FAC Explorer

Audit 358370

FY End
2023-06-30
Total Expended
$4.51M
Findings
4
Programs
6
Organization: City of Manteca (CA)
Year: 2023 Accepted: 2025-06-09
Auditor: Maze & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564256 2023-001 Significant Deficiency - C
564257 2023-001 Significant Deficiency - C
1140698 2023-001 Significant Deficiency - C
1140699 2023-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.20M Yes 0
20.507 Federal Transit Formula Grants $1.11M Yes 1
14.218 Community Development Block Grants/entitlement Grants $515,470 - 0
20.205 Highway Planning and Construction $178,001 - 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $116,074 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $77,820 - 0

Contacts

Name Title Type
ULRXHTZPJND9 Melissa Munoz Auditee
2094568785 Amy Meyer Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – REPORTING ENTITY Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. 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. The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City of Manteca, California, and its component units as disclosed in the notes to the Basic Financial Statements.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. 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. Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred.
Title: NOTE 3 – INDIRECT COST ELECTION Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. 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. The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 4 – PRIOR YEAR ADJUSTMENT Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. 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. The current year Schedule includes an adjustment to return of prior year questioned costs in the amount of $68,724 to the Department of Transportation – Federal Transit Cluster, Federal Transit-Formula Grants (Urbanized Area Formula Program) (AL# 20.507) program. As a result, the gross expenditures for the fiscal year ended June 30, 2023 were $1,498,481 and after the adjustment, the expenditures reported on the Schedule are $1,429,757.

Finding Details

Finding 2023-001
Finding #SA2023-001 Cash Management and Accuracy of Federal Financial Reports Assistance Listing Number: 20.507 Assistance Listing Title: COVID-19 – Federal Transit Formula Grants Name of Federal Agency: Department of Transportation Federal Award Identification Number: CA-2020-212-00 and CA-2022-083-00 Criteria: The 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Related to these requirements, the City should submit drawdown requests to the Department of Transportation throughout the fiscal year as costs are incurred and Federal Financial Reports should agree with those drawdown requests and supporting accounting records. Drawdown requests should be completed at least quarterly, depending on the volume of program activity, to improve the cash management for the program and to match expenditures with associated revenues throughout the fiscal year. In addition, since the grant is on a reimbursement basis, expenditures should generally be incurred prior to requesting reimbursement from the Department of Transportation unless specifically authorized by the grantor, and costs included in the Federal Financial Reports should be the same as those included in requests for reimbursement. Condition: During our review of the Federal Financial Reports related to the grants listed above, we noted the following: • For the annual report for the period of October 1, 2022 to September 30, 2023 related to grant #CA-2020-212-00, the report included expenditures of $508,871, but the City only requested reimbursement in the amount of $228,995 during that same time period. • For the third quarter of fiscal year 2023 for grant #CA-2022-083-00, the report included expenditures in the amount of $385,675, but the City only requested reimbursement in the amount of $364,837 during that same time period. • For the fourth quarter of fiscal year 2023 for grant #CA-2022-083-00, there were no current expenditures included in the report although the City had incurred grant expenditures during that period and was reimbursed $745,899 for the associated quarter. In addition to our review of the Federal Financial Reports, we also reviewed the timing of expenditures in relation to the associated reimbursement requests and noted that for both of the grants listed above, the City did not file for and receive reimbursement for the associated grant expenditures until four to ten months after the activity took place. The grant drawdowns took place as follows: Period of Federal Expenditures Date of Filing for Reimbursement July 1, 2022 to September 30, 2022 July 13, 2023 October 1, 2022 to December 31, 2022 July 13, 2023 January 1, 2023 to March 31, 2023 September 26, 2023 April 1, 2023 to June 30, 2023 February 26, 2024 Cause: We understand that the City fell behind on drawing down grant funds on a timely basis due to employee turnover and this in turn caused the inaccuracies in the Federal Financial Reports. Effect: The City is not in compliance with the internal control requirements of 2 CFR Section 200.303. The City is not matching expenditures with associated grant revenues throughout the fiscal year by filing timely reimbursement requests as expenditures are incurred and is at risk of filing a reimbursement request after the filing deadlines of the grant. In addition, the late filing of reimbursement requests resulted in inaccurate Federal Financial Reporting to the grantor. Recommendation: The City must develop procedures to ensure grant reports are accurate and agree with supporting accounting records prior to being submitted to the grantor. The City must also develop procedures to ensure that all grant-funded expenditures are included on drawdown requests and those requests should be prepared at least quarterly throughout the fiscal year. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding 2023-001
Finding #SA2023-001 Cash Management and Accuracy of Federal Financial Reports Assistance Listing Number: 20.507 Assistance Listing Title: COVID-19 – Federal Transit Formula Grants Name of Federal Agency: Department of Transportation Federal Award Identification Number: CA-2020-212-00 and CA-2022-083-00 Criteria: The 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Related to these requirements, the City should submit drawdown requests to the Department of Transportation throughout the fiscal year as costs are incurred and Federal Financial Reports should agree with those drawdown requests and supporting accounting records. Drawdown requests should be completed at least quarterly, depending on the volume of program activity, to improve the cash management for the program and to match expenditures with associated revenues throughout the fiscal year. In addition, since the grant is on a reimbursement basis, expenditures should generally be incurred prior to requesting reimbursement from the Department of Transportation unless specifically authorized by the grantor, and costs included in the Federal Financial Reports should be the same as those included in requests for reimbursement. Condition: During our review of the Federal Financial Reports related to the grants listed above, we noted the following: • For the annual report for the period of October 1, 2022 to September 30, 2023 related to grant #CA-2020-212-00, the report included expenditures of $508,871, but the City only requested reimbursement in the amount of $228,995 during that same time period. • For the third quarter of fiscal year 2023 for grant #CA-2022-083-00, the report included expenditures in the amount of $385,675, but the City only requested reimbursement in the amount of $364,837 during that same time period. • For the fourth quarter of fiscal year 2023 for grant #CA-2022-083-00, there were no current expenditures included in the report although the City had incurred grant expenditures during that period and was reimbursed $745,899 for the associated quarter. In addition to our review of the Federal Financial Reports, we also reviewed the timing of expenditures in relation to the associated reimbursement requests and noted that for both of the grants listed above, the City did not file for and receive reimbursement for the associated grant expenditures until four to ten months after the activity took place. The grant drawdowns took place as follows: Period of Federal Expenditures Date of Filing for Reimbursement July 1, 2022 to September 30, 2022 July 13, 2023 October 1, 2022 to December 31, 2022 July 13, 2023 January 1, 2023 to March 31, 2023 September 26, 2023 April 1, 2023 to June 30, 2023 February 26, 2024 Cause: We understand that the City fell behind on drawing down grant funds on a timely basis due to employee turnover and this in turn caused the inaccuracies in the Federal Financial Reports. Effect: The City is not in compliance with the internal control requirements of 2 CFR Section 200.303. The City is not matching expenditures with associated grant revenues throughout the fiscal year by filing timely reimbursement requests as expenditures are incurred and is at risk of filing a reimbursement request after the filing deadlines of the grant. In addition, the late filing of reimbursement requests resulted in inaccurate Federal Financial Reporting to the grantor. Recommendation: The City must develop procedures to ensure grant reports are accurate and agree with supporting accounting records prior to being submitted to the grantor. The City must also develop procedures to ensure that all grant-funded expenditures are included on drawdown requests and those requests should be prepared at least quarterly throughout the fiscal year. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding 2023-001
Finding #SA2023-001 Cash Management and Accuracy of Federal Financial Reports Assistance Listing Number: 20.507 Assistance Listing Title: COVID-19 – Federal Transit Formula Grants Name of Federal Agency: Department of Transportation Federal Award Identification Number: CA-2020-212-00 and CA-2022-083-00 Criteria: The 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Related to these requirements, the City should submit drawdown requests to the Department of Transportation throughout the fiscal year as costs are incurred and Federal Financial Reports should agree with those drawdown requests and supporting accounting records. Drawdown requests should be completed at least quarterly, depending on the volume of program activity, to improve the cash management for the program and to match expenditures with associated revenues throughout the fiscal year. In addition, since the grant is on a reimbursement basis, expenditures should generally be incurred prior to requesting reimbursement from the Department of Transportation unless specifically authorized by the grantor, and costs included in the Federal Financial Reports should be the same as those included in requests for reimbursement. Condition: During our review of the Federal Financial Reports related to the grants listed above, we noted the following: • For the annual report for the period of October 1, 2022 to September 30, 2023 related to grant #CA-2020-212-00, the report included expenditures of $508,871, but the City only requested reimbursement in the amount of $228,995 during that same time period. • For the third quarter of fiscal year 2023 for grant #CA-2022-083-00, the report included expenditures in the amount of $385,675, but the City only requested reimbursement in the amount of $364,837 during that same time period. • For the fourth quarter of fiscal year 2023 for grant #CA-2022-083-00, there were no current expenditures included in the report although the City had incurred grant expenditures during that period and was reimbursed $745,899 for the associated quarter. In addition to our review of the Federal Financial Reports, we also reviewed the timing of expenditures in relation to the associated reimbursement requests and noted that for both of the grants listed above, the City did not file for and receive reimbursement for the associated grant expenditures until four to ten months after the activity took place. The grant drawdowns took place as follows: Period of Federal Expenditures Date of Filing for Reimbursement July 1, 2022 to September 30, 2022 July 13, 2023 October 1, 2022 to December 31, 2022 July 13, 2023 January 1, 2023 to March 31, 2023 September 26, 2023 April 1, 2023 to June 30, 2023 February 26, 2024 Cause: We understand that the City fell behind on drawing down grant funds on a timely basis due to employee turnover and this in turn caused the inaccuracies in the Federal Financial Reports. Effect: The City is not in compliance with the internal control requirements of 2 CFR Section 200.303. The City is not matching expenditures with associated grant revenues throughout the fiscal year by filing timely reimbursement requests as expenditures are incurred and is at risk of filing a reimbursement request after the filing deadlines of the grant. In addition, the late filing of reimbursement requests resulted in inaccurate Federal Financial Reporting to the grantor. Recommendation: The City must develop procedures to ensure grant reports are accurate and agree with supporting accounting records prior to being submitted to the grantor. The City must also develop procedures to ensure that all grant-funded expenditures are included on drawdown requests and those requests should be prepared at least quarterly throughout the fiscal year. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding 2023-001
Finding #SA2023-001 Cash Management and Accuracy of Federal Financial Reports Assistance Listing Number: 20.507 Assistance Listing Title: COVID-19 – Federal Transit Formula Grants Name of Federal Agency: Department of Transportation Federal Award Identification Number: CA-2020-212-00 and CA-2022-083-00 Criteria: The 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Related to these requirements, the City should submit drawdown requests to the Department of Transportation throughout the fiscal year as costs are incurred and Federal Financial Reports should agree with those drawdown requests and supporting accounting records. Drawdown requests should be completed at least quarterly, depending on the volume of program activity, to improve the cash management for the program and to match expenditures with associated revenues throughout the fiscal year. In addition, since the grant is on a reimbursement basis, expenditures should generally be incurred prior to requesting reimbursement from the Department of Transportation unless specifically authorized by the grantor, and costs included in the Federal Financial Reports should be the same as those included in requests for reimbursement. Condition: During our review of the Federal Financial Reports related to the grants listed above, we noted the following: • For the annual report for the period of October 1, 2022 to September 30, 2023 related to grant #CA-2020-212-00, the report included expenditures of $508,871, but the City only requested reimbursement in the amount of $228,995 during that same time period. • For the third quarter of fiscal year 2023 for grant #CA-2022-083-00, the report included expenditures in the amount of $385,675, but the City only requested reimbursement in the amount of $364,837 during that same time period. • For the fourth quarter of fiscal year 2023 for grant #CA-2022-083-00, there were no current expenditures included in the report although the City had incurred grant expenditures during that period and was reimbursed $745,899 for the associated quarter. In addition to our review of the Federal Financial Reports, we also reviewed the timing of expenditures in relation to the associated reimbursement requests and noted that for both of the grants listed above, the City did not file for and receive reimbursement for the associated grant expenditures until four to ten months after the activity took place. The grant drawdowns took place as follows: Period of Federal Expenditures Date of Filing for Reimbursement July 1, 2022 to September 30, 2022 July 13, 2023 October 1, 2022 to December 31, 2022 July 13, 2023 January 1, 2023 to March 31, 2023 September 26, 2023 April 1, 2023 to June 30, 2023 February 26, 2024 Cause: We understand that the City fell behind on drawing down grant funds on a timely basis due to employee turnover and this in turn caused the inaccuracies in the Federal Financial Reports. Effect: The City is not in compliance with the internal control requirements of 2 CFR Section 200.303. The City is not matching expenditures with associated grant revenues throughout the fiscal year by filing timely reimbursement requests as expenditures are incurred and is at risk of filing a reimbursement request after the filing deadlines of the grant. In addition, the late filing of reimbursement requests resulted in inaccurate Federal Financial Reporting to the grantor. Recommendation: The City must develop procedures to ensure grant reports are accurate and agree with supporting accounting records prior to being submitted to the grantor. The City must also develop procedures to ensure that all grant-funded expenditures are included on drawdown requests and those requests should be prepared at least quarterly throughout the fiscal year. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.