FAC Explorer

Audit 387100

FY End
2025-06-30
Total Expended
$4.31M
Findings
1
Programs
7
Organization: City of Novato (CA)
Year: 2025 Accepted: 2026-02-12
Auditor: MUN CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1173393 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
20.205 HIGHWAY PLANNING AND CONSTRUCTION $2.40M Yes 1
21.019 CORONAVIRUS RELIEF FUND $1.37M Yes 0
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $213,923 Yes 0
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $171,077 Yes 0
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $109,034 Yes 0
20.614 NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (NHTSA) DISCRETIONARY SAFETY GRANTS AND COOPERATIVE AGREEMENTS $22,814 Yes 0
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $17,343 Yes 0

Contacts

Name Title Type
DCP1YBXQKD21 Carla Carvalho-Degraff Auditee
4158998913 Justin Williams Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Novato. The City of Novato reporting entity is defined in Note 1 of the City's Annual Comprehensive Financial Report. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the schedule. When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on accounting principles generally accepted in the United States of America. The information in this schedule is presented on the accrual basis of accounting and in accordance with 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).
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the City's basic financial statements. Federal award revenues are reported principally in the City's financial statements as intergovernmental revenues in the governmental funds.
The City of Novato has received federal grants for specific purposes that are subject to review and audit by the Federal Government pass-through entity. Although such audits could result in expenditure disallowance under grant terms, any required reimbursements are not expected to be material which have not already been recorded.

Finding Details

Finding 2025-002
Federal Award U.S. Department of Transportation; Highway Planning and Construction; Assistance Listing Number 20.205 Criteria In accordance with Title 2 of the Code of Federal Regulations (2 CFR) section 200.303, the City must establish andmaintain effective internal controls over federal awards that provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Condition During our testing of five certified payroll reports, we noted the reports maintained by the City did not include certification of the payroll by the contractor. Context The agreement with the contractor requires a copy of the payroll and statement of compliance be submitted to the City weekly. We selected five weeks for testing and found that all five weeks did not have a signed statement of compliance. Cause The City did not maintain the signed statement of compliance submitted by the contractor. Effect The absence of the signed statement of compliance with the certified payroll reports increases the risk that errors or irregularities in compliance with federal program requirements may not be detected and corrected in a timely manner. Questioned Costs No costs are questioned. Identification as Repeat Finding This is not a repeat finding from the prior year. Recommendation We recommend the City strengthen procedures to ensure proper documentation is maintained to demonstrate compliance with the Uniform Guidance requirements. View of Responsible Officials Management agrees with the comment and will ensure a process is in place for the receipt of signed certified payrolls.