FAC Explorer

Audit 351751

FY End
2024-06-30
Total Expended
$1.51M
Findings
2
Programs
4
Organization: California Capital Financial Development Corporation (CA)
Year: 2024 Accepted: 2025-03-31
Auditor: Richardson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547574 2024-001 Significant Deficiency - L
1124016 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
11.307 Economic Adjustment Assistance $594,649 Yes 1
12.002 Procurement Technical Assistance for Business Firms $435,228 - 0
59.037 Small Business Development Centers $146,334 - 0
59.043 Women's Business Ownership Assistance $112,500 - 0

Contacts

Name Title Type
PC8UHMZVHPH7 May Masunaga Auditee
9162996787 Ingrid Sheipline Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenses reported on the Schedule are reported on the modified accrual basis of accounting. Such expenses are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principals for State, Local, and Indian Tribal Governments, wherein certain types of expenses are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: CCFDC did not elect to charge indirect costs to its federal programs using the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the California Capital Financial Development Corporation (CCFDC) under programs of the federal government for the year ended June 30, 2024. 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 CCFDC’s operations, it is not intended to be and does not present the financial position, changes in net position, or cash flows of CCFDC.
Title: PROGRAM COSTS/MATCHING CONTRIBUTIONS Accounting Policies: Expenses reported on the Schedule are reported on the modified accrual basis of accounting. Such expenses are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principals for State, Local, and Indian Tribal Governments, wherein certain types of expenses are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: CCFDC did not elect to charge indirect costs to its federal programs using the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The amounts shown as current year expenses represent only the (federal/state/local) grant portion of the program costs. Entire program costs, including the CCFDC’s portion, may be more than shown.
Title: NONCASH AWARDS Accounting Policies: Expenses reported on the Schedule are reported on the modified accrual basis of accounting. Such expenses are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principals for State, Local, and Indian Tribal Governments, wherein certain types of expenses are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: CCFDC did not elect to charge indirect costs to its federal programs using the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. No noncash awards existed in the current year.
Title: LOAN PROGRAMS Accounting Policies: Expenses reported on the Schedule are reported on the modified accrual basis of accounting. Such expenses are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principals for State, Local, and Indian Tribal Governments, wherein certain types of expenses are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: CCFDC did not elect to charge indirect costs to its federal programs using the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The outstanding balances of loan programs were as follows: Federal Program: Economic Adjustment Assistance - CARES Act, Federal AL Number: 11.307, Outstanding Loan Balance: $1,547,514. Federal Program: Economic Adjustment Assistance - RLF, Federal AL Number: 11.307, Outstanding Loan Balance: $520,318.
Title: SUBRECIPIENTS Accounting Policies: Expenses reported on the Schedule are reported on the modified accrual basis of accounting. Such expenses are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principals for State, Local, and Indian Tribal Governments, wherein certain types of expenses are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: CCFDC did not elect to charge indirect costs to its federal programs using the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There were no subrecipients of CCFDC’s programs during the year ended June 30, 2024.

Finding Details

Finding 2024-001
INTERNAL CONTROL OVER COMPLIANCE Finding 2024-001 – Significant Deficiency Award No.: 11.307, Economic Adjustment Assistance Federal Grantor: U.S. Economic Development Administration Compliance Requirement: Other compliance requirements. Condition: The schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over the SEFA should be in place ensure accrual basis expenses incurred under the federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit. Cause: SEFA was not fully reconciled and finalized until after the single audit began. Effect: The expenses included on the SEFA were revised during the single audit, which could have resulted in the auditor not selecting the correct major program or expenses for testing and could have resulted in the single audit not satisfying the requirements of the Uniform Guidance. Recommendation: We recommend additional review procedures be implemented to ensure the SEFA is complete and accurate when the single audit begins. Views of Responsible Officials and Planned Corrective Actions: Year end SEFA reconciliation will be formalized and performed to ensure it is complete and accurate when the single audit begins.
Finding 2024-001
INTERNAL CONTROL OVER COMPLIANCE Finding 2024-001 – Significant Deficiency Award No.: 11.307, Economic Adjustment Assistance Federal Grantor: U.S. Economic Development Administration Compliance Requirement: Other compliance requirements. Condition: The schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over the SEFA should be in place ensure accrual basis expenses incurred under the federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit. Cause: SEFA was not fully reconciled and finalized until after the single audit began. Effect: The expenses included on the SEFA were revised during the single audit, which could have resulted in the auditor not selecting the correct major program or expenses for testing and could have resulted in the single audit not satisfying the requirements of the Uniform Guidance. Recommendation: We recommend additional review procedures be implemented to ensure the SEFA is complete and accurate when the single audit begins. Views of Responsible Officials and Planned Corrective Actions: Year end SEFA reconciliation will be formalized and performed to ensure it is complete and accurate when the single audit begins.