Audit 385417

Federal Agency: U.S. Department of the Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 2024 Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement Affected: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: The Department of the Treasury has issued guidance indicating that tier 5 recipients must submit a Project and Expenditure report at least annually each April 30. Condition: The City did not submit annual reporting to the Treasury. Questioned Costs: None Context: The condition was noted on 1 of 1 of the report submissions selected for testing. Cause: The City was unable to gain access to the US Treasury's reporting system and has therefore not submitted reporting to the Treasury. Effect: The City is out of compliance with requirements of the Coronavirus State and Local Fiscal Recovery Funds award. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City resolve issues with the Treasury and ensure it is up to date with the latest reporting requirements. Views of Responsible Officials: The City made every effort to provide annual reports, the City tried to get support from the federal agency with no response. When the City went in to do the most recent report all of the prior reports had been deleted.

Federal Agency: U.S. Department of the Interior Federal Program Title: Central Valley Project Improvement Act Assistance Listing Number: 15.648 Federal Award Identification Number and Year: F23AP02520-00 Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement Affected: I. Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirements: 2CFR § 200.303 Internal controls require a recipient of federal awards to: (a) Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: While there was evidence that suspension and debarment verification checks were performed, the City was unable to provide evidence for when the checks were performed to support the fact that they took place prior to the related procurement. Questioned Costs: None noted. Context: The condition was noted on 1 of 1 of the procurement transactions selected for testing. Cause: Procedures were not in place to retain evidence of when debarment status checks took place. Effect: The City is unable to prove that internal control procedures over suspension and debarment compliance were performed in a timely manner. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the City add a section to its standard contractor and subrecipient contracts for the other party to certify they are not suspended or debarred. In addition, we recommend the City establish controls to ensure that evidence of suspension and debarment compliance procedures is retained. Views of Responsible Officials: The City agrees with finding and will implement steps to verify if the contractor has been suspended or debarred from federal contracts.