CITY OF BAKERSFIELD, CALIFORNIA
SINGLE AUDIT REPORTS
FOR THE YEAR ENDED JUNE 30, 2023
CITY OF BAKERSFIELD, CALIFORNIA
SINGLE AUDIT REPORTS
FOR THE YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
Page
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 ................................. 1
Independent Auditor’s Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance ................................ 3
Schedule of Expenditures of Federal Awards .................................................................................... 6
Notes to Schedule of Expenditures of Federal Awards ..................................................................... 7
Schedule of Findings and Questioned Costs ..................................................................................... 13
1 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 Mayor and
Members of the City Council
City of Bakersfield, California
We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contai ned in Government Auditing Standards issued by the Comptroller General of the United States, the fin ancial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Bakersfield, California (the City), as of and for t he year ended June 30, 2023, 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 26, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statement s, we considered the City’s internal control over financial reporting (internal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpo se of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Ci ty’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 allo w management or employees, in the normal course of performing the ir 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 the re is a reasonable possibility that a material misstatement of the City’s financial statements will not be pre vented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combinati on of deficiencies, in internal control that is less severe than a material weakness, yet important eno ugh to merit attention by those charged with governance.
Our consideration of internal c ontrol was for the limited purpo se described in the first paragraph of this section and was not designed to i dentify all deficiencies in in ternal 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 materia l weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Cit y’s financial statements are free from material misstatement, we performed tests of its compliance wit h 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 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 noncompliance or other matters that a re 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. Acc ordingly, this report is not suitable for any other purpose.
BROWN ARMSTRONG
ACCOUNTANCY CORPORATION
Bakersfield, California
December 26, 2024
3 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and
Members of the City Council
City of Bakersfield, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Bakersfield’s (the City) compliance with the types of compliance requirements identified as subject to audit in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of the Ci ty’s major federal programs for the year ended June 30, 2023. The City’s major fed eral programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, wi th the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs identified in the summary of auditor’s results section of the a ccompanying schedule of findings and questioned costs for the year ended June 30, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditin g 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 t he 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 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 o ther 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 deter mination 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 o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
4 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 auditing standards generally accept ed in the United States of A merica, Government Auditing Standards, and the Uniform Guidance will always detect material noncomplia nce 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, misrepre sentations, or the override of internal control. Noncompliance with the compliance requirements referre d 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 auditing standards ge nerally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skept icism throughout the audit. • Identify and assess the risks of material noncompliance, wheth er 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 compl iance with the compliance requirements referred to above and performing such other proced ures as we considered necessary in the circumstances.
• Obtain an understanding of the Ci ty’s internal control over co mpliance relevant to the audit in order to design audit procedures that are appropriate in the ci rcumstances and to test and report on internal control over compliance in accordance with the Unif orm Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Ci ty’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governan ce regarding, among other matters, the planned scope and timing of the audit and any significant d eficiencies 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 o peration of a control over compliance does not allow management or employees, in the norma l course of performing their assigned functions, to prevent, or detect and correct, noncompliance wit h a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance i s a deficiency, or a combination of deficiencies, in internal contr ol 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 eno ugh to merit attention by those charged with governance.
Our consideration of internal cont rol over compliance was for t he limited purpose described in the Auditor’s Responsibilities for t he 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 l imitations, during our audit we did not identify any deficiencies in internal control over compliance t hat we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in in ternal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opi nion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
5 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.
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 rema ining fund information of the City, as of and for the year ended June 30, 2023, and the related notes to the financial statements, wh ich collectively comprise the City’s basic financial statements. We issued our report thereon dated Decemb er 26, 2024, which contained unmodified opinions on those financial statements. Our audit wa s conducted for the purpose of forming opinions on the financial statement s that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is pres ented for purposes of additional analysis as required by the Uniform Guidance and is not a requi red part of the basic financial statements.
Such information is the responsibility of management and was de rived from and relates directly to the underlying accounting and other records used to prepare the bas ic financial statements. The information has been subjected to the auditing procedures applied in the au dit 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 basic financia l statements or to the basic financial statements themselves, and other additional procedures in accor dance with auditing standards generally accepted in the United States of America. In our opinion, the s chedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
BROWN ARMSTRONG
ACCOUNTANCY CORPORATION
Bakersfield, California
December 26, 2024
The accompanying notes are an integral part of this schedule. 6 CITY OF BAKERSFIELD, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2023
Federal Grantor/ Assistance Pass-Through
Pass-Through Grantor/ Listing Grant Identifying Passed Through Fede ral Program Title Numbe r Number to Subrecipients Expenditures U.S. Department of Housing and Urban Development:
Direct Programs:
Community Development Block Grants - Entitlement Grants 14.218 N/ A- $ 9,838,457$ Emergency Shelter Grant Program 14.231 N/A - 1,651,211 Housing Opportunities for Persons with AIDS 14.241 N/A - 919,303 Home Investment Partnerships Program 14.239 N/A - 194,424 Total U.S. Department of Housing and Urban Development - 12,603,395 U.S. Department of Justice:
Direct Program:
Public Safety Partnership and Community Policing 16.922 N/A - 225,689 Total U.S. Department of Justice - 225,689 U.S. Department of Transportation:
Direct Program:
Airport Improvement Program 21.106 N/A - 230,603 Passed through California Office of Traffic Safety:
State and Community Highway Safety 20.600 PT1478 - 394,544 Passed through California Department of Transportation:
Highway Planning and Construction Grants:
Surface Transportation Program 20.205 STPL-5109 - 4,955,980 Transportation Equity Act 20.205 HTP2IL-5109; PRNS-5109; and NCIIP-5109 - 14,610,022
State Highway Operation and Protection Program (SHOPP) 20.205 ACN HP-P099(591) - 1,806 Highway Bridge Replacement 20.205 BRLSZD-5109 (046) - 622,450 Congestion Mitigation and Air Quality Program 20.205 CML-5109 - 1,061,549 Subtotal - Highway Planning and Construction Grants - 21,251,807 Total U.S. Department of Transportation - 21,876,954 U.S. Department of Treasury
Direct Programs:
Equitable Sharing Program 21.016 N/A - 1,660 COVID-19: Coronavirus State and Local Fiscal Recovery Funds 21.0 27 N/A 6,573,694 30,075,531 Total U.S. Department of Treasury 6,573,694 30,077,191 U.S. Department of Homeland Security:
Passed through California Emergency Management Agency:
Disaster Grants - Public Assistance FEMA-4305-DR-CA;
97.036 Cal OES ID:087-91052 - 547,200 Total U.S. Department of Homeland Security - 547,200 Total Expenditures of Federal Awards, Excluding Beginning Loan Balances 6,573,694 $ 65,330,429 $ U.S. Department of Housing and Urban Development:
Direct Programs:
Community Development Block Grants - Entitlement Grants 14.218 N/ A- $ 10,756$ Home Investment Partnerships Program 14.239 N/A - 16,637,084 Total Beginning Federal Loan Balances with Continuing Compliance Requirements - 16,647,840 Total Expenditures of Federal Awards, Including Beginning Loan Balances 6,573,694 $ 81,978,269 $ Beginning Federal Loan Balances with Continuing Compliance Requirements
7 CITY OF BAKERSFIELD, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2023
NOTE 1 – GENERAL
The accompanying Schedule of Exp enditures of Federal Awards (SE FA) presents the activity of all Federal Financial Assistance programs of the City of Bakersfield, California (the City). As defined in Note 1 of the Notes to the City’s basic financial statements, those financial statements and the accompanying SEFA present the City and its component units, if any, entities for which the City is considered to be financially accountable. Blended component units, although lega lly separate entities, are, in substance, part of the City’s operations and so data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements of the City to emphasize that they are leg ally separate from the City. Each blended and discretely presented component unit has a June 30 year-end. The City’s Annual Comprehensive Financial Report (ACFR) may be obtained at the Finance Department.
Federal financial assistance received directly from Federal age ncies as well as Federal financial assistance passed through other government agencies are included on the SEFA.
NOTE 2 – BASIS OF ACCOUNTING
The accompanying SEFA is presented using the accrual basis of accounting, which is described in Note 1 of the Notes to the City’s basic financial statements.
NOTE 3 – RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Amounts reported in the accompanying schedule on pages 9-12 agr ee with the amounts reported in the related periodic Federal financial reports.
NOTE 4 – INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cos t rate allowed under the Uniform Guidance.
NOTE 5 – LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS
Outstanding federally-funded program loans with a continuing co mpliance requirements had the following balances and activities for the year ended June 30, 2023:
Assistance Balance Balance
Listing Number Program Title June 30, 2022 Increase Decrease June 30 , 2023
14.218 Community Development Block
Grants/Entitlement Grants 10,756$ - $ - $ 10,756$
14.239 Home Investment Partnerships Program 16,723,309 - 86,225 16,637,084 Total 16,734,065$ - $ 86,225$ 16,647,840$
8 NOTE 6 – AMOUNT PROVIDED TO SUBRECIPIENTS
The City has provided federal awards to various organizations. The amounts provided to subrecipients are summarized as follows:
Assistance Amount
FEDERAL GRANTOR OR Listing Contract or Provided to
Pass-Through Grantor Federal Program Number Subrecipient Program Nu mber Subrecipients United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Housing Authority of Kern County 2021-041 6,019,983 $ United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Habitat for Humanity 2023-006 37,348 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Radio Sandwich 2022-246 55,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 San Joaquin Hospital 2022-189 205,500 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Boys and Girls Club 2022-245 80,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Guthrie's Alley Cat ED22-050 11,030 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 San Joaquin Tractor 2022-273 38,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 My Spot Downtown Grill ED23- 005 25,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Oleander and Palm ED23-010 5,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 El Alamo Properties ED23-003 23,500 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Downtown Business Assoc 2022-244 38,333 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Garrisons 2022-210 35,000
6,573,694$
9 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS
The following is a reconciliation of the amounts listed in the SEFA to the City’s basic financial statements:
U.S. Department of Housing and
Urban Development
Community Housing
Development Emergency Opportunities for Home Airport State and Highwa y Block Grants Shelter Persons Investment Improvement Community Planning and - Entitlement Grants Grant with AI DS Partnerships Program Highway Sa fety Construction Federal Financial
Assistance Recognized 5,390,260$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Total 5,390,260 $ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $
Reimbursable
Disbursement/Expenditure 9,838,457$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Total Reimbursable
Disbursement/Expenditure 9,838,457$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Unpaid Billings as of June 30, 2023 - $ - $ - $ - $ - $ - $ (5,689,299)$ Due from State/Local Governments - - - - - - - Accrued Revenue June 30, 2023 1,233,896 390,769 180,296 - - - 5,689,299 Due from Other Governmental Agencies 1,233,896$ 390,769 $ 180,296 $ - $ - $ - $ - $ (Continued)
U.S. Department of Transportation
Federal Grantor/Program Title
10 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS (Continued)
U.S. Department of U.S. Department
Disaster Equitable Coronavirus Equitable
Grants Public Sharing State & Local Fiscal Sharing
Assistance Program Recovery Fund Program
Federal Financial
Assistance Recognized 547,200$ 1,660 $ 30,075,531$ 225,689 $ Total 547,200 $ 1,660 $ 30,075,531$ 225,689 $ Reimbursable
Disbursement/Expenditure 547,200$ 1,660 $ 30,075,531$ 225,689 $ Total Reimbursable
Disbursement/Expenditure 547,200$ 1,660 $ 30,075,531$ 225,689 $ Unpaid Billings as of June 30, 2023 - $ - $ - $ - $ Due from State/Local Governments - - - - Accrued Revenue June 30, 2023 - - - - Due from Other Governmental Agencies - $ - $ - $ - $ Homeland Security
Federal Grantor/Program Title
U.S. Department of Treasury of Justice
11 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS (Continued)
The following is a reconciliation of the variances between Expenditures and Federal Financial Assistance recognized:
Community Housing
Development Emergency Opportunities for Home Airport State and Highwa y Block Grants Shelter Persons Investment Improvement Community Planning and - Entitlement Grants Grant with AID S Partnerships Program Highway Sa fety Construction Federal Financial
Assistance Recognized 5,390,260$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Total 5,390,260 $ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $
Total Disbursement/Expenditure 9,838,457$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Variance of Revenues Recognized
Over/(Under) Expenditures (4,448,197) - - - - - - Program Income Used (4,448,197) - - - - - - Total - $ - $ - $ - $ - $ - $ - $ (Continued)
U.S. Department of TransportationUrban Development
Federal Grantor/Program Title
U.S. Department of Housing and
12 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS (Continued)
U.S. Department of U.S. Department
Disaster Equitable Coronavirus Equitable
Grants Public Sharing State & Local Fiscal Sharing
Assistance Program Recovery Fund Program
Federal Financial
Assistance Recognized 547,200$ 1,660 $ 30,075,531$ 225,689 $ Total 547,200 $ 1,660 $ 30,075,531$ 225,689 $ Total Disbursement/Expenditure 547,200$ 1,660 $ 30,075,531$ 225,689 $ Variance of Revenues Recognized
Over/(Under) Expenditures - - - - Program Income Used - - - - Total - $ - $ - $ - $ of JusticeHomeland Security U.S . Department of Treasury Federal Grantor/Program Title
13 CITY OF BAKERSFIELD, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
JUNE 30, 2023
SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements:
Type of auditor's report issued Unmodified
Internal control over financial reporting:
• Material weakness (es) identified? yes x no
• S ignificant deficiencies identified
not considered to be material weaknesses? yes x no
Noncompliance material to financial statements noted? yes x no
Federal Awards:
Internal control over major programs:
• Material weakness (es) identified? yes x no
• S ignificant deficiencies identified
not considered to be material weaknesses? yes x no
Type of auditor's report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with the Uniform Guidance, under 2 CFR §200.516? yes x no
Identification of major programs:
Assistance Listing
Number(s) Name of Federal Program or Cluster
14.218
14.239
21.027
Community Development Block Grants - Entitlement Grants
Home Investment Partnerships Program
COVID-19: Coronavirus State and Local Fiscal Recovery Funds
Dollar threshold used to distinguish between Type A
and Type B programs: $2,459,348
Auditee qualified as low-risk auditee? yes x no
SECTION II – FINDINGS RELATING TO FINANCIAL STATEMENTS REQUIRED UNDER
GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS (GAGAS)
None.
14 SECTION III – FINDINGS AND QUESTION ED COSTS – MAJOR FEDERAL AWA RD PROGRAMS AUDIT
None.
SECTION IV – STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
No findings in prior year