FAC Explorer

Audit 39729

FY End
2022-06-30
Total Expended
$3.19M
Findings
2
Programs
11
Organization: City of Watsonville (CA)
Year: 2022 Accepted: 2023-03-30
Auditor: Maze and Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42569 2022-001 - - LM
619011 2022-001 - - LM

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $1.56M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.17M Yes 0
20.106 Airport Improvement Program $268,520 - 0
20.600 State and Community Highway Safety $65,947 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $38,365 - 0
93.011 National Organizations of State and Local Officials $24,999 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $21,435 - 0
97.067 Homeland Security Grant Program $15,129 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $11,536 - 0
16.726 Juvenile Mentoring Program $7,972 - 0
14.239 Home Investment Partnerships Program $6,244 - 0

Contacts

Name Title Type
KM1BKFS1MGU5 Cynthia Czerwin Auditee
8317683450 Grace Zhang Auditor
No contacts on file

Notes to SEFA

Title: REPORTING ENTITY Accounting Policies: 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 governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City ofWatsonville, California and its component units as disclosed in the notes to the Basic Financial Statements.
Title: CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUND PROGRAM (AL# 21.027) Accounting Policies: 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 governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule for the year ended June 30, 2022 includes expenditures for the American Rescue Plan Coronavirus State and Local Fiscal Recovery Fund Program (AL# 21.027) for the period of March 3, 2021 to June 30, 2022. The period of performance for the grant began on March 3, 2021.

Finding Details

Finding 2022-001
? Finding reference number: 2022-001 ? Assistance Listing Number: 14.218 ? Assistance Listing Title: Community Block Development Grant Coronavirus (COVID19) ? Name of Federal Agency: Department of Housing and Urban Development. ? Criteria: Part 7 ?Additional CDBG-CV Requirements? of the Funding Approval/ Agreement states the program is subject to various reporting requirements under the Federal Funding Accounting and Transparency Act. In addition, the City should monitor their subrecipients to ensure they are following the direction of the grant. This count be done by on site visitation or reviewing the subrecipients single audit, if applicable. ? Condition: Per review of grant documents and per conversation with the City staff, the City did not comply with the reporting requirements under the Federal Funding Accounting and Transparency Act and subrecipient monitoring has not been performed. ? Effect: The City is not in compliance with the Federal Funding Accounting and Transparency Act as required by the grant application or monitoring subrecipients receiving gran funding ? Cause: The City overlooked these requirements as the subrecipients were only set to receive a one-time award with the grant funds. ? Identification as a repeat finding: No. ? Recommendation: We recommend the City to follow the Grant requirement regardless whether it is just one-time funding or not. ? View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding 2022-001
? Finding reference number: 2022-001 ? Assistance Listing Number: 14.218 ? Assistance Listing Title: Community Block Development Grant Coronavirus (COVID19) ? Name of Federal Agency: Department of Housing and Urban Development. ? Criteria: Part 7 ?Additional CDBG-CV Requirements? of the Funding Approval/ Agreement states the program is subject to various reporting requirements under the Federal Funding Accounting and Transparency Act. In addition, the City should monitor their subrecipients to ensure they are following the direction of the grant. This count be done by on site visitation or reviewing the subrecipients single audit, if applicable. ? Condition: Per review of grant documents and per conversation with the City staff, the City did not comply with the reporting requirements under the Federal Funding Accounting and Transparency Act and subrecipient monitoring has not been performed. ? Effect: The City is not in compliance with the Federal Funding Accounting and Transparency Act as required by the grant application or monitoring subrecipients receiving gran funding ? Cause: The City overlooked these requirements as the subrecipients were only set to receive a one-time award with the grant funds. ? Identification as a repeat finding: No. ? Recommendation: We recommend the City to follow the Grant requirement regardless whether it is just one-time funding or not. ? View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.