City of Fresno
Fresno, California
Single Audit and
Independent Auditor’s Reports
For the Year Ended June 30, 2025
City of Fresno
Single Audit and Independent Auditor’s Reports
For the Year Ended June 30, 2025
Table of Contents
Page
Single Audit:
Independent Auditor’s 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
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6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
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
Independent Auditor’s 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, 2025, 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 19, 2026. 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 ements, 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 combinati on 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 designed 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 19, 20
26 6 Hutton Centre Drive, Suite 1200
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 Auditor’s 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, 2025. 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, 2025.
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 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 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 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 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 noncompliance, 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 i
n accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectivene
ss 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 deficiencies 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 Compliance section above and was not designed to identify all deficiencies in internal contr
ol 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, 2025, 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 19, 2026, 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 19, 20
26 6
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City of Fresno
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
See accompanying Notes to the Schedule of Expenditures of Federal Awards 7 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number E xpenditures Subrecipients
U.S . Department of Commerce
Economic Development Cluster:
Direct Programs:
COVID-19 - Economic Adjustment Assistance 11.307 EDA 07-79-07577 896,830 $ 896,830 $ Revolving Loan Fund - Economic Adjustment Assistance 11.307 EDA 07-39-02434 1,771,677 1,771,677 Total Economic Development Cluster 2,668,507 2,668,507 Total U.S. Department of Commerce 2,668,507 2,668,507 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-18-MC-06-0001 156,214 - Community Development Block Grant 14.218 B-19-MC-06-0001 834,769 - Community Development Block Grant 14.218 B-20-MC-06-0001 89,481 - COVID-19 - Community Development Block Grant 14.218 B-20-M W-06-0001 205,227 201,989 Community Development Block Grant 14.218 B-21-MC-06-0001 38,776 - Community Development Block Grant 14.218 B-23-MC-06-0001 1,104,154 48,198 Community Development Block Grant 14.218 B-24-MC-06-0001 2,858,548 501,404 Total CDBG - Entitlement Grants Cluster 5,287,168 751,591 Emergency Solutions Grant Program 14.231 E-22-MC-06-0001 100,545 100,545 Emergency Solutions Grant Program 14.231 E-23-MC-06-0001 407,062 380,251 Emergency Solutions Grant Program 14.231 E-24-MC-06-0001 141,717 121,949 Total - Program 14.231 649,324 602,745
HOME Investment Partnership 14.239 M -16-MC-06-0204 27,262 - HOME Investment Partnership 14.239 M -18-MC-06-0204 693,901 212,971 HOME Investment Partnership 14.239 M -19-MC-06-0204 551,011 110,920 HOME Investment Partnership 14.239 M -20-MC-06-0204 1,728,932 - HOME Investment Partnership 14.239 M -21-MC-06-0204 128,714 - HOME Investment Partnership 14.239 M -22-MC-06-0204 284,339 - HOME Investment Partnership 14.239 M -23-MC-06-0204 6,309 - HOME Investment Partnership 14.239 M -24-MC-06-0204 181,578 - HOME Investment Partnership - ARP 14.239 M-21-MP-06-0204 368,183 344,728 Total - Program 14.239 3,970,231 668,619
Housing Opportunities for Persons with AIDS (HOPWA) 14.241 CAH20F011 38,189 - Housing Opportunities for Persons with AIDS (HOPWA) 14.241 CAH22F011 427,424 323,031 Housing Opportunities for Persons with AIDS (HOPWA) 14.241 CAH23F011 266,192 236,487 Housing Opportunities for Persons with AIDS (HOPWA) 14.241 CAH24F011 167,665 159,870 Total - Program 14.241 899,469 719,388
Total U.S. Housing and Urban Dev elopment 10,806,192 2,742,343 U.S . Department of Interior
Direct Program:
WaterSMART (Sustain and Manage America's Resources for Tomorrow) 15.507 R22AP00498-00 39,228 - Total U.S. Department of Interior 39,228 - Federal Grantor/Pass - Through
Grantor/Program Title
City of Fresno
Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Schedule of Expenditures of Federal Awards 8 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number E xpenditures Subrecipients
U.S. Department of Justice
Direct Programs:
Patrick Leahy Bulletproof Vest Partnership Program 2023-2024 16.607 2023BUBX23034388 2,668 - Passed through San Diego Association of Governments:
Project Safe Neighborhoods 16.609 15PBJA-21-GG-03005- GUNP 61,734 - Direct Programs:
Project Safe Neighborhoods 16.609 15PBJA-22-GG-00714- GUNP 4,416 - Total - Program 16.609 66,150 -
Community Policing Devlopment (CPD) De-Escalation Training 16.710 15JCOPS-21-GG-02451-SPPS 35,579 - 2022 FY 2022 COPS Hiring Program 16.710 15JCOPS-22-GG-03443-UHPX 459,889 - Total - Program 16.710 495,468 -
Edward Byrne Memorial Justice Assistance Grant 2021 16.738 15PBJA-21-GG-01222-JAGX 24,588 - Edward Byrne Memorial Justice Assistance Grant 2022 16.738 15PBJA-22-GG-02061-JAGX 148,950 - Edward Byrne Memorial Justice Assistance Grant 2023 16.738 15PBJA-23-GG-03182-JAGX 193,935 103,324 Total - Program 16.738 367,474 103,324
Sexual Assault Kit Initiative Grant 2020 16.833 2020-AK-BX-0002 103,579 22,000 Sexual Assault Kit Initiative Grant 2021 16.833 15PBJA-21-GG-04321-SAKI 409,587 2,230 Sexual Assault Kit Initiative Grant 2024 16.833 15PBJA-24-GG-05426-SAKI 221,059 - Total - Program 16.883 734,225 24,230
Equitable Sharing Program 16.922 N/A 474,611 - Total U.S. Department of Justice 2,140,595 127,554 U.S. Department of Transportation
Direct Programs:
Airport Improvement Program 20.106 3-06-0087-091-2021 958,180 - Airport Improvement Program 20.106 3-06-0087-099-2024 43,534 - Airport Improvement Program 20.106 3-06-0087-095-2022 106,031 - Airport Improvement Program 20.106 3-06-0087-094-2022 154,161 - Airport Improvement Program 20.106 3-06-0088-028-2022 2,350 - Airport Improvement Program 20.106 3-06-0087-097-2023 120,067 - Airport Improvement Program 20.106 3-06-0088-029-2023 266,714 - Airport Improvement Program 20.106 3-06-0087-098 7,100,000 Total - Program 20.106 8,751,037 -
Passed through the California Department of Transportation:
Highway Planning and Construction Program 20.205 Master Agreement 06-5060 12,648,592 - Passed through the California High Speed Rail Authority:
High Speed Rail Master Co-Op Agreement 20.319 HSR 23-41 43,585 - Federal Grantor/Pass - Through
Grantor/Program Title
City of Fresno
Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Schedule of Expenditures of Federal Awards 9 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number E xpenditures Subrecipients
Federal Transit Cluster:
Direct Programs:
Federal Transit Capital Investment Grants 20.500 CA-03-0821 55,606 - Urban Mass Transportation Capital, CM AQ 20.507 CA-2018-004 63,461 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 CA-2019-044-01 2,680 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 CA-2022-047-01 332,092 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 CA-2022-047-02 257,605 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 1649-2025-10 301,302 - Urban Mass Transportation Capital Planning, Operating Assistance 20.507 1649-2025-11 106,380 - Bus and Bus Facilities Formula Program 2022 20.526 CA-2025-206 180,344 - Bus and Bus Facilities Formula Program 2024 20.526 CA-2024-195 1,669,419 - Bus and Bus Facilities Formula Program 2025 20.526 CA-2025-097 8,735,307 - Total - Federal Transit Cluster 11,704,195 - Highway Safety Cluster:
Passed through California Office of Traffic Safety:
Selective Traffic Enforcement Program (STEP) 2024 20.600 PT24074 47,070 - Selective Traffic Enforcement Program (STEP) 2025 20.600 PT25165 119,254 - Pedestrian and Bicycle Safety Program 20.600 PS24014 48,442 - Total Highway Safety Cluster 214,766 -
Selective Traffic Enforcement Program (STEP) 2024 20.608 PT24074 116,127 - Selective Traffic Enforcement Program (STEP) 2025 20.608 PT25165 337,438 - Total - Program 20.608 453,565 -
Selective Traffic Enforcement Program (STEP) 2024 20.611 PT24074 1,987 - Selective Traffic Enforcement Program (STEP) 2025 20.611 PT25165 9,382 - Total - Program 20.611 11,369 -
Direct Program:
City of Fresno Vision Zero Action Plan 20.939 DOT-SS4A-FY22-0 187,352 - Total U.S. Department of Transportation 34,014,461 - U.S . Department of Treasury
Direct Program:
Equitable Sharing Program 21.016 CA0100500 11,545 - Coronavirus State and Local Fiscal Recovery Fund 21.027 SLFRP1611 55,322,163 1,013,813 Passed through the State of California - Department of General Services:
CaliforniansForAll Youth Jobs Corps Program 21.027 0650-JP1001B 827,361 - Passed through the State of California -Public Utilities Commission:
Local Agency Technical Assistance Program 21.027 22-02-026 165,625 - Total - Program 21.027 56,315,148 1,013,813
Total U.S . Department of Treasury 56,326,692 1,013,813 Grantor/Program Title
Federal Grantor/Pass - Through
City of Fresno
Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Schedule of Expenditures of Federal Awards 10 Assistance Grant Amount
Listing Identification Federal Provided to
Number Number E xpenditures Subrecipients
E nv ironmental Protection Agency
Direct Programs:
Brownfields Training, Research, and Technical Assistance Grants and Cooperative Agreements 66.814 99T91201 48,239 - Brownfields M ultipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 66.818 98T08001 19,493 - Brownfields M ultipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 66.818 98T50501 30,026 - Total - Program 66.818 49,519 -
Total E nv ironmental Protection Agency 97,757 - 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 24-0310ARP 94 - Special Programs for the Aging: Senior Hot Meals 93.045 25-0310 126,142 - Total Aging Cluster 126,236 -
Total U.S. Department of Health and Human Services 126,236 - U.S . Department of Homeland S ecurity
Direct Program:
FY 2022 FP&S-Community Risk Assessment 97.04 4 EMW-2022-FP-00527 82,061 - Passed through the California Department of Emergency Services:
Homeland Security Grant Program (HSGP) 2021 97.067 SHSGP 2021 98,458 - Homeland Security Grant Program (HSGP) 2022 97.067 SHSGP 2022 37,783 - Homeland Security Grant Program (HSGP) 97.067 2022-0043 96,818 - Homeland Security Grant Program (HSGP) 97.067 2023-0042 63,000 - Total - Program 97.067 296,060 -
Direct Program:
Staffing for Adequate Fire and Emergency Response Grant Program 97.083 EM W-2020-FF-01300 1,337,714 - Staffing for Adequate Fire and Emergency Response Grant Program 97.083 EM W-2021-FF-00276 2,660,754 - Total - Program 97.083 3,998,468 -
Total U.S. Department of Homeland Security 4,376,589 - Total Expenditures of Federal Awards 110,596,258$ 6,552,216 $ 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, 2025
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 de minimis indirect rate as allowed under the Uniform Guidance (10 percent of modified total direct costs for awards issued prior to Oc tober 1, 2024 and 15 percent for awards issued or amended on or after October 1, 2024).
City of Fresno
Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2025
12 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.
The terms of the grants/loans and the outstanding balances as of June 30, 2025, 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, 2025 2007 SRF06CX150 Wellsite Chlorination Project 10100007-004 2,210,000 $ 2.2923% / 20 yrs* 733,570 $ 2009 SRF08SWX101 Enterprise/Jefferson Canal Project 10100007-011 1,968,136 2.2923% / 20 yrs* 468,470 2011 SFR11CX104 Residential Water Meter Project 10100007-026C 51,405,432 0.0000% / 20 yrs* 23,132,444 2015 14-817-550 Wastewater Tertiary Plant C-067893-110 33,138,638 1.00-1.70% / 30 yrs* 24,263,747 2016 D15-01011 Recycled Water Distribution Southwest C-068061-110 52,475,049 1.00% / 30 yrs* 49,734,871 2016 D15-02012 Southeast Surface Water Treatment Fac ility 101 0007-028C 195,489,000 1.663% / 30 yrs* 144,311,540 2016 D15-02040 Friant-Kern Canal Raw Water Pipeline 1010007-029C 26,520,000 1.6% / 30 yrs* 17,282,648 2016 D15-02042 Kings River Pipeline 1010007-031C 75,165,000 1.6% / 30 yrs* 46,684,469 2017 D16-02031 Regional Transmission Mains 1010007-030C 75,900,000 1.6% / 30 yrs* 27,369,504 2018 D18-02014 Northeast Surf ace Water Treatment Facility 101 0007-032C 14,000,000 1.8% / 30 yrs* 12,602,092 346,583,355$
* 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, 2025.
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, 2025, is as follows:
EDA
Program Revolving
Loan Fund
Grant Award Number 07-39-02434
Balance of RLF loans outstanding at June 30, 2025 742,586 $ Cash and investment balance in the RLF at June 30, 2025 842,105 Administrative expenses paid out of RLF income
during the fiscal year ended June 30, 2025 47,323
Write offs during the fiscal year ended June 30, 2025 139,663 Subtotal 1,771,677
Federal share (calculated grant rate) 100%
Economic Adjustment Assistance RLF Grant federal award
expenditures for the fiscal year ended June 30, 2025 1,771,677 $ City of Fresno
Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2025
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, 2025, is as follows:
EDA CARES
Program Revolving
Loan Fund
Grant Award Number 07-79-07577
Balance of RLF loans outstanding at June 30, 2025 611,487 $ Cash and investment balance in the RLF at June 30, 2025 97,536 Administrative expenses paid out of RLF income
during the fiscal year ended June 30, 2025 112,807
Write offs during the fiscal year ended June 30, 2025 75,000 Subtotal 896,830
Federal share (calculated grant rate) 100%
Economic Adjustment Assistance RLF Grant federal award
expenditures for the fiscal year ended June 30, 2025 896,830 $
Note 9 – Prior Year Expenditures 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 pre-award costs of $3,888,289 for the year ended June 30, 2024 unde r the Airport Improvement Program under Assistance Listing Number (ALN) 20.106. This funding amount was approved in fiscal year 2024.
These expenditures of $3,888,289 are incl uded on the SEFA as part of the ALN 20.106 expenditures for the year ended June 30, 2025.
The City reduced prior year expenditures totaling $45,401 for the year ended June 30, 2024 under the Highway Planning and Construction Cluster of programs under ALN 20.205. These expenditur es were deemed to be ineligible for Federal share match under the current finance letters of the grant; however, the City will continue to monitor any future modifications to finance letters impacting this funding. These reductions are included on the SEFA as part of ALN 20.205.
The City incurred costs totaling $4,324 for the year ended June 30, 2024 under PS24014 for ALN 20.600. This funding amount was approved in fiscal year 2024. These expe nditures are included on the SEFA as part of the ALN
20.600 expenditures for the year ended June 30, 2025.
City of Fresno
Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2025
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 L ocal
Agency Number Expenditures
California State Department of Finance
Caltrans - Pass-Through Program:
SB1 - State of Good Repair Program DOT SB1_FAX 582,383 $ Total California State Department of Transportation 582,383 Total Expenditures of State and Local Awards 582,383$
State or Local Grantor/Pass - Through
Grantor/Program Title
City of Fresno
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025
15 Section I – Summary of Auditor’s Results
Financial Statements
Type of report the auditor’s 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 auditor’s 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
14.218 Community Development Block Grant (CDBG) - Entitlement Grants Cluster 5,287,168 $
20.106 Airport Improvement Program 8,751,037
20.500/507/526 Federal Transit Cluster 11,704,195
Total Expenditures of All Major Federal Programs 25,742,400 $ Total Expenditures of Federal Awards 110,596,258 $
Percentage of Total Expenditures of Federal Awards 23.28%
Dollar threshold used to distinguish between type A and type B programs $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, 2025
Section II – Financial Statement Findings
A. Current Year Findings – Financial Statement Audit
No financial statement findings were noted for the year ended June 30, 2025.
B. Prior Year Findings and Questioned Costs – Financial Statement Audit
No financial statement findings were noted for the year ended June 30, 2024.
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, 2025.
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, 2024.