CITY OF FREMONT
Single Audit Reports
For the Year Ended June 30, 2022
CITY OF FREMONT
Single Audit Reports
For the Year Ended June 30, 2022
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 ............................................................................................... 7
Notes to the Schedule of Expenditures of Federal Awards ........................................................................... 8
Schedule of Findings and Questioned Costs ................................................................................................. 9
Summary Schedule of Prior Audit Findings and Corrective Action Plan .................................................. 10
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 ( Government Auditing Standards ), the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Fremont, California (City), as of and for the ye ar ended June 30, 2022, and the related notes
to the financial statements, whi ch collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 23, 2022.
Report on 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 or significant deficiencies may exist that were not identified.
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 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 23, 2022
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
Opinion on Each Major Federal Program
We have audited the City of Fremont, California’s (City) compli ance 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 program s for the year ended June 30, 2022. 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.
In our opinion, the City complied, in all material respects, wi th 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, 2022.
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 applicable to fi nancial audits contained in Government Audit Standards issued by the Comptroller General of the United States ( Government Audit Standards ); and the audit requirements of Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative Requirements, Costs 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 other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We b elieve 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 determinat ion of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for com pliance 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 GAAS, Government Auditing Standards , and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting materia l noncompliance resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncom pliance with the compliance requirements referred to above is considered material if there is a substant ial 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 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, whethe r due to fraud or error, and design and perform audit procedures responsive to those risks. Such pr ocedures include examining, on a test basis, evidence regarding the City’s compliance with the c ompliance requirements referred to above and performing such other procedures as we consider necessary in the circumstances.
Obtain an understanding of the City ’s internal control over com pliance 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 of 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 defic iencies and material weaknesses in internal control over compliance that we identify 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 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 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 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 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 l imitations, during our audit we did not
5 identify any deficiencies in internal control over compliance t hat we consider to be material weaknesses as described above. However, material weaknesses or significant deficiencies in internal 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.
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, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements.
We issued our report thereon dated December 23, 2022, which con tained unmodified opinions on those financial statements. Our audit was performed for the purpose o f forming opinions on the financial statements that collectively comprise the City’s basic financial statements. 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
March 29, 2023
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CITY OF FREMONT
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
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 10,657 $ - $ Total U.S. Department of Agriculture 10,657 - 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 64,706 64,706 Community Development Block Grants/Entitlement Grants 14.218 B-18 -MC-06-0011 171,904 171,904 Community Development Block Grants/Entitlement Grants 14.218 B-19 -MC-06-0011 160,690 109,875 Community Development Block Grants/Entitlement Grants 14.218 B-20-MC-06-0011 25,772 - COVID-19 - Community Development Block Grants/Entitlement Grants 14.218 B-20-MW-06-0011 438,328 - Community Development Block Grants/Entitlement Grants 14.218 B-21-MC-06-0011 975,091 486,373 Subtotal CDBG - Entitlement Grants Cluster 1,836,491 832,858 Home Investment Partnerships Program 14.239 M-21-DC-06-0001 309,97 9 242,961 Total U.S. Department of Housing and Urban Development 2,146,470 1,075,819 U.S. Department of Justice
Direct Program
Edward Byrne Memorial Justice Assistance Grant Program 16.738 201 9-DJ-BX-0653 11,440 - Total U.S. Department of Justice 11,440 -
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 546,524 - Pass-Through California Office of Traffic Safety
Highway Safety Cluster:
National Priority Safety Programs 20.616 PT21125 1,466 - National Priority Safety Programs 20.616 PT22173 42,758 - National Priority Safety Programs 20.616 TR21063 24,800 - Subtotal Highway Safety Cluster 69,024 -
Total U.S. Department of Transportation 615,548 - U.S. Department of Treasury
Direct Programs:
Volunteer Income Tax Assistance (VITA) Matching Grant Program 21 .009 V13076 26,204 - COVID-19 - Emergency Rental Assistance Program 21.023 n/a 7,500,72 6 - Pass-Through California Business, Consumer Services, and Housing Agency COVID-19 - Emergency Rental Assistance Program 21.023 21-ERAP-200 13 4,608,346 - Subtotal Emergency Rental Assistance Program 12,109,072 - Direct Program:
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 n/a 44,211,563 - Total U.S. Department of Treasury 56,346,839 -
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 39,600 - National Family Caregiver Support, Title III, Part E 93.052 90011 1 100,375 - COVID-19 - National Family Caregiver Support, Title III, Part E 93.052 901939 10,871 - Aging Cluster:
Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 900111 102,923 - Pass-Through Alameda County - Oakland Community Action Partnership:
477 Cluster:
Community Services Block Grant 93.569 21F-4002 41,107 - Pass-Through Alameda County Behavioral Health Care Services:
Block Grants for Prevention and Treatment of Substance Abuse 93. 959 900111 290,080 - Medicaid Cluster:
Medical Assistance Program:
Pass-Through State of California Department of Health and Human Services:
Targeted Case Management - Linkages 93.778 01-19EVRGRN 130,984 - Targeted Case Management - Community 93.778 01-19EVRGR N 206,128 - Alameda County Health Care Services - Medi-Cal Administrative Activitie 93.778 19-96008 709,358 - Pass-Through State of California Department of Aging:
Multipurpose Senior Services Program 93.778 MS-2022-37 320,857 - Subtotal Medicaid Cluster 1,367,327 -
Total U.S. Department of Health and Human Services 1,952,283 - Total Expenditures of Federal Awards 61,083,237$ 1,075,819 $ See accompanying notes to the schedule of expenditures of federal awards. 7 CITY OF FREMONT
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2022
8 (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, 2022
9 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
21.023
21.027
Emergency Rental Assistance Program
Coronavirus State and Local Fiscal Recovery Funds
Dollar threshold used to distinguish between type A
and type B programs:
$1,832,497
Auditee qualified as a low-risk auditee? Yes
Section II Financial Statements Findings
None reported.
Section III Federal Awards Findi ngs and Questioned Costs None reported.
CITY OF FREMONT
Summary Schedule of Prior Audit Findings and Corrective Action Plan For the Year Ended June 30, 2022
10 Financial Statements and Federal Awards Findings
There were no financial statements nor federal awards findings for the year ended June 30, 2021.