FAC Explorer

Audit 39720

FY End
2022-06-30
Total Expended
$14.83M
Findings
2
Programs
9
Organization: Town of Paradise (CA)
Year: 2022 Accepted: 2023-06-26
Auditor: Richardson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44723 2022-001 Significant Deficiency - L
621165 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $1.63M - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.49M - 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $805,372 - 0
97.039 Hazard Mitigation Grant $358,251 - 0
20.205 Highway Planning and Construction $250,000 - 0
11.307 Economic Adjustment Assistance $128,068 - 0
14.218 Community Development Block Grants/entitlement Grants $118,743 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $72,333 - 0
10.766 Community Facilities Loans and Grants $46,852 - 0

Contacts

Name Title Type
KQ7GRKNP8QS1 Aimee Beleu Auditee
5308726291 Ingrid Sheipline Auditor
No contacts on file

Notes to SEFA

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Town of Paradise, California (the Town) under programs of the federal government for year ended June 30, 2022. 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the Towns operations, it is not intended to be and does not present the financial position, changes in financial position, or cash flows of the Town. De Minimis Rate Used: N Rate Explanation: The Town did not charge indirect costs to federal programs during the year ended June 30, 2022. Expenses reported on the Schedule are reported on the modified accrual basis of accounting. Such expenses/expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement.
Title: PROGRAM COSTS/MATCHING CONTRIBUTIONS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Town of Paradise, California (the Town) under programs of the federal government for year ended June 30, 2022. 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the Towns operations, it is not intended to be and does not present the financial position, changes in financial position, or cash flows of the Town. De Minimis Rate Used: N Rate Explanation: The Town did not charge indirect costs to federal programs during the year ended June 30, 2022. The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the Towns portion, may be more than shown.
Title: LOAN PROGRAMS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Town of Paradise, California (the Town) under programs of the federal government for year ended June 30, 2022. 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the Towns operations, it is not intended to be and does not present the financial position, changes in financial position, or cash flows of the Town. De Minimis Rate Used: N Rate Explanation: The Town did not charge indirect costs to federal programs during the year ended June 30, 2022. The outstanding balances of loan programs were as follows: 1. Federal Program: Community Development Block Grants/Entitlement Grants, Federal AL Number: 14.218, Outstanding Loan Balance: $117,119; 2. Federal Program: Home Investment Partnerships Program, Federal AL Number: 14.239, Outstanding Loan Balance: $7,632,766.
Title: SUBRECIPIENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Town of Paradise, California (the Town) under programs of the federal government for year ended June 30, 2022. 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the Towns operations, it is not intended to be and does not present the financial position, changes in financial position, or cash flows of the Town. De Minimis Rate Used: N Rate Explanation: The Town did not charge indirect costs to federal programs during the year ended June 30, 2022. There were no subrecipients of the Towns federal programs during the year ended June 30, 2022.
Title: CLUSTERS OF PROGRAMS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Town of Paradise, California (the Town) under programs of the federal government for year ended June 30, 2022. 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the Towns operations, it is not intended to be and does not present the financial position, changes in financial position, or cash flows of the Town. De Minimis Rate Used: N Rate Explanation: The Town did not charge indirect costs to federal programs during the year ended June 30, 2022. There were no clusters of the Towns federal programs during the year ended June 30, 2022.

Finding Details

Finding 2022-001
Finding 2022-001 Federal Grantor: Various Passed-through: Various Pass-through Grantor?s No: Various Compliance Requirement: Reporting Condition: The Town submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in June 2023, 3 months after it was due. Criteria: The Town was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2023, 9 months after the fiscal year-end (2 Code of Federal Regulations ?200.512). Effect: Federal awarding agencies may deny future federal awards or subject the Town to additional cash monitoring requirements. This finding was not a result of internal control individual federal programs and, accordingly, did not have a direct and material effect on the reporting requirements over the Town?s major federal programs. Cause: The Town failed to prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner due to the number of federal awards tested in the current year compared to prior years. In addition, the Town lost its finance director during the financial and single audit process. Context: The Town has had significant loss of residents due to the Paradise fire and has found difficulty in replacing key personnel for its finance department. Recommendation: The Town should consider contracting with an external accounting firm so that it can close its books and submit its audited financial statements and single audit to the federal audit clearinghouse no later than the statutory reporting deadline. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.
Finding 2022-001
Finding 2022-001 Federal Grantor: Various Passed-through: Various Pass-through Grantor?s No: Various Compliance Requirement: Reporting Condition: The Town submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in June 2023, 3 months after it was due. Criteria: The Town was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2023, 9 months after the fiscal year-end (2 Code of Federal Regulations ?200.512). Effect: Federal awarding agencies may deny future federal awards or subject the Town to additional cash monitoring requirements. This finding was not a result of internal control individual federal programs and, accordingly, did not have a direct and material effect on the reporting requirements over the Town?s major federal programs. Cause: The Town failed to prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner due to the number of federal awards tested in the current year compared to prior years. In addition, the Town lost its finance director during the financial and single audit process. Context: The Town has had significant loss of residents due to the Paradise fire and has found difficulty in replacing key personnel for its finance department. Recommendation: The Town should consider contracting with an external accounting firm so that it can close its books and submit its audited financial statements and single audit to the federal audit clearinghouse no later than the statutory reporting deadline. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.