FAC Explorer

Audit 354501

FY End
2023-06-30
Total Expended
$2.26M
Findings
2
Programs
5
Organization: City of La Mesa (CA)
Year: 2023 Accepted: 2025-04-24
Auditor: Rogers Anderson Malody & Scott LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555806 2023-005 - - L
1132248 2023-005 - - L

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $1.26M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $565,451 - 0
20.200 Highway Research and Development Program $411,301 - 0
20.205 Highway Planning and Construction $11,820 - 0
16.922 Equitable Sharing Program $10,358 - 0

Contacts

Name Title Type
YZG4GLD1LTA1 John Herrera Auditee
6196671122 Brianna Schultz Auditor
No contacts on file

Notes to SEFA

Title: Scope of Presentation Accounting Policies: The expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal activity of the City of La Mesa (City) under programs of the federal government for the year ended June 30, 2023. The information on this Schedule is prepared 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, where applicable, of the City.

Finding Details

Finding 2023-005
Federal Program: Community Development Block Grant, Assistance Listing Number 14.218 Criteria: Per the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200.507(c)(1), regulations state the audit must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The City was subject to a single audit as more than $750,000 of federal funds were expended during the fiscal year. As of the date of the issuance of the financial statements, the single audit has not been completed and therefore not submitted to the federal clearinghouse or other relevant granting agencies within the prescribed deadline. Cause: Due to delay of financial reporting and issuance of the June 30, 2023, financial statements, the City fell out of compliance with the requirements noted above. Effect: The City has put their federal funding status at risk for the delays in reporting. Questioned Costs: None. Recommendation: We recommend the City implemented internal controls to perform a timely closing of the audit, which would include the preparation of the schedule of expenditures of federal awards. This would allow for the timely submission of required report to the federal government. Managements Response: See Corrective Action Plan.
Finding 2023-005
Federal Program: Community Development Block Grant, Assistance Listing Number 14.218 Criteria: Per the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200.507(c)(1), regulations state the audit must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The City was subject to a single audit as more than $750,000 of federal funds were expended during the fiscal year. As of the date of the issuance of the financial statements, the single audit has not been completed and therefore not submitted to the federal clearinghouse or other relevant granting agencies within the prescribed deadline. Cause: Due to delay of financial reporting and issuance of the June 30, 2023, financial statements, the City fell out of compliance with the requirements noted above. Effect: The City has put their federal funding status at risk for the delays in reporting. Questioned Costs: None. Recommendation: We recommend the City implemented internal controls to perform a timely closing of the audit, which would include the preparation of the schedule of expenditures of federal awards. This would allow for the timely submission of required report to the federal government. Managements Response: See Corrective Action Plan.