Audit 70879

FY End
2022-06-30
Total Expended
$9.94M
Findings
2
Programs
4
Organization: City of Carson (CA)
Year: 2022 Accepted: 2023-03-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
63291 2022-001 - - L
639733 2022-001 - - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $8.93M Yes 1
14.218 Community Development Block Grants/entitlement Grants $853,419 - 0
20.205 Highway Planning and Construction $113,913 - 0
93.556 Promoting Safe and Stable Families $44,134 - 0

Contacts

Name Title Type
YMEYLK3W3YH5 Tarik Rahmani Auditee
3109521755 Cristy Canieda Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presentsthe activity of all federal financial assistance programs of the City of Carson,California (the City). For purposes of this schedule, financial awards include federalawards received directly from federal agencies, as well as federal funds receivedindirectly by the City from non-federal agencies or other organizations. Only theportions of program expenditures reimbursable with federal funds are reported inthe accompanying SEFA. Program expenditures in excess of the maximumreimbursement authorized, if any, or the portion of the program expenditures thatwere funded with other state, local or other non-federal funds are excluded from theaccompanying SEFA.The information in the SEFA is presented in accordance with the requirements of Title2 U.S. Code of Federal Regulations 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 isnot intended to and does not present the financial position, changes in net position, orcash flows of the City. The accompanying SEFA is presented using the modified accrual basis ofaccounting for governmental funds, which is described in Note 1 of the Citys basicfinancial statements. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Grant expenditure reports for the year ended June 30, 2022, which have beensubmitted to grantor agencies, will, in some cases, differ from the amountsdisclosed herein. The reports prepared for grantor agencies are typically preparedat a later date and often reflect refined estimates of the year-end accruals.
Title: RELATIONSHIP TO ANNUAL COMPREHENSIVE FINANCIAL REPORT Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presentsthe activity of all federal financial assistance programs of the City of Carson,California (the City). For purposes of this schedule, financial awards include federalawards received directly from federal agencies, as well as federal funds receivedindirectly by the City from non-federal agencies or other organizations. Only theportions of program expenditures reimbursable with federal funds are reported inthe accompanying SEFA. Program expenditures in excess of the maximumreimbursement authorized, if any, or the portion of the program expenditures thatwere funded with other state, local or other non-federal funds are excluded from theaccompanying SEFA.The information in the SEFA is presented in accordance with the requirements of Title2 U.S. Code of Federal Regulations 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 isnot intended to and does not present the financial position, changes in net position, orcash flows of the City. The accompanying SEFA is presented using the modified accrual basis ofaccounting for governmental funds, which is described in Note 1 of the Citys basicfinancial statements. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Amounts reported in the accompanying SEFA agree, in all material respects, toamounts reported within the Citys Annual Comprehensive Financial Report.

Finding Details

Finding No. SA 2022-001 ? Reporting Federal Assistance Listing Number: 21.027 Federal Program Title: Coronavirus State and Local Fiscal Recovery Fund Federal Agency: U.S. Department of Treasury Award Period: Fiscal year 2022 Criteria: Per OMB Compliance Supplement and Compliance and Reporting Guidelines issued by U.S. Department of Treasury for the State and Local Fiscal Recovery Fund, the Quarterly Project and Expenditure Report Timeline deadlines are as follows: Table 3: Quarterly Project and Expenditure Report Timeline Report Year Quarter Period Covered Due Date 1 2021 2-4 March 3 ? December 31 January 31, 2022 2 2022 1 January 1 ? March 31 April 30, 2022 Condition: The City was unable to meet the Quarterly Project and Expenditure Report?s due date. The City submitted both of the reports mentioned above on July 20, 2022 which were late by: - Report #1 ? Quarter 2-4 of year 2021 ? 140 days late. - Report #2 ? Quarter 1 of year 2022 ? 51 days late. Cause: The City was not aware of the Compliance and reporting Guidelines requirements on reporting issued by the U.S. Department of Treasury. Effect: Delayed reporting is considered non-compliance with the program requirements. Questioned Costs: None. Recommendation: We recommend that the City strictly follow the deadline for reporting submission set forth by the U.S. Department of Treasury. Views of responsible officials and planned corrective actions: The City has received access to the Reporting site and the accountant assigned to the ARPA fund has reported the required Quarterly reports prior to due dates. The required ARPA quarterly report will be filed timely by its due date as staff now has authorized access to the ARPA portal. Corrective Action Plan has been implemented as of June 30, 2022, and the city personnel responsible for the correction were Deputy City Manager, Tarik Rahmani, and the accounting team.
Finding No. SA 2022-001 ? Reporting Federal Assistance Listing Number: 21.027 Federal Program Title: Coronavirus State and Local Fiscal Recovery Fund Federal Agency: U.S. Department of Treasury Award Period: Fiscal year 2022 Criteria: Per OMB Compliance Supplement and Compliance and Reporting Guidelines issued by U.S. Department of Treasury for the State and Local Fiscal Recovery Fund, the Quarterly Project and Expenditure Report Timeline deadlines are as follows: Table 3: Quarterly Project and Expenditure Report Timeline Report Year Quarter Period Covered Due Date 1 2021 2-4 March 3 ? December 31 January 31, 2022 2 2022 1 January 1 ? March 31 April 30, 2022 Condition: The City was unable to meet the Quarterly Project and Expenditure Report?s due date. The City submitted both of the reports mentioned above on July 20, 2022 which were late by: - Report #1 ? Quarter 2-4 of year 2021 ? 140 days late. - Report #2 ? Quarter 1 of year 2022 ? 51 days late. Cause: The City was not aware of the Compliance and reporting Guidelines requirements on reporting issued by the U.S. Department of Treasury. Effect: Delayed reporting is considered non-compliance with the program requirements. Questioned Costs: None. Recommendation: We recommend that the City strictly follow the deadline for reporting submission set forth by the U.S. Department of Treasury. Views of responsible officials and planned corrective actions: The City has received access to the Reporting site and the accountant assigned to the ARPA fund has reported the required Quarterly reports prior to due dates. The required ARPA quarterly report will be filed timely by its due date as staff now has authorized access to the ARPA portal. Corrective Action Plan has been implemented as of June 30, 2022, and the city personnel responsible for the correction were Deputy City Manager, Tarik Rahmani, and the accounting team.