FAC Explorer

Audit 353989

FY End
2024-06-30
Total Expended
$2.78M
Findings
2
Programs
2
Organization: City of American Canyon (CA)
Year: 2024 Accepted: 2025-04-18
Auditor: Richardson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555341 2024-004 Significant Deficiency - P
1131783 2024-004 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.50M Yes 0
14.239 Home Investment Partnerships Program $256,710 - 0

Contacts

Name Title Type
KAKXMKB5S1B5 Juan Gomez Auditee
7076474362 Ingrid Sheipline Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual 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 did not charge indirect costs to federal programs during the year ended June 30, 2024. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the City of American Canyon (the City) under programs of the federal government for 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 City’s operations, it is not intended to be and does not present the financial position, changes in financial position, or cash flows of the City.
Title: PROGRAM COSTS/MATCHING CONTRIBUTIONS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual 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 did not charge indirect costs to federal programs during the year ended June 30, 2024. The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the City's portion, may be more than shown.
Title: CLUSTERS OF PROGRAMS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual 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 did not charge indirect costs to federal programs during the year ended June 30, 2024. There were no clusters of the City’s federal programs during the year ended June 30, 2024.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual 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 did not charge indirect costs to federal programs during the year ended June 30, 2024. There were no subrecipients of the City’s federal programs during the year ended June 30, 2024.
Title: LOAN PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual 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 did not charge indirect costs to federal programs during the year ended June 30, 2024. The outstanding balances of loans under the Home Investment Partnerships Program (CFDA 14.239) and Community Development Block Grants Program (CFDA 14.218) were $2,250,718 and $411,648, respectively, at June 30, 2024. These loan programs are not considered to have significant continuing compliance requirements. Consequently, expenditures are included on the Schedule when loans are disbursed.

Finding Details

Finding 2024-004
Finding 2024-004 – Schedule of Expenditures of Federal Awards (SEFA) – Significant Deficiency Program: All Federal Programs Compliance Requirement: Reporting Condition: The expenses and awards reported on the Schedule of Expenditures of Federal Awards (SEFA) initially provided for the financial statement audit were revised. A corrected SEFA was provided prior to the completion of the Single Audit. Criteria: Internal controls should be in place that provide reasonable assurance that the SEFA is complete and accurate, prior to the start of the audit. Cause: A pass through grant from the County was excluded from the preliminary SEFA. The assistance listing number and the program number for other grants on the SEFA were outdated. Effect: The expenses included on the SEFA were revised, which could have resulted in the auditor not selecting the correct program for testing during the Single Audit and could have resulted in the Single Audit not satisfying the requirements of the Uniform Guidance. The use of outdated information could have resulted in the auditor testing incorrect requirements of the Uniform Guidance. Context: The City initially excluded a $1.5 million pass through grant from Napa County from the SEFA. The Coronavirus State and Local Fiscal Recovery Funds grant was initially listed under the original assistance listing number, not the updated assistance listing number. The housing grant was originally listed under the previous grant number. Recommendation: We recommend that the City consider all grants where the source is federal when reconciling to the SEFA. The City should communicate with pass-through entities and granting agencies to determine if a grant is federal if it is not clear after review of the grant agreement. The City should also document all assistance listing numbers on grants identified as federal. The City should also ensure grant revenue is properly identified as federal versus state when recording revenue in the general ledger, and that the SEFA is reconciled to the expenditures as well as the revenue on the accrual basis. City’s Response: See Corrective Action Plan.
Finding 2024-004
Finding 2024-004 – Schedule of Expenditures of Federal Awards (SEFA) – Significant Deficiency Program: All Federal Programs Compliance Requirement: Reporting Condition: The expenses and awards reported on the Schedule of Expenditures of Federal Awards (SEFA) initially provided for the financial statement audit were revised. A corrected SEFA was provided prior to the completion of the Single Audit. Criteria: Internal controls should be in place that provide reasonable assurance that the SEFA is complete and accurate, prior to the start of the audit. Cause: A pass through grant from the County was excluded from the preliminary SEFA. The assistance listing number and the program number for other grants on the SEFA were outdated. Effect: The expenses included on the SEFA were revised, which could have resulted in the auditor not selecting the correct program for testing during the Single Audit and could have resulted in the Single Audit not satisfying the requirements of the Uniform Guidance. The use of outdated information could have resulted in the auditor testing incorrect requirements of the Uniform Guidance. Context: The City initially excluded a $1.5 million pass through grant from Napa County from the SEFA. The Coronavirus State and Local Fiscal Recovery Funds grant was initially listed under the original assistance listing number, not the updated assistance listing number. The housing grant was originally listed under the previous grant number. Recommendation: We recommend that the City consider all grants where the source is federal when reconciling to the SEFA. The City should communicate with pass-through entities and granting agencies to determine if a grant is federal if it is not clear after review of the grant agreement. The City should also document all assistance listing numbers on grants identified as federal. The City should also ensure grant revenue is properly identified as federal versus state when recording revenue in the general ledger, and that the SEFA is reconciled to the expenditures as well as the revenue on the accrual basis. City’s Response: See Corrective Action Plan.