Audit 364158

Reference Number 2024-004 Continuing Loan Compliance Evaluation of Finding Significant Deficiency/Noncompliance Federal Award Information Assistance Listing Number: 14.228 Program Title: Community Development Block Grant (CDBG) Federal Award Year(s): FY 2023-24 Name of Federal Agency: U.S. Department of Housing and Urban Development Passed through: State of California Department of Housing and Community Development Criteria or Specific Requirement The County is required to meet continuing loan compliance requirements for the loans disbursed under the CDBG grant program. These continuing loan compliance requirements include maintaining loan documentation and obtaining confirmation of insurance and address associated with the loans and their recipients. Condition We noted that of the 8 loan balances we sampled over the course of our audit, the County was unable to provide supporting documentation relating to proof of insurance and/or address for 3 of the selected loans. Cause of the Condition Per our inquiries with the County, due to the significant age of the selected loans, County personnel were unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Effect or Possible Effect Adequate supporting documentation of outstanding loans is not being effectively maintained and archived by County personnel. Additionally, the County was unable to provide proof of confirmation attempts to verify insurance and address associated with the loans and their recipients to meet compliance requirements. Questioned Costs None. Context Without maintaining current information surrounding ongoing loans the County is unable to best monitor grant recipients and evaluate the accuracy and reasonableness of the outstanding loan balances each year. Repeat Finding This is a repeat finding for the year ended June 30, 2024. See prior year finding 2023-001. Recommendation We recommend that management monitors each loan to ensure that the County maintains the most up-to-date information. Additionally, we recommend attempts are made annually to confirm insurance and address associated with the loans and their recipients to meet compliance requirements.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-004 Continuing Loan Compliance Evaluation of Finding Significant Deficiency/Noncompliance Federal Award Information Assistance Listing Number: 14.228 Program Title: Community Development Block Grant (CDBG) Federal Award Year(s): FY 2023-24 Name of Federal Agency: U.S. Department of Housing and Urban Development Passed through: State of California Department of Housing and Community Development Criteria or Specific Requirement The County is required to meet continuing loan compliance requirements for the loans disbursed under the CDBG grant program. These continuing loan compliance requirements include maintaining loan documentation and obtaining confirmation of insurance and address associated with the loans and their recipients. Condition We noted that of the 8 loan balances we sampled over the course of our audit, the County was unable to provide supporting documentation relating to proof of insurance and/or address for 3 of the selected loans. Cause of the Condition Per our inquiries with the County, due to the significant age of the selected loans, County personnel were unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Effect or Possible Effect Adequate supporting documentation of outstanding loans is not being effectively maintained and archived by County personnel. Additionally, the County was unable to provide proof of confirmation attempts to verify insurance and address associated with the loans and their recipients to meet compliance requirements. Questioned Costs None. Context Without maintaining current information surrounding ongoing loans the County is unable to best monitor grant recipients and evaluate the accuracy and reasonableness of the outstanding loan balances each year. Repeat Finding This is a repeat finding for the year ended June 30, 2024. See prior year finding 2023-001. Recommendation We recommend that management monitors each loan to ensure that the County maintains the most up-to-date information. Additionally, we recommend attempts are made annually to confirm insurance and address associated with the loans and their recipients to meet compliance requirements.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.

Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) 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 County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County implemented new financial accounting software during the 2024 fiscal year. Additionally, the County has experienced significant turnover in key personnel in the County’s Auditor-Controller Office in recent years. The implementation of new software and turnover have resulted in delayed audit completion. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Before the 2024 fiscal year, the County regularly presented the Single Audit Reporting Package on time as mandated. Repeat Finding No. Recommendation To address the challenges caused by staffing shortages and ensure the County’s ability to fulfill its financial reporting obligations, it is crucial to prioritize recruitment, retention, and professional development within key departments. Additionally, exploring partnerships with external consultants or temporary staffing agencies could offer short-term relief while permanent solutions are implemented. By strengthening the County’s workforce, the risk of delayed reporting and noncompliance with federal requirements can be significantly reduced, supporting operational stability and responsible stewardship of public funds. Reference Number 2024-003 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: All Federal Programs reported on the SEFA Program Title: All Federal Programs reported on the SEFA Federal Award Year(s): FY 2023-24 Criteria Refer to finding 2024-003 in section II above. Condition Refer to finding 2024-003 in section II above. Cause of Condition Refer to finding 2024-003 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-003 in section II above. Questioned costs None. Context Refer to finding 2024-003 in section II above. Repeat Finding Refer to finding 2024-003 in section II above. Recommendation Refer to finding 2024-003 in section II above.