CITY OF FONTANA
Single Audit Report on
Federal Awards
Year E
nded June 30, 20
2 2
CITY OF FONTANA
Single Audit Report on Federal Awards
Ye
ar ended June 30, 20
2 2
TABLE OF CONTENTS
Page
Report on
In
ternal 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 Report on Compliance
for Each Major Federal Program, Report on
Inter
nal Control over Compliance
and
Report on the Schedule of Expenditures
of Federal Awards Required by
the Uniform Guidance
3 Schedule of
Expenditures of Federal Awards
6 Notes to the Schedule of
E
xpenditures of Federal Awards
7 Schedule of Findings
and Questione
d Costs
9 Summary Sc
hedule of Prior Audit Findings
1 3
1 City Council
City of Fontana
Fontana, California
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial
S
t
a
tements Performed in Accordance With
Government Auditing Standards
I
ndependent Auditor
s
’
Report
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial aud i
t
s
contained in
Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements
of
the governmental activities, the business
-
type activities, each major
fund, and the aggregate remaining fund information of t h
e
C
ity of Fontana
(
the “
City
”
)
as of
and
f
or the year ended June 30, 20
2 2
, and the related notes to the financial statements,
which collectively comprise
the
City’s
basic financial statements, and have issued our report
thereon
dated
July
13 , 202
3 .
Report
on
I
n
t
e
rna
l
C
ontrol 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
the audit
procedures that are app
ropriate
in
t
he
c
i
r
cum
s
ta
nces 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 eff
ectivenes
s
of
th
e
C
ity
’
s
internal control.
A
deficiency in internal control
exists when the design or operation of a control does not allow managem
ent or employees, in the normal course of performing their assigned functions, to prevent or detect and corre
ct missta
te
me
nts on
a
t
im
ely 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 entity’s financial statements will not be
preven
ted or
de
te
ct
ed and
co
r
re
cted on a timely basis. A
significant deficiency
is
a deficiency or combination of deficiencies, in internal control that
is less severe than a
material weakness, yet important enough to merit attention by those charged with govern
ance.
Ou
r
co
nsider
ati
o
n
of the internal control was for the limited 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 deficiencie s and the
re
fo
re, ma
ter
i
al
weaknesses or significant deficiencies may exist that were not identified. However, as described in
the accompanying
sc
hedule of
schedule of findings and questioned costs
we
identified certain deficiencies as items
202
2 -
001
throu
gh
202
2 -
0 0
2 t
hat
we
con
si
d
er to be
material weakn
esses.
2 City of Fontana
City Council
Page Two
Report on
Compliance and Other Matters
As part of obt
a
ining reasonable assurance about
whe
ther
the
City’s
financial statements are
f
ree from material
misst
atement, we perfor
med
t
ests o
f it
s
co
mpliance
with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which coul
d
have a direct and material effe
ct o
n the
financial statement
amounts. However
,
providing an opinion
on complianc
e wi
t
h
t
h
os
e pro
v
isions was not an objective of our audit,
and accordingly, we do not express such
an opinion. The results of
our tests disclosed
no
instance
of
noncompliance or other matters that
are
re
quired to be repo
rted under
Government Au
diting Standa
rds
,
i
n
th
e
Schedule of Findings
and
Ques
tio
ned Costs.
City of
Fontana
’s Response to Finding
s
Government Auditing Standards
requires the auditor to perform limited procedures on the City
’
s
response to t
he findings identified in our engagemen
t and described in the
accompanying
schedule of findings and questioned costs
.
The City
’
s
response was not
subjected to the
other
auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on
the response
.
Purpose of this Report
The purpose of thi
s
report is sol
e
ly
to describe
the
sco
pe
of o
u
r t
esting of internal contr
ol
and compliance and t
h
e results of that testing, and not to provide an op
i
nion on the
effectiveness of the entity’s internal control or o
n compliance. This report is an integral par
t
of an audit p
e
rf
ormed in acco
rda
n
ce
wit
h
Go
v
ern
ment Auditing Standards
in considering the
enti
t
y’s internal control and compliance. Accordingly, t
h
is communication is not suitable for
any other purpose.
Ir
v
ine, California
July
13 ,
202
3 3
City Council
City of Fon
t
a
na
Fontana, Cal
ifornia
Rep
or
t
on
Compliance f
or Ea
c
h Ma
j
or Federal Program; Report on Internal Control
Over Compliance; and R
epo
rt on the Schedule of Expenditures of Federal Awards
Required by
t
he Uniform Guidance
Independent Auditor
s
’
Report
Opinion on Each Major Federal Program
We h
ave audited the
City of Fon
tana
(
City
)
compliance with the types of compliance
requirements described in the
OMB Compliance Supplement
that could have a direct a
n
d
material effect on each o
f
C
ity
’s
major federal programs for the year ended June 30,
202
2. C
ity
’s
major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our
o
pinion,
C
ity
complied, in all material respects, with the compliance requirements referred
t
o ab
ove that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.
Basis for Opinion on Each Major Feder
a
l Program
W
e conducted our audit of compliance in accordance with auditing standards gene ra
lly
accepted in the United States of America (GAAS); the standards applicable to financial audits contained in
Government Auditing
Standards
issued by the Comptrol
l
er General o
f
the United States (
Government Auditing Standards
); and the audit requirement
s
of T
itle 2
U.S.
Code of Federal Regulations
Part 200,
Uniform Administrative
Requirements, Cost
Principles, and Audit Requirements for Federal Awards
(Uniform Guid
a
nce). Our
re
sponsibilities under those standards and the Uniform Guidance are further desc ri
bed
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 ethi
c
al responsi
bilities,
in accordance with relevant ethical requirements relating to our audi t.
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 d
oes not provide a legal
determination of
C
ity
’s compliance with the compliance
re
quir
ements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and f
or
the
design, implementation, and maintenance of effective internal control over complian ce
wit
h the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to
the
C
ity
’s federal programs.
4 City
of
Fo
ntana
City
Council
Pag
e
T
wo
Auditor’s Respon
sibilities for the Audit of Compliance
O
ur
obj
ectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to frau d
or
error, and express an opinion on
the
C
ity
’s
compliance based on our audit. Reasonable
a
ssur
ance 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 Aud
i
ting
Standards
, and the Uniform Guidance will a
lways detect material noncompliance when i
t
exis
ts. 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,
misrepresentations, or t
he override of internal control. Noncompli
an
ce w
ith the compliance
requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would
i
nfluence the judgment made by a reasonable
user
of the report on compliance about
the
C
it
y
’
s co
mpliance 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
t
hrou
ghout the
audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to t h
ose risks. Such
procedures incl
ude examining, on a test basis, evidence regarding
the
C
it
y
’
s
co
mpliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
Obtain an unde
r
standing of
C
ity
’s internal control over compliance relevant to the
audit in order to des
ig
n au
dit 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 purp
ose of expressing an opinion on the
effectiveness of
C
ity
’s internal cont
ro
l ov
er compliance. Accordingly, no such opinion
is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned sco
pe and timing of the audit and any significant deficiencies and material weakn
es
ses
in internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A
deficiency in internal control over comp
l
iance
exist
s when the design or operation of a
control over compliance does not allow man
ag
emen
t or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirem
e
nt of a fed
eral program on a timely basis. A
material weakness
in
internal control over c
om
plia
nce
is a deficiency, or a combination of deficiencies, in
internal control over compliance, such that there is a reasonable possibility that material noncomplia
n
ce with a t
ype of compliance requirement of a federal program will not be prevented, or d
et
ecte
d and corrected, on a timely basis. A
significant deficiency in internal
control over compliance
is a deficiency, or a combination of deficiencies, in internal c
ontrol
5 City
of Fo
ntana
City
Council
Page Three
over
compliance with a type of complian
ce
req
uirement 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 inter
nal control over compliance was for t
he
lim
ited 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 weakn
esses or significant deficiencies in
in
tern
al control over compliance.
W
e
d
i
d
identify
a
deficiency in interna
l co
ntro
l over compli
ance, as described in the schedule of
findings and questioned
costs as 2
0 2
2 -
00 3
, that we consider to be a mater
ial weakness.
Our audit was not designed for the p
ur
pose
of expressing an opinion on the effectiveness of
internal control over compliance. Accordin
gly, no such opinion is expressed.
Government Auditing Standards
r
e
quires the auditor to perform limited
procedures on
the
City
’
s
response to the internal control over
compliance findings identi
fied in our audit
described in the accompanying
schedule of findings and questioned costs.
T
h
e
City
’
s
response was
not subjected
to the other auditing procedures applied
in the audit of
compliance and, accordingly, we express no opinion on the respons e
.
Rep
or
t on Sch
ed
u
l
e
of Expend
itu
r
e
s
of Federal Awards Required
by
Uniform
Guidance
We h
ave
audited the
financial
statements of
th
e
Ci
ty
as of and for the ye
ar ended June 30,
20 2
2 , and have issued
our report thereon
dated
J
uly
13 , 2023
,
which
c
on
t
ained an
unmo
di
fied op
i
n
i
o
n
on those fin
an
c
i
a
l statements. Our audit
was conducted for the pu
rpose
of
forming an opinion
on the financia
l s
t
atements as a whole. The accompanying schedule of
expenditures of federal awards is presented
for
purposes of ad
d
it
i
onal analysis
a
s requi
r
e
d
by
the Uniform
G
u
i
d
ance
and is not a requir
ed part of the financial
stat
emen
ts. Such
informati
on is the respon
sib
i
lity of management and was derived from and relates directly to the underlying accounting and
oth
er records used
to
prepare the f
in
ancial
s
t
a
t
em
ents.
The in
fo
r
m
a
tion has been subjected
to the auditing procedur
es ap
plie
d in the audit of
the
financial st
ate
m
ents and certain additional procedures, including comparing and reconciling such information
dire
ctly to the und
e
rl
y
ing accountin
g
and oth
e
r
r
ec
ords used to
p
r
e
p
are
the financial statem
ents or to the financial
stat
emen
ts themselves, and
other additiona
l
p
r
ocedures in accordance with auditing standards generally accepted in the United States of Ame
rica
. In our opinio
n
,
t
he schedule o
f
expendi
t
u
r
e
o
f federal aw
ar
d
s
is fairly stated in all
material respects in rel
ation
to
the financial stat
ements as a whol
e.
Irvine, California
July
13 ,
202
3 Federal
Domestic
Program
Amount
Assistance
Identification
Program
Provided to
Number
Number
Expenditures
Subrecipients
U.S. Department of Housing and Urban Development
Direct Assistance:
Community Development Block Grant/Entitlement Grants Cluster
14.218
B-22-MC-06-0565
1,549,764
$
-
B-20-MW-06-0565
873,372
-
B-11-MN-06-0507
140,587
-
Subtotal Community Development Block Grant/Entitlement Grants Cluster 2,563,723
-
Emergency Solutions Grant
14.231
E-21-MC-06-0565
186,823
168,336
14.231
E-20-MW-06-0565
1,232,709
663,421
Subtotal Emergency Solutions Grant
1,419,532
831,757
HOME Investment Partnerships Program
14.239
M-21-MC-06-0548
66,853
-
Total U.S. Department of Housing and Urban Development
4,050,108
831,757
U.S. Department of Justice
Direct Assistance:
Equitable Sharing Program
16.922
n/a
1,859,322
-
Total U.S. Department of Justice
1,859,322
-
U.S. Department of Transportation
Passed through the State of California, Office of Traffic Safety:
State and Community Highway Safety Cluster
20.600
PT21134
155,383
-
PT22171
206,269
-
Subtotal Highway Safety Cluster
361,652
-
Passed through the California Department of Parks and Recreation Recreational Trails Program
20.219
RT-36-012
105,238
-
Subtotal Highway Planning & Construction Cluster
105,238
-
Total U.S. Department of Transportation
466,890
-
U.S. Department of Treasury
Direct Assistance:
Coronavirus State and Local Fiscal Recovery Funds
21.027
n/a
257,551
-
Total U.S. Department of Treasury
257,551
-
U.S. Department of Justice
Direct Assistance:
Public Safety Partnership and Community Policing Grants (COPS Grant)
16.710
Grant13025283
205,698
-
Total U.S. Department of Agriculture
205,698
-
Total Federal Expenditures
6,839,569
$
831,757
n/a - not available
Federal Grantor/Pass-Through Grantor Program Title
CITY OF FONTANA
Schedule of Expenditures of Federal Awards
For the Fiscal Year ended June 30, 2022
See accompanying notes to the schedule of expenditures of federal awards 6 7
CITY
OF
FONTANA
Notes t
o
the
Schedule of Expenditures of
F
ederal Awards
Y
e
ar
E
nded June 3
0,
20 2
2 (1)
S
ummary of Signi
fi
cant Accounting Polic
ies Applicable to the Schedul
e of
Expe
nditures
of F
ederal Awards
(a)
Sc
o
p
e of Presentation
The accompanying sche
du
le presents only
t
he e
xpenditures incurred by the
Ci
ty
that are re
im
b
ur
sable by agen
ci
es
pro
v
i
ding
federal assista
nc
e. For the
purposes
of this schedule, federal fin
ancia
l as
sistance incl
udes both feder
al
fi
na
n
c
ial assistance received directly from a fe
de
ral agency, as we
l
l as
federal
funds received indi
re
ctly from a no
n
-
f
ed
eral agency o
r
oth
er
o
r
ganiz
ation.
Only
the
p
ortion of program exp
enditures reimbursable with s
uch f
eder
al funds are
reported in the
acco
mp
a
n
ying schedule. Program expenditures in ex
ce
ss of the
maximum
fede
ral reimbursement authorized
o
r the portion
of
th
e program
exp
en
dit
ure
s
that
were funded wit
h
state
, local or other
non
-
federal funds are
exclud
ed fr
om t
he accompanyi
ng schedule.
Th
e Cit
y
d
i
d not use the 10% de
minimis indirect cost
r
ate covered in se
c
tion
200.414 of the Uniform Guid
an
ce.
(b)
Basi
s
o
f
Accounting
T
he
exp
e
n
ditur
es included in
th
e accompanying schedu
le were reported on the
accru
al ba
sis
of accounting
. Under the acc
rual
ba
s
i
s of accounting, expenditures
are recogniz
ed
when incurred.
E
x
pend
itures reported include any
pr
operty or
equi
pm
e
nt
acquisitions
i
nc
urr
e
d
under
the federal pr
og
ram.
8 CITY
OF FONTANA
Sche
dule
of F
indin
gs
and Q
uestioned Costs
Year
e
n
ded June 30, 20
2 2
Section I
-
Summary of
A
uditors’ Results
Fina
ncial Statements
1. Typ
e of au
di
tors’ report i
ss
u
ed
on whether t
he
fina
n
c
ial s
tatements audit
ed
were prepared in
accordance with GAAP:
Unmodifie
d
2. Int
ernal
co
ntrol
over financial report
i
n
g:
a.
Material weakness(es) identified?
202
2 -
001
202
2 -
002
b.
Signif
icant deficiency(
ies)
iden
ti
f
ie
d?
N
o
ne repor
ted
3. Noncom
pliance m
aterial to the fi
nanc
i
a
l
statements noted?
N
o
ne repor
ted
Federal
Award
s
1 .
Internal control over major progr
a
m
s
:
a.
Material weakness(es) identified?
2022
-
003
b.
Significant deficiency(ie
s)
identif
ied?
N
o
ne repor
ted
2 .
Ty
pe
o
f
aud
itors’ re
p
or
t issued on
compliance
for major
programs:
Unmo
dified
3. Any audit find
ings
d
isc
losed that are
required to be repo
r
t
ed in
ac
cordance
with 2 CFR 200.516 (
a
)?
N
o
4. Identification of
ma
jor prog
rams:
CFDA Num
ber
Name
of
Fe
der
a
l Program or C
luster
16.922
Equitable Sharing Program
14.231
Emergency Solutions Grant
5. D
olla
r
thresh
ol
d
us
ed
to di
st
inguish
between T
ype A and Type B programs:
$750,000
6. Audite
e qua
lified a
s
a
low ri
sk
au
d
itee?
No
9 CITY
OF FONTANA
Schedule of Findings and Questioned
C
osts
Year en
ded
June 30,
20 2
2 Sec
ti
on II
-
Fin
a
ncial Statem
en
t Fin
din
g
s
20 2
2 -
00 1
Journal Entries an
d
Delays
in
Financial Report
ing
Certain audi
t
schedules were received after the start of
the au
dit, resulting in delays
and journal entries provided to the auditor after the scheduled tim ing of the audit.
As
a result of audit pro
ced
u
res and the
City
’s rev
iew of fi
nancial information for
the fiscal
y
e
ar ended June 30, 202
2 , there
was
one
mate
rial a
udit adjustment
,
prior period
adjustments
and delays in financial reporting
. The auditing standards acknowledge
that
material audit
entries
and
prior period adjus
tment
s
re
present a
deficiency in
internal co
n
t
rols
.
R
ecommendation
An important element of controls over financial reporting is for manage ment t
o
identify adjustments necessary for financial statements to be fairly stated. Whenever possible, adjustments
sh
ould be r
eflected in th
e a
c
counting rec
ords
p
r
ior to the start
of
the audit.
In
addition
,
we recommend the City establish a
well
-
defined
process
for
its annual financial reporting.
Management’s Response Regarding Corrective Action Taken or Planned
Man
agement
a
cknowledges the importance of makin
g
any adjustment, material
and/or immaterial, prior to the start of the audit. The City’s fiscal year -
end closing
process for June 30, 2022, was significantly delayed and was directly related to
the
delay of the
June
30,2
021 audit and staff vacancies. Duri
n
g
fiscal year 2022
-
23, the
Accounting Department has filled 3 additional accountant level (or above) positions which will allow the city to meet closing entries, perform a more thorough review of transactions, a
nd mi
tiga
te/minimize errors. A
ny
adjustments
t
hat occur during the
audit pro
cess will be communicated to the auditors.
10 CITY
OF FONTANA
Sc
h
edul
e
of Fin
d
i
ngs and Questioned Costs
Year
ended June 30, 20
2 2
Sec
ti
on II
-
Fin
a
ncial Statem
en
t Fin
din
g
s
20 2
2 -
00 2
Capital Assets
A significant amou
n
t
of time was spent by the City after
the start o
f the audit
to
update the year end
capital asset records and reconcile those updated records to the general l
e
d
ger. To ensure a
timely completion of these signif
icant tra
nsactions at
year end, the City
sho
u
l
d
perform and update reconciliations throughout
the year
which would ease the effor
t needed at year end. In addition, there were several
adjustments recorded
b
y the City during the course of the audit that affe
cted this
area and re
sulted in updates to th
e
accounting schedules.
Recommendation
We recommend that the City consider perfo
r
ming quarterly updates of
its capital
assets listings to ease the burden
at year end. Instead of having to perform a full
year’
s worth o
f
updates, the effort needed at yea
r
end would be reduced due t
o the
periodic reconciliations performed during the yea
r
. This would also help id
entify
errors in a timely manner and give the C
ity an opportunity to correct them prior to
the start
of the au
d
it
.
In addition, the preparer of
t
h
e capital asset schedule relies o
n external department
notification of sales, disp
o
sals and acquisition of ca
pital assets. The City should
develop controls
to mitigate the reliance on notification when such tr
ansaction
s
have
occurred.
Management’s R
e
s
ponse Regarding Corrective Action Taken or Planned
Management
recognizes the importance of recording
transactions involving capital
assets accurately and timely. To avoid adjustments and misstatement to the ca pital
ass
et schedule, the Finance department
w
ill be performing quarterly reconciliations
of Capital Asset related schedules and transa
ctions. The Accounting Division has
implemented a new process for capturing all capital expenditures including quarterly meeting
s
with Engineers and project managers
,
quarterly reconciliation
s of ledgers
,
and
the reading of all council meeting minutes to
ensure timely
recordation
.
During
fiscal year 2022
-
23, the Accounting Department has filled 3 additional accountant leve
l (or abo
ve) positions which will allow the
c
i
ty to meet closing entries, perform a
more thorough review of transactions, and mitigate/
minimize errors
.
11 CITY
OF FONTANA
Sc
h
edul
e
of Fin
d
i
ngs and Questioned Costs
Year ended June 30, 20
2 2
Sect
ion I
II
-
Fe
de
ral Awa
rd Find
ings a
nd Questioned C
o
s
ts
(
20 2
2 -
00 3
)
Procurement
Pr
ocess
Federal Agency:
Department of
Justice
CFDA
Cluste
r
No
s
.
:
16.922
Federal Program
Cluster
:
Eq
uitable Sharing
Program
Compliance Requirement:
Procurement,
Suspension
, and
Debar
m
ent
–
No
ncompetit
ive
Procurement
(Sole Sour
c
e
Designation
),
Competition
–
Formal
Procurement Methods
Type of Finding:
Material Weakness
Questioned Costs: $0
Criteria:
2 CF
R 200.
318
General Procurement
Sta
ndards
, 2 CFR 200.319
C
ompetition, 2 CFR 200
.320
Methods
o
f Procurement
to be Followed.
(1)
A
l
l
procurement transactions for
the
acquisition
of s
ervices req
uired under federal
award must be conducted in a manner providing
full and open co
mpetition
in
compliance
with
the standards of section 200.319
and
200
.
320
.
Additi
onally,
in
c
ompliance with t
h
e
standards of section
200.320
(
c)
(2)
Noncomp
etitive
procurement
,
there are specific circumstances in
which
noncompetitive procu
rement
can be used.
Condition:
In 2 of 4 sample selections of vendor purcha
ses,
the Cit
y
was not able t
o
provide evidence of
p
roperly following the procurem
ent policy for federal awards.
In
1 of the 2 failed instances, the
C
ity
inappropriately designated
a vendor as sole
source. In 1 of the 2 failed instances
,
the
C
ity
was unabl
e to
produce
d
ocumentation
f
or the
simplified
acq
u
i
sition
threshold related to sm
all purchases to show
procurement
by sealed bids and
competitive
proposals.
C
ause:
Fa
i
lure to fo
llow
Federal procureme
nt regulations.
Effect:
Procurement
support was
una
vai
la
ble to de
monstrate the procurement policy
wa
s
followed
for a vendor
and
an
inappropriate use of sole source designation
for a
vendor
.
R
eco
mmenda
tion
:
We recommend the
C
ity
adhere to
Federal
procurement
polic
ies
for federal awards
to ensure
proper pr
ocure
ment stan
dards
are followed
and adhere
to
al
l
o
wable sole source designations.
12 CITY
OF
FONTANA
Sc
h
edul
e
of Fin
d
i
ngs and Questioned Costs
Ye
ar ended J
u
n
e
3 0,
2 0
2 2
Mana
gement’s Response Regarding Corrective Action Taken or Planned
Management
agrees t
hat
all
p
rocurement transactions for the acq
u
i
sitions of services
required must be conducted in a manner providing full and open competition ,
must
have supporting
documentation of
the process
, and must follow federal procurement
requirements
.
In December
2022, the
purchasing department updated the
C
i
ty’s
purchasing policy to strengthen the language related to Federal procurement guidelines
and trained all
external
departments
. Additionally, all procurement
requests now include a
field that re
quires the fu
nding sou
rce to be identified. The
purchasin
g
department has
also contracted a consultant that will further assist in strengthening and creating efficiencies all
procurement
processes.
13 CITY
OF
FO
NTANA
Summary Schedule of Prior Audit Fin
d
i
n
g
s
Ye
ar
ended J
u
n
e
3 0,
2 0
2 2
Sectio
n I
V
–
Sum
m
ary
o
f
Pri
o
r A
udi
t F
indin
gs and Curre
nt Status
The following
is the status of
prior audit find
ing
s for
t
he y
ear
e
nded Ju
ne
30, 20
2 1
:
(
20 2
1 -
00 1
)
Jo
urnal Entri
es D
etected During the Aud
it
This
fin
ding
has
b
een repe
ate
d as item 202
2 -
001
(
20 2
1 -
00 2
)
Re
c
o
nciliation of Investments
This f
inding has been resolved
(
20 2
1 -
00 3
)
Capital Assets
This finding has been repeated as item 202
2 -
00 2
(
20 2
1 -
00 4
)
Pa
yroll
This findi
ng has been resolved
(
20 2
1 -
00 5
)
Employee Timecard
s
This fi
nding has been resolved