FAC Explorer

Audit 391810

FY End
2025-06-30
Total Expended
$1.01M
Findings
6
Programs
2
Organization: City of Red Bluff (CA)
Year: 2025 Accepted: 2026-03-13
Auditor: SMITH & NEWELL CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1179404 2025-001 Material Weakness Yes L
1179405 2025-001 Material Weakness Yes L
1179406 2025-002 Material Weakness Yes B
1179407 2025-002 Material Weakness Yes B
1179408 2025-002 Material Weakness Yes B
1179409 2025-002 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $345,110 Yes 2
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $463 Yes 0

Contacts

Name Title Type
M8MQTFM6J514 Paul Young Auditee
5305272605 Carrie Schroeder 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 Red Bluff, California (City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information in this Schedule is presented in accordance with the 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). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.
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 accompanying Schedule of Expenditures of Federal Awards, is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in the notes to the City financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursements. In addition, the outstanding balance of prior years’ loans that have significant continuing compliance requirements have been included in total federal expenditures.
The City has elected not to use the 10 percent (changed to 15 percent for grants awarded on or after October 1, 2024) de minimis indirect cost rate allowed under the Uniform Guidance.
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the related federal financial assistance reports.
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the City’s basic financial statements.
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. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.

Finding Details

Finding 2025-001
Name: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airport Programs; ASL#: 20.106; Federal Grantor: U.S. Department of Transportation; Pass Through Entity: State Department of Transportation; Award No.: 3-06-0193-020, 3-06-0193-021; Year: 2024/2025; Compliance Requirement: Reporting; Criteria: 2CFR 200.328 (Monitoring and Reporting Program Performance) and the FAA AIP Grant Assurances. Reports must be submitted by the deadlines specified in the grant agreement.; Condition: The City did not submit the required Federal Financial Reports (SF-425) for the fiscal year ended June 30, 2025.; Cause: The entity was not aware of the requirement.; Effect: Noncompliance with reporting requirements can lead to delayed closeout of federal funds, and in extreme cases, the withholding of future grant funds.; Questioned Cost: No questioned costs were identified as a result of our procedures.; Context: Our sample testing included four AIP projects, and for two, the annual SF-425 reporting packages were not submitted.; Repeat Finding: This is not a repeat finding.; Recommendation: We recommend that the City establish a tracking system to monitor all required reports and their due dates to ensure timely submission.; Views of Responsible Officials and Planned Corrective Action: Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.
Finding 2025-002
Name: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airport Programs; ASL#: 20.106; Federal Grantor: U.S. Department of Transportation; Pass Through Entity: State Department of Transportation; Award No.: 3-06-0193-017, 3-06-0193-019, 3-06-0193-020, 3-06-0193-021; Year: 2024/2025; Compliance Requirement: Allowable Costs/Cosst Principles; Criteria: According to 2CFR 200.430(i)(1) (Standards for Documentation of Personal Expenses), charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. For employees that work on multiple activities or cost objectives (e.g., FAA grant and non-grant activities), documentation must support the distribution of their time.; Condition: During testing of payroll expenditures, we reviewed the one employee’s time that was charged to the FAA grant (ALN 20.106). We noted that the City did not maintain itemized, signed timesheet detailing the specific hours worked on FAA project tasks versus other projects or administrative duties.; Cause: The City did not have established control procedures to ensure that employees working on multiple projects maintained detailed, itemized timesheets tracking time to specific grant and non-grant projects.; Effect: The City is not in compliance with 2CFR 200.430. The lack of proper documentation results in questioned costs, as the federal program may have been charged for time spent on non-federal activities.; Questioned Cost: $9,004.46 (Total payroll charged to 20.106 for the sampled employee during the period); Context: Our sample testing included the payroll charged to the grant for the one employee included in the payroll expenditures for the grant.; Repeat Finding: This is not a repeat finding.; Recommendation: We recommend that the City implement a reporting system that requires all employees paid with federal funds to complete itemized, signed timesheets detailing the specific hours worked on each grant or project on a daily or weekly basis. These timesheets must be reviewed and approved by a supervisor with firsthand knowledge of the work performed.; Views of Responsible Officials and Planned Corrective Action Plan: Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.