CITY OF FREMONT
Single Audit Reports
For the Year Ended June 30, 2021
CITY OF FREMONT
Single Audit Reports
For the Year Ended June 30, 2021
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; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance .................................. 3
Schedule of Expenditures of Federal Awards ............................................................................................... 5
Notes to the Schedule of Expenditures of Federal Awards ........................................................................... 6
Schedule of Findings and Questioned Costs ................................................................................................. 7
Summary Schedule of Prior Audit Findings and Corrective Action Plan .................................................... 8
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
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
Honorable Mayor and Members
of the City Council
City of Fremont, 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 financial statements of the governmental activities, each major fund, and the aggregate remaining fund i nformation of the City of Fremont, California (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 financ ial statements, and have issued our report thereon dated December 28, 2021.
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 desi gning 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.
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 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 there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. 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.
Our consideration of internal control was for the limited purpo se described in the first paragraph of this section and was not designed to identify 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 material weaknesses. However, material weaknesses may exist that have not been identified.
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 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.
2 Purpose of this Report
The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’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 entity’s internal control and compliance. A ccordingly, this communication is not suitable for any other purpose.
Walnut Creek, California
December 28, 2021
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
3 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
Honorable Mayor and Members
of the City Council
City of Fremont, California
Report on Compliance for Each Major Federal Program
We have audited the City of Fremont, California’s (City) compli ance 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 sec tion of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the federal statu tes, 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 refe rred 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 fina ncial 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 Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance re quire that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a dir ect and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the 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 o pinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Each Major Federal Program
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 for the year ended June 30, 2021.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and main taining 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 ea ch major federal program to determine the auditing procedures that are appropriate in the circumstances f or the purpose of expressing an opinion on
4 compliance for each major federal program and to test and repor t on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose o f 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 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 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 is a deficiency, or 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 p rogram 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 control over compliance was for t he limited purpose described in the first paragraph of this section and w as not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant def iciencies. We did not identify any deficiencies in internal control over compliance that we consid er 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.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental ac tivities, 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 financial statements.
We issued our report thereon dated December 28, 2021, which con tained unmodified opinions on those financial statements. Our audit was conducted for the purpose o f forming opinions on the financial statements that collectively comp rise the basic financial state ments. The accompanying schedule of expenditures of federal awards is presented for purposes of add itional analysis as required by the Uniform Guidance and is not a required part of the basic financial stat ements. Such information is the responsibility of management and w as derived from and relates d irectly to the underlying accounting and other records used to prepare th e basic financial statements. T he information has been subjected to the auditing procedures applied in the audit of the financial state ments and certain additional procedures, including comparing and reconciling such information directly t o the underlying accounting and other records used to prepare the basi c financial statements or to th e basic financial statements themselves, and other additional procedures in accordance with auditing standar ds generally accepted in the United States of America. In our opinion, the schedule of expenditures of fed eral awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Walnut Creek, California
May 20, 2022
CITY OF FREMONT
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2021
Assistance Grant Identifying Number or Federal Amount Passed to Federal Grantor/Pass-Through Grantor/Federal Program Title Listi ng Number Pass-Through Entity Number Expenditures Subrecipients U.S. Department of Agriculture
Direct Program:
SNAP Cluster:
State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 18-7013 21,966 $ - $ Total U.S. Department of Agriculture 21,966 - U.S. Department of Housing and Urban Development
Direct Programs:
CDBG - Entitlement Grants Cluster:
Community Development Block Grants/Entitlement Grants 14.218 B-17 -MC-06-0011 74,158 21,961 Community Development Block Grants/Entitlement Grants 14.218 B-18 -MC-06-0011 116,485 116,485 Community Development Block Grants/Entitlement Grants 14.218 B-19 -MC-06-0011 479,202 479,202 Community Development Block Grants/Entitlement Grants 14.218 B-20 -MC-06-0011 1,550,567 1,248,627 COVID-19 - Community Development Block Grants/Entitlement Grants 14.218 B-20-MW-06-0011 1,255,363 - Subtotal CDBG - Entitlement Grants Cluster 3,475,775 1,866,275 Home Investment Partnerships Program 14.239 M-19-DC-06-0001 300,22 1 105,938 Total U.S. Department of Housing and Urban Development 3,775,996 1,972,213 U.S. Department of Justice
Direct Program
COVID-19 - Coronavirus Emergency Supplemental Funding Program 16 .034 2020-VD-BX-1046 89,657 - Total U.S. Department of Justice 89,657 -
U.S. Department of Transportation
Pass-Through State of California Department of Transportation:
Highway Planning and Construction Cluster:
Highway Planning and Construction 20.205 04-5322 1,115,275 - Pass-Through Metropolitan Transportation Commission:
Pass-Through California Office of Traffic Safety
Highway Safety Cluster:
National Priority Safety Programs 20.616 PT20048 29,233 - National Priority Safety Programs 20.616 PT21125 68,663 - Subtotal Highway Safety Cluster 97,896 -
Total U.S. Department of Transportation 1,213,171 - U.S. Department of Treasury
Direct Programs:
Volunteer Income Tax Assistance (VITA) Matching Grant Program 21 .009 V13076 28,000 - COVID-19 - Coronavirus Relief Fund 21.019 n/a 2,891,945 - COVID-19 - Emergency Rental Assistance Program 21.023 n/a 3,425,227 - Total U.S. Department of Treasury 6,345,172 -
U.S. Department of Health and Human Services
Pass-Through Alameda County Area Agency on Aging:
Special Programs for the Aging, Title III, Part D, Disease Prevention and Health Promotion Services 93.043 900111 19,800 - National Family Caregiver Support, Title III, Part E 93.052 90011 1 86,381 - Aging Cluster:
Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 900111 68,223 - Pass-Through Alameda County - Oakland Community Action Partnership:
477 Cluster:
Community Services Block Grant 93.569 21F-4002 44,464 - Pass-Through Alameda County Behavioral Health Care Services:
Block Grants for Prevention and Treatment of Substance Abuse 93. 959 900111 207,854 - Medicaid Cluster:
Medical Assistance Program:
Pass-Through State of California Department of Health and Human Services:
Targeted Case Management - Linkages 93.778 01-19EVRGRN 155,841 - Targeted Case Management - Community 93.778 01-19EVRGRN 153,303 - Alameda County Health Care Services - Medi-Cal Administrative Activities 93.778 19-96008 576,585 - Pass-Through State of California Department of Aging:
Multipurpose Senior Services Program 93.778 MS-2021-37 262,454 - Subtotal Medicaid Cluster 1,148,183 -
Total U.S. Department of Health and Human Services 1,574,905 - U.S. Department of Homeland Security
Direct Program:
Homeland Security Grant Program 97.067 2018-0102 228,584 - Pass-Through County of Alameda:
Homeland Security Grant Program:
FEMA- CERT 97.067 2018-0054 2,712 -
Subtotal Homeland Security Grant Program 231,296 - Total U.S. Department of Homeland Security 231,296 - Total Expenditures of Federal Awards 13,252,163$ 1,972,213 $ See accompanying notes to the schedule of expenditures of federal awards. 5 CITY OF FREMONT
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2021
6 (1) GENERAL
The accompanying Schedule of Expenditures of Federal Awards (SE FA) presents the activity of the federal award programs of the City of Fremont, California (City ). The City’s reporting entity is defined in Note 1 to its basic financial statements. The information i n the SEFA is presented in accordance with the 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). The SEFA includes all federal awards received directly from federal agencies and federal awards passed- through other governmental agencies.
(2) BASIS OF ACCOUNTING
The accompanying SEFA is presented using the modified accrual b asis of accounting for grants as described in Note 1 to the City’s basic financial statements. T he City did not elect to use the 10% de minimis cost rate as covered in 2 CFR section 200.414 Indirect (F&A) costs.
As a result of the COVID-19 pandemic, many new federal programs have been established and funding has been added to existing federal programs. Expenditures fund ed from the following acts are denoted by the prefix COVID-19 in the federal program title in the SEFA (as applicable):
Coronavirus Preparedness and Response Supplemental Appropriations Act Families First Coronavirus Response Act
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) American Rescue Plan Act (ARP)
(3) RELATIONSHIP TO THE BASIC FINANCIAL STATEMENTS
Expenditures of federal awards are reported in the City’s basi c financial statements as expenditures in the governmental funds. Federal award expenditures agree or can be reconciled with the amounts reported in the City’s basic financial statements.
(4) RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Amounts reported in the SEFA agree to or can be reconciled wit h the amounts reported in the related federal financial reports.
CITY OF FREMONT
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2021
7 Section I Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued on whether the financial statements audited were prepared in accordance with U.S.
GAAP:
Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported Noncompliance material to the financial statements noted? No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported Type of auditor’s report issued on compliance for the major federal programs:
Unmodified
Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance?
No
Identification of major federal programs:
Assistance
Listing Numbers
Name of Federal Program or Cluster
21.019
21.023
Coronavirus Relief Fund
Emergency Rental Assistance Program
Dollar threshold used to distinguish between type A
and type B programs:
$750,000
Auditee qualified as a low-risk auditee? Yes
Section II Financial Statements Findings
None reported.
Section III Federal Awards Fi ndings and Questioned Costs None reported.
CITY OF FREMONT
Summary Schedule of Prior Audit Findings and Corrective Action Plan For the Year Ended June 30, 2021
8 Financial Statements and Federal Awards Findings
There were no financial statements nor federal awards findings for the year ended June 30, 2020.