Title
Report regarding a resolution accepting the Single Audit report for Fiscal Year 2022-23 (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, 2023.
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BACKGROUND/DISCUSSION
Background:
Federal regulations mandate that any local agency receiving or 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 2022-23 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 2022-23.
Analysis
The City incurred a total of $3,500,048 in federal expenditures during fiscal year 2022-23 that fell under the parameters of the audit. The auditor identified two major programs to be audited, 1) Coronavirus State and Local Fiscal Recovery Funds and 2) Community Development Block Grants/Entitlement Grants and COVID-19 Community Development Block Grants/Entitlement Grants-CV (CDBG).
As required under the Single Audit Act, this report contains a schedule of Federal Financial Assistance (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 and two reported significant deficiencies in internal control over compliance and no material weakness in internal control for the Federal awards programs being audited. The City's responses are attached to this report.
The noted significant deficiencies were due to discrepancies in 1) drawdown requests were not submitted in a timely fashion and 2) City did not re...
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