FAC Explorer

Audit 6534

FY End
2023-06-30
Total Expended
$3.40M
Findings
2
Programs
2
Organization: City of Norco (CA)
Year: 2023 Accepted: 2023-12-13
Auditor: Clifton Larson Allen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4214 2023-001 Significant Deficiency - L
580656 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $12,000 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $10,264 Yes 0

Contacts

Name Title Type
MV2VM93DW7M6 Lisette Free Auditee
9512705652 Nitin Patel Auditor
No contacts on file

Notes to SEFA

Title: Contingencies Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) include the federal award activities of the City of Norco, California (the City), under programs of the federal government, as well as federal financial assistance passed through other government agencies for the year ended June 30, 2023. The information in the Schedule of Expenditures of Federal Awards (SEFA) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule present only a selected portion of the operations of the City, they are not intended to, and do not, present the financial statements of the City. The City’s reporting entity is defined in Note 1 of the notes to the City’s financial statements. 2. BASIS OF ACCOUNTING The accompanying Schedule is presented using the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in the Note 1 of the notes to the City’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. The information in the SEFA is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements. Pass through entity identifying numbers are identified where available. De Minimis Rate Used: N Rate Explanation: No indirect costs were charged to Federal award programs. Under the terms of federal grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.

Finding Details

Finding 2023-001
2023 – 001 Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Award Period: March 3, 2021 through December 31, 2024 Compliance Requirement Affected: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: In accordance with the Compliance and Reporting Guidance - State and Local Fiscal Recover Funds, current period amounts included on the annual reporting as of March 31, 2023 should cover the period from April 1, 2022 through March 31, 2023. Condition: Current period obligations and current period expenditures on the March 31, 2023, reporting covered the period from July 1, 2022, through June 30, 2023. Questioned costs: None. Context: Error was noted on 1 of 1 annual reports. Cause: Reporting period parameters between the City's fiscal year and the time period required under the grant award were confused. Effect: Incorrect current period obligations and current period expenditures were included on the March 31, 2023, annual reporting. Repeat Finding: No. Recommendation: We recommend that the City's review of the annual reporting include a rollforward check to determine that the prior period's cumulative obligation and expenditure totals, plus the current period obligations and current period expenditures agree to cumulative totals.
Finding 2023-001
2023 – 001 Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Award Period: March 3, 2021 through December 31, 2024 Compliance Requirement Affected: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: In accordance with the Compliance and Reporting Guidance - State and Local Fiscal Recover Funds, current period amounts included on the annual reporting as of March 31, 2023 should cover the period from April 1, 2022 through March 31, 2023. Condition: Current period obligations and current period expenditures on the March 31, 2023, reporting covered the period from July 1, 2022, through June 30, 2023. Questioned costs: None. Context: Error was noted on 1 of 1 annual reports. Cause: Reporting period parameters between the City's fiscal year and the time period required under the grant award were confused. Effect: Incorrect current period obligations and current period expenditures were included on the March 31, 2023, annual reporting. Repeat Finding: No. Recommendation: We recommend that the City's review of the annual reporting include a rollforward check to determine that the prior period's cumulative obligation and expenditure totals, plus the current period obligations and current period expenditures agree to cumulative totals.