FAC Explorer

Audit 353768

FY End
2023-06-30
Total Expended
$1.04M
Findings
2
Programs
4
Organization: City of Lemoore (CA)
Year: 2023 Accepted: 2025-04-15
Auditor: Bryant L Jolley CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555166 2023-001 Significant Deficiency - P
1131608 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
16.710 Public Safety Partnership and Community Policing Grants $663,600 Yes 1
20.205 Highway Planning and Construction $258,036 - 0
97.067 Homeland Security Grant Program $81,031 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $5,323 - 0

Contacts

Name Title Type
W5L9G5U22RJ7 Josalynn Valdez Auditee
5599246744 Bryant L. Jolley, CPA Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – GENERAL Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting except for programs recorded in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Lemoore, California (the City). Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies are included in the schedule. The information in this SEFA 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). NOTE
Title: NOTE 2 – BASIS OF ACCOUNTING Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting except for programs recorded in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying SEFA is presented using the modified accrual basis of accounting except for programs recorded in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements.
Title: NOTE 3 – RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting except for programs recorded in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal award expenditures agree or can be reconciled with the amounts reported in the City’s basic financial statements.
Title: NOTE 4 – INDIRECT COST RATE Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting except for programs recorded in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 5 – PASS THROUGH ENTITY IDENTIFYING NUMBERS Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting except for programs recorded in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City has included in the the SEFA the identifying numbers for pass-through grants when such information has been provided by the pass-through entities. For grants that the City was not provided with such information by the passthrough entities, the City has indicated the pass-through identifying number “N/A” to disclose the information was not applicable or not available.

Finding Details

Finding 2023-001
2023-001 Schedule of Expenditures of Federal Awards (SEFA) (Significant Deficiency - Reporting) Criteria: 2 CFR Part 200, Subpart F Section 200.502 (Uniform Guidance) states: “The auditee shall prepare a Schedule of Expenditure of Federal Awards for the period covered by the auditee’s financial statements”. Further, reporting compliance requirements require the District to prepare financial reports that agree to the Schedule of Federal Awards. Condition: The City of Lemoore did not prepare a timely, complete, and accurate Schedule of Expenditures of Federal Awards (SEFA) that agreed to financial reports submitted to the federal awarding agency. Federal expenditures under the Public Safety Partnership and Community Policing Grants (ALN 16.710) were omitted from the originally submitted SEFA. These expenditures were recorded in the entity’s general ledger during the fiscal year ended June 30, 2023, but were not reported on the SEFA. Questioned Cost: None noted, as the expenditures were properly recorded in the entity’s financial records but were omitted from the original SEFA. Cause: Lack of internal control procedures over completion of the SEFA: the department managing the grant failed to communicate approval of the grant to reporting department (Finance), therefore the nature of the federal grant expenditures was not known and omitted from the SEFA in fiscal year ending June 30, 2023. Effect: An untimely, incomplete SEFA may result in non-compliance with the Uniform Guidance compliance requirements and could impact the City’s eligibility to receive federal awards in the future.Recommendation: We recommend that the City of Lemoore develop and implement internal control procedures for the timely, complete, and accurate preparation of the SEFA in accordance with Uniform Guidance compliance requirements. Management’s Response: See Corrective Action Plan.
Finding 2023-001
2023-001 Schedule of Expenditures of Federal Awards (SEFA) (Significant Deficiency - Reporting) Criteria: 2 CFR Part 200, Subpart F Section 200.502 (Uniform Guidance) states: “The auditee shall prepare a Schedule of Expenditure of Federal Awards for the period covered by the auditee’s financial statements”. Further, reporting compliance requirements require the District to prepare financial reports that agree to the Schedule of Federal Awards. Condition: The City of Lemoore did not prepare a timely, complete, and accurate Schedule of Expenditures of Federal Awards (SEFA) that agreed to financial reports submitted to the federal awarding agency. Federal expenditures under the Public Safety Partnership and Community Policing Grants (ALN 16.710) were omitted from the originally submitted SEFA. These expenditures were recorded in the entity’s general ledger during the fiscal year ended June 30, 2023, but were not reported on the SEFA. Questioned Cost: None noted, as the expenditures were properly recorded in the entity’s financial records but were omitted from the original SEFA. Cause: Lack of internal control procedures over completion of the SEFA: the department managing the grant failed to communicate approval of the grant to reporting department (Finance), therefore the nature of the federal grant expenditures was not known and omitted from the SEFA in fiscal year ending June 30, 2023. Effect: An untimely, incomplete SEFA may result in non-compliance with the Uniform Guidance compliance requirements and could impact the City’s eligibility to receive federal awards in the future.Recommendation: We recommend that the City of Lemoore develop and implement internal control procedures for the timely, complete, and accurate preparation of the SEFA in accordance with Uniform Guidance compliance requirements. Management’s Response: See Corrective Action Plan.