Audit 407679

FY End

2025-06-30

Total Expended

$1.81M

Findings

Programs

Organization: City of Woodland (CA)

Year: 2025 Accepted: 2026-07-22

Auditor: LSL LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID	Ref	Severity	Repeat	Requirement
1224367	2025-005	Material Weakness	Yes	L
1224368	2025-005	Material Weakness	Yes	L
1224369	2025-005	Material Weakness	Yes	L
1224370	2025-005	Material Weakness	Yes	L
1224371	2025-005	Material Weakness	Yes	L
1224372	2025-005	Material Weakness	Yes	L

Programs

ALN	Program	Spent	Major	Findings
14.218	COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS	$910,910	Yes	1
20.205	HIGHWAY PLANNING AND CONSTRUCTION	$456,159	Yes	1
14.267	CONTINUUM OF CARE PROGRAM	$306,570	Yes	1
97.067	HOMELAND SECURITY GRANT PROGRAM	$89,273	Yes	1
97.044	ASSISTANCE TO FIREFIGHTERS GRANT	$37,926	Yes	1
16.738	EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM	$9,000	Yes	1

Contacts

Name	Title	Type
PJBKW1CUHUL1	Kim McKinney	Auditee
5306615849	Christian Townes	Auditor
No contacts on file

Notes to SEFA

A. Scope of Presentation The accompanying schedule presents only the expenditures incurred by the City of Livingston, California, that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. B. Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. C. Loan Programs with Continuing Compliance Requirements The program loans listed below are administered directly by the City, and balances and transactions relating to these programs are included in the City’s basic financial statements. Loans made during the fiscal year, if any, are included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. The balance of loans outstanding at June 30, 2025, consists of: 14.218 - Community Development Block Grants Program - $397,589

Finding Details

Finding 2025-005

Evaluation of Finding: Material Weakness/Material Noncompliance. Criteria: Financial reports are intended to meet the needs of decision makers, including the governing board, bondholders, Federal and State oversight agencies, and constituents. Accordingly, timeliness was identified as one of the characteristics of information in financial reporting in GASB Concepts Statement No. 1 of the Governmental Accounting Standards Board (GASB), Objectives of Financial Reporting. To accomplish this objective, financial reports must be available in time for informed decision making. Therefore, financial reports should be published as soon as possible after the end of the reporting period. Sometimes the need for timeliness has to be balanced against the need for reliability, which also was identified as one of the characteristics of information in financial reporting identified in GASB Concepts Statement No. 1. While governments certainly should not sacrifice reliability for timeliness, minor gains in precision ought not to be purchased at the price of indefinite delay (e.g., accounting estimates). Legislative deadlines for submitting financial statements should be viewed as a minimum standard rather than as an ideal objective. The same holds true for the submission deadlines used by various award programs such as the Government Finance Officers Association's (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program. The additional cost of more timely financial reporting (e.g., additional staff and overtime) also needs to be considered. Condition: While conducting our audit, we noted that the City experienced difficulties and delays in accurately preparing the City’s financial statements. Additionally, the City’s financial statements were not ready to be issued by the required Single Audit Reporting Package deadlines of March 31, 2024, 2025 and 2026. As a result of these conditions, the financial statements were not available to meet the needs of decision makers, including governing boards, bondholders, Federal and State oversight agencies, and constituents in a timely manner. Effect or Potential Effect of Condition: Untimely financial statement reporting can alter the value of those financial statements to the users, as well as jeopardize relationships with bondholders, and granting agencies. Repeat Finding Yes (2024-005) Recommendation: Management should establish a well-defined process for its annual financial reporting. The process and its key attributes (e.g., overall timing, methodology, communication with component units, segregation of duties, frequency of analyses and review by City management) should be formally documented, approved, and reviewed on a regular basis. In addition, the City should develop more resources capable of assisting in the preparation of its annual financial reporting package.