Agenda Item No: N.5
AGENDA REPORT
DATE: April 15, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-58 FN Accept Schedule of Federal Expenditures
Approving the City’s Fiscal Year 2023 -2024 Final Schedule of Expenditures for Federal Awards Report
Funding Source: N/A
Contact: John Furtado, (707) 428-7529
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The council is being asked to approve the Final Schedule of Expenditures for the Federal Awards Report (Single Audit). The Audit for the fiscal year (FY) 2023-2024 Schedule of Expenditures for the Federal Awards Report was completed in February of this year.
DISCUSSION
Each year, an independent Certified Public Accounting (CPA) firm audits the City’s financial statements (ACFR) and federal grants (Single Audit) in accordance with Generally Accepted Auditing Standards (GAAS).
The Annual Comprehensive Financial Report (ACFR): The Final Report was accepted by the City Council on January 21, 2024, via Resolution 2025-10.
The Schedule of Federal Awards ( SEFA) Report: Detailing federal grant expenditures, was prepared by City management and underwent Audit in February 2025 as part of the Single Audit process. The Single Audit evaluates compliance with the Federal Office of Management and Budget (OMB) compliance supplement requirements for federal grant recipients.
The auditors have issued the opinions below for the five major programs audited for the SEFA.
For further details, refer to the Auditor’s Report on Compliance for Each Major Federal Program on page 1 of the SEFA.
Qualified Opinion on the Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation Program: A qualified opinion was issued due to City staff not following the grant’s requirements and did not follow the City’s grant policy.
Unmodified Opinion on Each of the Other Major Federal Programs : An unqualified opinion is the highest level of assurance that the grants were administrated appropriately and followed the grant guidelines and provisions.
Audit Findings : For the SEFA, the auditor had three findings in the current year and no management recommendation in the management governance letter. Please refer to pages 11 to 15 in the attached SEFA for more details on these findings. As for the City’s response to these findings, please refer to the attached 2024 Corrective Action Plan.
FINANCIAL IMPACT
N/A
ALTERNATIVE ACTION
The council may choose not to approve the acceptance of the Federal Awards Audit report for the Fiscal Year ending June 30, 2024, and adopt the resolution. However, it should be noted that any changes to the report at this point would result in additional costs incurred by the City.
COORDINATED WITH
N/A
STAFF CONTACT
John Furtado, Director of Finance
(707) 428-7629
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: 2024 Single Audit Governance Letter
Attachment 4: 2024 Single Audit Report
Attachment 5: 2024 Corrective Action Plan