FAC Explorer

Audit 44240

FY End
2022-06-30
Total Expended
$17.07M
Findings
2
Programs
11
Organization: City of Hawthorne (CA)
Year: 2022 Accepted: 2023-03-27
Auditor: Rogers Anderson Malody & Scott LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44822 2022-002 - - L
621264 2022-002 - - L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $8.11M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.75M Yes 0
20.106 Airport Improvement Program $1.28M Yes 0
16.922 Equitable Sharing Program $1.04M - 0
14.218 Community Development Block Grants/entitlement Grants $801,676 - 0
14.248 Community Development Block Grants_section 108 Loan Guarantees $387,356 - 0
20.600 State and Community Highway Safety $276,908 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $106,649 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $70,528 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $39,876 - 0
14.239 Home Investment Partnerships Program $28,552 - 0

Contacts

Name Title Type
QL6HJTARM8M9 Miguel Alvarado Auditee
9103492927 Scott Manno Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal award activity of the City of Hawthorne (the City) that are reimbursable under federal programs of the federal government for the year ended June 30, 2022. The information in this SEFA is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the City. For the purposes of this schedule, federal financial assistance includes 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 that portion of program expenditures reimbursable with such federal funds are 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.NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the SEFA are reported on the modified accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. COMMUNITY DEVELOPMENT BLOCK GRANTS_SECTION 108 LOAN GUARANTEES (14.248) - Balances outstanding at the end of the audit period were 387356.

Finding Details

Finding 2022-002
2022-002 ? Reporting Noncompliance Federal Program Housing Assistance Payment Program Section 8, Assistance Listing No. 14.871 Criteria Per Section 4 L (1) Financial Reporting of the OMB Uniform Guidance Compliance Supplement, the public housing agency (PHA) must submit timely GAAP-based unaudited and audited financial information electronically to HUD. Condition During the audit, we noted the unaudited financial information submitted to HUD for the year ended June 30, 2022, contained a misstatement due to error. Cause The City erroneously overstated revenues and understated expenses for the program when preparing the reports. Effect The City could have been providing inaccurate information regarding its financial performance to the granting agency. Questioned Costs No questioned costs. Identification as a Repeat Finding This is a new finding for fiscal year 2022. Recommendation We recommend the City carefully review all information submitted to HUD to ensure accuracy of the information filed, as well as maintain backup of information used to compile the reports. Views of Responsible Officials See attached Corrective Action Plan.
Finding 2022-002
2022-002 ? Reporting Noncompliance Federal Program Housing Assistance Payment Program Section 8, Assistance Listing No. 14.871 Criteria Per Section 4 L (1) Financial Reporting of the OMB Uniform Guidance Compliance Supplement, the public housing agency (PHA) must submit timely GAAP-based unaudited and audited financial information electronically to HUD. Condition During the audit, we noted the unaudited financial information submitted to HUD for the year ended June 30, 2022, contained a misstatement due to error. Cause The City erroneously overstated revenues and understated expenses for the program when preparing the reports. Effect The City could have been providing inaccurate information regarding its financial performance to the granting agency. Questioned Costs No questioned costs. Identification as a Repeat Finding This is a new finding for fiscal year 2022. Recommendation We recommend the City carefully review all information submitted to HUD to ensure accuracy of the information filed, as well as maintain backup of information used to compile the reports. Views of Responsible Officials See attached Corrective Action Plan.