FAC Explorer

Audit 352034

FY End
2024-06-30
Total Expended
$8.41M
Findings
2
Programs
9
Organization: City of Rancho Cordova (CA)
Year: 2024 Accepted: 2025-03-31
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
551113 2024-002 Material Weakness - P
1127555 2024-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
21.027 Covid - 19 Coronavirus State and Local Fiscal Recovery Funds $3.11M Yes 0
20.205 Highway Planning and Construction $2.52M - 0
14.218 Community Development Block Grants/entitlement Grants $663,978 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $326,622 Yes 1
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $173,554 - 0
81.128 Energy Efficiency and Conservation Block Grant Program (eecbg) $138,326 - 0
14.218 Covid - 19 Community Development Block Grants/entitlement Grants $60,695 - 0
97.039 Hazard Mitigation Grant $57,995 - 0
20.614 National Highway Traffic Safety Administration (nhtsa) Discretionary Safety Grants and Cooperative Agreements $15,633 - 0

Contacts

Name Title Type
ZPFZUH75WCL2 Michelle Mingay Auditee
9168518738 James Ramsey Auditor
No contacts on file

Notes to SEFA

Title: Direct and Indirect (Pass-Through) Federal Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the City of Rancho Cordova, California (City) 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 operations of the City, it is not intended to and does not present the financial position, changes in net position/fund balance, or cash flows of the City. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect cost rate. Federal awards may be granted directly to the City by a federal granting agency or may be granted to other government agencies which pass-through federal awards to the City. The Schedule includes both of these types of Federal award programs when they occur.

Finding Details

Finding 2024-002
Program/Cluster: Disaster Grants – Public Assistance Federal Financial Assistance Listing: 97.036 Federal Agency: U.S. Department of Federal Emergency Management Agency Pass-through: California Governor’s Office of Emergency Services Award No. and Year: FEMA-4683-DR-CA (2024) Compliance Requirement: O – Other Information Type of Finding: Material Weakness in Internal Control Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. As outlined in the Disaster Grants – Public Assistance section of the Compliance Supplement, section IV, nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s Project, and (2) the nonfederal entity has incurred the eligible expenditures. Condition: Our testing over activities allowed and allowable costs identified three expenditures that were not approved under the grant per communications from the Federal Emergency Management Agency (FEMA). The City is currently appealing FEMA’s decision and pending project approval. For purposes of reporting expenditures on the Schedule of Expenditures of Federal Awards (SEFA), the City has removed total costs of $638,418 for the FEMA grant until obligations are approved. Cause: There was a lapse in oversight of the internal control process ensuring only obligated FEMA expenditures are reported on the SEFA. Effect: The City’s control did not detect or correct the errors identified, which resulted in expenditures being allocated to the federal award that were not obligated. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A haphazard sample of six transactions were selected for testing, which accounted for $729,981 of the original $965,040 reported as federal program expenditures. As a result of testing and review of the SEFA, the City revised the SEFA to only include approved obligations in the amount of $326,622. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the City review and strengthen the controls surrounding expenditures being claimed under the grant and ensuring expenditures are obligated before being reported on the SEFA. Views of Responsible Officials: Management’s Response: See separate corrective action plan.
Finding 2024-002
Program/Cluster: Disaster Grants – Public Assistance Federal Financial Assistance Listing: 97.036 Federal Agency: U.S. Department of Federal Emergency Management Agency Pass-through: California Governor’s Office of Emergency Services Award No. and Year: FEMA-4683-DR-CA (2024) Compliance Requirement: O – Other Information Type of Finding: Material Weakness in Internal Control Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. As outlined in the Disaster Grants – Public Assistance section of the Compliance Supplement, section IV, nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s Project, and (2) the nonfederal entity has incurred the eligible expenditures. Condition: Our testing over activities allowed and allowable costs identified three expenditures that were not approved under the grant per communications from the Federal Emergency Management Agency (FEMA). The City is currently appealing FEMA’s decision and pending project approval. For purposes of reporting expenditures on the Schedule of Expenditures of Federal Awards (SEFA), the City has removed total costs of $638,418 for the FEMA grant until obligations are approved. Cause: There was a lapse in oversight of the internal control process ensuring only obligated FEMA expenditures are reported on the SEFA. Effect: The City’s control did not detect or correct the errors identified, which resulted in expenditures being allocated to the federal award that were not obligated. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A haphazard sample of six transactions were selected for testing, which accounted for $729,981 of the original $965,040 reported as federal program expenditures. As a result of testing and review of the SEFA, the City revised the SEFA to only include approved obligations in the amount of $326,622. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the City review and strengthen the controls surrounding expenditures being claimed under the grant and ensuring expenditures are obligated before being reported on the SEFA. Views of Responsible Officials: Management’s Response: See separate corrective action plan.