FAC Explorer

Audit 382413

FY End
2025-06-30
Total Expended
$15.40M
Findings
2
Programs
14
Organization: City of Ontario (CA)
Year: 2025 Accepted: 2026-01-16
Auditor: BADAWI & ASSOCIATES CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1169478 2025-001 Material Weakness Yes I
1169479 2025-001 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
16.922 EQUITABLE SHARING PROGRAM $1.74M Yes 0
20.205 HIGHWAY PLANNING AND CONSTRUCTION $764,880 Yes 1
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $417,598 Yes 0
66.920 SOLID WASTE INFRASTRUCTURE FOR RECYCLING INFRASTRUCTURE GRANTS $387,133 Yes 0
94.006 AMERICORPS STATE AND NATIONAL 94.006 $357,451 Yes 0
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $351,698 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $103,263 Yes 0
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $67,214 Yes 0
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $39,246 Yes 0
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $25,843 Yes 0
97.067 HOMELAND SECURITY GRANT PROGRAM $22,734 Yes 0
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $8,891 Yes 0
21.016 EQUITABLE SHARING $7,317 Yes 0
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $5,029 Yes 0

Contacts

Name Title Type
CVCXJQVZRMB3 Mary Ann Sy Auditee
9093952991 Ahmed Badawi Auditor
No contacts on file

Notes to SEFA

A. Scope of Presentation The accompanying schedule presents only the expenditures incurred by the City of Ontario, California, that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other nonfederal funds are excluded from the accompanying schedule. B. Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City participates in certain federal award programs that sponsor revolving loan programs, which are administered by the City. These programs required servicing arrangements with the City. The funds are returned to the programs upon repayment of the principal and interest. Current year transactions relating to these programs are included in the Schedule of Expenditures of Federal Awards. In accordance with 2 CFR section 200.502(b)

Finding Details

Finding 2025-001
SA2025-001: Suspension or Debarment Verification (Significant Deficiency) Assistance Listing Number: 20.205 Assistance Listing Title: Highway Planning and Construction Name of Federal Agency: U.S. Department of Transportation Criteria Per 2 CFR section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. Condition During performance of testing we noted that the suspension and debarment status of two contractors were not verified prior to entering into procurement contracts. The City did retroactively verify that the two contractors were not suspended or debarred through checking the SAM.gov exclusions list in December 2025, however no such checks in SAM.gov, vendor certifications, or equivalent verification were completed prior to entering into the contracts. Cause The City did not verify the suspension and debarment status of two contractors prior to entering into procurement contracts, and staff were not trained on this compliance requirement. Effect Failure to perform suspension and debarment verification procedures before the procurement of goods or services could result in the payment of federal funds to contractors that are ineligible to participate in federal assistance programs. Recommendation We recommend that the City incorporate specific language into its standard procurement contracts regarding suspension and debarment requirements. Additionally, we recommend the City require suspension and debarment verifications be completed and documented by staff before procurement of goods and services to be paid for with federal funds. Management Response There is no disagreement with the audit finding.