FAC Explorer

Audit 351947

FY End
2023-06-30
Total Expended
$6.33M
Findings
2
Programs
10
Organization: City of Madera (CA)
Year: 2023 Accepted: 2025-03-31
Auditor: The Pun Group

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
548597 2023-001 Significant Deficiency - L
1125039 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Fund $2.38M Yes 0
20.106 Airport Improvement Program $1.12M Yes 1
20.507 Covid-19 - Federal Transit Formula Grants $836,968 - 0
20.507 Federal Transit Formula Grants $570,000 - 0
93.499 Low Income Household Water Assistance Program (lihwap) $240,836 - 0
14.218 Community Development Block Grants/entitlement Grants $133,348 - 0
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $131,739 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $28,201 - 0
20.205 Highway Planning and Construction $10,885 - 0
20.600 State of California Office of Traffic Safety $8,362 - 0

Contacts

Name Title Type
GM14DSJ51PR1 Michael Lima Auditee
5596615454 Andrew Roth Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Reporting Entity Accounting Policies: Note 1 – Reporting Entity The financial reporting entity consists of the primary government, City of Madera (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 reporting entity’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 organizations, establishing financial accountability: • Madera Public Financing Authority The following entity is a discretely presented component unit in the City’s basic financial statements but federal awards from federal agencies are not included in the Schedule of Expenditures of Federal Awards because they are a separate legal entity. The audit of these federal awards under Uniform Guidance is conducted by other auditors: • Housing Authority of the City of Madera Note 2 – Basis of Accounting Funds received under the various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. Note 3 – Schedule of Expenditures of Federal Awards 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 are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in net position or fund balance, or results of operations and cash flows of the City. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance. The financial reporting entity consists of the primary government, City of Madera (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 reporting entity’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 organizations, establishing financial accountability: • Madera Public Financing Authority The following entity is a discretely presented component unit in the City’s basic financial statements but federal awards from federal agencies are not included in the Schedule of Expenditures of Federal Awards because they are a separate legal entity. The audit of these federal awards under Uniform Guidance is conducted by other auditors: • Housing Authority of the City of Madera
Title: Note 2 – Basis of Accounting Accounting Policies: Note 1 – Reporting Entity The financial reporting entity consists of the primary government, City of Madera (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 reporting entity’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 organizations, establishing financial accountability: • Madera Public Financing Authority The following entity is a discretely presented component unit in the City’s basic financial statements but federal awards from federal agencies are not included in the Schedule of Expenditures of Federal Awards because they are a separate legal entity. The audit of these federal awards under Uniform Guidance is conducted by other auditors: • Housing Authority of the City of Madera Note 2 – Basis of Accounting Funds received under the various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. Note 3 – Schedule of Expenditures of Federal Awards 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 are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in net position or fund balance, or results of operations and cash flows of the City. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance. Funds received under the various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements.
Title: Note 3 – Schedule of Expenditures of Federal Awards Accounting Policies: Note 1 – Reporting Entity The financial reporting entity consists of the primary government, City of Madera (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 reporting entity’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 organizations, establishing financial accountability: • Madera Public Financing Authority The following entity is a discretely presented component unit in the City’s basic financial statements but federal awards from federal agencies are not included in the Schedule of Expenditures of Federal Awards because they are a separate legal entity. The audit of these federal awards under Uniform Guidance is conducted by other auditors: • Housing Authority of the City of Madera Note 2 – Basis of Accounting Funds received under the various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. Note 3 – Schedule of Expenditures of Federal Awards 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 are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in net position or fund balance, or results of operations and cash flows of the City. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance. 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 are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in net position or fund balance, or results of operations and cash flows of the City.
Title: Note 4 – Indirect Cost Rate Accounting Policies: Note 1 – Reporting Entity The financial reporting entity consists of the primary government, City of Madera (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 reporting entity’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 organizations, establishing financial accountability: • Madera Public Financing Authority The following entity is a discretely presented component unit in the City’s basic financial statements but federal awards from federal agencies are not included in the Schedule of Expenditures of Federal Awards because they are a separate legal entity. The audit of these federal awards under Uniform Guidance is conducted by other auditors: • Housing Authority of the City of Madera Note 2 – Basis of Accounting Funds received under the various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. Note 3 – Schedule of Expenditures of Federal Awards 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 are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in net position or fund balance, or results of operations and cash flows of the City. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance. The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001 Reporting – Internal Control and Compliance over Reporting (Significant Deficiency) Information on the Federal Program: Assistance Listing Number: 20.106 Federal Program Name: Airport Improvement Program Federal Agency: Department of Transportation Pass-Through Entity: N/A Federal Award Number and Award Year: 3-06-0144-029-2020 - FY20-21 Criteria: CODE OF FEDERAL REGULATIONS, Title 49 – TRANSPORTATION, Part 18 – UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS, Subpart C – Post-Award Requirements: 18.41 Financial Report (a) General (4), Due date. When reports are required on a quarterly or semiannual basis, they will be due 30 days after the reporting period. When required on an annual basis, they will be due 90 days after the grant year. Final reports will be due 90 days after the expiration or termination of grant support. 18.58 (a) General. The Federal agency will close out the award when it determines that all applicable administrative actions and all required work of the grant has been completed. 18.50 (b) Reports. Within 90 days after the expiration or termination of the grant, the grantee must submit all financial, performance, and other reports required as a condition of the grant. Upon request by the grantee, Federal agencies may extend this time frame. These may include but are not limited to: (1) Final performance or progress report, (2) Financial Status Report (SF 269) or Outlay Report and Request for Reimbursement for Construction Programs (SF-271) (as applicable), (3) Final request for payment (SF-270) (if applicable), and (4) Invention disclosure (if applicable). U.S. OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-133—AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS (OMB Circular A-133), Subpart C— Auditees, Section .300—Auditee Responsibilities (b) Maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a material effect on each of its federal programs. Condition and Context: For the Airport Improvement Program (AIP), the City did not submit the reports within the required deadline: Report Type Award Number Period Date Due Date Submitted SF-425 Financial 3-06-0034-018-2020 1/1/2022 - 12/31/2022 12/31/2022 Not submitted SF-270 Financial 3-06-0034-018-2020 1/1/2022 - 12/31/2022 12/31/2022 Not submitted FAA Form 5370-1 3-06-0034-018-2020 7/1/2022 - 9/30/2022 10/30/2022 Not submitted FAA Form 5370-1 3-06-0034-018-2020 10/1/2022 - 12/31/2022 1/30/2023 Not submitted FAA Form 5370-1 3-06-0034-018-2020 1/1/2023 - 3/31/2023 4/30/2023 Not submitted FAA Form 5370-1 3-06-0034-018-2020 4/1/2023 - 6/30/2023 7/30/2023 Not submitted Four (4) financial reports were tested and all reports were not submitted by the required deadline. Cause: Due to the effects of grant staff turnover, the City’s procedures did not consistently ensure that the reports were submitted timely in accordance with the timelines in the Uniform Guidance, or properly reviewed and approved prior to submission. Effect: Failure to submit the SF-425 reports, SF-271 reports, and FAA Form 5370-1 reports timely results in noncompliance with the reporting requirements in the grant agreement. Questioned Costs: None noted. Identification as a Repeat Finding, If Applicable: No. 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. Management’s View and Corrective Action Plan: The City concurs with the auditors’ finding. The City will take steps to improve identification and monitoring of required grantor reporting deadlines.
Finding 2023-001
Finding 2023-001 Reporting – Internal Control and Compliance over Reporting (Significant Deficiency) Information on the Federal Program: Assistance Listing Number: 20.106 Federal Program Name: Airport Improvement Program Federal Agency: Department of Transportation Pass-Through Entity: N/A Federal Award Number and Award Year: 3-06-0144-029-2020 - FY20-21 Criteria: CODE OF FEDERAL REGULATIONS, Title 49 – TRANSPORTATION, Part 18 – UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS, Subpart C – Post-Award Requirements: 18.41 Financial Report (a) General (4), Due date. When reports are required on a quarterly or semiannual basis, they will be due 30 days after the reporting period. When required on an annual basis, they will be due 90 days after the grant year. Final reports will be due 90 days after the expiration or termination of grant support. 18.58 (a) General. The Federal agency will close out the award when it determines that all applicable administrative actions and all required work of the grant has been completed. 18.50 (b) Reports. Within 90 days after the expiration or termination of the grant, the grantee must submit all financial, performance, and other reports required as a condition of the grant. Upon request by the grantee, Federal agencies may extend this time frame. These may include but are not limited to: (1) Final performance or progress report, (2) Financial Status Report (SF 269) or Outlay Report and Request for Reimbursement for Construction Programs (SF-271) (as applicable), (3) Final request for payment (SF-270) (if applicable), and (4) Invention disclosure (if applicable). U.S. OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-133—AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS (OMB Circular A-133), Subpart C— Auditees, Section .300—Auditee Responsibilities (b) Maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a material effect on each of its federal programs. Condition and Context: For the Airport Improvement Program (AIP), the City did not submit the reports within the required deadline: Report Type Award Number Period Date Due Date Submitted SF-425 Financial 3-06-0034-018-2020 1/1/2022 - 12/31/2022 12/31/2022 Not submitted SF-270 Financial 3-06-0034-018-2020 1/1/2022 - 12/31/2022 12/31/2022 Not submitted FAA Form 5370-1 3-06-0034-018-2020 7/1/2022 - 9/30/2022 10/30/2022 Not submitted FAA Form 5370-1 3-06-0034-018-2020 10/1/2022 - 12/31/2022 1/30/2023 Not submitted FAA Form 5370-1 3-06-0034-018-2020 1/1/2023 - 3/31/2023 4/30/2023 Not submitted FAA Form 5370-1 3-06-0034-018-2020 4/1/2023 - 6/30/2023 7/30/2023 Not submitted Four (4) financial reports were tested and all reports were not submitted by the required deadline. Cause: Due to the effects of grant staff turnover, the City’s procedures did not consistently ensure that the reports were submitted timely in accordance with the timelines in the Uniform Guidance, or properly reviewed and approved prior to submission. Effect: Failure to submit the SF-425 reports, SF-271 reports, and FAA Form 5370-1 reports timely results in noncompliance with the reporting requirements in the grant agreement. Questioned Costs: None noted. Identification as a Repeat Finding, If Applicable: No. 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. Management’s View and Corrective Action Plan: The City concurs with the auditors’ finding. The City will take steps to improve identification and monitoring of required grantor reporting deadlines.