HomeMy WebLinkAboutItem 14 - Receive and file the Single Audit Report for the Fiscal Year Ended June 30, 2021Finance and Management Services
www.santa-ana.org/finance
Item # 14
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 19, 2022
TOPIC: Receive and file the Single Audit Report for the Fiscal Year Ended June 30, 2021
AGENDA TITLE:
Receive and File Single Audit Report for the Fiscal Year Ended June 30, 2021
RECOMMENDED ACTION
Receive and file Single Audit Report for the Fiscal Year Ended June 30, 2021.
DISCUSSION
All non -Federal entities that expend $750,000 or more of Federal awards each fiscal year
are required to obtain a Single Audit to comply with the regulations of the Federal Office
of Management and Budget (OMB). The Single Audit for the fiscal year ended June 30,
2021 and has been completed by the City's independent auditor, CliftonLarsonAllen LLP.
During the fiscal year 2020-21, the City administered twenty-four (24) Federal grant
programs and expended $105.6 million, representing an increase of $46.5 million from
the prior fiscal year. The increase was primarily due to $31.8 million in Coronavirus Relief
Fund expenditures, $3.7 million in COVID-19 Community Development Block Grant
(CDBG), $3.6 million in COVID-19 Emergency Solutions Grant, $2.4 million in COVID-19
Housing Assistance programs, and $4.0 million additional Highway Planning &
Construction capital expenditures.
Of the twenty-four (24) programs administered by the City, the auditors identified four
major programs for the audit: Emergency Solutions Grant Program ($4.0 million),
Workforce Innovation and Opportunity Act (WIOA) Cluster ($2.3 million), Coronavirus
Relief Fund ($31.8 million), and Emergency Rental Assistance Program ($3.4 million).
The Finance and Management Agency is pleased to report that the City received an
unmodified opinion commonly known as a clean opinion; which is considered the most
favorable conclusion for the audit. The unmodified opinion indicates that the City has
complied, in all material respects, with the compliance requirements for the fiscal year
ended June 30, 2021. However, the auditors disclosed one compliance finding related to
WIOA Youth Activity program for not meeting the minimum expenditure requirements.
The noncompliance was due to various restrictions and limitations during the COVID-19
pandemic, such as closed worksites and not accepting remote work for youth. Program
Approve the recognition of revenue in the General Fund for certain unclaimed funds
July 19, 2022
Page 2
staff plans to restructure subrecipient agreements and encourage meeting enrollment
goals to prevent future findings.
The report (Exhibit 1) is posted and available on the City's website (https://www.santa-
ana.org/financial-reports) along with prior fiscal years. In addition, the report has been
submitted for certification as part of the Single Audit Data Collection Form process. The
Single Audit Report is normally required to be submitted by March 31. However, OMB
extended the deadline to September 30 to provide administrative relief to recipients of
federal financial assistance impacted by COVID-19.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT
1. FY20-21 Single Audit Report
Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Kristine Ridge, City Manager
EXHIBIT 1
CITY OF SANTAANA, CALIFORNIA
SINGLE AUDIT
AND OTHER FIN,
JUN
CITY OF SANTAANA, CALIFORNIA
June 30, 2021
TABLE OF CONTENTS
Page
Number
Independent Auditors' Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 1 - 2
Independent Auditors' Report on Compliance for Each Major
Federal Program, Report on Internal Control over Compliance,
Report on Schedule of Expenditures of Federal Awards Required
by the Uniform Guidance, Schedule of Expenditures of State
Awards Required by the State of California, and Housing Authority
of the City of Santa Ana Financial Data Schedules Required by
the US Department of Housing and Urban Development 3-5
Schedule of Expenditures of Federal Awards
Schedule of Expenditures of State Awards
10
Notes to the Schedules of Expenditures of Federal and State Awards 11
Housing Authority of the City of Santa Ana Financial Data Schedules:
Financial Data Schedule of Assets, Liabilities, and Equity as of June 30, 2021 12
Financial Data Schedule of Revenues, Expenses, and Changes in Equity
for the Fiscal Year Ended June 30, 2021 13
Schedule of Findings and Questioned Costs
14 - 16
Summary Schedule of Prior -Year Audit Findings 17
Clifton LarsonAllen LLP
. CLAconnect.com
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable City Council
of the City of Santa Ana
Santa Ana, California
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business -type activities, each major fund, and the aggregate remaining
fund information of the City of Santa Ana, California (the City), as of and for the year ended
June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's
basic financial statements and have issued our report thereon dated December 8, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the City's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
A member of CLA is an independent member of Nexia International, a leading, global network of independer
Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.
International
1
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
LLB
CliftonLarsonAllen LLP
Irvine, California
December 8, 2021
2
0
Clifton LarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE,
REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED
BY THE UNIFORM GUIDANCE, SCHEDULE OF EXPENDITURES OF STATE
AWARDS REQUIRED BY THE STATE OF CALIFORNIA, AND HOUSING AUTHORITY
OF THE CITY OF SANTAANA FINANCIAL DATA SCHEDULES REQUIRED BY
THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Honorable City Council
of the City of Santa Ana
Santa Ana, California
Report on Compliance for Each Major Federal Program
We have audited the City of Santa Ana's (the City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material
effect on each of the City's major federal programs for the year ended June 30, 2021. The City's major
federal programs are identified in the summary of auditors' results section of the accompanying
schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal
programs based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America, the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States, and the audit
requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Those standards and the Uniform Guidance require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred. An
audit includes examining, on a test basis, evidence about the City's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
A member of LA is an independent member of Nexia International, a leading, global network of independe.
Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.
International
3
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for
the year ended June 30, 2021.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required to
be reported in accordance with the Uniform Guidance and which are described in the accompanying
schedule of findings and questioned costs as item 2021-001. Our opinion on each major federal
program is not modified with respect to this matter.
The City's response to the noncompliance findings identified in our audit is described in the
accompanying schedule of findings and questioned costs. The City's response was not subjected to
the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on
the response.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the City's internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine
the auditing procedures that are appropriate in the circumstances for the purpose of expressing an
opinion on compliance for each major federal program and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
11
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance, the
Schedule of Expenditures of State Awards Required by the State of California, and the Housing
Authority of the City of Santa Ana Financial Data Schedules Required by the US Department of
Housing and Urban Development
We have audited the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the City of Santa Ana as of and for
the year ended June 30, 2021, and the related notes to the financial statements, which collectively
comprise the City's basic financial statements. We issued our report thereon dated December 8,
2021, which contained unmodified opinions on those financial statements. Our audit was conducted
for the purpose of forming opinions on the financial statements that collectively comprise the basic
financial statements. The accompanying Schedule of Expenditures of Federal Awards, the Schedule
of Expenditures of State Awards, and the Housing Authority of the City of Santa Ana Financial Data
Schedules are presented for purposes of additional analysis as required by the Uniform Guidance, the
State of California, and the US Department of Housing and Urban Development, respectively, and are
not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal
Awards, the Schedule of Expenditures of State Awards, and the Housing Authority of the City of Santa
Ana Financial Data Schedules are fairly stated in all material respects in relation to the basic financial
statements as a whole.
LLB
CliftonLarsonAllen LLP
Irvine, California
June 17, 2022
I
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2021
Federal
Federal Grantor / Assistance
Pass -Through Total Passed
Pass -Through Grantor / Listing
Entity Identifying Federal Through to
Program / Cluster Title Number
Number Expenditures Subrecipients
U.S. Department of Housing and Urban Development
Direct Programs:
Community Development Block Grants - Entitlement Grants Cluster:
Community Development Block Grants
COVID-19 - Community Development Block Grants
Neighborhood Stabilization Program 1
Neighborhood Stabilization Program 3
Subtotal Community Development Block Grants -
Entitlement Grants Cluster
Emergency Solutions Grant Program
COVID-19 - Emergency Solutions Grant Program
Subtotal Emergency Solutions Grant Program
Housing Voucher Cluster:
Section 8 Housing Choice Vouchers
COVID-19 - Section 8 Housing Choice Vouchers - CARES Act
COVID-19 - Housing Assistance Payments - CARES Act
Subtotal Section 8 Housing Choice Vouchers
Mainstream Vouchers
COVID-19 - Mainstream Vouchers - CARES Act
Subtotal Mainstream Vouchers
Subtotal Housing Voucher Cluster
Family Self -Sufficiency Program
Family Self -Sufficiency Program
Subtotal Family Self -Sufficiency Program
HOME Investment Partnerships Program
Total U.S. Department of Housing and Urban Development
U.S. Department of Labor
Workforce Innovation and Opportunity Act (WIOA) Cluster:
Passed through CA Employment Development Department:
WIOA Adult Program
WIOA Dislocated Worker Formula Grants
WIOA Dislocated Worker Formula Grants (Rapid Response)
Subtotal WIOA Dislocated Worker Formula Grants
WIOA Youth Activities
WIOA Youth Activities
Subtotal WIOA Youth Activities
14.218
N/A
$ 7,511,180
$ 720,338
14.218
N/A
4,508,225
3,782,996
14.218
N/A
2,235
-
14.218
N/A
1,967
-
12,023,607
4,503,334
14.231
N/A
452,850
360,355
14.231
N/A
3,560,234
3,102,596
4,013,084
3,462,951
14.871
N/A
39,132,051
-
14.871
N/A
1,260,045
14.871
N/A
1,127,700
41,519,796
14.879
N/A
1,535,620
14.879
N/A
15.716
1,551,336
43,071,132
14.896 N/A 71,322
14.896 N/A 97,419
168,741
14.239 N/A 201,662 -
59,478,226 7,966,285
17.258 AA111027
17.278 AA111027
17.278 AA111027
17.259 AA011027
17.259 AA111027
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards
682,155
601,790
239,472
841,262
196,341 -
561,499 345,027
757,840 345,027
(Continued)
6
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2021 (Continued)
Federal
Federal Grantor / Assistance
Pass -Through Passed
Pass -Through Grantor / Listing
Entity Identifying Federal Through to
Program / Cluster Title Number
Number Expenditures Subrecipients
Passed through County of Orange Community Resources Agency
WIOA Adult Program
17.258
19-28-0070-RWS $
18,686 $
Passed through Goodwill Industries of Orange:
WIOA Adult Program (Veterans Employment Assistance Program)
17.258
K9110010
6,837 -
Subtotal Workforce Innovation and Opportunity Act (WIOA) Cluster
2,306,780 345,027
Passed through CA Employment Development Department:
WIOA National Dislocated Worker Grants
17.277
AA011027
158,358 -
Total U.S. Department of Labor
2,465,138 345,027
U.S. Department of Transportation
Highway Planning and Construction Cluster:
Passed through CA Department of Transportation:
National Highway Performance Program
20.205
BRLS 5063(184)
597,152
Bicycle Corridor Improvement
20.205
CMAQ 5063(180) BCI
566,518
Bicycle Corridor Improvement
20.205
CMAQ 5063(181) BCI
17,546
Bicycle Corridor Improvement
20.205
CMAQ 5063(182) BCI
847,818
Bicycle Corridor Improvement
20.205
CMAQ 5063(183) BCI
906,619
Bicycle Corridor Improvement
20.205
CMAQ 5063(200) BCI
3,416
Regional Surface Transportation Program
20.205
STPL5063(176)
10,867
Highway Safety Improvement Program
20.205
HSIPL 5063(171)
142,280
Highway Safety Improvement Program
20.205
HSIPL 5063(186)
344,573
Highway Safety Improvement Program
20.205
HSIPL 5063(187)
456,795
Highway Safety Improvement Program
20.205
HSIPL 5063(188)
397,482
Highway Safety Improvement Program
20.205
HSIPL 5063(189)
7,772
Highway Safety Improvement Program
20.205
HSIPL 5063(190)
8,613
Subtotal Highway Planning and Construction Cluster
4,307,451
Highway Safety Cluster:
State and Community Highway Safety:
Passed through CA Office of Traffic Safety:
Selective Traffic Enforcement
20.600
PT20164
186,798
Selective Traffic Enforcement
20.600
PT21066
24,800
Selective Traffic Enforcement
20.600
PT21189
308,590
Public Education on Bicycle Safety
20.600
PS20034
72,386
Subtotal State and Community Highway Safety Cluster
592,574
Total U.S. Department of Transportation
4,900,025
(Continued)
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
7
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2021 (Continued)
Federal
Federal Grantor /
Assistance
Pass -Through
Passed
Pass -Through Grantor /
Listing
Entity Identifying
Federal Through to
Program / Cluster Title
Number
Number
Expenditures Subrecipients
U.S. Department of Justice
Direct Programs:
Equitable Sharing Program (Asset Forfeiture)
16.922
N/A
$ 498,666 $
Public Safety Partnership and Community Policing Grants
16.710
N/A
99,372
Body Worn Camera Policy and Implementation
16.835
COVID-19 - Coronavirus Emergency Supplemental Funding 16.034
Passed through County of Orange Sheriffs Department:
Edward Byme Memorial Justice Assistance Grant Program:
Byrne Justice Assistance Grant 2017 16.738
Byrne Justice Assistance Grant 2018 16.738
Byrne Justice Assistance Grant 2019 16.738
Byrne Justice Assistance Grant 2020 16.738
Subtotal Edward Byrne Memorial Justice Assistance Grant Program
Passed through Human Options:
Culturally and Linguistically Specific Services Program
Total U.S. Department of Justice
U.S. Department of Homeland Security
Homeland Security Grant Program:
Passed through CA Office of Emergency Services:
Urban Area Security Initiative 2017
Urban Area Security Initiative 2019
Passed through City of Anaheim:
Urban Area Security Initiative 2018
Subtotal Homeland Security Grant Program
Total U.S. Department of Homeland Security
N/A 28,598
N/A 23,383
2017-DJ-BX-0990 9,017
2018-DJ-BX-0820 40,356
2019-DJ-BX-0899 107,633
2020-DJ-BX-0773 7,022
164,028
16.016 2016-WE-AX-0054
97.067 2017-00083 059-95010
97.067 2019-0035 059-95010
97.067 2018-0054
U.S. Department of Health and Human Services
Passed through County of Orange Social Services Agency:
Temporary Assistance for Needy Families 93.558 WGM0319
U.S. Department of Treasury
Direct Programs:
Equitable Sharing Program (Asset Forfeiture) 21.016 N/A
COVID-19 - Emergency Rental Assistance Program 21.023 N/A
COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) 21.027 N/A
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards
104,206
918,253
291,455
293,619
819,858
9,829
512,934
-
1,624,247
303,448
1,624,247
303,448
552,607
-
179,995
-
3,375,042
3,304,652
265,000
-
(Continued)
8
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2021 (Continued)
Federal
Federal Grantor /
Assistance
Pass -Through
Passed
Pass -Through Grantor /
Listing
Entity Identifying
Federal
Through to
Program / Cluster Title
Number
Number
Expenditures
Subrecipients
Coronavirus Relief Fund:
Passed through CA Department of Finance
COVID-19 - Coronavirus Relief Fund
21.019
N/A
$ 28,456,555
$ 1,576,258
Passed through County of Orange:
COVID-19 - Coronavirus Relief Fund
21.019
N/A
3,393,353
-
Subtotal Coronavirus Relief Fund
31,849,908
1,576,258
Total U.S. Department of Treasury
Total Expenditures of Federal Awards
35,669,945 4,880,910
$ 105,608,441 $ 13,495,670
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
9
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of State Awards
For the Fiscal Year Ended June 30, 2021
Program
State
Identification
Awards
Grantor / Program Title
Number
Expenditures
CA Business Consumer Services and Housing Agency
Homeless Emergency Aid Program
18-HEAP-00007
$ 2,266,783
Homeless Housing Assistance & Prevention COVID-1S
20-HCFC-00019
1,158,916
Homeless Housing Assistance & Preventior
20-HHAP-00019
2,144,077
5,569,776
CA Department of Education
RSCCD - Strong Workforce Program
DO-18-2226-01
8,955
CA Department of Housing and Community Development
Affordable Housing Sustainable Communities Program
16-AHSC-11200
1,150,649
S132 Planning Grants Program
19-PGP-13895
56,300
Local Early Action Planning Program
20-LEAP-15676
28,633
1,235,582
CA Department of Justice
Sexual Assault Evidence Grant
2019-2020-02
19,836
CA Department of Motor Vehicles
SCAQMD Mobile Source Air Pollution Reduction
2015 MSRC ML14012
24,717
CA Department of Resources Recycling and Recovery
Oil Payment Program
OPP6, OPP8, OPP10
12,325
Beverage Container Payment Program
FY 13/14, 16/17, 17/18, 18/19
91,353
103,678
CA Department of Transportation
Active Transportation Program
ATPL-5063(170)
2,505,200
Active Transportation Program
ATPL-5063(172)
987,814
Active Transportation Program
ATPL-5063(177)
16,877
Active Transportation Program
ATPL-5063(178)
2,076,310
Active Transportation Program
ATPLNI-5063(185)
14,524
Active Transportation Program - SB1 Augmentatior
ATPSBIL-5063(191)
215,704
Active Transportation Program - SB1 Augmentatior
ATPSBIL-5063(193)
679,593
Active Transportation Program - SB1 Augmentatior
ATPSBIL-5063(195)
146,832
Active Transportation Program - SB1 Augmentatior
ATPSBIL-5063(196)
209,598
Active Transportation Program - SB1 Augmentatior
ATPSBIL-5063(197)
410,950
Active Transportation Program - SB1 Augmentatior
ATPSBIL-5063(198)
34,685
Active Transportation Program - SB1 Augmentatior
ATPSBIL-5063(199)
27,388
Southern California Association of Government Gran
275-4823U3.01/4823E.01
14,800
7,340,275
CA Natural Resources Agency
Urban Greening Grant Program - Proposition 8z
U59151-0
2,346
Statewide Park Development & Community Revitalizatiot
C9801034
14,023
Advanced Metering Infrastructure
GF 1806-0
1,272,188
1,288,557
CA State Coastal Conservancy
Santa Ana River Conservancy Program
19-098
504,180
CA State Library
Mobile Library Solutions Gran
SVBT-026
67,647
CA Workforce Development Board
Prison to Employment Program
M0113404
527,078
Prison to Employment Program
M0113521
508,505
1,035,583
Total Expenditures of State Awards
$ 17,198,786
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards
10
CITY OF SANTAANA, CALIFORNIA
NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
1. BASIS OF PRESENTATION
The accompanying Schedules of Expenditures of Federal and State Awards (the Schedules)
include the federal and state award activities of the City of Santa Ana, California (the City), under
programs of the federal government and the State of California, as well as federal and state
financial assistance passed through other government agencies for the year ended June 30,
2021. The information in the Schedule of Expenditures of Federal Awards (SEFA) is presented in
accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Because the Schedules 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 Schedules are 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 with the exception of Federal
assistance listing number 21.019, which follows criteria determined by the Department of Treasury
for allowability of costs. Under these principles, certain types of expenditures are not allowable or
are limited as to reimbursement. 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.
3. INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
11
CITY OF SANTA ANA, CALIFORNIA
Housing Authority of the City of Santa Ana
Financial Data Schedule of Assets, Liabilities, and Equity
June 30, 2021
Family Self
Housing Choice
Mainstream
Emergency
Line Item
Sufficiency
Housing Choice
Mainstream
Vouchers
Vouchers
Housing
No.
Account Description
Program
Vouchers
Vouchers
CARES ACT
CARES ACT
Voucher ARPA
Total
Assets
Current Assets:
ill
Cash -Unrestricted
$ -
$ 1,944,188
$ 113,896
$ 428
$ -
$ 35,600
$ 2,094,112
113
Cash - Other Restricted
-
564,225
117,679
-
4,852
155,750
842,506
115
Cash - Restricted for Payment of Current Liabilities
188,075
368
669
189,112
100
Total Cash
2,696,488
231,943
1,097
4,852
191,350
3,125,730
Receivables:
122
Accounts Receivable - HUD Other Projects
-
161,660
-
-
-
-
161,660
125
Accounts Receivable - Miscellaneous
-
-
-
-
-
-
128
Fraud Recovery
-
13,976
-
-
-
-
13,976
128.1
Allowance for Doubtful Accounts - Fraud
-
(5,031)
-
-
-
-
(5,031)
129
Accrued Interest Receivable
120
Total Receivables, Net of Allowances for Doubtful Accounts
170,605
170,605
142
Prepaid Expenses and Other Assets
20,683
20,683
150
Total Current Assets
2,887,776
231,943
1,097
4,852
191,350
3,317,018
Noncurrent Assets:
Fixed Assets:
164
Furniture, Equipment & Machinery - Administration
-
-
-
-
-
-
-
166
Accumulated Depreciation
160
Total Fixed Assets, Net of Accumulated Depreciation
174
Other Assets
180
Total Non -Current Assets
290
Total Assets and Deferred Outflows of Resources
$
$ 2,887,776
$ 231,943
$ 1,097
$ 4,852
$ 191,350
$ 3,317,018
Liabilities and Eouity
Liabilities:
312 Accounts Payable - HUD PHA Programs <=90 days
322 Accrued Compensated Absences - Current Portion
331 Accounts Payable - HUD PHA Programs
342 Deferred Revenues
345 Other Current Liabilities
346 Accrued Liabilities - Other
310 Total Current Liabilities
Noncurrent Liabilities:
353
Noncurrent Liabilities - Other
354
Accrued Compensated Absences - Non Current
350
Total Noncurrent Liabilities
300
Total Liabilities
Equity:
509.3
Restricted Fund Balance
511.3
Assigned Fund Balance
513
Total Equity - Net Assets/Position
600
Total Liabilities, Deferred Inflows of Resources and Equity -
Net Assets/Position
$ - $ 92,509 $ 368 $ 669 $ - $ - $ 93,546
25,871 - - - - 25,871
8,945 - 428 4,852 155,750 169,975
188,075 - - - - 188,075
315,400 368 1,097 4,852 155,750 477,467
564,225 - 564,225
77,613 - 77,613
_ 641,838 641,838
957,238 368 1,097 4,852 155,750 1,119,305
- 117,680 - - - 117,680
_ 1,930,538 113,895 35,600 2,080,033
1,930,538 231,575 35,600 2,197,713
$ $ 2,887,776 $ 231,943 $ 1,097 $ 4,852 $ 191,350 $ 3,317,018
12
CITY OF SANTA ANA, CALIFORNIA
Housing Authority of the City of Santa Ana
Financial Data Schedule of Revenues, Expenses, and Changes in Equity
For the Fiscal Year Ended June 30, 2021
Family Self
Housing Choice
Mainstream
Emergency
Line Item
Sufficiency
Housing Choice
Mainstream
Vouchers
Vouchers
Housing
No.
Account Description
Program
Vouchers
Vouchers
CARES ACT
CARES ACT
Voucher ARPA
Total
Revenues
70600
HUD PHA Operating Grants
$ 168,741
$ 39,086,743
$ 1,733,990
$ 2,387,745
$ 15,716
$ 35,600
$ 43,428,535
71100
Investment Income - Unrestricted - ADMIN
-
349
20
-
-
-
369
71400
Fraud Recovery
-
12,738
-
-
-
-
12,738
71500
Other Revenue
-
55,336
-
-
-
-
55,336
72000
Investment Income - Restricted - HAP
70000
Total Revenue
168,741
39,155,166
1,734,010
2,387,745
15,716
35,600
43,496,978
Exuenses
Administrative:
91100
Administrative Salaries
-
389,083
4,359
662,253
9,619
-
1,065,314
91200
Auditing Fees
-
18,247
222
13
-
-
18,482
91400
Advertising and Marketing
-
2,466
-
7,980
-
-
10,446
91500
Employee Benefit Contributions - Administrative
-
216,913
1,956
356,026
4,611
-
579,506
91600
Other Operating - Administrative
4,581
459,695
369
168,552
614
-
633,811
91800
Travel, Training & Transportation
-
-
-
-
-
-
-
91810
Allocated Overhead
-
35,562
312
54,346
795
-
91,015
91900
Other
2,325
10,875
13,200
91000
Total Operating- Administrative Expenses
4,581
1,124,291
7,218
1,260,045
15,639
2,411,774
Tenant Services:
92100
Tenant Services - Salaries
89,636
-
-
-
-
-
89,636
92300
Employee Benefit Contributions - Tenant Services
74,524
74,524
92500
Total Tenant Services
164,160
164,160
General Expenses:
96140
All Other Insurance
-
-
-
-
-
-
-
96200
Other General Expenses
-
696,271
-
-
77
-
696,348
96210
Compensated Absences
96000
Total Operating - General Expenses
696,271
77
696,348
96900
Total Operating Expenses
168,741
1,820,562
7,218
1,260,045
15,716
3,272,282
97000
Excess Operating Revenue over Operating Expenses
-
37,334,604
1,726,792
1,127,700
-
35,600
40,224,696
97300
Housing Assistance Payments
-
37,313,022
1,528,402
1,127,700
-
-
39,969,124
97350
HA Portability -In
26,981
26,981
90000
Total Expenses
168,741
39,160,565
1,535,620
2,387,745
15,716
43,268,387
10093
Transfers between Program & Project -In
-
-
-
-
-
-
-
10094
Transfers between Program & Project -Out
Excess (Deficiency) of Operating Revenues Over (Under)
10000
Expenses
$
$ (5,399)
$ 198,390
$
$
$ 35,600
$ 228,591
Memo Account Information:
11030
Beginning Equity
-
1,935,937
33,185
-
-
-
1,969,122
11040
Prior period Adjustments and Equity Transfers
-
-
-
-
-
-
-
11050
Changes in Compensated Absence Balance
-
-
-
-
-
-
-
11200
Unit Months Available
-
32,388
2,064
-
-
-
34,452
11210
Number of Unit Months Leased
-
31,673
1,095
-
-
-
32,768
11170
Administrative Fee Equity
-
1,930,538
113,895
-
-
35,600
2,080,033
11180
Housing Assistance Payments Equity
117,680
117,680
Line 11170 & 11180
-
1,930,538
231,575
-
-
35,600
$ 2,197,713
Line 513
1,930,538
231,575
35,600
13
CITY OF SANTAANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2021
Section I — Summary of Auditors' Results
Financial Statements
1. Type of auditors' report issued:
2. Internal control over financial reporting:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
3. Noncompliance material to financial
statements noted?
Federal Awards
1. Internal control over major federal programs:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
2. Type of auditors' report issued on
compliance for major federal programs:
3. Any audit findings disclosed that are
required to be reported in accordance
with 2 CFR 200.516(a)?
Identification of Major Federal Programs
Assistance Listings Number(s)
14.231
17.258, 17.278, 17.259
21.019
21.023
Dollar threshold used to distinguish between
Type A and Type B programs:
Auditee qualified as low -risk auditee?
Unmodified
yes x no
yes x none reported
yes x no
yes x no
yes x none reported
Unmodified
x yes
no
Name of Federal Program or Cluster
Emergency Solutions Grant Program
WIOA Cluster
Coronavirus Relief Fund
Emergency Rental Assistance Program
$ 3,000,000
x yes
AN]
14
CITY OF SANTAANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Section 11 — Financial Statement Findings
Our audit did not disclose any matters required to be reported in accordance with Government
Auditing Standards.
Section 111 — Findings and Questioned Costs — Major Federal Programs
2021-001
Federal agency: U.S. Department of Labor (DOL)
Federal program title: WIOA Youth Activities
Federal Assistance Listing Number: 17.259
Award Period: April 10, 2020 through March 31, 2022
Type of Finding:
• Other Matter
Criteria or specific requirement: In accordance with (Section 129(c)(4)), WIOA, 128 Stat. 1510), Not
less than 20 percent of Youth Activity funds allocated to the local area, except for the local area
expenditures for administration, must be used to provide paid and unpaid work experiences.
Condition: Total WIOA Youth Activities expenditures used to provide paid and unpaid work
experiences was less than 20% of total WIOA Youth Activities expenditures less administrative
expenditures.
Questioned costs: None
Context: As of June 30, 2021, approximately only 17% of WIOA Youth Activities expenditures had
been expended to provide paid and unpaid work experiences.
Cause: Due to COVID-19 restrictions, planned work experience opportunities could not be completed.
Effect: The City's expended less than the amount required to meet earmarking requirements for the
WIOA Youth Activities grant.
15
CITY OF SANTAANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
2021-001 (Continued)
Recommendation: We recommend the City adjust budgeted expenditure levels of nonwork
experience WIOA Youth Activities expenditures whenever conditions exist where they do not expect
to expend up to budgeted work experience amounts.
Views of responsible officials and planned corrective actions:
Due to the varying COVID-19 pandemic restrictions and limitations, the program was not able to meet
the 20% minimum funding for paid and unpaid work experiences. Worksites were either closed or not
accepting remote work for youth. This has continued to be a challenge for the program year 2021-22.
In order to prevent future findings, program staff are restructuring subrecipient agreements to include
increasing the percentage of expenditure for work experience to be greater than 20% and to
encourage meeting enrollment goals in the beginning of Q2 so that the youth can begin their work
experience earlier in the contract year. These changes in the subrecipient agreements will also
include corrective action plans for subrecipients that do not meet minimum requirements set forth by
the City. Program staff will monitor these metrics once they are in place in order to ensure compliance
with programmatic requirements.
16
CITY OF SANTAANA, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR -YEAR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2021
Section I — Financial Statement Findings
None noted.
Section 11 — Findings and Questioned Costs — Major Federal Programs
None noted.
17
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