CITY OF ALAMEDA
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2021
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CITY OF ALAMEDA
SINGLE AUDIT REPORT
For The Year Ended June 30, 2021
TABLE OF CONTENTS
Page
Schedule of Findings and Questioned Costs. ...1
Section I - Summary of Auditor's Results ...1
Section II - Financial Statement Findings ...2
Section III - Federal Award Findings and Questioned Costs ..2 Schedule of Expenditures of Federal Awards ...3
Notes to the Schedule of Expenditures of Federal Awards .5 Independent Auditor's 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. ....7 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ...9 This Page Left Intentionally Blank
CITY OF ALAMEDA
SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP Unmodified Internal control over financial reporting:
• Material weakness(es) identified? X Yes No
None
• Significant deficiency(ies) identified? Yes Reported
Noncompliance material to financial statements noted? Yes X No Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified? Yes X No
None
• Significant deficiency(ies) identified? Yes Reported
Type of auditor's report issued on compliance for major federal programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? X Yes No
Identification of major programs):
AL#(s) Name of Federal Program or Cluster
14.218 Community Development Block Grants (CDBG) /Entitlement Grants
20.205 lighway Planning and Construction (Federal-Aid Highway Program
21.019 oViD- 19 - Couvirus an E Fencency Response (SAFER) Grar
97.083
Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? Yes No
1 SECTION II - FINANCIAL STATEMENT FINDINGS
Our audit did disclose significant deficiencies and material weaknesses, but no instances of noncompliance material to the basic financial statements. We have also issued a separate Memorandum on Internal Control lated February 9, 2022, which is an integral part of our audits and should be read in conjunction with this report.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Our audit disclosed the following findings and questioned costs required to be reported in accordance with Uniform Guidance.
Finding SA2021-001 Coronavirus Relief Fund Financial Reporting AL Number: 21.019
AL Title: COVID - 19 Coronavirus Relief Fund
Federal Any identification Number
Federal Award Identification Number and Year: SLT0043 and SLT0252, 2020 Name of Pass-Through Entity: California Department of Finance Criteria: The City is required to file quarterly financial reports of program expenditures by category. Although the period of performance for the grant program ended on December 31, 2020, the City was required to continue to report quarterly activity in the California Department of Finance's reporting portal to make adjustments and corrections as needed Condition: The City's final report for the reporting cycle ended March 31, 2022 (Cycle 8) that included expenditures through the period December 31, 2020 included expenditures by category that did not agree to the expenditure categories provided for audit as follows:
Expenditures Per Actual
Cycle 8 Report Expenditures Per
Expenditure Category on State's Website General Ledger Difference Payroll for Public Health and Safety Employee $268,557 $250,000 S18,557 ublic Health Expenses 199,180 150,970 48,210
Small Business Assistance 536,233 603.000 (66,767)
Total $1,003,970 S1.003.970 $0
Effect: The City is not accurately reporting program expenditures to the grantor.
Cause: The Cycle reports were prepared by the prior Acting Finance Director and Finance staff could not determine the source of what was reported.
Identification as a repeat finding: No
Recommendation: The City should develop procedures to ensure that financial reports filed with View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
2 CITY OF ALAMEDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2021
Federal
Assistance Pass-Through Pass-Through
Federal Grantor/ Listing Identifying To Federal
Pass-Through Grantor/Program or Cluster Title Number Number Subrecipients Expenditures Department of Housing and Urban Development Direct Program:
Community Development Block Grants (CDBG) /Entitlement Grants 14.218 Subgrants $333,878 $333,878
Program Expenditures 614,117
Loan program unexpended cash balance 399,191
Loan Program Balance, Beginning of Year 2,457,196
COVID-19 - CDBG-CV Program Expenditures 855,959 855,959 Program subtotal 1,189,837 4,660,341
Department of Housing and Urban Development Pass-Through Program:
County of Alameda
HOME Investment Partnerships Program 14.239
Program Expenditures M-19-DC-060201 530,782
Loan Program Balance, Beginning of Year M-19-DC-060201 6,532,152 Program subtotal 7,062,934
Total Department of Housing and Urban Development 1,189,837 11,723,275 Department of Interior National Park Service Direct Program:
Preservation of Japanese American Confinement Sites 15.933 19,336 Department of Transportation Pass-Through Programs:
California Department of Transportation
Highway Planning and Construction (Federal-Aid Highway Program) 20.205 Park Street Arterial Management HSIPL 5014(038) 93,518
Central Avenue Safety Improvements ATPL-5014(047) 152,886 Clement Avenue Complete Streets CML-5014(046) 110,612
Otis/Pacific Resurfacing STPL 5014(041) 448,825
Total Department of Transportation 805,841
Department of Treasury Pass-Through Program:
California Department of Finance
COVID-19 - Coronavirus Relief Fund 21.019 164 250,000 1,003,970 Department of Health and Human Services Pass-Through Program:
California Department of Aging
Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers
Older American Act Title III Supportive Services 93.044 1901CAOASS-01 25,244 Department of Homeland Security Direct Programs:
Assistance to Firefighters Grant 97.044 46,343
Homeland Security Grant Program - AFD CERT Program 97.067 12,415 Staffing for Adequate Fire and Emergency Response (SAFER) Grant 97.083 1,097,974 Port Security Grant Program 97.056 337,285
Total Department of Homeland Security 1,494,017
Total Expenditures of Federal Awards $1,439,837 $15,071,683 See Accompanying Notes to Schedule of Expenditures of Federal Awards 3 This Page Left Intentionally Blank
CITY OF ALAMEDA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2021
NOTE 1 - REPORTING ENTITY
The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City of Alameda, California, and its component units as disclosed in the notes to the Basic Financial Statements, except for federal awards of the Alameda Municipal Power (AMP) Enterprise Fund. Federal awards expended by AMP, if any, are excluded from the Schedule and are subject to a separate audit of compliance.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. All proprietary funds and fiduciary funds are accounted for using the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred.
NOTE 3 - INDIRECT COST ELECTION
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
NOTE 4 - OUTSTANDING LOANS OF FEDERAL FUNDS AT JUNE 30, 2021 The following loan programs balances and transactions relating to these programs are included in City's basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2021 consists of the following:
Assistance Outstanding
Listing Balance
Number Program Name at June 30, 2021
14.218 Community Development Block Grants/Entitlement Grants $2,259,158
14.239 HOME Investment Partnership Program 7,007,360
NOTE 5 - CORONAVIRUS RELIEF PROGRAM (AL# 21.019)
The Schedule for the year ended June 30, 2021 includes expenditures for the Coronavirus Relief Program (AL# 21.019) for the period of March 1, 2020 to December 31, 2020. The period of performance for the grant was March 1, 2020 to December 31, 2020, but to receive the funding, the City was required to file a July 8, 2020.
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MMAZE
& ASSOCIATES
INDEPENDENT AUDITOR'S 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
To the Honorable Members of the City Council
City of Alameda, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards ssued bv the Comotroller General of the United States.
activities, the business-pe acteries, each majord sides, the aggregsaminis fut information al the City as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise City's basic financial statements, and have issued our report thereon dated February 9, 2022. Our report included an emphasis of a matter paragraph disclosing the implementation of new accounting principles.
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.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, we did identify certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.
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. We identified certain deficiencies in internal control, we consider to be material weaknesses as listed on the Schedule of Material Weaknesses included as part of our separately issued Memorandum on Internal Control dated February 9, 2022, which is an integral part of our audits and should be read in conjunction with this report.
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. We identified certain deficiencies in internal control, we consider to be significant deficiencies as listed on the Schedule of Significant Deficiencies included as part of our separately issued Memorandum on Internal Control date February 9, 2022, which is an integral part of our audits and should be read in conjunction with this report.
т 925.930.0902
Accountancy Corporation F 925.930.0135
3478 Buskirk Avenue, Suite 215 e [email protected] Pleasant Hill, CA 94523 w mazeassociates.com
7 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.
City's Response to Findings
The City's responses to the findings identified in our audit are described in our separately issued Memorandum on Internal Control dated February 9, 2022, which is an integral part of our audits and should be read in conjunction with this report. The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it 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 result 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.
Mage &Associates
Pleasant Hill, California
February 9, 2022
8 M MAZES
& ASSOCIATES
INDEPENDENT AUDITOR'S REPORT
ON COMPLIANCE FOR EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE;
AND REPORT ON THE SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Members of the City Council
City of Alameda, California
Report on Compliance for Each Major Federal Program
We have audited City of Alameda's 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 auditor's results section of the accompanying Schedule of Findings and Questioned Costs.
The City's basic financial statements include the operations of the Alameda Municipal Power (AMP) Enterprise Fund, which received no federal awards during the year ended June 30, 2021. Our audit, described below, did not include the operations of AMP, because AMP is subject to a separate audit of compliance.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Auditor's 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 U.S. Code of Federal 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 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. т 925.930.0902
Accountancy Corporation F 925.930.0135
3478 Buskirk Avenue, Suite 215 e [email protected] Pleasant Hill, CA 94523 w mazeassociates.com
9 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 instances of noncompliance which are 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 SA2021-001. Our opinion on each major federal program is not modified with respect to these matters.
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 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 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 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. 10 Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 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 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 statements. We issued our report thereon dated February 9, 2021, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the 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 financial statements or to the 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 is fairly stated in all material respects in relation to the financial statements as a whole.
Mane «Associates
Pleasant Hill, California
May 23, 2022
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