CITY OF ALAMEDA
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2024
Exhibit 12
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CITY OF ALAMEDA
SINGLE AUDIT REPORT
For The Year Ended June 30, 2024
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 Report 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 Federal Program; Report 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
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For The Year Ended June 30, 2024
SECTION I – SUMMARY OF AUDITOR’S RESULTS
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? Yes X No
• Significant deficiency(ies) identified? Yes X
None
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
• Significant deficiency(ies) identified? Yes X
None
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)? Yes X No
Identification of major program(s):
Assistance
Listing
Number(s) Name of Federal Program or Cluster
14.218 CDBG Entitlements Cluster - Community Development Block Grant/Entitlement Grants, COVID-19 – CDBG-CV
20.205 Highway Planning and Construction (Federal-Aid Highway Program)
21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
97.047 BRIC: Building Resilient Infrastructure and Communities Dollar threshold used to distinguish between type A and type B programs: $750,000
Auditee qualified as low-risk auditee? X
Yes No
1 SECTION II – FINANCIAL STATEMENT FINDINGS
Our audit did not disclose any significant deficiencies , material weaknesses or instances of noncompliance material to the basic financial statements. We have also issued a separate Memorandum on Internal Control dated December 30, 2024, which is an integral part of ou r audits and should be read in conjunction with this report.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Our audit did not disclose any findings or questioned costs required to be reported in accordance with Uniform Guidance.
2 CITY OF ALAMEDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2024
Federal Pass-Through Pass-Throu gh
Federal Grantor/ Assistance Listin g Identifying To Federal Pass-Through Grantor/Program or Cluster Title Number Number Subrecipients Ex penditures U.S. Department of Commerce
National Oceanic Atmosphere Administration Pass Through Program From:
National Fish and Wildlife Foundation
Office of Coastal Management
National Coastal Resilience Fund 2022 11.473 NA22NOS4730114 $189,390 Total U.S. Department of Commerce 189,390
Department of Housing and Urban Development Direct Programs:
CDBG -Entitlement Grants Cluster
Community Development Block Grants/ Entitlement Grants 14.218 Subgrants $328,766 328,766
Program Expenditures 1,244,098
Loan Program Unexpended Cash Balance 557,606
Loan Program Balance, Beginning of Year 2,269,066
COVID-19 - CDBG-CV Program Expenditures 7,506 12,606 CDBG -Entitlement Grants Cluster subtotal 336,272 4,412,142 Economic Development Initiative
Community Project and Miscellaneous Funding Grant 14.251 500,000 Subtotal Department of Housing and Urban Development Direct Programs 4,912,142 Department of Housing and Urban Development Pass-Through Program from:
County of Alameda
HOME Investment Partnerships Program 14.239
Program Expenditures M22DC060201 480,019
Loan Program Balance, Beginning of Year M22DC060201 6,885,469 HOME ARP M22DC060201 411,667
Subtotal Department of Housing and Urban Development Pass-Through Program 7,777,155 Total Department of Housing and Urban Development 336,272 12,689,297 Department of Interior National Park Service Direct Program:
Preservation of Japanese American Confinement Sites 15.933 (12,911) Total Department of Interior National Park Service (12,911) Department of Transportation Pass-Through Program from:
State of California, Department of Transportation
Highway Planning and Construction (Federal-Aid Highway Program) 20.205 Clement Avenue Complete Streets CML-5014(046) 2,210,818 Central Avenue Safety Improvements ATPL-5014(047) 11,510 Total Department of Transportation 2,222,328
Department of the Treasury Direct Program:
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 2,043,884 4,980,787 Total Department of the Treasury 2,043,884 4,980,787
The Institute of Museum and Library Services Pass-Through Program From:
California State Library
Grants to States 45.310 Unavailable 18
Total Institute of Museum and Library Services 18
(Continued)
3 CITY OF ALAMEDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2024
Federal Pass-Through Pass-Throu gh
Federal Grantor/ Assistance Listin g Identifying To Federal Pass-Through Grantor/Program or Cluster Title Number Number Subrecipients Ex penditures U.S. Environmental Protection Agency Pass-Through Program From:
Association of Bay Area Governments
National Estuary Program 66.456 98T45901 181,062
Total U.S. Environmental Protection Agency 181,062
Department of Homeland Security Direct Program:
Homeland Security Grant Program - AFD CERT Program 97.067 13,095 Subtotal Department Homeland Security Direct Program: 13,095 Department of Homeland Security Pass-Through Programs From:
Alameda County Sheriff's Office
Homeland Security Grant Program (HSGP) 97.067 CALOES ID: 001-00000 65,082 California Governor's Office of Emergency Services
COVID-19 Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 FEMA-4482-DR-CA, CAL OES ID: 001-00562 19,110
BRIC: Building Resilient Infrastructure and Communities 97.047 LPDM22-PJ0002 918,698 Subtotal Department Homeland Security Pass-Through Programs 1,002,890 Total Department of Homeland Security 1,015,985
Total Expenditures of Federal Awards $2,380,156 $21,265,956 See Accompanying Notes to Schedule of Expenditures of Federal Awards 4 CITY OF ALAMEDA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended June 30, 2024
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 unit s as disclosed in the notes to the Basic Financial Statements, except for federal awards of the Alam eda Municipal Power (AMP) Enterprise Fund. Federal awards expended by AMP, if any, are excluded from the Schedule and are subject to a separate Single Audit.
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 statemen ts, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . The proprietary and fiduciary fund fina ncial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred.
Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
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, 2024 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, 2024 consists of the following:
CFDA
Number Program Name
Outstanding
Balance
at June 30, 2024
14.218
Community Development Block Grants/Entitlement
Grants $2,192,679
14.239 HOME Investment Part nerships Program 7,301,805
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INDEPENDENT AUDITOR’S 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
To the Honorable Members of the City Council
City of Alameda, California
We have audited, in accordance with the auditing st andards 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 fina ncial statements of the governmental activities, the business-type activities, each major fund, and the aggr egate remaining fund information of the City of Alameda (City) as of and for the year ended June 30, 2024, 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 30, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we cons idered 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 expr essing our opinions on the financia l statements, but no t 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 preven t, 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 det ected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is le ss severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limite d 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, duri ng our audit we did not identify any deficiencies in internal control that we consider to be material w eaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
7 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 ma terial effect on the financial statements. However, providing an opinion on complian ce 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 no ncompliance or other matters that are required to be reported under Government Auditing Standards.
We have also issued a separate Memorandum on In ternal Control dated December 30, 2024, which is an integral part of our audit and should be read in conjunction with this report.
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 opini on 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 co mpliance. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
December 30, 2024
8 INDEPENDENT AUDITOR'S REPORT
ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT 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
Opinion on Each Major Federal Program
We have audited the City of Alameda’s (City) co mpliance 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, 2024. 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 of Alameda’s basic financial statements in clude the operations of the Alameda Municipal Power (AMP) Enterprise Fund, which received no federal awar ds during the year ended June 30, 2024. Our audit, described below, did not include the operations of AMP, because AMP is subject to a separate audit of compliance.
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, 2024.
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 app licable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States ( Government Auditing Standards); 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 Unifor m Guidance are further described in the Auditor’s 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 with the compliance requirements referred to above.
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 provis ions of contracts or grant agreements applicable to the City’s federal programs.
9 Auditor’s 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 noncom pliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forger y, intentional omissions, misrepresent ations, 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 influen ce the judgment made by a reasonable user of the report on comp liance 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 risk s. 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 cont rol 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 c ontrol 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.
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 cour se 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 intern al control over compliance is a deficiency, or a combination of deficiencies, in inte rnal control over compliance, such th at there is a reasonable possibilit y that material noncompliance with a type of comp liance 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. 10 Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s 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 de ficiencies 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 compli ance is solely to describe the scope of our testing of internal control over compliance and the results of th at testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the go vernmental activities, the business-type activities, each major fund, and the aggregate remaini ng funds information of the City as of and for the year ended June 30, 2024, and the related notes to the fi nancial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated Decembe r 30, 2024, which contained an unmodified opinions on those financial statements. Our audit was performed 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 is presented for purpose s of additional analysis as required by the Uniform Guidance and is 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 ha s been subjected to the a uditing 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 statem ents 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 st ated, in all material respects in relation to the basic financial statements as a whole.
Pleasant Hill, California
March 31, 2025
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