Title
Report regarding a resolution accepting the Single Audit report for Fiscal Year 2023-24 (Karen Chang, Finance Director)
label
RECOMMENDATION
Recommendation
Staff recommends that the City Council accept the Single Audit Report for the City of South San Francisco for the fiscal year ended June 30, 2024.
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BACKGROUND/DISCUSSION
Background:
Federal regulations mandate that any local agency expending $750,000 or more in combined federal grant funds in a fiscal year, either directly or indirectly, is subject to a separate audit on those programs. This threshold was reached in fiscal year 2023-24 and, therefore, a separate Single Audit report was required. Maze and Associates (Maze), who also performed the City's financial audit, conducted the Single Audit for the fiscal year 2023-24.
Analysis
The City incurred a total of $7,747,798 in federal expenditure during fiscal year 2023-24 that fell under the parameters of the audit. The auditor identified two major programs to be audited, 1) Highway Planning and Construction (Federal-Aid) Highway Program and 2) Coronavirus State and Local Fiscal Recovery Funds.
As required under the Single Audit Act, this report contains a Schedule of Expenditures of Federal Awards (SEFA) that summarizes Federal grant activities in the City of South San Francisco for the fiscal year. The report also comments on either compliance with Federal assistance regulations or recommendations regarding the City's accounting practices.
The auditor issued the report with an unmodified opinion. However, the auditor did disclose significant deficiencies, material weaknesses, and instances of noncompliance material to the basic financial statements.
The auditor did not have any findings over internal control for the Federal awards programs being audited. The City's responses are attached to this report.
The noted significant deficiencies were the same as those noted in the Memorandum on Internal Control presented in January. The material...
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