&,7<2)1$3$&$/,)251,$
)257+(<($5(1'('-81( 6,1*/($8',75(3257
ATTACHMENT 1
&,7<2)1$3$&$/,)251,$
6LQJOH$XGLW5HSRUW
)RUWKH<HDU(QGHG-XQH
ATTACHMENT 1
CITY OF NAPA, CALIFORNIA
Single Audit Report
For the Year Ended June 30, 2024
Table of Contents
Page
Number
Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ......................................................................................... 1
Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ....................................................................................................... 3
Schedule of Expenditures of Federal Awards for the
Year Ended June 30, 2024 .................................................................................................................................... 6
Notes to the Schedule of Expenditures of Federal Awards ................................................................................... 7
Schedule of Findings and Questioned Costs for the
Year Ended June 30, 2024 .................................................................................................................................... 9
Summary Schedule of Prior Year Findings and Questioned Costs for the Year Ended June 30, 2023 .................................................................................................................................. 13
ATTACHMENT 1
LSLCPAS.COM
,1'(3(1'(17$8',7256¶5(325721,17(51$/&21752/29(5),1$1&,$/5(3257,1*$1'21 &203/,$1&($1'27+(50$77(56%$6('21$1$8',72)),1$1&,$/67$7(0(1763(5)250(',1 $&&25'$1&(:,7+GOVERNMENT AUDITING STANDARDS
7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI1DSD&DOLIRUQLD
:HKDYHDXGLWHGLQDFFRUGDQFHZ LWKWKHDXGLWLQJVWDQGDUGVJHQH UDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD DQG WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ Government Auditing Standards LVVXHG E\ WKH &RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHVWKHILQDQFLDOVWDWHPHQWVRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVVW\SH DFWLYLWLHVHDFKPDMRUIXQGDQGWKHDJJUHJDWHUHPDLQLQJIXQGLQIRUPDWLRQRI&LW\RI1DSD&DOLIRUQLD WKH³&LW\´
DV
RI DQG IRU WKH \HDU HQGHG -XQH DQG WKH UHODWHG QRWHVWR WKH ILQDQFLDO VWDWHPHQWV ZKLFK FROOHFWLYHO\ FRPSULVHWKH&LW\¶VEDVLFILQDQFLDOVWDWHPHQWVDQGKDYHLVVXHGRXUUHSRUWWKHUHRQGDWHG0DUFK
5HSRUWRQ,QWHUQDO&RQWURORYHU)LQDQFLDO5HSRUWLQJ
,Q SODQQLQJ DQG SHUIRUPLQJ RXU DXGLW RI WKH ILQDQFLDO VWDWHPHQWV ZH FRQVLGHUHG WKH &LW\¶V LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ
LQWHUQDO FRQWURO
DV D EDVLV IRU GHVLJQLQJ DXGLW SURFHGXUHV WKDW DUH DSSURSULDWH LQ WKH FLUFXPVWDQFHVIRUWKHSXUSRVHRIH[SUHVVLQJRXURSLQLRQVRQWKH ILQDQFLDOVWDWHPHQWVEXWQRWIRUWKHSXUSRVHRI H[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURO$FFRUGLQJO\ZHGRQRWH[SUHVVDQRSLQLRQ RQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURO
2XUFRQVLGHUDWLRQRILQWHUQDOFRQWUROZDVIRUWKHOLPLWHGSXUSRVHGHVFULEHGLQWKHSUHFHGLQJSDUDJUDSKDQGZDVQRW GHVLJQHGWRLGHQWLI\DOOGHILFLHQFLHVLQLQWHUQDOFRQWUROWKDWPLJKWEHPDWHULDOZHDNQHVVHVRUVLJQLILFDQWGHILFLHQFLHV DQG WKHUHIRUH PDWHULDO ZHDNQHVVHV RU VLJQLILFDQW GHILFLHQFLHVPD\ H[LVW WKDW ZHUH QRW LGHQWLILHG +RZHYHU DV GHVFULEHG LQ WKH DFFRPSDQ\LQJ VFKHGXOH RI ILQGLQJV DQG TXHVWLRQHG FRVWV ZH LGHQWLILHG FHUWDLQ GHILFLHQFLHV LQ LQWHUQDOFRQWUROWKDWZHFRQVLGHUWREHPDWHULDOZHDNQHVVHVDQGVLJQLILFDQWGHILFLHQFLHV
$ deficiency in internal control H[LVWV ZKHQ WKH GHVLJQ RU RSHUDWLRQ RI D FRQWURO GRHV QRW DOORZ PDQDJHPHQW RU HPSOR\HHV LQ WKH QRUPDO FRXUVH RI SHUIRUPLQJ WKHLU DVVLJQHG IXQFWLRQV WR SUHYHQW RU GHWHFW DQG FRUUHFW PLVVWDWHPHQWVRQDWLPHO\EDVLV$ material weaknessLVDGHILFLHQF\RUDFRPELQDWLRQRIGHILFLHQFLHVLQLQWHUQDO FRQWUROVXFKWKDWWKHUHLVDUHDVRQDEOHSRVVLELOLW\WKDWDPDWH ULDOPLVVWDWHPHQWRIWKHHQWLW\¶VILQDQFLDOVWDWHPHQWV ZLOOQRWEHSUHYHQWHGRUGHWHFWHGDQGFRUUHFWHGRQDWLPHO\E DVLV:HFRQVLGHUWKHGHILFLHQF\GHVFULEHGLQWKH DFFRPSDQ\LQJVFKHGXOHRIILQGLQJVDQGTXHVWLRQHGFRVWVDVLWHPWREHDPDWHULDOZHDNQHVV
$significant deficiencyLVDGHILFLHQF\RUDFRPELQDWLRQRIGHILFLHQFLHVLQLQWHUQDOFRQWUROWKDWLVOHVVVHYHUHWKDQ DPDWHULDOZHDNQHVV\HWLPSRUWDQWHQRXJKWRPHULWDWWHQWLRQE\ WKRVHFKDUJHGZLWKJRYHUQDQFH:HFRQVLGHUWKH GHILFLHQF\ GHVFULEHG LQ WKH DFFRPSDQ\LQJ VFKHGXOH RI ILQGLQJV DQG TXHVWLRQHG FRVWV DV LWHP WR EH D VLJQLILFDQWGHILFLHQF\
5HSRUWRQ&RPSOLDQFHDQG2WKHU0DWWHUV
$V SDUW RI REWDLQLQJ UHDVRQDEOH DVVXUDQFH DERXW ZKHWKHU &LW\¶V ILQDQFLDO VWDWHPHQWV DUH IUHH IURP PDWHULDO PLVVWDWHPHQWZHSHUIRUPHGWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQW DJUHHPHQWV QRQFRPSOLDQFH ZLWK ZKLFK FRXOG KDYH D GLUHFW DQG PD WHULDO HIIHFW RQ WKH ILQDQFLDO VWDWHPHQWV +RZHYHU SURYLGLQJ DQ RSLQLRQ RQ FRPSOLDQFH ZLWK WKRVH SURYLVLR QV ZDV QRW DQ REMHFWLYH RI RXU DXGLW DQG DFFRUGLQJO\ZHGRQRWH[SUHVVVXFKDQRSLQLRQ7KHUHVXOWVRIRXUWHVWVGLVFORVHGQRLQVWDQFHVRIQRQFRPSOLDQFH RURWKHUPDWWHUVWKDWDUHUHTXLUHGWREHUHSRUWHGXQGHUGovernment Auditing Standards ATTACHMENT 1
7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI1DSD&DOLIRUQLD
&LW\¶V5HVSRQVHWR)LQGLQJV
Government Auditing Standards UHTXLUHVWKHDXGLWRUWRSHUIRUPOLPLWHGSURFHGXUHVRQWKH&LW\ ¶VUHVSRQVHWRWKH ILQGLQJVLGHQWLILHGLQRXUDXGLWDQGGHVFULEHGLQWKHDFFRPSDQ\ LQJVFKHGXOHRIILQGLQJVDQGTXHVWLRQHGFRVWV7KH &LW\¶VUHVSRQVHZDVQRWVXEMHFWHGWRWKHRWKHUDXGLWLQJSURFHGX UHVDSSOLHGLQWKHDXGLWRIWKHILQDQFLDOVWDWHPHQWV DQGDFFRUGLQJO\ZHH[SUHVVQRRSLQLRQRQWKHUHVSRQVH
3XUSRVHRI7KLV5HSRUW
7KHSXUSRVHRIWKLVUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIR XUWHVWLQJRILQWHUQDOFRQWURODQGFRPSOLDQFHDQGWKH UHVXOWV RI WKDW WHVWLQJ DQG QRW WR SURYLGH DQ RSLQLRQ RQ WKH HIIHFWLYHQHVV RI WKH &LW\¶V LQWHUQDO FRQWURO RU RQ FRPSOLDQFH7KLVUHSRUWLVDQLQWHJUDOSDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFHZLWKGovernment Auditing Standards LQFRQVLGHULQJWKH&LW\¶VLQWHUQDOFRQWURODQGFRPSOLDQFH$FFR UGLQJO\WKLVFRPPXQLFDWLRQLVQRWVXLWDEOHIRUDQ\ RWKHUSXUSRVH
,UYLQH&DOLIRUQLD
0DUFK
2 ATTACHMENT 1
LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY UNIFORM GUIDANCE
To the Honorable Mayor and Members of the City Council
City of Napa, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Napa, California’s (the “City”) com pliance 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 auditors’ results section of the a ccompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, wi th the types of compliance requirements referred to above that could have a direct and material effect on each of i ts 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 auditin g 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 Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our o ther 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 complianc e 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 o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
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 o r error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high l evel of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, ATTACHMENT 1
To the Honorable Mayor and Members of the City Council
City of Napa, California
Government Auditing Standards , and the Uniform Guidance will always detect material noncompl iance when it exists. The risk of not detecting material noncompliance result ing 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 referre d 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 generally accepted auditing standards, 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, wheth er due to fraud or error, and design and perform audit procedures responsive to those risks. Such proced ures include examining, on a test basis, evidence regarding the City’s compliance with the compliance re quirements 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 co mpliance 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.
Report on Internal Control over Compliance
Our consideration of internal control over compliance was for t he 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 weaknes ses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significa nt deficiencies may exist that were not identified.
However, as discussed below, we did identify certain deficienci es in internal control over compliance that we consider to be material weaknesses and significant deficiencies.
A deficiency in internal control over compliance exists when the design or operation of a control over complian ce does not allow management or employees, 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.
We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2024-001 to be a material weakness.
A significant deficiency in inte rnal 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. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2024-002 to be a significant deficiency.
Our audit was not designed for the purpose of expressing an opi nion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
4 ATTACHMENT 1
To the Honorable Mayor and Members of the City Council
City of Napa, California
Government Auditing Standards requires the auditor to perform limited procedures on the City ’s response to the internal control over compliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not s ubjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental ac tivities, 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 comprise the City’s basic financial statements. We issued our report thereon dated January 30, 2025, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial st atements. 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 information 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 statement s or to the basic financial statements themselves, and other additional procedures in accordance with auditing sta ndards 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.
Irvine, California
March 20, 2025 (Except for the Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance, which is dated January 30, 2025)
5 ATTACHMENT 1
CITY OF NAPA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Year Ended June\ 30, 2024
Federal
Assistance Listing Pass-Through Entity Passed-Through Total Federal Number Identifying Number to Subrecipients Expenditures CDBG - Entitlement Grants Cluster *
Department of Housing and Urban Development Direct Programs:
Community Development Block Grants/Entitlement Grants 14.218 N/A 1 15,375$ 1,008,617$ Total Department of Housing and Urban Development Programs 115,375 1,008,617 Total CDBG - Entitlement Grants Cluster 115,375 1,008,617 Housing Voucher Cluster
Department of Housing and Urban Development Direct Programs:
Section 8 Housing Choice Vouchers 14.871 N/A - 19,512,133 Mainstream Vouchers 14.879 N/A - 830,488 Total Department of Housing and Urban Development Programs - 20,342,621 Total Housing Voucher Cluster - 20,342,621 Highway Safety Cluster
Department of Transportation Pass-Through Programs from:
California Department of Transportation
National Priority Safety Programs 20.616 DWM8CCUYQTZ4 - 84,118 State and Community Highway Safety 20.600 DWM8CCUYQTZ4 - 31,055 Total Department of Transportation Programs - 115,173 Total Highway Safety Cluster - 115,173 Other Programs
Department of Commerce Direct Programs:
Economic Adjustment Assistance 11.307 N/A - 12,901 Total Department of Commerce Programs - 12,901 Department of Homeland Security Pass-Through Programs from:
California Governor's Office of Emergency Services
Disaster Grants - Public Assistance * 97.036 PS4RBZRWY7U5 - 1,921,317 Assistance to Firefighters Grant 97.044 PS4RBZRWY7U5 - 66,563 Homeland Security Grant Program 97.067 PS4RBZRWY7U5 - 48,575 Total Department of Homeland Security Programs - 2,036,455 Department of Housing and Urban Development Pass-Through Programs from:
California Department of Housing and Community Development HOME Investment Partnerships Program 14.239 L4JQPJ7N5NT4 - 174,764 Department of Housing and Urban Development Direct Programs:
Community Development Block Grants/Entitlement Grants - Disaster Recovery 14.228 N/A 66,880 67,730 Continuum of Care Program 14.267 N/A - 117,815 Family Self-Sufficiency Program 14.896 N/A - 114,044 Total Department of Housing and Urban Development Programs 66,880 474,353 Department of Justice Pass-Through Programs from:
California Bureau of Justice Assistance
Violence Against Women Formula Grants 16.588 J9PFKF2X88D1 - 257,612 Department of Justice Direct Programs:
Bulletproof Vest Partnership Program 16.607 N/A - 5,166 Edward Byrne Memorial Justice Assistance Grant Program 16.738 N/A - 3,921 Total Department of Justice Programs - 266,699 Department of Transportation Pass-Through Programs from:
California Department of Transportation
Highway Planning and Construction 20.205 EHEGWCLJEVJ4 - 248,418 Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 EHEGWCLJEVJ4 - 152,893 Total Department of Transportation Programs - 401,311 Department of Treasury Pass-Through Programs from:
State of California Department of Finance
COVID-19 State and Local Fiscal Recovery Funds * 21.027 RN15SP9CP JE6 35,000 4,123,012 Total Department of Treasury Programs 35,000 4,123,012 Total Other Programs 101,880 7,314,731
Total Expenditures of Federal Awards 217,255$ 28,781,142 $ * Major Program
There was no federal awards expended in the form of noncash assistance and insurance in effect during the year.
Grantor/Program or Cluster Title
Federal Grantor/Pass-Through
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 6 ATTACHMENT 1
&,7<2)1$3$&$/,)251,$
1RWHVWRWKH6FKHGXOHRI([SHQGLWXUHVRI)HGHUDO$ZDUGV )RUWKH<HDU(QGHG-XQH
127(
5(3257,1*(17,7<
7KH&LW\RI1DSD&DOLIRUQLD
WKH³&LW\´
ZDVLQFRUSRUDWHGRQ0DUFKXQGHUWKHODZVRIWKH6WDWHRI&DOLIRUQLD 7KH&LW\¶V&KDUWHUZDVILOHGRQ2FWREHU
7KH&LW\RSHUDWHVXQGHUDFRXQFLOPDQDJHUIRUPRIJRYHUQPHQW$V UHTXLUHGE\JHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVWKHVHILQDQFLDOVWDWHPHQWVSUHVHQWWKH&LW\DQGLWVFRPSRQHQW XQLWV7KHIROORZLQJFRPSRQHQWXQLWVDUHLQFOXGHGLQWKH&LW\¶VUHSRUWLQJHQWLW\EHFDXVHRI WKHVLJQLILFDQFHRIWKHLU RSHUDWLRQDORUILQDQFLDOUHODWLRQVKLSVZLWKWKH&LW\
%OHQGHGFRPSRQHQWXQLWVDOWKRXJKOHJDOO\VHSDUDWHHQWLWLHVDUHLQVXEVWDQFHSDUWRIWKH&LW\¶VRSHUDWLRQVDQGVR GDWDIURPWKHVHXQLWVDUHFRPELQHGZLWKWKDWRIWKH&LW\
The Housing Authority of the City of Napa (the Housing Authority)ZDVHVWDEOLVKHGRQ0D\ 2Q-XO\
WKH&LW\&RXQFLOGHFODUHGLWVHOIWREHWKH%RDUGRI&RPPLVVLRQHUVRIWKH+RXVLQJ$XWKRULW\LQDFFRUGDQFHZLWK6HFWLRQ
RIWKH+HDOWKDQG6DIHW\&RGHRIWKH6WDWHRI&DOLIRUQLD7KH&LW\RI1DSDKDVRSHUDWLRQDOUHVSRQVLELOLW\IRUWKH FRPSRQHQWXQLW
The Parking Authority of the City of Napa (the Parking Authority) ZDV HVWDEOLVKHG SXUVXDQW WR WKH 6WUHHWV DQG +LJKZD\V&RGHRIWKH6WDWHRI&DOLIRUQLD7KH&LW\&RXQFLOHVWDEOLVKHGWKH3DUNLQJ$XWKRULW\RQ$SULO DQG
GHVLJQDWHGLWVHOIWKHJRYHUQLQJERG\7KHSULPDU\SXUSRVHRIWKH3DUNLQJ$XWKRULW\LVWRDFTXLUHPDLQWDLQDQGRSHUDWH RIIVWUHHWSDUNLQJIDFLOLWLHVZLWKLQWKH&LW\7KH3DUNLQJ$XWK RULW\UHSRUWHGQRILQDQFLDOWUDQVDFWLRQVGXULQJWKH\HDU HQGHG-XQH
127(
%$6,62)$&&2817,1*
7KH &LW\ XWLOL]HV WKH PRGLILHG DFFUXDO EDVLV RI DFFRXQWLQJ IRUWKH JRYHUQPHQWDO IXQGV DQG WKH DFFUXDO EDVLV RI DFFRXQWLQJ IRU WKH HQWHUSULVH IXQGV WR SUHSDUH LWV EDVLF ILQDQFLDO VWDWHPHQWV 7KH DFFRPSDQ\LQJ 6FKHGXOH RI ([SHQGLWXUHVRI)HGHUDO$ZDUGV
WKH6FKHGXOH
LVSUHVHQWHGLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRI7LWOHU.S. Code of Federal Regulations3DUWUniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
WKH 8QLIRUP *XLGDQFH
7KHUHIRUH VRPH DPRXQWV SUHVHQWHG LQ WKH 6FKHGXOH PD\ GLIIHU IURP DPRXQWVSUHVHQWHGLQRUXVHGLQWKHSUHVHQWDWLRQRIWKH&LW\¶VEDVLFILQDQFLDOVWDWHPHQWV
127(
6&+('8/(2)(;3(1',785(62))('(5$/$:$5'6
7KHDFFRPSDQ\LQJ6FKHGXOHSUHVHQW VWKHDFWLYLW\RIDOOIHGHUDO ILQDQFLDODVVLVWDQFHSURJUDPVRIWKH&LW\)HGHUDO ILQDQFLDODVVLVWDQFHUHFHLYHGGLUHFWO\IURPIHGHUDODJHQFLHVDVZHOODVIHGHUDOILQDQFLDODVVLVWDQFHSDVVHGWKURXJKWKH &DOLIRUQLD%XUHDXRI-XVWLFH$VVLVWDQFH&DOLIRUQLD'HSDUWPHQWRI7UDQVSRUWDWLRQ&DOLIRUQLD'HSDUWPHQWRI+RXVLQJ DQG&RPPXQLW\'HYHORSPHQWDQG&DOLIRUQLD*RYHUQRU¶V2IILFHRI(PHUJHQF\6HUYLFHVDUHLQFOXGHGLQWKH6FKHGXOH 7KH6FKHGXOHZDVSUHSDUHGIURPRQO\WKHDFFRXQWVRIYDULRXVJUDQWSURJUDPVDQGWKHUHIRUHGRHVQRWSUHVHQWWKH ILQDQFLDOSRVLWLRQRUUHVXOWVRIRSHUDWLRQVRIWKH&LW\
7 ATTACHMENT 1
&,7<2)1$3$&$/,)251,$
1RWHVWRWKH6FKHGXOHRI([SHQGLWXUHVRI)HGHUDO$ZDUGV )RUWKH<HDU(QGHG-XQH
127(
68%5(&,3,(176
'XULQJWKH\HDUHQGHG-XQHWKH&LW\SURYLGHGIHGHUDO IXQGVWRWKHIROORZLQJVXEUHFLSLHQWV
$VVLVWDQFH
/LVWLQJ
1XPEHU 3URJUDP1DPH6XEUHFLSLHQW1DPHV
$PRXQW3URY LGHG
WR6XEUHFLSLHQWV
&RPPXQLW\'HY HORSPHQW%ORFN*UDQWV(QWLWOHPHQW*UDQWV $ERGH6HUY LFHV
)DLU+RXVLQJ1DSD9DOOH\
1(:6'RPHVWLF9LROHQFHDQG6H[XDO$EXVH6HUYLFHV 6XEWRWDO
&RPPXQLW\'HY HORSPHQW%ORFN*UDQWV'LVDVWHU5HFRY HU\ &DWKROLF&KDULWLHVRI1RUWKZHVW&DOLIRUQLD )DLU+RXVLQJ1DSD9DOOH\
6XEWRWDO
&RURQDY LUXV6WDWHDQG/RFDO)LVFDO5HFRYHU\)XQG 0(17,6
6XEWRWDO
7 RWDO$PRXQW3URY LGHGWR6XEUHFLSLHQWV
127(
,1',5(&7&2675$7(
7KH&LW\KDVHOHFWHGWRQRWXVHWKHSHUFHQWGHPLQLPLVLQGLU HFWUDWHDVDOORZHGXQGHUWKH8QLIRUP*XLGDQFH
8 ATTACHMENT 1
&,7<2)1$3$&$/,)251,$
6FKHGXOHRI)LQGLQJVDQG4XHVWLRQHG&RVWV
)RUWKH<HDU(QGHG-XQH
6(&7,21,6800$5<2)$8',7256
5(68/76
)LQDQFLDO6WDWHPHQWV
7\SHRIDXGLWRUV
UHSRUWLVVXHG
8QPRGLILHG2SLQLRQ
,QWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJ
• 0DWHULDOZHDNQHVVHVLGHQWLILHG" ;\HV QR
• 6LJQLILFDQWGHILFLHQFLHVLGHQ WLILHG" ;\HV QRQH UHSRUWHG
1RQFRPSOLDQFHPDWHULDOWRILQDQFLDO
VWDWHPHQWVQRWHG" \HV ;QR
)HGHUDO$ZDUGV
,QWHUQDOFRQWURORYHUPDMRUSURJUDPV
• 0DWHULDOZHDNQHVVHVLGHQWLILHG" \HV ;QR
• 6LJQLILFDQWGHILFLHQFLHVLGHQWLI LHG" \HV ;QRQH UHSRUWHG
7\SHRIDXGLWRUV
UHSRUWLVVXHGRQFRPSOLDQFHIRUPDMRUSURJUDP V
8QPRGLILHG2SLQLRQ
$Q\DXGLWILQGLQJVGLVFORVHGWKDWDUHUHTXLUHGWREH
UHSRUWHGLQDFFRUGDQFHZLWK7LWOH86&RGHRI
)HGHUDO5HJXODWLRQV
&)5
3DUWUniform
Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards
8QLIRUP
*XLGDQFH
" \HV ;QR
,GHQWLILFDWLRQRIPDMRUSURJUDPV
$VVLVWDQFH/LVWLQJ1XPEHU
V
1DPHRI)HGHUDO3URJUDPRU&OXVWHU
&RPPXQLW\'HYHORSPH QW%ORFN*UDQWV&OXVWHU
'LVDVWHU*UDQWV ±3XEOLF$VVLVWDQFH
&29,'
6WDWHDQG/RFDO)LVFDO5HFRYHU\)XQGV
'ROODUWKUHVKROGXVHGWRGLVWLQJXLVK
EHWZHHQW\SH$DQGW\SH%SURJUDP
$XGLWHHTXDOLILHGDVORZULVNDXGLWHH" ;\HV Q R 9 ATTACHMENT 1
&,7<2)1$3$&$/,)251,$
6FKHGXOHRI)LQGLQJVDQG4XHVWLRQHG&RVWV
)RUWKH<HDU(QGHG-XQH
6(&7,21,,),1$1&,$/67$7(0(17),1',1*6
5HIHUHQFH1XPEHU
±*UDQW3URJUDP$FWLYLW\
(YDOXDWLRQRI)LQGLQJ
0DWHULDO:HDNQHVV
&ULWHULD
7KH&LW\IDLOHGWRUHFRUGRIXQHDUQHGUHYHQXHUHODWHGWRWKH(QFDPSPHQW5HVROXWLRQ*UDQW3URJUDPLQ DGGLWLRQWRRIDFFUXHGUHYHQXHUHODWHGWRWKH&LW\&DSLWDO3URMHFWV)XQGVWDWHJUDQWDFWLYLW\
&RQGLWLRQ
7KH&LW\LVFXUUHQWO\LPSOHPHQWLQJLQWHUQDOFRQWUROVVXUURXQGLQJWKHWUDFNLQJRIYDULRXVJUDQWDFWLYLW\XWLOL]LQJVSHFLILHG DFFRXQWLQJVWUXFWXUHV'XULQJWUDQVLWLRQDU\SUHSDUDWLRQRIWKRVHLQWHUQDOFRQWUROVUHYHQXHDQGH[SHQGLWXUHVUHODWLQJWR WKH(QFDPSPHQW5HVROXWLRQ*UDQW3URJUDPZHUHLQDGYHUWHQWO\UHFR JQL]HGLQWKHLUHQWLUHW\GXULQJWKH\HDUHQGHG -XQH$GGLWLRQDOO\RIDFFUXHGUHYHQXHZDVLQDGYHUWHQWO\RPLWWHGZLWKLQWKH&LW\&DSLWDO3URMHFWV )XQGVWDWHJUDQWDFWLYLW\
&DXVHRI&RQGLWLRQ
0DQDJHPHQWRYHUVLJKWGXHWRWKHFRPPHQFHPHQWRIWUDQVLWLRQLQJW RDQHZLQWHUQDOFRQWUROVWUXFWXUH
(IIHFWRU3RWHQWLDO(IIHFWRI&RQGLWLRQ
7KH&LW\GLGQRWKDYHLQSODFHDV\VWHPDWLFPHWKRGIRUHQVXULQJDOOJUDQWDFWLYLW\SURSHUO\XWLOL]HVWKHFRUUHFWUHYHQXH UHFRJQLWLRQSROLF\
5HFRPPHQGDWLRQ
7KH&LW\VKRXOGSXWLQSODFHIRUPDOL]HGJUDQWWUDFNLQJVWUXFWXUHVWRHQVXUHHDFKLQGLYLGXDOJUDQWSURJUDPKDVVXIILFLHQW RYHUVLJKWDQGSURSHUO\DGKHUHVWRWKHFRUUHFWUHYHQXHUHFRJQLWLRQSROLFLHV
0DQDJHPHQW5HVSRQVH
0DQDJHPHQWDSSUHFLDWHVWKHUHFRPPHQGDWLRQWRIRUPDOL]HJUDQWWUDFNLQJVWUXFWXUHVWRHQVXUHVXIILFLHQWRYHUVLJKWDQG DGKHUHQFHWRSURSHUUHYHQXHUHFRJQLWLRQSROLFLHV:HUHFRJQL]HWKHFULWLFDOLPSRUWDQFHRIHQVXULQJWKDWHDFKJUDQW SURJUDPLVSURSHUO\WUDFNHGDQGPDQDJHGLQFRPSOLDQFHZLWKDSSOLFDEOHDFFRXQWLQJVWDQGDUGV
,QUHVSRQVHWRWKLVUHFRPPHQGDWLRQWKHIROORZLQJDFWLRQVZLOOEHWDNHQ
• :HZLOOUHYLHZDQGXSGDWHRXULQWHUQDO*UDQW0DQDJHPHQWSROLFL HVDQGSURFHGXUHVWRHQVXUHWKDWDOOJUDQWVDUH UHFRJQL]HGLQDFFRUGDQFHZLWKWKHDSSURSULDWHUHYHQXHUHFRJQLWLRQJXLGHOLQHVDQGDFFRXQWLQJVWDQGDUGVVXFKDV 86*$$3DQG*$6%
• :HZLOOHVWDEOLVKDFHQWUDOL]HGJUDQWPDQDJHPHQWV\VWHPWRHQV XUHWKDWHDFKLQGLYLGXDOJUDQWSURJUDPLVWUDFNHG WKURXJKRXWLWVOLIHF\FOH7KLVV\VWHPZLOOEHGHVLJQHGWRPRQLWRUNH\PLOHVWRQHVGLVEXUVHPHQWVDQGFRPSOLDQFH UHTXLUHPHQWV7KHV\VWHPZLOODOVRLQFOXGHVSHFLILFILHOGVIRUFDSWXULQJNH\GHWDLOVUHODWHGWRUHYHQXHUHFRJQLWLRQ VXFKDVJUDQWWHUPVIXQGLQJVRXUFHVDQGFRQGLWLRQVWKDWDIIHF WUHYHQXHUHFRJQLWLRQ • $GHGLFDWHGWHDPZLOOEHDVVLJQHGWRPDQDJHDQGRYHUVHHDOOJU DQWSURJUDPVHQVXULQJWKDWWKHUHLVDSSURSULDWH RYHUVLJKWDQGDFFRXQWDELOLW\IRUHDFKJUDQW7KLVWHDPZLOOZRUNFORVHO\ZLWKSURJUDPPDQDJHUVWRHQVXUHJUDQWV DUHEHLQJVSHQWLQDFFRUGDQFHZLWKERWKJUDQWDJUHHPHQWVDQG&L W\SROLFLHV
10 ATTACHMENT 1
&,7<2)1$3$&$/,)251,$
6FKHGXOHRI)LQGLQJVDQG4XHVWLRQHG&RVWV
)RUWKH<HDU(QGHG-XQH
6(&7,21,,),1$1&,$/67$7(0(17),1',1*6
&217,18('
5HIHUHQFH1XPEHU
±,QDGHTXDWH&RQWUROV2YHU)LQDQFLDO5HSRUWLQJ
(YDOXDWLRQRI)LQGLQJ
6LJQLILFDQW'HILFLHQF\
&ULWHULD
0DQDJHPHQW LV UHVSRQVLEOH IRU WKH SUHSDUDWLRQ DQG IDLU SUHVHQWDWLRQ DV ZHOO DV WKH DFFXUDF\ RI LWV ILQDQFLDO VWDWHPHQWVLQFOXGLQJGLVFORVXUHVLQDFFRUGDQFHZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHV RI$PHULFD7KLVLQFOXGHVWKHGHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRILQWHUQDOFRQWUROVUHOHYDQWWRWKHSUHSDUDWLRQ DQGIDLUSUHVHQWDWLRQRIILQDQFLDOVWDWHPHQWVWKDWDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRHUURURUIUDXG
&RQGLWLRQ
'XULQJWKHDXGLWZHQRWHGWKHIROORZLQJFRQGLWLRQVWKDWUHVXOW HGLQDXGLWDGMXVWPHQWVWRWKHILQDQFLDOVWDWHPHQWV
$FFXUDF\LQ([WHUQDO)LQDQFLDO5HSRUWLQJ
7KH\HDUHQGFORVLQJSURFHVVGLGQRWHQVXUHWKDWDFFRXQWEDODQFHVZHUHUHFRQFLOHGWRLQWHUQDODFFRXQWLQJUHFRUGVLQ DGYDQFHRIWKHDXGLWUHTXLULQJPXOWLSOHFRUUHFWLQJHQWULHVSURYLGHGE\WKH&LW\,WDSSHDUVWKHVHHUURUVZHUHSULPDULO\ FDXVHGE\FOHULFDOHUURUVEHWZHHQ)XQGVUHFODVVLILFDWLRQVRISULRUUHSRUWHGLQIRUPDWLRQDQGFHUWDLQFRUUHFWLQJHQWULHV UHVXOWLQJIURPVXEVHTXHQWWULDOEDODQFHUHYLHZE\&LW\SHUVRQQH O
&DXVHRI&RQGLWLRQ
'XH WR QHFHVVDU\ DGMXVWPHQWV DQG UHFODVVLILFDWLRQV LGHQWLILHG E \ &LW\ SHUVRQQHO FRUUHFWLQJ HQWULHV IRU WKH DIRUHPHQWLRQHGLWHPVZHUHQHFHVVDU\WRHQVXUHSURSHUSUHVHQWDWL RQIRUILQDQFLDOVWDWHPHQWSXUSRVHV
(IIHFWRU3RWHQWLDO(IIHFWRI&RQGLWLRQ
7KH&LW\GLGQRWKDYHLQSODFHDV\VWHPDWLFPHWKRGIRUHQVXULQJWKDWWLPHO\DQGFRPSOHWH\HDUHQGFORVLQJSURFHGXUHV ZHUHLQRSHUDWLRQEHIRUHSUHVHQWLQJWKHILQDOWULDOEDODQFHWRWKHDXGLWRUVUHVXOWLQJLQDQXPEHURIMRXUQDOHQWULHVPDGH WRFRUUHFWRUWRUHFODVVLI\EDODQFHVLQWKHILQDQFLDOVWDWHPHQW VWKDWVKRXOGKDYHEHHQFDSWXUHGWKURXJKWKHFORVLQJ SURFHVV7KRVHDGMXVWPHQWVKDYHEHHQUHSRUWHGDQGSRVWHGE\WKH &LW\
5HFRPPHQGDWLRQ
7KH&LW\VKRXOGSXWLQSODFHIRUPDOL]HG\HDUHQGFORVLQJSURFHGXUHVWRHQVXUHWKHFORVHLVFRPSOHWHDQGUHGXFHWKH QXPEHURIMRXUQDOHQWULHVQHHGHGDQGHUURUVIRXQGLQWHUQDOO\DI WHUWKHFORVLQJSURFHVVKDVEHHQFRPSOHWHG:H VXJJHVW PDQDJHPHQW DOVR HVWDEOLVK HIIHFWLYH UHYLHZ SROLFLHV DQG SURFHGXUHV LQFOXGLQJ EXW QRW OLPLWHG WR DSSO\ DQDO\WLFDOSURFHGXUHVRQWKHWULDOEDODQFHQXPEHUVDQGSHUIRUP UHFRQFLOLDWLRQVRIDOOVLJQLILFDQWDFFRXQWV
0DQDJHPHQW5HVSRQVH
0DQDJHPHQWDSSUHFLDWHVWKHUHFRPPHQGDWLRQWRIRUPDOL]H\HDUHQGFORVLQJSURFHGXUHVWRHQVXUHWKHFRPSOHWHQHVV DQGDFFXUDF\RIWKHFORVH:HXQGHUVWDQGWKHLPSRUWDQFHRIDVWUHDPOLQHGDQGHUURUIUHHFORVLQJSURFHVVWRHQVXUH ILQDQFLDOUHSRUWLQJLQWHJULW\
,QUHVSRQVHWRWKLVUHFRPPHQGDWLRQWKHIROORZLQJDFWLRQVZLOOEHWDNHQ
• :HZLOOLPSOHPHQWDFRPSUHKHQVLYH\HDUHQGFORVLQJFKHFNOLVWW KDWLQFOXGHVGHWDLOHGVWHSVIRUHDFKSKDVHRIWKH FORVLQJSURFHVV
• :HZLOOFRQGXFWDUHYLHZRIWKHFXUUHQWMRXUQDOHQWU\SURFHVV WRLGHQWLI\DQGHOLPLQDWHDQ\XQQHFHVVDU\HQWULHV :HZLOODOVRSURYLGHDGGLWLRQDOWUDLQLQJIRUVWDIIWRUHGXFHWK HRFFXUUHQFHRIPDQXDOHUURUV • :HZLOOHQKDQFHWKHUHFRQFLOLDWLRQSURFHVVIRUDOOVLJQLILFDQW DFFRXQWVHQVXULQJWKDWUHFRQFLOLDWLRQVDUHFRPSOHWHG LQDWLPHO\PDQQHUDQGUHYLHZHGE\VHQLRUILQDQFHVWDII • :HZLOOLPSOHPHQWDQDO\WLFDOUHYLHZSURFHGXUHVWRLGHQWLI\DQ\ XQXVXDOIOXFWXDWLRQVRUGLVFUHSDQFLHVLQWKHWULDO EDODQFHDQGLQYHVWLJDWHWKHPWKRURXJKO\EHIRUHWKHFORVHLVILQDOL]HG 11 ATTACHMENT 1
&,7<2)1$3$&$/,)251,$
6FKHGXOHRI)LQGLQJVDQG4XHVWLRQHG&RVWV
)RUWKH<HDU(QGHG-XQH
6(&7,21,,,)('(5$/$:$5'),1',1*6$1'48(67,21('&2676
1RPDWWHUVZHUHUHSRUWHG
12 ATTACHMENT 1
City Hall: 955 School Street, Napa CA 94559 ⏐ Mailing Address: P.O. Box 660, Napa CA 94559 ⏐ (707) 257-9500 ⏐ www.cityofnapa.org
6XPPDU\6FKHGXOHRI3ULRU<HDU)LQGLQJVDQG4XHVWLRQHG&RVWV )RUWKH<HDU(QGHG-XQH
)LQGLQJ6LJQLILFDQW'HILFLHQF\,QWHUQDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJ
7KLVLWHPZDVFRUUHFWHGDVRI-XQH
13 ATTACHMENT 1