City of Fresno
Fresno, California
Single Audit and
Independent Auditors’ Reports
For the Year Ended June 30, 2024
City of Fresno
Single Audit and Independent Auditors’ Reports
For the Year Ended June 30, 2024
Table of Contents
Page
Single Audit:
Independent Auditors’ Reports:
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 Report on Compliance for Each Major Federal Program;
Report on Internal 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 .................................................................................... ........................ 7 Notes to the Schedule of Expenditures of Federal Awards ...................................................................................... 11 Schedule of Findings and Questioned Costs .................................................................................... ....................... 15 Summary Schedule of Prior Audit Findings ............................................................................................................ 19 This
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200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
REPORT ON INT
ERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and Members of City Council
of the City of Fresno
Fresno, California
We have audited, in accordance with the auditing standa rds generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund informati on of the City of Fresno, California (the “City”) as of and for the year ended June 30, 2024, and the related notes to the financial st atements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 20, 2025. Our report includes a reference to other auditors who audited the financial statements of the Successor Agency to the Fresno Redevelopment Agency Private-Purpose Trust Fund, the Lo w and Moderate Income Housing Asset Special Revenue Fund, the Fire and Police Retirement System Pension Tr ust Fund, and the Employees Retirement System Pension Trust Fund, blended component units of the City, as described in our report on the City’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial stat e ments, we considered the City’s internal control over financial reporting (internal control) as a basis for designing 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 c ontrol. 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 their assi gned 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 purpose described in the first paragraph of this section and was not desi
gned to identify all defici encies in internal 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 wea knesses or significant deficiencies may exist that were not identified.
To the Honorable Mayor and Members of City Council
of the City of Fresno
Fresno, California
2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which coul d have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions w as 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 are 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 entit y’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 c ontrol and compliance. Accordingly, this communication is not suitable for any other purpose.
Santa Ana, California
March 20, 2025
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
Independent Auditors’ Report
To the Honorable Mayor and Members of City Council
of the City of Fresno
Fresno, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Fresno, California’s (the “City ”) compliance 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 programs for the year ended June 30, 2024. 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 resp ects, with 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, 2024.
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; the standards applicable to financial 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 Principl es, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are fu rther described in the Auditors’ 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis fo r our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for comp liance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over complia nce with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
To the Honorable Mayor and Members of City Council
of the City of Fresno
Fresno, California
4 Auditors’ 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 hi gh level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally acc epted auditing standards, Government Auditing Standards , and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting ma terial noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional om issions, misrepresentations, or the override of internal control. Noncompliance with the complia nce requirements referred 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 w ith auditing standards generally accepted in the United States of America, 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 noncomplian ce, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Su ch procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstan ces 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 on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficienci es 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 operation of a control over compliance does not allow management or employees, in the normal c ourse of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of complian ce 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 control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal progr am 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 combinati on 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 impor tant enough to merit atten tion by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose d escribed in the Auditors’ Responsibilities for the Audit of Complia nce section above and was not designe d to identify all deficiencies in internal control over compliance that might be material weaknesses or sign ificant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any de ficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
To the Honorable Mayor and Members of City Council
of the City of Fresno
Fresno, California
5 Our audit was not designed for the purpose of expressing an opinion 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 the Schedule o
f Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activiti es, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively compri se the City’s basic financial statements. Other auditors audited the financial statements the Successor Agency to the Fresno Redevelopment Agency Private-Purpose Trust Fund, the Low and Moderate Income Housing Asset Special Revenue Fund, the Fire a nd Police Retirement System Pension Trust Fund, and the Employees Retirement System Pe nsion Trust Fund, as described in our report on the City’s financial statements. We issued our report th ereon dated March 20, 2025, wh ich contained unmodified opinions on those financial statements. Our audit was perfo rmed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional anal ysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such info rmation is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the a udit 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 fina ncial statements or to the basic financial statements themselves, and other additi onal procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the sch edule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Santa Ana, California
March 20, 2025
6 This page intentionally left blank.
City of Fresno
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
See accompanying Notes to the Schedule of Expenditures of Federal Awards 7 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number Expenditures Subrecipients
U.S. Department of Commerce
Economic Development Cluster:
Direct Programs:
COVID-19 - Economic Adjustment Assistance 11.307 EDA 07-39-02434 934,024$ 934,024 $ Revolving Loan Fund - Economic Adjustment Assistance 11.307 EDA 07-39-02434 1,822,553 1,822,553 Subtotal - Program 11.311 2,756,577 2,756,577 Total Economic Development Cluster 2,756,577 2,756,577 Total U.S. Department of Commerce 2,756,577 2,756,577 U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG) - Entitlement Grants Cluster:
Direct Programs:
Community Development Block Grant 14.218 B-17-MC-06-0001 77,878 - Community Development Block Grant 14.218 B-18-MC-06-0001 158,080 111,894 Community Development Block Grant 14.218 B-19-MC-06-0001 350,993 - Community Development Block Grant 14.218 B-20-MC-06-0001 754,170 195,480 COVID-19 - Community Development Block Grant 14.218 B-20-MW-06-0001 2,625,253 2,617,625 Community Development Block Grant 14.218 B-21-MC-06-0001 1,766,329 1,042,174 Community Development Block Grant 14.218 B-22-MC-06-0001 2,698,802 395,544 Community Development Block Grant 14.218 B-23-MC-06-0001 5,118,557 994,104 Total CDBG - Entitlement Grants Cluster 13,550,062 5,356,821 COVID-19 - Emergency Solutions Grant Program 14.231 E-20-MW-06-0001 511,489 451,798 Emergency Solutions Grant Program 14.231 E-20-MC-06-0001 2,300 2,300 Emergency Solutions Grant Program 14.231 E-21-MC-06-0001 42,789 42,682 Emergency Solutions Grant Program 14.231 E-22-MC-06-0001 377,023 363,583 Emergency Solutions Grant Program 14.231 E-23-MC-06-0001 110,046 109,475 Total Emergency Solutions Grant Program 1,043,647 969,838 HOME Investment Partnership 14.239 M-17-MC-06-0204 186,274 84,182 HOME Investment Partnership 14.239 M-18-MC-06-0204 994,572 164,771 HOME Investment Partnership 14.239 M-19-MC-06-0204 1,150,973 - HOME Investment Partnership 14.239 M-20-MC-06-0204 674,811 - HOME Investment Partnership 14.239 M-21-MC-06-0204 144,968 - HOME Investment Partnership - ARP 14.239 M-21-MP-06-0204 17,477 4,976 HOME Investment Partnership 14.239 M-22-MC-06-0204 320,317 - HOME Investment Partnership 14.239 M-23-MC-06-0204 395,825 - Total HOME Investment Partnership 3,885,217 253,929 Housing Opportunities for Persons with AIDS (HOPWA) 14.241 CAH21F011 583,137 579,487 Housing Opportunities for Persons with AIDS (HOPWA) 14.241 CAH22F011 362,513 341,062 Housing Opportunities for Persons with AIDS (HOPWA) 14.241 CAH23F011 171,836 171,277 Total Housing Opportunities for Persons with AIDS (HOPWA) 1,117,486 1,091,826 FY 2022 Community Project Funding 14.251 B-22-CP-CA-0155 665,000 665,000 Subtotal - Program 14.251 665,000 665,000 Total U.S. Housing and Urban Development 20,261,412 8,337,414 U.S. Department of Interior
Direct Program:
WaterSMART (Sustain and Manage America's Resources for Tomorrow) 15.507 R22AP00498-00 100,410 - Total - Program 15.507 100,410 -
Total U.S. Department of Interior 100,410 - Federal Grantor/Pass - Through
Grantor/Program Title
City of Fresno
Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2024
See accompanying Notes to the Schedule of Expenditures of Federal Awards 8 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number Expenditures Subrecipients
U.S. Department of Justice
Direct Programs:
Patrick Leahy Bulletproof Vest Partnership Program 16.607 2023BUBX23034388 3,511 - Patrick Leahy Bulletproof Vest Partnership Program 16.607 BA-3A00S-SX02 7,622 - Total - Program 16.607 11,133 -
Edward Byrne Memorial Justice Assistance Grant 16.738 15PBJA-21-GG-01222-JAGX 142,652 - Edward Byrne Memorial Justice Assistance Grant 16.738 15PBJA-22-GG-02061-JAGX 47,765 - Total - Program 16.738 190,417 -
Sexual Assault Kit Initiative Grant 16.833 2019-AK-BX-0021 15,186 - Sexual Assault Kit Initiative Grant 16.833 2020-AK-BX-0002 1,025,356 71,031 Sexual Assault Kit Initiative Grant 16.833 15PBJA-21-GG-04321-SAKI 221,064 949 Total - Program 16.883 1,261,606 71,980
Community Policing Devlopment (CPD) De-Escalation Training 16.710 15JCOPS-21-GG-02451-SPPS 5,014 - 2022 FY 2022 COPS Hiring Program 16.710 15JCOPS-22-GG-03443-UHPX 303,373 - Total - Program 16.710 308,387 -
Equitable Sharing Program 16.922 N/A 164,181 - Project Safe Neighborhoods 16.609 15PBJA-22-GG-00714-GUNP 70,405 - Passed through San Diego Association of Governments:
Project Safe Neighborhoods 16.609 15PBJA-21-GG-03005-GUNP 309,381 - Total - Program 16.609 379,786 -
Total U.S. Department of Justice 2,315,510 71,980 U.S. Department of Transportation
Airport Improvement Program:
Direct Programs:
Airport Improvement Program 20.106 3-06-0087-086-2020 19,161 - Airport Improvement Program 20.106 3-06-0087-091-2021 145,105 - Airport Improvement Program 20.106 3-06-0087-092-2021 6,292,154 - Airport Improvement Program 20.106 3-06-0087-094-2022 7,679,110 - Airport Improvement Program 20.106 3-06-0087-095-2022 481,360 - Airport Improvement Program 20.106 3-06-0088-028-2022 18,660 - Airport Improvement Program 20.106 3-06-0088-027-2021 59,000 - Airport Improvement Program 20.106 3-06-0087-097-2023 1,038,591 - Airport Improvement Program 20.106 3-06-0088-029-2023 91,736 - Airport Improvement Program 20.106 70T04022T7672N009 2,368,148 - Total - Airport Improvement Program 18,193,025 - Passed through the California Department of Transportation:
Highway Planning and Construction Program 20.205 Master Agreement 06-5060 16,369,506 - Total - Program 20.205 16,369,506 -
Passed through the California High Speed Rail Authority:
High Speed Rail Master Co-Op Agreement 20.319 HSR 11-29 26,369 - City of Fresno Grade Separation Project 20.319 HSR 16-57 66,582 - High Speed Rail Master Co-Op Agreement 20.319 HSR 23-41 15,526 - Total - Program 20.319 108,477 -
Passed through the Fresno Council of Governments:
Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 CA-2018-126 1,347,198 - Federal Grantor/Pass - Through
Grantor/Program Title
City of Fresno
Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2024
See accompanying Notes to the Schedule of Expenditures of Federal Awards 9 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number Expenditures Subrecipients
Highway Safety Cluster:
Passed through California Office of Traffic Safety:
Selective Traffic Enforcement Program (STEP) FFY2023 20.600 PT23032 45,553 - Selective Traffic Enforcement Program (STEP) FFY2024 20.600 PT24074 130,219 - Pedestrian and Bicycle Safety Program 20.600 PS23004 37,060 - Pedestrian and Bicycle Safety Program 20.600 PS24014 94,953 - Total - Program 20.600 307,785 -
Selective Traffic Enforcement Program (STEP) FFY2024 20.616 PT24074 249,381 - Total - Program 20.616 249,381 -
Total Highway Safety Cluster 557,166 - Selective Traffic Enforcement Program (STEP) FFY2023 20.608 PT23032 121,026 - Selective Traffic Enforcement Program (STEP) FFY2024 20.608 PT24074 253,988 - Total - Program 20.608 375,014 -
Selective Traffic Enforcement Program (STEP) FFY2024 20.611 PT24074 5,293 - Total - Program 20.611 5,293 -
Federal Transit Cluster:
Direct Program:
Federal Transit Capital Investment Grants 20.500 CA-03-0821 99,148 - Urban Mass Transportation Capital, CMAQ 20.507 CA-95-X072-01 22,839 - Urban Mass Transportation Capital, CMAQ 20.507 CA-2018-044 173,258 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 CA-2017-081-00 63,286 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 CA-2018-002-00 21,400 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 CA-2018-006-00 37,684 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 CA-2019-044-01 257,624 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 CA-2019-044-02 164,810 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 CA-2022-047-00 355,241 - Total - Program 20.507 1,096,142 -
Bus and Bus Facilities Formula Program 20.526 CA-2016-106 1,143 - Bus and Bus Facilities Formula Program 20.526 CA-2019-045 794,565 - Bus and Bus Facilities Formula Program 20.526 CA-2022-079 2,343,440 - Total - Program 20.526 3,139,148 -
Total Federal Transit Cluster 4,334,438 - City of Fresno Vision Zero Action Plan 20.939 DOT-SS4A-FY22-0 13,756 - Total U.S. Department of Transportation 41,303,873 - U.S. Department of Treasury
Passed through the State of California Department of Housing and Community Development:
Emergency Rental Assistance Program (ERAP) 21.023 21-ERAP-20015 2,560,554 - Direct Program:
Coronavirus State and Local Fiscal Recovery Fund 21.027 SLFRP1611 30,909,641 3,763,998 Passed through the State of California - Department of General Services:
CaliforniansForAll Youth Jobs Corps Program 21.027 0650-JP1001 4,577,861 633,492 Total - Program 21.027 35,487,502 4,397,490 Total U.S. Department of Treasury 38,048,056 4,397,490 Grantor/Program Title
Federal Grantor/Pass - Through
City of Fresno
Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2024
See accompanying Notes to the Schedule of Expenditures of Federal Awards 10 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number Expenditures Subrecipients
Environmental Protection Agency
Direct Program:
Brownfields Training, Research, and Technical Assistance Grants and Cooperative Agreements 66.814 99T91201 161,292 - Direct Program:
Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 66.818 98T08001 575,774 - Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 66.818 98T50501 2,112 - Total - Program 66.818 577,886 -
Total Environmental Protection Agency 739,178 - U.S. Department of Health and Human Services
Aging Cluster:
Passed through the Fresno-Madera Area Agency on Aging:
Special Programs for the Aging: Senior Hot Meals 93.045 22-0310ARP 1,366 - Special Programs for the Aging: Senior Hot Meals 93.045 24-0310ARP 92,563 - Total Aging Cluster 93,929 -
Direct Program:
Equitable Community Response to COVID-19 93.137 1 CPIMP211263-01-00 1,345,209 - Total U.S. Department of Health and Human Services 1,439,138 - U.S. Department of Homeland Security
Passed through the California Governor's Office of Emergency Services:
COVID-19 Screening 97.036
FEMA-4482-DR-CA,
Cal OES ID: 019-27000 38,043 -
California Severe Winter Storms, Flooding, Landslides 97.036 FEMA-4683-DR-CA,
Cal OES ID: 019-27000 298,438 -
Total - Program 97.044 336,481 -
Passed through the California Department of Emergency Services:
Homeland Security Grant Program (HSGP) 97.067 2020-0095 15,299 - Homeland Security Grant Program (HSGP) 97.067 2021-0081 127,733 - Homeland Security Grant Program (HSGP) 97.067 2022-0043 26,255 - Homeland Security Grant Program (HSGP) 97.067 2023-0042 20,526 - Total - Program 97.067 189,813 -
Direct Programs:
FY 2022 FP&S-Community Risk Assessment 97.044 EMW-2022-FP-00527 11,190 - FY 2020 AFG-Calm the Chaos 97.044 EMW-2020-FG-12294 57,893 - FY 2021 AFG-Physicals 97.044 EMW-2021-FG-01735 236,591 - Total - Program 97.044 305,674 -
Staffing for Adequate Fire and Emergency Response Grant Program 97.083 EMW-2020-FF-01300 4,459,331 - Staffing for Adequate Fire and Emergency Response Grant Program 97.083 EMW-2021-FF-00276 2,094,498 - Total - Program 97.083 6,553,829 -
Total U.S. Department of Homeland Security 7,385,797 - Total Expenditures of Federal Awards 114,349,951$ 15,563,461 $ Federal Grantor/Pass - Through
Grantor/Program Title
City of Fresno
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2024
11 Note 1 – Reporting Entity
The financial reporting entity, as defined by the Governmental Accounting Standard Board (“GASB”), consists of the primary government, which is the City of Fresno, Califor nia (the “City”), organizations for which the primary government is financially accountable, and other organizations for which th e nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The City’s reporting entity is defined further in Note 1a to the City’s basic financial statements.
Note 2 – Basis of Accounting
Funds received under the various grant programs have been r ecorded within the general fund, special revenue funds and proprietary funds of the City. The City utilizes the modified accrual method of acc ounting for the General Fund and special revenue funds and accrual method of accountin g for proprietary funds. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is pr esented 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 (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements.
Note 3 – Schedule of Expenditures of Federal Awards
The accompanying Schedule presents the activity of all fe deral financial assistance programs of the City. Federal financial assistance received directly from federal agenci es as well as federal financial assistance passed through the State of California and Fresno Council of Governments, is included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financia l position, change in fund balance, or results of operations of the City.
Note 4 – Assistance Listing Numbers
The Assistance Listing Numbers (ALNs) included in th e accompanying Schedule were determined based on the federal program name, review of grant contract inform ation, and the U.S. General Services Administration’s SAM.gov website.
Note 5 – Indirect Cost Rate
The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Note 6 – State Revolving Loan Funds
Beginning in fiscal year 2007, the City received Federal cross-cut revolving gran t funds from the State in the form of loans from the U.S. Environmental Prot ection Agency, Office of Water, passed through the California State Water Resources Control Board and the Californ ia Department of Public Health, u nder Capitalization Grants for Clean Water State Revolving Funds (Assistance Listing Number 66. 458) and Capitalization Grants for Safe Drinking Water State Revolving Funds (Assistance Listing Number 66.468). Th e purpose of the grants/loans is to assist in financing the construction of projects that will enable the City to co mply with statutory clean and safe drinking standards. The City received funds under ten grants/loans.
City of Fresno
Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2024
12 Note 6 – State Revolving Loan Funds (Continued)
The terms of the grants/loans and the outstanding balances as of June 30, 2024, are as follows:
Grant Outstanding Loan
Fiscal Agreement Project Interest Rate Balances as of
Year Number Description Number Not to Exceed and Term June 30, 2024 2007 SRF06CX150 Wellsite Chlorination Project 10100007-004 2,210,000 $ 2.2923% / 20 yrs* 836,925 $ 2000 SRF08SWX101 Enterprise/Jefferson Canal Project 10100007-011 1,968,136 2.2923% / 20 yrs* 534,625 2011 SRF11CX104 Residential Water Meter Project 10100007-026C 51,405,432 0.0000% / 20 yrs* 25,702,716 2015 C-06-7893-110 Wastewater Teitiaty Plant C-067893-110 33,138,638 1.00-1.70% / 30 yrs* 25,297,129 2016 D15-01011 Recycled Water Distribution Southwest C-068061-110 52,475,049 1.00% / 30yrs* 51,332,568 2016 D15-02012 Southeast Surface Water Trea tment Facility 1010007-028C 195,489,000 1.663% / 30yrs* 149,293,418 2016 D15-02040 Friant-Kern Canal Raw Wa ter Pipeline 1010007-029C 26,520,000 1.6% / 30yrs* 17,899,819 2016 D15-02042 Kings River Pipeline 1010007-031C 75,165,000 1.6% / 30yrs* 48,351,593 2017 D16-02031 Regional Transuission Mains 1010007-030C 75,900,000 1.6% / 30yrs* 59,268,487 2018 D18-02014 Northeast Surface WaterTreatment Facility 1010007-032C 14,000,000 1.8% / 30 yrs* 12,770,338 391,287,618$
* Term begins at completion of project.
These loans are not considered to have continuing co mpliance requirements under Title 2 CFR Part 200, and, therefore, are only reported on the Schedule in the year in which funds are expended a nd drawn. The City expended $0 in federal funds under the loans during fiscal year ended June 30, 2024.
Note 7 – Economic Development Assistance Revolving Loan Fund (RLF) Calculation
The amount reported on the Schedule for expenditures rela ted to the Economic Adjustment Assistance Revolving Loan Fund (RLF) Grant ALN 11.307 is calculated using various criteria as defined by Title 2 CFR Part 200. The calculation for the year ended June 30, 2024, is as follows:
EDA
Program Revolving
Loan Fund
Grant Award Number 07-39-02434
Balance of RLF loans outstanding at June 30, 2024 747,826 $ Cash and investment balance in the RLF at June 30, 2024 837,876 Administrative expenses paid out of RLF income
during the fiscal year ended June 30, 2024 97,189
Write offs during the fiscal year ended June 30, 2024 139,663 Subtotal 1,822,554
Federal share (calculated grant rate) 100%
Economic Adjustment Assistance RLF Grant federal award
expenditures for the fiscal year ended June 30, 2024 1,822,554 $
City of Fresno
Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2024
13 Note 8 – Economic Development Assistance CARES Revolving Loan Fund (RLF) Calculation The amount reported on the Schedule for expenditures rela ted to the Economic Adjustment Assistance CARES Revolving Loan Fund (RLF) Grant ALN 11.307 is calculated using various criteria as defined by Title 2 CFR Part 200. The calculation for the year ended June 30, 2024, is as follows:
EDA CARES
Program Revolving
Loan Fund
Grant Award Number 07-39-02434
Balance of RLF loans outstanding at June 30, 2024 550,431 $ Cash and investment balance in the RLF at June 30, 2024 243,499 Administrative expenses paid out of RLF income
during the fiscal year ended June 30, 2024 431
Write offs during the fiscal year ended June 30, 2024 139,663 Subtotal 934,024
Federal share (calculated grant rate) 100%
Economic Adjustment Assistance RLF Grant federal award
expenditures for the fiscal year ended June 30, 2024 934,024$ Note 9 – Prior Year E
xpenditures included in the Schedule of Expenditures of Federal Awards The Schedule includes the following expenditures that were incurred in the prior year:
The City incurred costs totaling $519,844 under the Ai rport Improvement Program (AIP); $298,438 under the California Severe Winter Storms, Flooding, and Lands lides program; $57,893 under the Calm the Chaos program; and $38,043 under the COVID-19 Screening program during the year ended June 30, 2023, for which funding was approved in fiscal year 2024.
City of Fresno
Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2024
14 Note 10 – Nonfederal Awards Listed Separately as Required by the Grantor The following is a list of nonfederal (state and local) award expenditures that are required to be listed separately by the Grantor:
Grant
State Identification State or Local
Agency Number Expenditures
California State Department of Finance
Caltrans - Pass-Through Program:
SB1 - State of Good Repair Program DOT SB1_FAX 1,424,000$ Total California State Department of Transportation 1,424,000 California State Water Resources Control Board
Office of Water - Direct Program:
Capitalization Grant GroundWater
Contruction/Implementation - PCE P117 CSWRCB PCE-D181252400 1,077,556 Total Office of Water - Direct Program 1,077,556
Total California State Water Resources Control Board 1,077,556 Total Expenditures of State and Local Awards 2,501,556$ State or Local Grantor/Pass - Through
Grantor/Program Title
City of Fresno
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
15 Section I – Summary of Auditors’ Results
Financial Statements
Type of report the auditors issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None Reported
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None Reported
Type of auditors’ report issued on compliance for major programs Unmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No
Identification of major programs:
Federal Assistance Federal
Listing Number(s) Name of Federal Program or Cluster Expenditures
20.205 Highway Planning and Construction Program 16,369,506 $
21.027 State and Local Fiscal Recovery Fund Program 35,487,502 Total Expenditures of All Major Federal Programs 51,857,008 $ Total Expenditures of Federal Awards 114,349,951 $
Percentage of Total Expenditures of Federal Awards 45.35%
Dollar threshold used to distinguish between type A and type B program $3,000,000
Auditee qualified as low-risk auditee in accordance with 2 CFR 200.520? Yes 16 City of Fresno
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2024
Section II – Financial Statement Findings
A. Current Year Findings – Financial Statement Audit
No financial statement findings were noted for the year ended June 30, 2024.
B. Prior Year Findings and Questioned Costs – Financial Statement Audit
See Finding 2023-001 listed in accompanying Summary Schedule of Prior Audit Findings.
Section III – Federal Award Findings and Questioned Costs
A. Current Year Findings and Questioned Costs – Major Federal Award Program Audit
No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2024.
B. Prior Year Findings and Questioned Costs – Major Federal Award Program Audit
No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2023.
17 PRIOR AUDIT FINDINGS STATUS
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City of Fresno
Summary Schedule of Prior Audit Findings
For the Year Ended June 30, 2024
19 Reference Number: Financial Statement Finding 2023-001 (Significant Deficiency)
Audit Finding: The City’s mont hly bank reconciliation process wa s not properly completed during the period of the audit. Du ring our review of the ba nk reconciliation process, we found that the bank reconciliations for fiscal year 2022/23 had not been finalized timely.
Status of Management’s
Corrective Action: Implemented.
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