FAC Explorer

Audit 352935

FY End
2024-06-30
Total Expended
$35.83M
Findings
4
Programs
14
Organization: City of Fontana (CA)
Year: 2024 Accepted: 2025-04-07
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554335 2024-002 Significant Deficiency - N
554336 2024-002 Significant Deficiency - N
1130777 2024-002 Significant Deficiency - N
1130778 2024-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
16.922 Equitable Sharing Program $4.76M Yes 0
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $1.71M Yes 1
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $1.70M Yes 0
14.231 Emergency Solutions Grant Program $1.33M - 0
20.205 Highway Planning and Construction $505,410 Yes 0
14.218 Community Development Block Grants/entitlement Grants $312,939 - 0
20.600 State and Community Highway Safety $209,999 - 0
14.913 Healthy Homes Production Program $60,460 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $51,447 - 0
14.239 Home Investment Partnerships Program $39,665 - 0
21.023 Emergency Rental Assistance Program $38,369 - 0
16.710 Public Safety Partnership and Community Policing Grants $30,328 - 0
97.042 Emergency Management Performance Grants $20,345 - 0
97.067 Homeland Security Grant Program $8,342 - 0

Contacts

Name Title Type
WLF8LH1TH3P8 Jessica Brown Auditee
9093507671 Roger Alfaro Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City of Fontana (City) under programs of the federal government for the year ended June 30, 2024. The information 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, or cash flows of the City. Expenditures reported in the schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, as described in Note 1 of the City’s financial statements, except for subrecipient expenditures, which are recorded on the cash basis. 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 elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Financial Assistance Listing Number: 14.251 Federal Agency: U.S. Department of Housing and Urban Development Award Year: 2024 Grant Award Number: B-23-CP-CA-0240 Compliance Requirements: Special Tests and Provisions Type of Finding: Significant Deficiency in Internal Control over Compliance and Instance of Non- Compliance Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal awards in order to provide reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per the Economic Development Initiative Community Project Funding Grant Guide, the requirements of Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75 apply to all grant recipients that are awarded $200,000 or more for projects involving housing construction, rehabilitation, or other public construction. Condition: We identified one (1) project, “Courtplace”, in which Section 3 requirements are applicable to the City. The City was unable to provide supporting documentation to demonstrate that Section 3 requirements were communicated and followed by the applicable project contractor. Cause: The City did not have effective controls in place to ensure all compliance requirements were met. Effect: The City is not in compliance with Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75. Questioned Costs: No questioned costs were identified as a result of our audit procedures. Context/Sampling: A sample of one (1) out of one (1) applicable contractor was selected for testing. Repeat Finding from the Prior Year(s): No. Recommendation: We recommend that the City implement additional policies and procedures to ensure that Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75 requirements are complied with. Views of Responsible Official: Management agrees. See separately issued Corrective Action Plan.
Finding 2024-002
Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Financial Assistance Listing Number: 14.251 Federal Agency: U.S. Department of Housing and Urban Development Award Year: 2024 Grant Award Number: B-23-CP-CA-0240 Compliance Requirements: Special Tests and Provisions Type of Finding: Significant Deficiency in Internal Control over Compliance and Instance of Non- Compliance Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal awards in order to provide reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per the Economic Development Initiative Community Project Funding Grant Guide, the requirements of Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75 apply to all grant recipients that are awarded $200,000 or more for projects involving housing construction, rehabilitation, or other public construction. Condition: We identified one (1) project, “Courtplace”, in which Section 3 requirements are applicable to the City. The City was unable to provide supporting documentation to demonstrate that Section 3 requirements were communicated and followed by the applicable project contractor. Cause: The City did not have effective controls in place to ensure all compliance requirements were met. Effect: The City is not in compliance with Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75. Questioned Costs: No questioned costs were identified as a result of our audit procedures. Context/Sampling: A sample of one (1) out of one (1) applicable contractor was selected for testing. Repeat Finding from the Prior Year(s): No. Recommendation: We recommend that the City implement additional policies and procedures to ensure that Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75 requirements are complied with. Views of Responsible Official: Management agrees. See separately issued Corrective Action Plan.
Finding 2024-002
Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Financial Assistance Listing Number: 14.251 Federal Agency: U.S. Department of Housing and Urban Development Award Year: 2024 Grant Award Number: B-23-CP-CA-0240 Compliance Requirements: Special Tests and Provisions Type of Finding: Significant Deficiency in Internal Control over Compliance and Instance of Non- Compliance Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal awards in order to provide reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per the Economic Development Initiative Community Project Funding Grant Guide, the requirements of Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75 apply to all grant recipients that are awarded $200,000 or more for projects involving housing construction, rehabilitation, or other public construction. Condition: We identified one (1) project, “Courtplace”, in which Section 3 requirements are applicable to the City. The City was unable to provide supporting documentation to demonstrate that Section 3 requirements were communicated and followed by the applicable project contractor. Cause: The City did not have effective controls in place to ensure all compliance requirements were met. Effect: The City is not in compliance with Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75. Questioned Costs: No questioned costs were identified as a result of our audit procedures. Context/Sampling: A sample of one (1) out of one (1) applicable contractor was selected for testing. Repeat Finding from the Prior Year(s): No. Recommendation: We recommend that the City implement additional policies and procedures to ensure that Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75 requirements are complied with. Views of Responsible Official: Management agrees. See separately issued Corrective Action Plan.
Finding 2024-002
Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Financial Assistance Listing Number: 14.251 Federal Agency: U.S. Department of Housing and Urban Development Award Year: 2024 Grant Award Number: B-23-CP-CA-0240 Compliance Requirements: Special Tests and Provisions Type of Finding: Significant Deficiency in Internal Control over Compliance and Instance of Non- Compliance Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal awards in order to provide reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per the Economic Development Initiative Community Project Funding Grant Guide, the requirements of Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75 apply to all grant recipients that are awarded $200,000 or more for projects involving housing construction, rehabilitation, or other public construction. Condition: We identified one (1) project, “Courtplace”, in which Section 3 requirements are applicable to the City. The City was unable to provide supporting documentation to demonstrate that Section 3 requirements were communicated and followed by the applicable project contractor. Cause: The City did not have effective controls in place to ensure all compliance requirements were met. Effect: The City is not in compliance with Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75. Questioned Costs: No questioned costs were identified as a result of our audit procedures. Context/Sampling: A sample of one (1) out of one (1) applicable contractor was selected for testing. Repeat Finding from the Prior Year(s): No. Recommendation: We recommend that the City implement additional policies and procedures to ensure that Section 3 of the Housing and Urban Development Act of 1968 found at 24 CFR Part 75 requirements are complied with. Views of Responsible Official: Management agrees. See separately issued Corrective Action Plan.