FAC Explorer

Audit 61017

FY End
2022-06-30
Total Expended
$13.25M
Findings
2
Programs
12
Organization: City of Daly City (CA)
Year: 2022 Accepted: 2023-03-30
Auditor: Maze & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
60517 2022-001 Significant Deficiency - I
636959 2022-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $1.06M - 0
20.205 Highway Planning and Construction $618,018 - 0
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $579,349 - 0
14.239 Home Investment Partnerships Program $545,537 - 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $439,201 Yes 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $124,059 - 0
14.239 Covid-19- Home Investment Partnerships Program $57,040 - 0
93.053 Nutrition Services Incentive Program $51,898 - 0
97.044 Assistance to Firefighters Grant $20,000 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $18,606 - 0
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $7,888 - 0
10.576 Senior Farmers Market Nutrition Program $1,200 - 0

Contacts

Name Title Type
KS8RFKRF6ZE6 Tim Nevin Auditee
6509918040 Amy Meyer 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 and expenditures of California Department of Aging awards for the City of Daly City, California, and its component units as disclosed in the notes to the Basic Financial Statements.
Title: CALIFORNIA DEPARTMENT OF AGING FUNDED EXPENDITURES 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. During the fiscal year ended June 30, 2022, the City received the following grant from the State of California Department of Aging: State Funded ExpendituresTitle III C1 - Congregate Nutrition State #57000-FY22-R078255D $18,596
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: SA2022-001 Suspension and Debarment Documentation for Contracts and Subcontracts Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Federal Award Identification Number: SLFRP2686 68-0281986 Name of Pass-Through Entity: California State Water Resources Control Board Criteria: The award terms and conditions of the Coronavirus State and Local Fiscal Recovery Funds agreement with the Department of the Treasury requires that the City comply with OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury?s implementing regulation at 31 C.F.R. Part 19. In addition, the OMB Compliance Supplement for the Program requires that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition: We selected three contracts and one subrecipient agreement for testing and noted that City did not include a term or condition related to compliance with debarment and suspension compliance provisions and we understand that the City did not verify the contractors and subrecipient were not suspended, debarred, or otherwise excluded prior to entering into the agreements. We did note that as of March 24, 2023, the four entities were not included on the exclusions list on SAM.gov. Cause: We understand that staff was not aware of the requirement to include the debarment and suspension provisions in the contracts and the requirement to verify the status of contractors or subrecipients prior to entering into agreements with the entities. Effect: The City is not in compliance with the award terms and conditions and the OMB Compliance Supplement requirements of the Coronavirus State and Local Fiscal Recovery Funds program. Recommendation: The City should develop procedures to ensure compliance with debarment and suspension provisions of the grant award terms and conditions and the OMB Compliance Supplement of the Coronavirus State and Local Fiscal Recovery Funds program. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding 2022-001
Finding Reference Number: SA2022-001 Suspension and Debarment Documentation for Contracts and Subcontracts Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Federal Award Identification Number: SLFRP2686 68-0281986 Name of Pass-Through Entity: California State Water Resources Control Board Criteria: The award terms and conditions of the Coronavirus State and Local Fiscal Recovery Funds agreement with the Department of the Treasury requires that the City comply with OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury?s implementing regulation at 31 C.F.R. Part 19. In addition, the OMB Compliance Supplement for the Program requires that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition: We selected three contracts and one subrecipient agreement for testing and noted that City did not include a term or condition related to compliance with debarment and suspension compliance provisions and we understand that the City did not verify the contractors and subrecipient were not suspended, debarred, or otherwise excluded prior to entering into the agreements. We did note that as of March 24, 2023, the four entities were not included on the exclusions list on SAM.gov. Cause: We understand that staff was not aware of the requirement to include the debarment and suspension provisions in the contracts and the requirement to verify the status of contractors or subrecipients prior to entering into agreements with the entities. Effect: The City is not in compliance with the award terms and conditions and the OMB Compliance Supplement requirements of the Coronavirus State and Local Fiscal Recovery Funds program. Recommendation: The City should develop procedures to ensure compliance with debarment and suspension provisions of the grant award terms and conditions and the OMB Compliance Supplement of the Coronavirus State and Local Fiscal Recovery Funds program. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.