268 Immunization Cooperative Agreements $64,160 - 0
14.871 Beginning Loan Balances $50,000 Yes 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $47,663 - 0
17.278 Wioa Dislocated Worker Formula Grants - Rapid Response Layoff Aversion $24,906 Yes 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance (mhat) $23,375 - 0
20.205 Highway Planning and Construction - Interval/audible Signal at Intersections * $12,908 - 0
93.323 Elc Strike (health Assoc. Infection) $11,950 - 0
20.205 Highway Planning and Construction - Rapid Flashing Beacons * $5,208 - 0
93.354 Public Health Preparedness, Emergency and Response / Monkeypox $3,978 - 0
97.039 Hazard Mitigation Grant $3,514 - 0

Contacts

Name Title Type
JK7YAK6HPFM6 Armine Trashian Auditee
6267447497 Brandon Young Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS A. Scope of Presentation The accompanying schedule presents only the expenditures incurred by the City of Pasadena, California, that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance 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 portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. B. Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. A. Scope of Presentation The accompanying schedule presents only the expenditures incurred by the City of Pasadena (the “City), that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance 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 portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. B. Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 2: SECTION 108 LOAN GUARANTEE PROGRAM Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS A. Scope of Presentation The accompanying schedule presents only the expenditures incurred by the City of Pasadena, California, that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance 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 portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. B. Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. On October 29, 2015, the City entered into a Contract for Loan Guarantee Assistance under Section 108 with the U.S. Department of Housing and Urban Development in the amount of $6,000,000 for the Robinson Park Project. On March 28, 2019 the loan was refinanced at $5,100,000 to lock in permanent fixed interest rates. Principal is payable in annual installments of $300,000 commencing on August 1, 2019 and ending August 1, 2035. Interest rate is fixed between 2.54%-3.635%. Interest payment is paid semi-annually from the effective date of March 28, 2019. The balance outstanding as of June 30, 2024, is $3,900,000.
Title: NOTE 3: LOAN PROGRAMS WITH CONTINUING COMPLIANCE REQUIREMENTS Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS A. Scope of Presentation The accompanying schedule presents only the expenditures incurred by the City of Pasadena, California, that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance 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 portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. B. Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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 program costs listed below are administered directly by the City of Pasadena, and balances and transactions relating to these programs are included in the City’s basic financial statements. Loans made during the year are included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. The balance of loans outstanding at June 30, 2024, consists of: (See the Notes to the SEFA for chart/table)

Finding Details

Finding 2024-002: Continuing Loan Compliance Significant Deficiency - Noncompliance Federal Award Information: Assistance Listing Number: 14.218 Program Title: CDBG – Entitlement Grants Cluster Federal Award Year(s): FY 2023-24 Name of Federal Agency: U.S. Department of Housing and Urban Development SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Criteria or Specific Requirement: The City was unable to provide compliance supporting documentation for the CDBG loan proof of insurance and/or residency compliance requirements for the year ended June 30, 2024. Condition: We noted that of the loan balances that we sampled, the City was unable to provide supporting documentation for proof of insurance and/or residency for 2 of the selected loans. Cause of the Condition: Per our inquiries with the City, due to the significant age of the selected loans, City personnel were unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Additionally, there wasn’t a clear understanding of the compliance requirements to be performed by the grant administrator. Effect or Possible Effect: Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City personnel. Context: Out of the loans selected, City was unable to provide documentation on the monitoring procedures. Repeat Finding: N/A Recommendation: We recommend that management monitors each loan to ensure that the City maintains the most up-to-date information. Management Response The City acknowledges the finding regarding the lack of supporting documentation for ongoing compliance with the CDBG loans. The City will implement audit recommendations and maintain all compliance-related documentation on a regular basis to ensure all necessary documents are maintained such as proof of insurance and/or residency compliance requirements.
Finding 2024-002: Continuing Loan Compliance Significant Deficiency - Noncompliance Federal Award Information: Assistance Listing Number: 14.218 Program Title: CDBG – Entitlement Grants Cluster Federal Award Year(s): FY 2023-24 Name of Federal Agency: U.S. Department of Housing and Urban Development SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Criteria or Specific Requirement: The City was unable to provide compliance supporting documentation for the CDBG loan proof of insurance and/or residency compliance requirements for the year ended June 30, 2024. Condition: We noted that of the loan balances that we sampled, the City was unable to provide supporting documentation for proof of insurance and/or residency for 2 of the selected loans. Cause of the Condition: Per our inquiries with the City, due to the significant age of the selected loans, City personnel were unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Additionally, there wasn’t a clear understanding of the compliance requirements to be performed by the grant administrator. Effect or Possible Effect: Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City personnel. Context: Out of the loans selected, City was unable to provide documentation on the monitoring procedures. Repeat Finding: N/A Recommendation: We recommend that management monitors each loan to ensure that the City maintains the most up-to-date information. Management Response The City acknowledges the finding regarding the lack of supporting documentation for ongoing compliance with the CDBG loans. The City will implement audit recommendations and maintain all compliance-related documentation on a regular basis to ensure all necessary documents are maintained such as proof of insurance and/or residency compliance requirements.
Finding 2024-002: Continuing Loan Compliance Significant Deficiency - Noncompliance Federal Award Information: Assistance Listing Number: 14.218 Program Title: CDBG – Entitlement Grants Cluster Federal Award Year(s): FY 2023-24 Name of Federal Agency: U.S. Department of Housing and Urban Development SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Criteria or Specific Requirement: The City was unable to provide compliance supporting documentation for the CDBG loan proof of insurance and/or residency compliance requirements for the year ended June 30, 2024. Condition: We noted that of the loan balances that we sampled, the City was unable to provide supporting documentation for proof of insurance and/or residency for 2 of the selected loans. Cause of the Condition: Per our inquiries with the City, due to the significant age of the selected loans, City personnel were unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Additionally, there wasn’t a clear understanding of the compliance requirements to be performed by the grant administrator. Effect or Possible Effect: Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City personnel. Context: Out of the loans selected, City was unable to provide documentation on the monitoring procedures. Repeat Finding: N/A Recommendation: We recommend that management monitors each loan to ensure that the City maintains the most up-to-date information. Management Response The City acknowledges the finding regarding the lack of supporting documentation for ongoing compliance with the CDBG loans. The City will implement audit recommendations and maintain all compliance-related documentation on a regular basis to ensure all necessary documents are maintained such as proof of insurance and/or residency compliance requirements.
Finding 2024-002: Continuing Loan Compliance Significant Deficiency - Noncompliance Federal Award Information: Assistance Listing Number: 14.218 Program Title: CDBG – Entitlement Grants Cluster Federal Award Year(s): FY 2023-24 Name of Federal Agency: U.S. Department of Housing and Urban Development SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Criteria or Specific Requirement: The City was unable to provide compliance supporting documentation for the CDBG loan proof of insurance and/or residency compliance requirements for the year ended June 30, 2024. Condition: We noted that of the loan balances that we sampled, the City was unable to provide supporting documentation for proof of insurance and/or residency for 2 of the selected loans. Cause of the Condition: Per our inquiries with the City, due to the significant age of the selected loans, City personnel were unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Additionally, there wasn’t a clear understanding of the compliance requirements to be performed by the grant administrator. Effect or Possible Effect: Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City personnel. Context: Out of the loans selected, City was unable to provide documentation on the monitoring procedures. Repeat Finding: N/A Recommendation: We recommend that management monitors each loan to ensure that the City maintains the most up-to-date information. Management Response The City acknowledges the finding regarding the lack of supporting documentation for ongoing compliance with the CDBG loans. The City will implement audit recommendations and maintain all compliance-related documentation on a regular basis to ensure all necessary documents are maintained such as proof of insurance and/or residency compliance requirements.
Finding 2024-002: Continuing Loan Compliance Significant Deficiency - Noncompliance Federal Award Information: Assistance Listing Number: 14.218 Program Title: CDBG – Entitlement Grants Cluster Federal Award Year(s): FY 2023-24 Name of Federal Agency: U.S. Department of Housing and Urban Development SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Criteria or Specific Requirement: The City was unable to provide compliance supporting documentation for the CDBG loan proof of insurance and/or residency compliance requirements for the year ended June 30, 2024. Condition: We noted that of the loan balances that we sampled, the City was unable to provide supporting documentation for proof of insurance and/or residency for 2 of the selected loans. Cause of the Condition: Per our inquiries with the City, due to the significant age of the selected loans, City personnel were unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Additionally, there wasn’t a clear understanding of the compliance requirements to be performed by the grant administrator. Effect or Possible Effect: Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City personnel. Context: Out of the loans selected, City was unable to provide documentation on the monitoring procedures. Repeat Finding: N/A Recommendation: We recommend that management monitors each loan to ensure that the City maintains the most up-to-date information. Management Response The City acknowledges the finding regarding the lack of supporting documentation for ongoing compliance with the CDBG loans. The City will implement audit recommendations and maintain all compliance-related documentation on a regular basis to ensure all necessary documents are maintained such as proof of insurance and/or residency compliance requirements.
Finding 2024-002: Continuing Loan Compliance Significant Deficiency - Noncompliance Federal Award Information: Assistance Listing Number: 14.218 Program Title: CDBG – Entitlement Grants Cluster Federal Award Year(s): FY 2023-24 Name of Federal Agency: U.S. Department of Housing and Urban Development SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Criteria or Specific Requirement: The City was unable to provide compliance supporting documentation for the CDBG loan proof of insurance and/or residency compliance requirements for the year ended June 30, 2024. Condition: We noted that of the loan balances that we sampled, the City was unable to provide supporting documentation for proof of insurance and/or residency for 2 of the selected loans. Cause of the Condition: Per our inquiries with the City, due to the significant age of the selected loans, City personnel were unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Additionally, there wasn’t a clear understanding of the compliance requirements to be performed by the grant administrator. Effect or Possible Effect: Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City personnel. Context: Out of the loans selected, City was unable to provide documentation on the monitoring procedures. Repeat Finding: N/A Recommendation: We recommend that management monitors each loan to ensure that the City maintains the most up-to-date information. Management Response The City acknowledges the finding regarding the lack of supporting documentation for ongoing compliance with the CDBG loans. The City will implement audit recommendations and maintain all compliance-related documentation on a regular basis to ensure all necessary documents are maintained such as proof of insurance and/or residency compliance requirements.