Audit 352398

FY End
2024-06-30
Total Expended
$2.21M
Findings
2
Programs
7
Organization: City of Healdsburg (CA)
Year: 2024 Accepted: 2025-04-01

Organization Exclusion Status:

Checking exclusion status...

Contacts

Name Title Type
GA96JGRBHSW6 Katie Edgar Auditee
7074313184 Ahmed Badawi Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: Funds received under the various grant programs have been recorded within the general, special revenue, capital projects, and enterprise funds of the City. The City utilizes the modified accrual basis of accounting for the general, special revenue, and capital project funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented in accordance with the requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate. The financial reporting entity, as defined by Governmental Accounting Standards Board (GASB), consists of (a) the primary government, which is the City of Healdsburg (City), and (b) component units which include 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.
Title: Summary of Significant Accounting Policies - Basis of Accounting Accounting Policies: Funds received under the various grant programs have been recorded within the general, special revenue, capital projects, and enterprise funds of the City. The City utilizes the modified accrual basis of accounting for the general, special revenue, and capital project funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented in accordance with the requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate. Funds received under the various grant programs have been recorded within the general, special revenue, capital projects, and enterprise funds of the City. The City utilizes the modified accrual basis of accounting for the general, special revenue, and capital project funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented in accordance with the requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Title: Summary of Significant Accounting Policies - Schedule of Expenditures of Federal Awards Accounting Policies: Funds received under the various grant programs have been recorded within the general, special revenue, capital projects, and enterprise funds of the City. The City utilizes the modified accrual basis of accounting for the general, special revenue, and capital project funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented in accordance with the requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate. 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 and other agencies are included in the Schedule. The Schedule of Expenditures of Federal Awards was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.
Title: Indirect Costs Accounting Policies: Funds received under the various grant programs have been recorded within the general, special revenue, capital projects, and enterprise funds of the City. The City utilizes the modified accrual basis of accounting for the general, special revenue, and capital project funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented in accordance with the requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate. The City did not elect to use the 10% de minimis indirect cost rate.

Finding Details

Assistance Listing Numbers: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: U.S. Department of Treasury Criteria: The grant requires that the Project and Expenditure Report must be submitted annually by no later than April 30 each year. Condition: For the year 2024, the City was required to submit the annual Project and Expenditure Report by April 30, 2024. However, the City submitted the report on May 2, 2024, which was past the deadline. Cause: The City missed the deadline for the submission of the report. Context and Effect: Timely submission of the Project and Expenditure Report is one of the grant requirements. Failure to meet this deadline impacts the City’s compliance with the grant requirements and may affect future funding. Recommendation: We recommend the City implement strong internal controls to ensure that all reporting requirements are met within the prescribed timelines. Management Response: The City of Healdsburg will no longer miss federal grant reporting deadlines due to the comprehensive grant tracker developed. This tool tracks both quarterly and annual submission dates for all grants, ensuring a clear overview of upcoming deadlines. Additionally, these critical dates have been added to the internal calendar, providing extra visibility and reminders to stay on top of all reporting requirements. This streamlined process will help ensure that all deadlines are met promptly and efficiently.
Assistance Listing Numbers: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: U.S. Department of Treasury Criteria: The grant requires that the Project and Expenditure Report must be submitted annually by no later than April 30 each year. Condition: For the year 2024, the City was required to submit the annual Project and Expenditure Report by April 30, 2024. However, the City submitted the report on May 2, 2024, which was past the deadline. Cause: The City missed the deadline for the submission of the report. Context and Effect: Timely submission of the Project and Expenditure Report is one of the grant requirements. Failure to meet this deadline impacts the City’s compliance with the grant requirements and may affect future funding. Recommendation: We recommend the City implement strong internal controls to ensure that all reporting requirements are met within the prescribed timelines. Management Response: The City of Healdsburg will no longer miss federal grant reporting deadlines due to the comprehensive grant tracker developed. This tool tracks both quarterly and annual submission dates for all grants, ensuring a clear overview of upcoming deadlines. Additionally, these critical dates have been added to the internal calendar, providing extra visibility and reminders to stay on top of all reporting requirements. This streamlined process will help ensure that all deadlines are met promptly and efficiently.