City of Murrieta
Single Audit Report on Federal Awards
Year Ended June 30, 2023
City of Murrieta
Single Audit Report on Federal Awards
Table of Contents
Page
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 Schedule of Expenditures of Federal Awards in Accordance with the Uniform Guidance ............................................... 3
Schedule of Expenditures of Federal Awards .............................................................................. 7
Notes to the Schedule of Expenditures of Federal Awards ......................................................... 9
Schedule of Findings and Questioned Costs:
Section I: Summary of Auditor's Results .............................................................................. 10
Section II: Financial Statements Findings ............................................................................ 11
Section III: Federal Awards Findings and Questioned Costs ............................................... 11
Summary Schedule of Prior Audit Findings ............................................................................... 12
1 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
The Honorable City Council
City of Murrieta, California
We have audited, in accordance with the auditing standards 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 financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Murrieta (the City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated February 29, 2024.
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 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 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 their 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.
2 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 deficiencies 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 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 with 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 compliance 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 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 City’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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
San Bernardino, California
February 29, 2024
3 REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM; REPORT ON INTERNAL CONTROL OVER
COMPLIANCE; AND REPORT ON SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE
WITH THE UNIFORM GUIDANCE
Independent Auditor’s Report
The Honorable City Council
City of Murrieta, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Murrieta’s (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. 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, 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, 2023.
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 (GAGAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards) ; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). 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.
4 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 for 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 compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.
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 material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance 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 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, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such 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 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 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 deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
5 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 em ployees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with 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 control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the 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 limitations, during our audit we did not identify any deficiencies 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.
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.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated February 29, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted 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 analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such informat ion 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 audit 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 financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
6 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.
San Bernardino, California
March 20, 2024 (except for our report on the Schedule of Expenditures of Federal Awards, for which the date is February 29, 2024)
City of Murrieta
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
See accompanying notes to the schedule of expenditures of federal awards. 7 Federal Grantor/Pass-Through Grantor/Program Title
Assistance
Listing
Number
Program/Project
Identification Number
Federal
Expenditures
Amount
Provided to
Subrecipients
U.S. Department of Housing and Urban Development
Passed through County of Riverside Housing, Homelessness Prevention and Workforce Solutions:
Emervency Solutions Grant - Corona Virus Round 2 (Street Outreach) 14.231 ESG-CV2 SO 138,027$ - $ Emervency Solutions Grant - Corona Virus Round 2 (Emergency Shelter) 14.231 ESG-CV2 ES 238,174 - Total Assistance Listing 14.231 376,200 -
Total U.S. Department of Housing and Urban Development 376,200 - U.S. Department of Justice
Direct Assistance:
Special Data Collections and Statistical Studies 16.734 2019-FU-CX-K008 18,475 - Total Assistance Listing 16.734 18,475 -
Equitable Sharing Funds 16.922 CA0334200 261,209 - Total Assistance Listing 16.922 261,209 -
Bulletproof Vest Partnership Grant 16.607 Unknown 2,943 - Total Assistance Listing 16.607 2,943 -
Total U.S. Department of Justice 282,628 -
U.S. Department of Transportation
Passed through the State of California Office of Traffic Safety:
Highway Safety Cluster:
Selective Traffic Enforcement Program 20.600 PT22039 6,486 - Selective Traffic Enforcement Program 20.600 PT23051 20,578 Total Assistance Listing 20.600 27,064 -
Selective Traffic Enforcement Program 20.608 PT22039 13,670 - Selective Traffic Enforcement Program 20.608 PT23051 41,156 - Total Assistance Listing 20.608 54,826 -
Total U.S. Department of Transportation/ Highway Safety Cluster 81,890 - City of Murrieta
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
See accompanying notes to the schedule of expenditures of federal awards. 8 Federal Grantor/Pass-Through Grantor/Program Title
Assistance
Listing
Number
Program/Project
Identification Number
Federal
Expenditures
Amount
Prov ided to
Subrecipients
U.S. Department of the Treasury
Direct Assistance:
Coronavirus State and Local Fiscal Recovery Funds (ARPA) 21.027 Unknown 3,886,296 $ - $ Total Assistance Listing 21.027 3,886,296 -
Total U.S. Department of the Treasury 3,886,296 -
U.S. Department of Health and Human Services
Direct Assistance:
Regional Homeless Alliance Program - SAMHSA Grant 93.493 1H79FG000733-01 424 - Total Assistance Listing 93.493 424 -
Total U.S. Department of the Health and Human Services 424 - U.S. Department of Homeland Security
Passed through California Governor's Office of Emergency Services:
Emergency Management Performance Grant Program - Fiscal Year 2022 97.042 2022-0005 25,190 - Total Assistance Listing 97.042 25,190 -
Federal Emergency Management Agency Safer 97.083 EMW-2019-FF-01158 626,426 - Total Assistance Listing 97.083 626,426 -
Total U.S. Department of Homeland Security 651,616 - Institute of Museum and Library Services
Passed through California State Library:
Library Services and Technology Act (Library for All) 45.310 Unknown 2,966 - Tota l Assista nce Listing 45.310 2,966 -
Total Institute of Museum and Library Services 2,966 - Total Expenditures of Federal Awards 5,282,020$ - $
City of Murrieta
Notes to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2023
9 1. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal awards activity of the City of Murrieta (the City) under federal programs of federal government for the year ended June 30, 2023. The information in this SEFA is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the City.
For the purposes of this schedule, federal financial assistance includes both federal financial assistances received directly from a federal agency, as well as federal funds received indirectly by the City from a nonfederal agency or other organization. Only that portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule.
Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule.
2. Summary of Significant Accounting Policies
Expenditures reported on the SEFA are reported on the modified accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
3. De Minimis Indirect Cost Rate
The City did not elect to use the 10-percent indirect cost rate allowed under the Uniform Guidance .
City of Murrieta
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
10 SECTION I. SUMMARY OF AUDITOR'S RESULTS
Financial Statements
audited were prepared in accordance with GAAP: unmodified Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported Noncompliance material to financial
statements noted? Yes X No
Federal Awards
Internal control over major federal programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported Type of auditor's report issued on compliance for major federal programs: unmodified Any audit findings disclosed that
are required to be reported in
accordance with 2 CFR 200.516(a) Yes X No
Identification of major federal programs:
CFDA Number
21.027
Dollar threshold used to distinguish
between type A and type B programs: 750,000 $
Auditee qualified as low-risk auditee? X Yes No
Name of Federal Program
Type of auditor's report issued on whether the financial statements Coronavirus State and Local Fiscal
Recovery Funds (ARPA)
City of Murrieta
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
11 Section II: Financial Statement Findings
No findings to be reported.
Section III: Federal Awards Findings and Questioned Costs
No findings to be reported.
City of Murrieta
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2023
12 No prior year findings were reported.