FAC Explorer

Audit 396609

FY End
2025-06-30
Total Expended
$10.21M
Findings
1
Programs
7
Organization: City of Tracy (CA)
Year: 2025 Accepted: 2026-03-30
Auditor: THE PUN GROUP LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1204956 2025-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
20.507 Federal Transit Formula Grants $4.66M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.61M Yes 0
14.251 Project Funding, and Miscellaneous Grants $894,635 Yes 1
14.218 Community Development Block Grants/Entitlement Grants $447,801 Yes 0
20.106 Airport Improvement Program $297,386 Yes 0
16.710 Community Oriented Policing Services (COPS) $255,650 Yes 0
14.218 COVID-19 - Community Development Block Grants/Entitlement Grants $23,687 Yes 0

Contacts

Name Title Type
EWFNJF9GM6U4 Sara Castro Auditee
2098316862 Cecilia Yang Auditor
No contacts on file

Notes to SEFA

The City of Tracy ("City") is a municipal corporation governed by a five-member city council with the mayor elected by the council itself. The City was incorporated in 1888 under the general laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The component units discussed below are included in the reporting entity because of their operational or financial relationships with the City. • Tracy Public Improvement Corporation • Tracy Joint Power Public Financing Authority The following entity is a discretely presented component unit in the City’s basic financial statements but federal awards from federal agencies are not included in the Schedule of Expenditures of Federal Awards because they are a separate legal entity. The audit of these federal awards under Uniform Guidance is conducted by other auditors: • South San Joaquin County Fire Authority Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government’s exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Separate financial statements for the Tracy Public Improvement Corporation and Tracy Joint Power Financing Authority are not available.
Funds received under the various grant programs have been recorded within the special revenue funds and enterprise funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The City utilizes the modified accrual basis of accounting for the special revenue funds, and the full accrual basis of accounting for the enterprise funds. The accompanying Schedule of Expenditures of Federal Awards (“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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements.
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California and San Joaquin County Community Development Department is included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or results of operations of the City.
The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-002
2025-002 – Internal Control and Compliance Over Reporting (Significant Deficiency) Federal Assistance Listing Number: 14.251 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Federal Award Identification Number: B-23-CP-CA-0130 Type of Finding: Significant Deficiency in Internal Control over Compliance – Reporting Criteria: Grant Agreement No. B-23-CP-CA-0130 Article VI. Program-Specific Reporting Requirements states: In addition to the general reporting requirements that apply under provisions of this Agreement, the following program-specific reporting requirements apply to the Grantee: A. The Grantee must submit a performance report in DRGR on a semi-annual basis and must include a completed Federal financial report as an attachment to each performance report in DRGR. Performance reports shall consist of a narrative of work accomplished during the reporting period. During the Period of Performance, the Grantee must submit these reports in DRGR no later than 30 calendar days after the end of the 6-month reporting period. The first of these reporting periods begins on the first of January or June (whichever occurs first) after the date this Grant Agreement is signed by HUD. Condition and Context: In our testing of the reporting requirements, we noted one instance of late reporting: 1) Performance and Financial Report for the 6-month period ended June 30, 2025 was due by July 30, 2025 but was submitted on February 19, 2026. Cause: Although the City maintains general grants administration procedures, the award was new to the City and internal controls over compliance were not timely updated to address the program-specific reporting requirements and deadlines. As a result, the City did not have an effective process to track report due dates, monitor timely review and approval, and ensure submission of required reports by the applicable deadlines. Effect: The City was not in compliance with the reporting requirements of Grant Agreement No. B-23-CP-CA-0130 Article VI. Program-Specific Reporting Requirements. Questioned Costs: None Repeat Finding: No