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2021-003 Prior Year Material Weaknesses Not Implemented • Name(s) of the contact person: Shay Narayan, Director of Finance; Carmen Gusman, Deputy Director of Finance
• Corrective Action Plan: The Findings below are unresolved findings from the prior year that are also considered current year findings. The corrective action plans for these findings are listed in the separately issued Summary Schedule of Prior Audit Findings. • 2020-001 Timely and Accurate Year End Close
• 2020-002 Timely Preparation and Approval of Bank Reconciliations • 2020-005 Accurate Preparation of the Schedule of Expenditures of Federal Awards
• Anticipated Completion Date: 10/31/2024
2021-004 Purchasing Policy Compliance
• Name(s) of the contact person: Shay Narayan, Director of Finance; Carmen Gusman, Deputy Director of Finance
• Corrective Action Plan: With limited staff and the turnover in the department, the documentation has been difficult to obtain. As of July 1, 2023 with the exception of the Finance Director, all positions in Finance were filled which should alleviate some of the issues. In addition, there has been a renewed emphasis on the policy at all levels of the City. Finally, during FY 24 it is anticipated that the purchasing policy will also be thoroughly reviewed and updated as necessary to better meet the changing needs of the City while providing strong internal control with less administrative burden. • Anticipated Completion Date: Amended policy went to Council in September 2023; We are working on this through this fiscal year and expect to have this fully resolved by 10/31/2024.
2021-005 Using Capital Projects Identifiers for All Projects • Name(s) of the contact person: Shay Narayan, Director of Finance; Lana McBroom, Senior Budget Analyst
• Corrective Action Plan: The City plans to do a review of the CIP policy and update in FY 25 to include internally constructed items as well as the timekeeping methodology to adequately charge employee costs to a project.
• Anticipated Completion Date: 07/01/24
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2020-06 Prior Year Significant Deficiencies Not Implemented • Name(s) of the contact person: Shay Narayan, Director of Finance; Carmen Gusman, Deputy Director of Finance
• Corrective Action Plan: The Findings below are unresolved findings from the prior year that are also considered current year findings. The corrective action plans for these findings are listed in the separately issued Summary Schedule of Prior Audit Findings. o 2019-004 Finance Personnel Super-User Rights
o 2017-002 Golf Enterprise Fund Working Capital
o 2015-002 Timely Review and Approval of Journal Entries o 2015-003(a) Timely Preparation and Approval of Treasurer’s Reports o 2015-003(b)iii Investment Reporting and Compliance
o 2015-004 Timely Filing of Continuing Disclosure Reports o 2014-002 Timely Preparation and Approval of Bank Reconciliations • Anticipated Completion Date: 2019-004 is ongoing as the deficiency is related to the ERP provider. 2017-002 through 2015-003(b)iii was resolved as of 02/28/2024. 2015-004 through 2014-002 anticipated to be resolved by 10/31/2024.
SA2021-001 Schedule of Expenditures of Federal Awards (SEFA) Preparation CFDA Number: 14.218
CFDA Title: COVID-19 - Community Development Block Grants/Entitlement Grants Name of Federal Agency: Department of Housing and Urban Development Pass Through Entity: San Joaquin County Community Development Department Federal Award Identification Number: A-93-916
• Name(s) of the contact person: Shay Narayan, Director of Finance; Carmen Gusman, Deputy Director of Finance
• Corrective Action Plan: Staff will review the procedures related to preparing the schedule of expenditures of federal awards including having an additional staff member designated to confirming expenses are being applied to the correct project and reported appropriately. • Anticipated Completion Date: 06/30/24
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FEDERAL AWARD FINDINGS - CURRENT YEAR
Finding Reference Number #SA2021-002: Support for Payroll Costs Charged to Grant CFDA number: 20.507
CFDA Title: Federal Transit – Formula Grants (Urbanized Area Formula Program) Name of Federal Agency: Department of Transportation - Federal Transportation Administration Federal Award Identification Number: CA-2021-009-01, CA-2020-005-01, CA-2020-005-02 • Fiscal Year of Initial Finding: 2019
• Name(s) of the contact person: Shay Narayan, Director of Finance; Carmen Gusman, Deputy Director of Finance
• Corrective Action Plan: The City is conducting a cost allocation study which includes a federal cost allocation plan. We anticipate incorporating the new allocations into the FY 2024-25 Annual Budget.
• Anticipated Completion Date: 07/01/2024
Finding Reference Number #SA2021-003: Pro-Rating Annual Payroll Costs Charged to Grant Assistance Listing Number: 21.019
Assistance Listing Title: COVID-19 - Coronavirus Relief Fund Name of Federal Agency: Department of Treasury
Pass Through Entity: California Department of Finance
Federal Award Identification Number: 390
• Name(s) of the contact person: Shay Narayan, Director of Finance; Carmen Gusman, Deputy Director of Finance
• Corrective Action Plan: Now that payroll services and the budget unit are both fully staffed, the City will be able to develop procedures that will ensure personnel budgets and costs are accurately pro-rated to the appropriate funding source. Additionally, the City expects to have sufficient staffing to work more closely with grantors make certain the all eligible costs are accounted for.
• Anticipated Completion Date: 06/30/24
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Finding #SA2021-004: Allowable Subrecipient and Contract Costs Assistance Listing Number: 14.218
Assistance Listing Title: COVID-19 - Community Development Block Grants/Entitlement Grants Name of Federal Agency: Department of Housing and Urban Development Pass Through Entity: San Joaquin County Community Development Department Federal Award Identification Number: A-93-916
• Name(s) of the contact person: Shay Narayan, Director of Finance; Carmen Gusman, Deputy Director of Finance
• Corrective Action Plan: The City will develop procedures for grant management, accounting and reporting to ensure that only allowable subrecipient costs are claimed and are supported by contract.
• Anticipated Completion Date: 06/30/24
Finding #SA2021-005: Cash Management
Assistance Listing Number: 14.218
Assistance Listing Title: COVID-19 - Community Development Block Grants/Entitlement Grants Name of Federal Agency: Department of Housing and Urban Development Pass Through Entity: San Joaquin County Community Development Department Federal Award Identification Number: A-93-916
• Name(s) of the contact person: Shay Narayan, Director of Finance; Carmen Gusman, Deputy Director of Finance
• Corrective Action Plan: The City will develop procedures to ensure all grant-funded expenditures are included on drawdown request and prepared quarterly. • Anticipated Completion Date: 06/30/2024
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