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HomeMy WebLinkAboutItem 11 - Single Audit Report for the Fiscal Year Ended June 30, 2025 Finance and Management Services www.santa-ana.org/finance Item # 11 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 21, 2026 TOPIC: Receive and File the Single Audit Report for the Fiscal Year Ended June 30, 2025 AGENDA TITLE Single Audit Report for the Fiscal Year Ended June 30, 2025 RECOMMENDED ACTION Receive and file Single Audit Report for the Fiscal Year Ended June 30, 2025. GOVERNMENT CODE §84308 APPLIES: No 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, 2025 has been completed by the City’s independent auditor, CliftonLarsonAllen LLP. During the fiscal year 2024-25, the City administered twenty-three (23) Federal grant programs and expended $122.8 million, representing an increase of $2.9 million from the prior fiscal year. The increase was primarily due to additional spending of $5.2 million in Section 8 Housing Choice Vouchers, $2.2 million in HOME Investment Partnership, $5.5 million in Coronavirus State and Local Fiscal Recovery, offset by decreases in Highway Planning & Construction of $6.0 million, Community Development Block Grants of $1.0 million, WaterSMART of $1.1 million, and Reclamation States Emergency Drought Relief of $1.5 million. Of the twenty-three (23) programs administered by the City, the auditors identified two major programs for the audit: Housing Voucher Cluster ($66.0 million) and the HOME Investment Partnerships Program ($2.6 million). The Finance and Management Services 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, 2025. Additionally, there were no findings related to the compliance requirements of the two major programs selected for test work. Receive and File the Single Audit Report for the Fiscal Year Ended June 30, 2025 April 21, 2026 Page 2 5 7 0 1 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 and has been submitted to the Federal Audit Clearinghouse. The Single Audit Report is required to be submitted by March 31. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. FY24-25 Single Audit Report Submitted By: Alexander Trinidad, Executive Director Finance and Management Services Agency Approved By: Alvaro Nuñez, City Manager CITY OF SANTA ANA, CALIFORNIA SINGLE AUDIT OF FEDERAL AWARDS AND OTHER FINANCIAL INFORMATION JUNE 30, 2025 EXHIBIT 1 CITY OF SANTA ANA, CALIFORNIA JUNE 30, 2025 TABLE OF CONTENTS Page Number Independent Auditors’ Report on Internal Control over Financial Reporting and Report 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 U.S. Department of Housing and Urban Development 3 - 6 Schedule of Expenditures of Federal Awards 7 - 9 Schedule of Expenditures of State Awards 10 Notes to 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, 2025 12 Financial Data Schedule of Revenues, Expenses, and Changes in Equity for the Fiscal Year Ended June 30, 2025 13 Schedule of Findings and Questioned Costs 14 - 15 Summary Schedule of Prior-Year Audit Findings 16 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  1 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 Mayor and Members of City Council 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, 2025, 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 12, 2025. Report on 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 entity’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 or significant deficiencies may exist that were not identified. Honorable Mayor and Members of City Council City of Santa Ana 2 Report on 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. CliftonLarsonAllen LLP Irvine, California December 12, 2025 3 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 SANTA ANA FINANCIAL DATA SCHEDULES REQUIRED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Honorable Mayor and Members of City Council City of Santa Ana Santa Ana, California Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Santa Ana’s (the City) compliance with the types of compliance requirements identified as subject to audit 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, 2025. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the 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, 2025. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); 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 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance requirements referred to above. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  Honorable Mayor and Members of City Council City of Santa Ana 4 Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Honorable Mayor and Members of City Council City of Santa Ana 5 Report on 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 a 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 Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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. Honorable Mayor and Members of City Council City of Santa Ana 6 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 U.S. 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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 12, 2025, 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 U.S. 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 basic 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. CliftonLarsonAllen LLP Irvine, California March 23, 2026 CITY OF SANTA ANA, CALIFORNIA Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2025 Federal Grantor / Pass-Through Total Passed Pass-Through Grantor / Entity Identifying Federal Through to Program / Cluster Title Number Expenditures Subrecipients U.S. Department of Housing and Urban Development Direct Programs: Community Development Block Grants - Entitlement Grants Cluster: Community Development Block Grants N/A 4,301,615$ 1,098,613$ COVID-19 - Community Development Block Grants N/A 37,547 - Subtotal Community Development Block Grants - Entitlement Grants Cluster 4,339,162 1,098,613 Emergency Solutions Grant Program N/A 464,793 351,781 Community Project Funding N/A 116,235 - Housing Voucher Cluster: Section 8 Housing Choice Vouchers N/A 59,384,647 - COVID-19 - Emergency Housing Voucher Rental Assistance (ARPA) N/A 1,738,085 - COVID-19 - Emergency HSG Voucher Rental Assist-Admin (ARPA) N/A 141,016 - Subtotal Section 8 Housing Choice Vouchers 61,263,748 - Mainstream Vouchers N/A 4,780,987 - Subtotal Housing Voucher Cluster 66,044,735 - Family Self-Sufficiency Program N/A 131,438 - Family Self-Sufficiency Program N/A 151,396 - Subtotal Family Self-Sufficiency Program 282,834 - HOME Investment Partnerships Program N/A 1,090,379 - COVID-19 - HOME - American Rescue Plan Program N/A 1,490,130 - Subtotal HOME Investment Partnerships Program 2,580,509 - Total U.S. Department of Housing and Urban Development 73,828,268 1,450,394 U.S. Department of the Interior - Bureau of Reclamation Direct Programs: WaterSMART (Sustain and Manage America’s Resources for Tomorrow) N/A 75,000 - U.S. Department of Justice Direct Programs: Services for Trafficking Victims N/A 31,926 - Congressionally Recommended Awards N/A 446,232 446,232 Passed through County of Orange Sheriff's Department: Edward Byrne Memorial Justice Assistance Grant Program: Byrne Justice Assistance Grant 2021 15PBJA-21-GG-01188-JAGX 808 - Byrne Justice Assistance Grant 2022 15PBJA-22-GG-02074-JAGX 4,776 - Byrne Justice Assistance Grant 2023 15PBJA-23-GG-03185-JAGX 100,318 - Board of State & Community Corrections BSCC 5227-121-001 88,273 - Subtotal Edward Byrne Memorial Justice Assistance Grant Program 194,175 - Passed through Human Options: Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 15JOVW-22-GG-01808-ICJR 98,794 - Total U.S. Department of Justice 771,127 446,232 (Continued) See accompanying Notes to the Schedules of Expenditures of Federal and State Awards. 16.590 16.738 16.738 16.738 16.738 14.218 14.871 14.871 14.879 14.871 14.231 14.251 Federal 14.218 Assistance Listing Number 14.896 14.896 14.239 14.239 16.753 16.320 15.507 7 CITY OF SANTA ANA, CALIFORNIA Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2025 (Continued) Federal Grantor / Pass-Through Passed Pass-Through Grantor / Entity Identifying Federal Through to Program / Cluster Title Number Expenditures Subrecipients U.S. Department of Labor Workforce Innovation and Opportunity Act (WIOA) Cluster: Passed through CA Employment Development Department: WIOA Adult Program AA311027 1,065,727 - WIOA Adult Program AA411027 461,791 - Subtotal WIOA Adult Activities 1,527,518 - WIOA Dislocated Worker Formula Grants AA311027 276,380 - WIOA Dislocated Worker Formula Grants AA411027 127,571 - WIOA Dislocated Worker Formula Grants (Rapid Response) AA311027 20,948 - WIOA Dislocated Worker Formula Grants (Rapid Response) AA411027 234,787 - Subtotal WIOA Dislocated Worker Formula Grants 659,686 - WIOA Youth Activities AA311027 651,578 38,245 WIOA Youth Activities AA411027 3,428 299,285 Subtotal WIOA Youth Activities 655,006 337,530 Passed through County of Orange Community Resources Agency: WIOA Adult Program MA-012-25010267 30,000 - Subtotal Workforce Innovation and Opportunity Act (WIOA) Cluster 2,872,210 337,530 Passed through CA Employment Development Department: WIOA National Dislocated Worker Grants AA311027 210,178 - Total U.S. Department of Labor 3,082,388 337,530 U.S. Department of Transportation Highway Planning and Construction: Passed through CA Department of Transportation: Bicycle Corridor Improvement CMAQ 5063(181) BCI 1,710 - Demonstration Sec 117 CML-5063(209) 87,909 - Bicycle Corridor Improvement CML-5063(211) 49,070 - Active Transportation Program - Federal ATPLNI-5063(203) 118,681 - Active Transportation Program - Federal ATPSB1L-5063(193) 362,434 - Active Transportation Program - Federal ATPSB1L-5063(195) 14,450 - Subtotal Highway Planning and Construction 634,254 - Highway Safety Cluster: State and Community Highway Safety: Passed through CA Office of Traffic Safety: Selective Traffic Enforcement PT24184 147,561 - Selective Traffic Enforcement PT25066 441,424 - Public Education on Bicycle Safety PS23007 83,700 - Subtotal State and Community Highway Safety Cluster 672,685 - Total U.S. Department of Transportation 1,306,939 - (Continued) See accompanying Notes to the Schedules of Expenditures of Federal and State Awards. 17.258 17.278 17.278 20.205 20.205 20.205 20.205 20.205 20.205 17.258 17.278 17.278 17.259 17.259 17.277 20.600 20.600 20.600 Federal Assistance 17.258 Listing Number 8 CITY OF SANTA ANA, CALIFORNIA Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2025 (Continued) Federal Grantor / Pass-Through Passed Pass-Through Grantor / Entity Identifying Federal Through to Program / Cluster Title Number Expenditures Subrecipients U.S. Department of Treasury COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA): Direct Program: COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) N/A 40,192,159 247,384 COVID-19 - Emergency Rental Assistance Program: Direct Program: COVID-19 - Emergency Rental Assistance Program 1 N/A 36,060 36,060 COVID-19 - Emergency Rental Assistance Program 2 N/A 559,554 559,554 Passed through CA Department of Housing & Community Development: COVID-19 - Emergency Rental Assistance Program - State 21-ERAP-20081 54,678 54,678 Subtotal COVID-19 - Emergency Rental Assistance Program 650,292 650,292 Total U.S. Department of Treasury 40,842,451 897,676 U.S. Department of Health and Human Services Passed through County of Orange Social Services Agency: Temporary Assistance for Needy Families WDM0522 101,481 - U.S. Department of Homeland Security Homeland Security Grant Program: Passed through CA Office of Emergency Services: Urban Area Security Initiative 2021 2021-0081 059-95050 1,027,246 662,648 Urban Area Security Initiative 2023 2023-0042 059-95010 686,819 37,043 Passed through City of Anaheim: Urban Area Security Initiative 2022 2022-0043 1,068,108 - Total U.S. Department of Homeland Security 2,782,173 699,691 Total Expenditures of Federal Awards 122,789,827$ 3,831,523$ See accompanying Notes to the Schedules of Expenditures of Federal and State Awards. Federal Assistance Listing Number 21.023 93.558 97.067 97.067 97.067 21.023 21.023 21.027 9 CITY OF SANTA ANA, CALIFORNIA Schedule of Expenditures of State Awards For the Fiscal Year Ended June 30, 2025 Program State Identification Awards Grantor / Program Title Number Expenditures CA Business Consumer Services and Housing Agency Homeless Housing Assistance & Prevention 20-HHAP-00019 .929,854$ Homeless Housing Assistance & Prevention 2 21-HHAP-00012 .351,803 Homeless Housing Assistance & Prevention 3 22-HHAP-10004 .2,687,006 Homeless Housing Assistance & Prevention 4 23-HHAP-100XX .2,221,074 Homeless Housing Assistance & Prevention 5 24-HHAP-10007 .1,535,245 .7,724,982 . CA Department of Justice . Proposition 69 (DNA) CAAB3042 921 . 921 CA Department of Housing and Community Development . Affordable Housing Sustainable Communities Program 16-AHSC-11200 .1,734,251 CalHome Housing Loan Program 04-Calhome-087 .389,830 Local Early Action Planning Program 20-LEAP-15676 .155,894 Permanent Local Housing Allocation 20-PLHA-15193 .1,130,706 .3,410,681 . CA Department of Resources Recycling and Recovery . Oil Payment Program OPP14-23-0194 40,372 Oil Payment Program OPP15-25-0194 42,216 Beverage Container Payment Program CCP-21-285 .79,659 Beverage Container Payment Program CCP-22-263 .19,844 Beverage Container Payment Program CCP-23-275 .29,638 CalRecycle SB1383 Local Assist OWR2-21-0065 .435,450 CalRecycle SB1383 Local Assist OWR4-22-0561 .64,295 .711,474 . CA Department of Transportation . Solutions for Congested Corridors Program SB1 SCCPSB1L-5063(202).160,224 Solutions for Congested Corridors Program SB1 SCCP-A2-2223-10 12-1301A .94,778 Clean CA Local Grant State CCAL 12-TRANSIT-06 .335,544 Covid Response & Relief Supplemental CRASL-5063(207).906,325 Caltrans Clean CA CCLGP Grant 12-TRANSIT-07 .491,500 Caltrans Clean CA CCLGP Grant 12-TRANSIT-16 .914,604 Regional Early Action Planning C-3-3087 .240,656 Regional Early Action Planning C-4-2053 .10,139 Active Transportation Program ATPL-5063(179).690,672 Active Transportation Program ATPL-5063(214).120,240 Active Transportation Program ATPL-5063(218).82,016 Active Transportation Program ATPL-5063(219).127,905 Active Transportation Program ATPL-5063(215).217,574 Active Transportation Program ATPL-5063(216).166,866 Active Transportation Program ATPL-5063(217).117,675 Active Transportation Program ATPL-5063(212).34,221 Active Transportation Program - SB1 Augmentation ATPSB1L-5063(196).4,247,553 Active Transportation Program - SB1 Augmentation ATPSB1L-5063(197).1,909,410 Active Transportation Program - SB1 Augmentation ATPSB1L-5063(198).2,070,803 Active Transportation Program - SB1 Augmentation ATPSB1L-5063(199).557,678 Highway Safety Improvement Program - State HSIPSL-5063(204).13,862 Clean California Local Grant Program CCL-5063-213 .143,326 .13,653,571 . CA Department of Water Resources . Prop68 FMPRA Grant Warner Ave 4600015313 .53,038 Prop68 FMPRA Grant Rouselle St 4600015314 .2,869,538 Prop 1 Integrated Regional Water Management Program 4600013842 .582 Prop 1 Integrated Regional Water Management Program 4600015418 .3,676,190 .6,599,348 . CA Natural Resources Agency . Statewide Park Development & Community Revitalization C9801033 .760,516 General Fd Specified Grnt-F418 C5055107 .343,667 General Fd Specified Grnt-CNRA GF2107-0 .1,045,988 Proposition 68 Urban Flood Protection UF8807-0 .1,081,244 CNRA Urban Greening Grant Program UG2119-0 .1,002,617 .4,234,032 . CA Governor's Office of Service and Community Engagement . California for All Youth Workforce Program JP21-002 .736,417 California for All Youth Workforce Program JP2017-GF1 .1,000,523 1,736,940 . CA State Coastal Conservancy . Santa Ana River Conservancy Program-PWA 22-159 .199,469 Santa Ana River Conservancy Program-PWA 23-155 .2,317,208 .2,516,677 . CA State Library . Zip Books ZIP24-73 .6,237 Building Forward Library BF-1-21-053 .1,423,812 Building Forward Library BF-23-011 .2,995 .1,433,044 . CA Workforce Development Board . Regional Equity and Recovery Partnership (RERP) Grant MA-012-25010265 .44,888 Prison to Employment Program M90462-7120 610,070 .654,958 . Total Expenditures of State Awards .42,676,628$ . See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.. 10 11 CITY OF SANTA ANA, CALIFORNIA NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED JUNE 30, 2025 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, 2025. 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 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. 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. CITY OF SANTA ANA, CALIFORNIA Housing Authority of the City of Santa Ana Financial Data Schedule of Assets, Liabilities, and Equity June 30, 2025 Line Item No. Account Description Family Self Sufficiency Program FSS Escrow Forfeiture Account Housing Choice Vouchers Mainstream Vouchers Emergency Housing Voucher ARPA Total Assets Current Assets: 111 Cash - Unrestricted -$ -$ 3,799,910$ 476,728$ 122,523$ 4,399,161$ 113 Cash - Other Restricted - 324,915 917,914 39,470 67,923 1,350,222 115 Cash - Restricted for Payment of Current Liabilities - - 305,656 4,696 6,510 316,862 100 Total Cash - 324,915 5,023,480 520,894 196,956 6,066,245 Receivables: 122 Accounts Receivable - HUD Other Projects - - 34,889 - - 34,889 125 Accounts Receivable - Miscellaneous - - - - - - 128 Fraud Recovery - - - - - - 128.1 Allowance for Doubtful Accounts - Fraud - - - - - - 129 Accrued Interest Receivable - - - - - - 120 Total Receivables, Net of Allowances for Doubtful Accounts - - 34,889 - - 34,889 142 Prepaid Expenses and Other Assets - - 62,721 - - 62,721 150 Total Current Assets - 324,915 5,121,090 520,894 196,956 6,163,855 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 - 324,915 5,121,090 520,894 196,956 6,163,855 Liabilities and Equity Liabilities: 312 Accounts Payable - HUD PHA Programs <=90 days $ - $ - $ 55,994 $ 305 $ - 56,299$ 322 Accrued Compensated Absences - Current Portion - - 71,485 - - 71,485 331 Accounts Payable - HUD PHA Programs - - - - - - 342 Deferred Revenues - - - - 33,740 33,740 345 Other Current Liabilities - - 305,656 4,696 6,510 316,862 346 Accrued Liabilities - Other - - - - - - 310 Total Current Liabilities - - 433,135 5,001 40,250 478,386 Noncurrent Liabilities: 353 Noncurrent Liabilities - Other - - 916,967 14,088 19,531 950,586 354 Accrued Compensated Absences - Non Current - - 214,453 - - 214,453 350 Total Noncurrent Liabilities - - 1,131,420 14,088 19,531 1,165,039 300 Total Liabilities - - 1,564,555 19,089 59,781 1,643,425 Equity: 509.3 Restricted Fund Balance - 324,915 947 25,382 14,652 365,896 511.3 Assigned Fund Balance - - 3,555,588 476,423 122,523 4,154,534 512.3 Unassigned Fund Balance - - - - - - 513 Total Equity - Net Assets/Position - 324,915 3,556,535 501,805 137,175 4,520,430 600 Total Liabilities, Deferred Inflows of Resources and Equity - Net Assets/Position -$ 324,915$ 5,121,090$ 520,894$ 196,956$ 6,163,855$ 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, 2025 Line Item No. Account Description Family Self Sufficiency Program FSS Escrow Forfeiture Account Housing Choice Vouchers Mainstream Vouchers Emergency Housing Voucher ARPA Total Revenues 70400 Tenant Revenue - Other -$ 171,050$ -$ -$ -$ 171,050$ 70500 Total Tenant Revenue - 171,050 - - - 171,050 70600 HUD PHA Operating Grants 282,834 - 59,573,273 4,823,259 1,893,443 66,572,809 71100 Investment Income - Unrestricted - ADMIN - - - - - - 71400 Fraud Recovery - - - - - - 71500 Other Revenue - - 483,556 5,748 62,716 552,020 72000 Investment Income - Restricted - HAP - - - - - - 70000 Total Revenue 282,834 171,050 60,056,829 4,829,007 1,956,159 67,295,879 Expenses Administrative: 91100 Administrative Salaries 175,486 - 1,758,020 139,946 71,079 2,144,531 91200 Auditing Fees - - 11,961 116 64 12,141 91400 Advertising and Marketing - - 1,914 - - 1,914 91500 Employee Benefit Contributions - Administrative 104,738 - 1,144,204 93,639 46,249 1,388,830 91600 Other Operating - Administrative - - 552,874 30,560 6,764 590,198 91800 Travel, Training & Transportation - - 11,525 - - 11,525 91810 Allocated Overhead - - 295,859 21,691 11,017 328,567 91900 Other - - 217,699 1,050 - 218,749 91000 Total Operating - Administrative Expenses 280,224 - 3,994,056 287,002 135,173 4,696,455 Tenant Services: 92100 Tenant Services - Salaries - - - - - - 92300 Employee Benefit Contributions - Tenant Services - - - - - - 92400 Tenant Services - Other 2,610 - - - - 2,610 92500 Total Tenant Services 2,610 - - - - 2,610 General Expenses: 96140 All Other Insurance - - - - - - 96200 Other General Expenses - - 824,933 524 - 825,457 96210 Compensated Absences - - - - - - 96000 Total Operating - General Expenses - - 824,933 524 - 825,457 96900 Total Operating Expenses 282,834 - 4,818,989 287,526 135,173 5,524,522 97000 Excess Operating Revenue over Operating Expenses - 171,050 55,237,840 4,541,481 1,820,986 61,771,357 97300 Housing Assistance Payments - - 54,757,177 4,499,209 1,738,085 60,994,471 97350 HA Portability-In - - 407,884 64,078 471,962 90000 Total Expenses 282,834 - 59,984,050 4,786,735 1,937,336 66,990,955 10093 Transfers between Program & Project-In - - - - - - 10094 Transfers between Program & Project-Out - - - - - - 10000 Excess (Deficiency) of Operating Revenues Over (Under) Expenses -$ 171,050$ 72,779$ 42,272$ 18,823$ 304,924$ Memo Account Information: 11030 Beginning Equity -$ 153,865$ 3,483,756$ 459,533$ 118,352$ 4,215,506$ 11040 Prior period Adjustments and Equity Transfers - - - - - - 11050 Changes in Compensated Absence Balance - - - - - - 11190 Unit Months Available - - 34,908 2,460 937 38,305 11210 Number of Unit Months Leased - - 34,903 2,455 937 38,295 11170 Administrative Fee Equity - 3,555,588 476,423 122,523 4,154,534 11180 Housing Assistance Payments Equity - 324,915 947 25,382 14,652 365,896 Line 11170 & 11180 - 324,915 3,556,535 501,805 137,175 4,520,430$ Line 513 - 324,915 3,556,535 501,805 137,175 -$ -$ -$ -$ -$ 13 14 CITY OF SANTA ANA, CALIFORNIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2025 Section I – Summary of Auditors’ Results Financial Statements 1. Type of auditors’ report issued: Unmodified 2. Internal control over financial reporting:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 3. Noncompliance material to financial statements noted? yes x no Federal Awards 1. Internal control over major federal programs:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 2. Type of auditors’ report issued on compliance for major federal programs: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes x no Identification of Major Federal Programs Assistance Listings Number(s) Name of Federal Program or Cluster 14.871, 14.879 Housing Voucher Cluster 14.239 HOME Investment Partnerships Program Dollar threshold used to distinguish between Type A and Type B programs: $ 3,000,000 Auditee qualified as low-risk auditee? x yes no 15 CITY OF SANTA ANA, CALIFORNIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2025 Section II – Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Section III – Findings and Questioned Costs – Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a). 16 CITY OF SANTA ANA, CALIFORNIA SUMMARY SCHEDULE OF PRIOR-YEAR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30, 2025 Section I – Financial Statement Findings None identified. Section II – Findings and Questioned Costs – Major Federal Programs None identified.