The City of Los Angeles, California (City) has defined its single audit reporting entity for the purpose of this report, in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as: "Those Departments and Offices over which the Mayor and the City Council have direct legislative, executive and budgetary control." The Housing Authority of the City of Los Angeles is fiscally independent of the City and therefore excluded from the City’s reporting entity under generally accepted accounting principles and, accordingly, from its Single Audit reporting entity. For the purpose of the Schedule of Expenditures of Federal Awards, the reporting entity consists of the following City Departments and Offices: See the Notes to the SEFA for Table.
The federal award programs administered by the following City Departments and related organization are not included in the Schedule of Expenditures of Federal Awards but have separate independent single audits: See the Notes to the SEFA for the Table.
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City Departments and Offices identified in Note 1. All federal awards from the federal government and pass-through agencies are included in the SEFA. The information in the SEFA is presented in accordance with the requirements of the Uniform Guidance.
Expenditures reported on the SEFA are reported on the modified accrual basis of accounting, however, some amounts presented in this schedule are reported on a cash basis, as described in Note 10. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. Negative or credit amounts on the SEFA represent an adjustment for amounts reported as expenditures in the prior fiscal year. The City has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance, which is ten (10) percent for awards prior to October 1, 2024 and fifteen (15) percent for awards on or after October 1, 2024.
Amounts reported in the accompanying SEFA agree with the amounts reported in the related federal financial reports.
AL Nos. 16.544, 21.003 and 97.090 are archived programs that are being retained to report expenditures incurred or to show outstanding loans of these programs.
Under the risk-based approach to determine major programs under the Uniform Guidance, major programs of the City may have expenditures as low as $750,000 if the program is considered to be of high risk. Level of risk is determined by the auditor’s judgment and guidelines contained in the Uniform Guidance.
The following is a summary of outstanding loans at cost by AL No. as of June 30, 2025. The outstanding loan balances do not reflect an allowance for uncollectibles of $803,183,000. The FY 2023-24 outstanding balance of AL No. 14.248 in the amount of $47,182,000, for which the Federal Government imposed continuing compliance, was included in the total expenditures in the accompanying SEFA. There were no new loans issued during the year for AL No. 14.248. See the Notes to the SEFA for Table.
On March 13, 2020, a presidential emergency was declared for all states, tribes, territories, and the District of Columbia due to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. The declaration made federal disaster grant public assistance available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to the City and to the State of California to supplement the City’s local recovery efforts. To assist in the efforts to respond to COVID-19, the City received significant fiscal stimulus in federal funds. On April 22, 2020, the City received a CARES Act award of $694,405,000 from the U.S. Department of the Treasury. The City is a prime recipient and received the direct payment under section 601(b) of the Social Security Act. The accompanying SEFA includes expenditures of CARES Act funds:[CW2.1][MT2.2] AL No. 14.218 in the amount of $1,660,000; AL No. 14.231 in the amount of $1,731,000; AL No. 20.507 in the amount of $141,000 that: a) were necessary expenditures incurred due to the public health emergency with respect to COVID-19; b) were accounted for in the revised budget most recently approved as of July 1, 2024; and were incurred during the period July 1, 2024 through June 30, 2025. The award’s period of performance ends on September 30, 2024. The City reviewed the eligible CARES Act expenditures and reflected any FY 2023-24 expenditures adjustments in the FY 2024-25 Single Audit Report due to the complexity of the federal guidance on the CARES Act. On December 27, 2020, the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSAA) and the Consolidated Appropriations Act (CAA), 2021 were signed into law, to supplement the funding received under CARES. The accompanying SEFA includes CRRSAA expenditures under AL No. 20.507 in the amount of $17,250,000. On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law to deliver immediate and direct relief to individuals, families, states and local governments impacted by the COVID-19 pandemic. In May of 2021, the City received the first portion of funding from ARPA and the second tranche was received in June of 2022. The accompanying SEFA includes expenditures of ARPA funds: AL No. 21.027 in the amount of $36,279,000; AL No. 20.507 in the amount of $31,466,000 that: a) were necessary expenditures incurred due to the public health emergency with respect to COVID-19; and b) were incurred during the period July 1, 2024 through June 30, 2025. ARPA funding was also used for COVID-19 Emergency Rental Assistance Program (ERAP) and began distributions in July 2020. During FY 2024-25, the accompanying SEFA includes negative expenditures of ERAP funds in the amount of $751,000 (AL No. 21.023) which represent an adjustment for amounts reported as expenditures in prior years.
On March 22, 2020, the President declared a major disaster for the State of California in relation to the coronavirus pandemic and issued FEMA-4482-DR. As a result of 4482-DR, the City is eligible for reimbursement of eligible expenditures through the Federal Emergency Management Agency (FEMA) Public Assistance (PA) Program for emergency protective measures. During the fiscal year ended June 30, 2025, the City received $207,708,000 and reported this amount on the SEFA for FEMA-4482-DR under AL No. 97.036 on a cash basis. The City has submitted its last claims to FEMA for the COVID-19 response. The City anticipates receiving $10,411,000 by the end of FY 2025-26 (which includes $4,586,000 of management costs), and $8,020,000 by the end of FY 2026-27. While the City is still in the process of assessing the overall financial impact of the Los Angeles 2025 Wildfire, as of December 8, 2025 (most current estimate) the City estimates approximately $227.0 million in costs to the City, which includes over $144.0 million in damage or destruction to structures and equipment. These estimates are preliminary and are expected to change as the damage assessment and recovery efforts continue. The City expects to recover a significant portion of these costs from state and federal sources.
The City received funding through the WIFIA loan administered by the U.S. Environmental Protection Agency. As of June 30, 2025, outstanding principal balance of the loan was $66,666,000. The City had not drawn against the loan as of June 30, 2024. The City’s SEFA reflects a total of $66,666,000 in federal expenditures under AL No. 66.958, of which $32,185,000 represents costs incurred in prior fiscal years.