Agenda packet — Finance & Governance Committee, April 23, 2024

Written materials relating to an item on this agenda that are distributed to the legislative bodies within 72 hours before the item is to be considered at its regularly scheduled meeting will be made available for public inspection at the City Clerk’s Office, 300 West Third Street 4th Floor during customary business hours. Agenda reports are also on the City of Oxnard web site at www.oxnard.org.

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Agenda Item Time Estimates include: (Minutes for Presentation + Council Discussion + Public Comment)

AGENDA

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Council Chambers, 305 West Third Street
April 23, 2024
Regular Meeting - 5:00 to 6:30 PM

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1 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
April 23, 2024 - Page 2

b. Public comments on agenda items will be taken following the announcement of the item. After the item is announced, members of the public may register or otherwise be recognized for the purpose of providing public comment.

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A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
Consideration of Teleconference Participation pursuant to Assembly Bill 2449.

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.

C. CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the April 9, 2024 regular meeting as presented.

Contact: Rose Chaparro, (805) 385-7805
D. REPORTS

1. Finance Department
SUBJECT: Presentation of Single Audit Report. (20 Minutes)

RECOMMENDATION: That the Finance and Governance Committee receive the 2023 Single Audit Report from the audit firm Eadie + Payne and recommend staff to forward presentation to the City Council.

(Eadie + Payne Presentation will be live upon consultant's request).

Contact: Javier Chagoyen-Lazaro, (805) 200-5400

2. Finance Department
SUBJECT: Update on the Financial Corrective Action Plan (FCAP) for Closing Past Audit Findings. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee receive an update on the Financial Corrective Action Plan (FCAP) for closing past audit findings and recommend staff forward the presentation to City Council.

2 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
April 23, 2024 - Page 3

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/rSQA2H21imA
Contact: Javier Chagoyen-Lazaro, (805) 200-5400
E. ITEMS FOR FUTURE AGENDAS

F. ADJOURNMENT

3 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

CONSENT AGENDA
AGENDA ITEM NO. C.1

DATE: April 23, 2024

TO: Finance & Governance Committee

FROM: Rose Chaparro, City Clerk, (805) 385-7805, [email protected]

SUBJECT: Approval of Minutes.

RECOMMENDATION

That the Finance & Governance Committee approve the minutes of the April 9, 2024 regular meeting as presented.

BACKGROUND

Approval of Minutes.

STRATEGIC PRIORITIES

This agenda item is a routine operational item.

FINANCIAL IMPACT

There is no financial impact.

Prepared by: Rose Chaparro, City Clerk

ATTACHMENTS

1. MINUTES 04 09 2024 Finance & Governance

4 MINUTES

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Regular Meeting
April 9, 2024

A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
At 5:01 p.m., Chair John C. Zaragoza called to order the regular meeting of the Oxnard City Council Finance and Govern ance Committee in the City Hall Council Chambers at 305 W. Thi rd Street, Oxnard, California. The City Clerk called the roll and announced the posting of the agenda. Chair John C. Zaragoza and Member Gabe Teran were present in person. Member Gabriela Basua joined the meeting at 5:05 p.m.

Consideration of Teleconference Participation pursuant to Assembly Bill 2449.

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

Public comments were received from Steven Sutler (Wagon Wheel exercise equipment and bike lane).

C. CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the March 26, 2024, regular meeting as presented.

It was mo ved by Memb er Teran, seconded by Member Basua , to approve the Information/Consent item as pre sented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-0.

D. REPORTS

1. Information Technology Department
SUBJECT: Fourth Amendment to Agreement A-8011 with Superion LLC, a CentralSquare Company, for Information Technology Software and Services.

RECOMMENDATION: That the Finance and Governance Committee recommend that City Council approve and authorize the Mayor to execute a Fourth Amendment to Software License Agreement A-8011 with Superion LLC, a CentralSquare Company, in the amount of $327,800 for FY24-25 with a new not-to-exceed total agreement amount of $2,398,781 for information technology software and services.

Robert Ruben, Chief Information Officer was available to answer the Committee’s questions. 5 April 9, 2024 OXNARD CITY COUNCIL PAGE 2

FINANCE & GOVERNANCE COMMITTEE

No public comments were received.

It was moved by Member Basua, seconded by Member Teran, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3 -

0. 2. Finance Department
SUBJECT: Amendment to External Auditor Agreement for Annual Auditing Services.

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council approve and authorize the Mayor to execute the Second Amendment to Agreement A-8223 with Eadie + Payne, LLP, to increase the amount by $62,700, for a total amended not-to-exceed amount over 5 years of $1,157,800 for FY 2022-23 and FY 2023-24 Annual Comprehensive Financial Reporting (ACFR)/Single-Audit/Ancillary Assistance.

Javier Chagoyen Lazaro, Chief Financial Officer introduced Eden Casareno, Partner In - Charge of Attest Services with Eadie+Payne , who presented and answered the Committees questions. No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Member Teran, seconded by Member Basua, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. E. ITEMS FOR FUTURE AGENDAS (No requests were made.)

F. ADJOURNMENT
There being no further business on the agen da, and without objection, Chair Zaragoza adjourned the meeting at 5:21 p.m.

ROSE CHAPARRO JOHN C. ZARAGOZA
City Clerk Chair

6 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.1

DATE: April 23, 2024

TO: Finance & Governance Committee

FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, (805) 200-5400, [email protected]

SUBJECT: Presentation of Single Audit Report. (20 Minutes)

RECOMMENDATION

That the Finance and Governance Committee receive the 2023 Single Audit Report from the audit firm Eadie + Payne and recommend staff to forward presentation to the City Council.

(Eadie + Payne Presentation will be live upon consultant's request).

BACKGROUND

The Single Audit is a rigorous, organization-wide audit of the City’s grant funded programs that expend $750,000 or more of federal grants or assistance. The objective of the Single Audit is to provide assurance to the federal government as to the management and use of such funds by the City. The audit is performed by the City’s independent auditor, Eadie + Payne, LLP, and the report is issued annually showing the City of Oxnard’s expenditures of federal awards. Eadie + Payne, LLP will present its audit opinion of the City of Oxnard Single Audit Report for the fiscal year ending June 30, 2023.

STRATEGIC PRIORITIES

This agenda item supports the Organizational Effectiveness strategy. The purpose of the Organizational Effectiveness strategy is to reinforce, stabilize, improve, and strengthen the organizational foundation of the City in order to build a modern, high-functioning City government that effectively and efficiently supports the operating departments in providing high-quality services and programs for our residents and businesses.

FINANCIAL IMPACT

There is no financial impact.

Prepared by: Beth Vo, Assistant Chief Financial Officer

ATTACHMENTS

1. 2023 Single Audit Report

2. 2023 Single Audit Presentation

7 SINGLE AUDIT
REPORT
8 CITY OF OXNARD

CONTENTS
JUNE 30, 2023
PAGE
Independent Auditor's 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 Auditor's Report on Compliance for Each Major Program; Report on Internal Control over Compliance in Accordance with Uniform Guidance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ...................... 3 Schedule of Expenditures of Federal Awards and Schedule of Findings and Questioned Costs Schedule of Expenditures of Federal Awards ........................... 7 Notes to the Schedule of Expenditures of Federal Awards .................... 10 Schedule of Findings and Questioned Costs ........................... 11 9 3880 Lemon St., Ste. 300
Riverside, CA 92501
P.O. Box 1529
Riverside, CA 92502-1529
951-241-7800
www.eadiepaynellp.com
1 INDEPENDENT AUDITOR'S 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 The Honorable City Council
City of Oxnard
Oxnard, California
We have au
dited, 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, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Oxnard, California (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 23, 2024. Our report includes a reference to other auditors who audited the financial statements of Oxnard Housing Authority, as described in our report on the City's basic 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.

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.

10 2
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 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.

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 entity’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 control and compliance. Accordingly, this communication is not suitable for any other purpose.

Riverside, California
March 22, 2024
11 3880 Lemon St., Ste. 300
Riverside, CA 92501
P.O. Box 1529
Riverside, CA 92502-1529
951-241-7800
www.eadiepaynellp.com
-3-
INDEP

ENDENT AUDITOR'S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM; REPORT ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH UNIFORM GUIDANCE; AND REPORT ON THE

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY

THE UNIFORM GUIDANCE
The Honorable City Council
City of Oxnard
Oxnard, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Oxnard's (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, 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.

The City's basic financial statements include the operations of the Oxnard Housing Authority, which expended $
30,777,385 in Federal awards during the year ended June 30, 2023 which is not included in the City’s schedule of expenditures of Federal awards. Our audit, described below, did not include the operations of the Oxnard Housing Authority, because it engaged other auditors to perform an audit in accordance with the Uniform Guidance.

In our opinion, the City complied, in all material respects, with the 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 conduct
ed our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); 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. 12 -4-
We are requ
ired 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 th e
circumstances.
 Obtain an u
nderstanding 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.

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 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.

13 -5-
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 inte rnal 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 si gnificant 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.

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
We have audited the financial statements of the gover nmental activities, 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, 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 23, 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 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 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.

Riverside, California
March 22, 2024
14 -6-

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
15 -7-

CITY OF OXNARD

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2023
Federal
Assistance Program Total Total Amount
Federal Grantor/Pass-through Listing Identification Program Provided to Grantor/Program Title Number Number Expenditures Subrecipients U.S. Department of Housing and Urban Development
CDBG - Entitlement Grants Cluster
Direct Program
Community Development Block Grants/Entitlement Grants 14.218 B-17-MC-06-0534 363,253 $ -$ B-19-MC-06-0534 40,327 -
B-22-MC-06-0534 772,537 74,372
COVID-19 Community Development Block Grants CARES Act 14.218 B-20-MW-06-0534 89,649 79,442 Total CDBG - Entitlement Grants Cluster 1,265,766 153,814 Direct Program
Emergency Solutions Grants Program 14.231 E-21-MC-06-0534 180,567 172,796 E-22-MC-06-0534 72,997 64,997
COVID-19 Emergency Solutions Grants - CARES Act 14.231 E-20-MW-06-05-34 697,164 697,184 950,728 934,977
Direct Program
HOME Investment Partnership Program 14.239 M-22-MC060526 2,680,580 - HOME Investment Partnership Program - Home ARP 14.239 M-21-MC-06-0526 46,345 - 2,726,925 -
Total U.S. Department of Housing and Urban Development 4,943,419 1,088,791 U.S. Department of Homeland Security
Passed through the County of Ventura
FY 2020 Homeland Security Grant Program -USAR 97.067 2020-0095 30,000 - FY 2020 Homeland Security Grant Program -CERT 97.067 2020-0095 2,788 - FY 2021 Homeland Security Grant Program -CERT 97.067 2021-0081 1,704 - Emergency Management Performance Grant FY21 97.067 2021-0015 36,393 - 70,885 -
Passed through the County of Ventura
FEMA Assistance to Firefighters Grant FY20 Medic Monitors and AEDs 97.044 EMW-2020-FG-18234 301,276 - FEMA Assistance to Firefighters Grant FY20 Portable Radios 97.044 EMW-2020-FG-18616 205,227 - 506,503 -
Direct Program
FEMA-Assistance to Firefighters Grant FY19 97.044 EMW-2019-FG-09826 85,098 - FEMA-Assistance to Firefighters Grant FY19 97.044 EMW-2019-FG-09714 21,353 - FEMA-Assistance to Firefighters Grant FY20 97.044 EMW-2020-FG-13213 256,255 - FEMA-Fire Prevention & Safety Grant FY20 (FP&S Smoke) 97.044 EMW-2020-FP-00777 25,333 - 388,039 -
894,542 -
Direct Program
FEMA-Staffing for Adequate Fire and Emergency Response FY20 97.083 EMW-2020-FF-01126 301,465 - SAFER-Staffing for Adequate Fire & Emergency Response Grant FY2021 97.083 EMW-2021-FF-01664 155,762 - 457,227 -
Passed through the California Office of Emergency Services

97.039 HMGP #4407-431-079R 130,824 -
FEMA - Hazard Mitigation Grant - OWTP Generator 97.039 HMGP #4353-189-036R 1,825,382 - 1,956,206 -
Total U.S. Department of Homeland Security 3,378,860 - FEMA - Hazard Mitigation Grant - Central Trunk Sanitary Sewer See accompanying notes to
Schedule of Expenditures of Federal Aw ards and Independent Auditor's Report on Compliance for Each Ma jor Program; Report on Internal Control over Compliance; and Report on the Schedule of Expenditures of Federal Awards required by the Uniform Guidance.
16 -8-

CITY OF OXNARD
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023

Federal
Assistance Program Total Total Amount
Federal Grantor/Pass-through Listing Identification Program Provided to Grantor/Program Title Number Number Expenditures Subrecipients U.S. Department of Justice
Direct Program
Equitable Sharing Program 16.922 CA0560400-NCIC 72,587 - 72,587 -
Direct Program
FY18 Edward Byrne Justice Assistance Grant (JAG) 16.738 2018-DJ-BX-0852 63,173 23,330 FY19 Edward Byrne Justice Assistance Grant (JAG) 16.738 2019-DJ-BX-0688 71,075 11,138 FY20 Edward Byrne Justice Assistance Grant (JAG) 16.738 2020-DJ-BX-0781 18,238 - 152,486 34,468
Passed through the County of Ventura Sheriff Department FY21 National Sexual Assault Kit Initiative(SAKI) 16.833 VTA CO SHERIFF-VSCO SAKI 20,659 - 20,659 -
Total U.S. Department of Justice 245,732 34,468 U.S. Department of Transportation
Highway Planning and Construction Cluster
Passed through the State of California Department
of Transportation
Northside Vta Blvd. Between Balboa & Rose Avenue 20.205 CML-5129 (078) 1,277,490 - Traffic Signal Various Locations 20.205 HSIPL 5129 (093) 136,235 - City Wide Signal Mod 20.205 HSIPL 5129 (095) 2,227,173 - Channel Island Blvd over Mandalay Bay - Bridge 20.205 BHLS-5129 (069) 570,359 - Channel Island Blvd over Edison Canal - Bridge 20.205 BHLS-5129 (070) 732,308 - Total Highway Planning and Construction Cluster 4,943,565 - Highway Safety Cluster
Passed through the State of California Office of
Traffic Safety
OTS Pedestrian & Bicycle Safety Program-2022 20.600 PS22009 5,441 - OTS Traffic Enforcement - 2022 20.600 PT22050 30,815 - OTS Traffic Enforcement - 2023 20.600 PT23136 99,330 - Total Highway Safety Cluster 135,586 -
Minimum Penalties for Repeat Offenders for Driving While Intoxicated Passed through the State of California Office of
Traffic Safety
OTS Traffic Enforcement - 2022 20.608 PT22050 74,075 - OTS Traffic Enforcement - 2023 20.608 PT23136 183,749 - 257,824 -
Total U.S. Department of Transportation 5,336,975 - Corporation for National and Community Service
Direct Program
Retired and Senior Volunteer Program FY22-23 94.002 19SRPCA007 62,063 - 62,063 -
Total Corporation for National and Community Service 62,063 -

See accompanying notes to Schedule of Expenditures of Federal Aw ards and Independent Auditor's Report on Compliance for Each Ma jor Program; Report on Internal Control over Compliance; and Report on the Schedule of Expenditures of Federal Awards required by the Uniform Guidance.

17 -9-

CITY OF OXNARD
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023

Federal
Assistance Program Total Total Amount
Federal Grantor/Pass-through Listing Identification Program Provided to Grantor/Program Title Number Number Expenditures Subrecipients U.S. Department of Health and Human Services
Pass through the California Department of Public Health Through County of Ventura
COVID-19 ELC Enhancing Detection Expansion Funding N/A COVID-19ELC114 51,940 - 51,940 -
Aging Cluster
Pass through the County of Ventura Area Agency on Aging Special Programs for the Aging, Senior Nutrition Services 93.045 3500FY23-05 149,245 - Total Aging Cluster 149,245 -
Total U.S. Department of Health and Human Services 201,185 - U.S. Department of Treasury
Direct Program
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 9,630,698 332,329 9,630,698 332,329
Passed through California Water Resources Control Board

21.027 CA5610007-01 552,267 -
552,267 -
10,182,965 332,329
Passed through California Department of Treasury
Emergency Rental Assistance Round 1 (Administrative Cost) 21.023 21-ERAP-10003 18,864 - 18,864 -
Total U.S. Department of the Treasury 10,201,829 332,329 U.S. Environmental Protection Agency
Direct Program

66.808 98T18001 25,752 -
25,752 -
Total U.S. Department of Protection Agency 25,752 - Total Direct Program 15,732,271 1,455,588
Total Pass Through 8,663,544 -
TOTAL EXPENDITURES OF FEDERAL AWARDS 24,395,815$ 1,455,588 $ Solid Waste Management Assistance Grants
Coronavirus State &Local Fiscal Recovery-Wastewater Arrearage Payment Program

CITY OF OXNARD

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2023

1. BASIS OF PRESENTATION
The accom
panying schedule of expenditures of Federal awards (Schedule) includes the Fed eral award activit
y of City of Oxnard (City) under programs of the Federal government for the year ended June
30, 2023. The information in this Schedule is presented in accordance with the r equirements 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). Because t he Schedule pr
esents 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 assets, or cash flows of the City. It does no t include the
Federal award activity of Oxnard Housing Authority, a blended component unit of the City, which expended $30,777,385 in Federal awards.

2. SUMMA

RY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule 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.

3. INDIRE

CT COST RATE
The City has not elected to use the 10% de minimis indirect cost rate.

4. FEDERALL

Y-FUNDED LOANS
The City administers loans, primarily forgivable l oans, made from funds provided by the following Federal programs for the year ended June 30, 2023:

LOANS

FEDERAL PROGRAMS OUTSTANDING
Community Development Block Grants
(Assistance Listing #14.218) 3,624,330 $
HOME Investment Partnership Program
(Assistance Listing #14.239) 11,973,906
19 -11-

CITY OF OXNARD

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2023

SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP:

Internal control over financial reporting:
• Material weaknesses identified? Yes x No
• Significant deficiencies identified? Yes x None reported Noncompliance material to financial statements noted: Yes x No Federal Awards
Internal control over major programs:

Material weaknesses identified? Yes x No
Significant deficiences identified? Yes x None reported Type of auditor's report issued on compliance
for major programs:

Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)? Yes x No Identification of major programs:

CFDA No. Name of Federal Program or Cluster

14.239 HOME Investment Partnership Program

97.044 Assistance to Firefighters Program

97.039 Hazard Mitigation Grant Program

20.205 Highway Planning and Construction Cluster

21.027 COVID-19 - Coronavir us State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between
type A and type B programs: $750,000
Auditee qualified as low-risk auditee?
x
Y e s N o
Unmodified
Unmodified
20 -12-

CITY OF OXNARD
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
INDEX

CURRENT YEAR

MAJOR FEDERAL AWARD PROGRAMS
None

FINANCIAL STATEMENTS

PRIOR YEAR

FINANCIAL STATEMENTS
2020-001
None
Information Technology (IT) General Controls
21 -13-

CITY OF OXNARD
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023

FINDINGS AND QUESTIONED COSTS – MAJOR PROGRAMS

None

FINDINGS AND QUESTIONED COSTS – FINANCIAL STATEMENTS

None

22 -14-

CITY OF OXNARD

SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2023
FINDIN

GS AND QUESTIONED COSTS - FINANCIAL STATEMENTS
2020-001 – Information Technology (IT) General Controls (SD) Criteria: IT
general controls (ITGC) are basic controls applied to IT systems. The objectives of ITGC are to ensure the integrity of data and processes that the IT systems support. ITGC have a pervasive effect on the City’s system of internal control over financial reporting.

Condition: We evaluated the design and implementation of ITGCs and noted 12 findings. We communicated such findings to the IT Department. Because those findings reveal vulnerabilities to, or otherwise increase the potential for an attack on, the information technology systems of the City, the details of the findings will not be published in this document. They will, however, be communicated to the City Council via a separate confidential written report.

Repeat of a Prior-Year Finding: 5 out of 12 were repeat findings Recommendation: Our recommendations will be communicated to the City Council via a separate confidential written report.

City’s Response 2023: The City’s corrective action plan will be communicated to the City Council via a separate confidential written report. The auditors will follow up on the City’s implementation of its corrective action plan in the next audit.

EP's Comment 2023: In progress
(SD – Significant Deficie
ncy)
23 Single Audit Report for
Fiscal Year Ended June 30, 2023
Finance & Governance
Committee
April 23, 2024
24 1 Introduction
2 Schedule of Expenditures of Federal
Awards (SEFA)
3 Major Program
4 Internal Control Findings
5 Management Recommendations
AGENDA
Finance & Governance Committee | April 23, 2024
25 Measure O Citizen Oversight Board Meeting | January 27, 2022 Finance & Governance Committee | April 23, 2024
Introduction
•Single Audit Report
• Internal Control Report Required by Government Auditing Standards • Report on Compliance for Each Major Program
• Report on Internal Control on Internal Control over Compliance • Report on the Schedule of Expenditures of Federal Awards 1 26
Measure O Citizen Oversight Board Meeting | January 27, 2022 Finance & Governance Committee | April 23, 2024
Schedule of Expenditures of Federal Awards (SEFA)
• Total Expenditures $24.40M
• Major Programs 5*
• Total Programs 20
2 *Five major programs exceed the threshold of $750K. Four of the major programs have not been tested in the past two years. ARPA is required to be tested as a higher risk program. 27 Measure O Citizen Oversight Board Meeting | January 27, 2022 Finance & Governance Committee | April 23, 2024
Major Program 3
28 Measure O Citizen Oversight Board Meeting | January 27, 2022 Finance & Governance Committee | April 23, 2024
•No internal control findings in FY2023
•Prior year findings
•Financial Statements – In Progress
•2020-001Information Technology (IT) General
Controls
Internal Control Findings 4
29 Measure O Citizen Oversight Board Meeting | January 27, 2022 Finance & Governance Committee | April 23, 2024
• Conducting investment policy review
• Conducting investment statements review frequently
• Conducting journal entries review for GASB87 and GASB96 • Implementing strategies to address information technology risk assessment findings on Tyler Munis
5Management Recommendations
30 THANK
YOU!
Eden C. Casareno
[email protected]
909.809.7662
31 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.2

DATE: April 23, 2024

TO: Finance & Governance Committee

FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, (805) 200-5400, [email protected]

SUBJECT: Update on the Financial Corrective Action Plan (FCAP) for Closing Past Audit Findings. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee receive an update on the Financial Corrective Action Plan (FCAP) for closing past audit findings and recommend staff forward the presentation to City Council.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/rSQA2H21imA

BACKGROUND

The City’s annual audit for FY 2014-15 produced 111 single-audit findings. These findings primarily concerned the City's policies and procedures (or lack thereof) for accounting and financial management. Between fiscal year 2016 through the fiscal year ended June 30, 2018, the City’s annual audits continued to identify new findings in the double digits. For FY 2019-20, there was one additional audit finding, for Information Technology General Controls, which was communicated to City Council via a separate confidential written report due to its sensitive nature. For FY 2020-21, there was one new finding for accounting and financial management, but only two earlier audit findings remained unresolved, and there were no material weaknesses. For FY 2021-22, there were no new findings for accounting and financial management; only two prior findings remained unresolved. FY 2021-22 was the third year in a row where the City had no material weaknesses. For FY 2022-23, there were no new findings for accounting and financial management (for the second year in a row); only one prior finding remains unresolved. Below is a table summarizing audit finding history.

History of Findings by Fiscal Year A
# of New Finding
B
# of Repeat Findings
C = (A+B) + Prior Year C
Total # of Findings
FY 2014-15 111 0 111
FY 2015-16 5 0 116
FY 2016-17 10 9 135
FY 2017-18 24 13 172
32 FY 2018-19 8 3 183
FY 2019-20 1 0 184
FY 2020-21 1 1 186
FY 2021-22 0 0 186
FY 2022-23 0 0 186

In order to correct the various accounting and financial management audit findings, the City was required to produce a Corrective Action Plan, or CAP. This plan, updated annually, addresses all unresolved findings, and the steps and timeline to correct them. Staff created a detailed audit scorecard, and began presenting it to the Finance & Governance Committee, and to City Council, every six months.

DISCUSSION

During our FY 22-23 Single Audit, Eadie + Payne determined that the City sufficiently completed the corrective action plan for the finding identified in the FY 20-21 audit related to updating the Indirect Cost Allocation Plan. This means the Finance Department has closed out all audit findings!

Only one finding remains outstanding, the finding related to the Information Technology General Controls.

This finding has 18 parts. Per our auditor, six parts have been completed and two are no longer required, so ten parts remain. We have continued to make progress on the corrective actions for the finding. The City Council will continue to receive updates on the IT General Controls finding through separate confidential reports.

STRATEGIC PRIORITIES

FINANCIAL IMPACT

There is no financial impact.

Prepared by: Jennifer Hiraoka, Senior Manager Internal Controls

ATTACHMENTS

1. Update on the Financial Corrective Action Plan for Closing Past Audit Findings

33 UPDATE ON THE FINANCIAL

CORRECTIVE ACTION PLAN FOR

CLOSING PAST AUDIT FINDINGS
Presentation to Finance and Governance Committee
Jennifer Hiraoka, Senior Manager Internal Controls
April 23, 2024
34 RECOMMENDATION 2
That Finance & Governance Committee receive the update
on the Financial Corrective Action Plan (CAP) for closing past audit findings and recommend staff forward the
presentation to City Council.
35 AGENDA 3
• Status of Financial Corrective Action Plan
• Continued progress
36 CAP STATUS DEFINITIONS 4
Complete – Auditors have tested and determined that corrective action for the finding has been effectively implemented To Be Tested – Policies and Procedures (P&P) approved (if applicable), training completed and corrective action ready for auditors to test during the next single audit
P&P Draft – P&P drafted but not yet approved by CFO and/or training not yet provided.

In Progress – Staff has taken steps towards implementation, but not yet drafted P&P or completed training
Not Started – Staff has not initiated mitigations, implemented resolutions or provided training
Passed/No Longer Required – Staff disagrees with the finding and/or auditors have determined corrective action is no longer required
37 CORRECTIVE ACTION PLAN STATUS AS REPORTED IN OCTOBER 2023
5 FINDINGS STATUS (2015-2022)
(as of October '23)

MATERIAL

WEAKNESS

SIGNIFICANT

DEFICIENCY
Non-
Compliance
Best
Practice TOTAL
TOTAL Findings 72 78 17 19 186
Repeat Findings (7) (12) (4) (4) (27)
TOTAL Unique Findings 65 66 13 15 159

COMPLETE 63 61 7 12 143
Passed / No Longer Required 2 3 6 3 14
TO BE TESTED 0 0 0 0 0
P&P DRAFT 0 0 0 0 0
IN PROGRESS 0 2 0 0 2
NOT STARTED 0 0 0 0 0

TOTAL Unresolved Findings 0 2 0 0 2
38 ONE AUDIT FINDING CLEARED DURING FY 22-23 SINGLE AUDIT – ONLY

ONE AUDIT FINDING REMAINS OPEN
6 o During our FY 22-23 Single Audit, Eadie + Payne determined that the City sufficiently completed the corrective action plan for the finding identified in the FY 20-21 audit related to Updating the Indirect Cost Allocation Plan [Finance Department] – new cost allocation plan was completed and is being implemented with the FY 24-25 budget
o Only one (1) outstanding finding remains “In Progress” and was not ready “To Be Tested” during Eadie+Payne’s Single Audit in February 2024
39 7
FINDINGS STATUS (2015-2023)
(as of April ‘24)

MATERIAL

WEAKNESS

SIGNIFICANT

DEFICIENCY
Non-
Compliance
Best
Practice TOTAL
TOTAL Findings 72 78 17 19 186
Repeat Findings (7) (12) (4) (4) (27)
TOTAL Unique Findings 65 66 13 15 159

COMPLETE 63 62 7 12 144
Passed / No Longer Required 2 3 6 3 14
TO BE TESTED 0 0 0 0 0
P&P DRAFT 0 0 0 0 0
IN PROGRESS 0 1 0 0 1
NOT STARTED 0 0 0 0 0

TOTAL Unresolved Findings 0 1 0 0 1
CORRECTIVE ACTION PLAN STATUS AS OF APRIL 2024
FY 2023 SINGLE AUDIT RESULTED IN NO

ADDITIONAL FINDINGS
Second year in a row – no new audit findings!
40 REMAINING AUDIT FINDING
The one (1) outstanding remaining finding:

Prior Audit Finding:
⮚ Information Technology (IT) General Controls [IT
Department] – City Council continues to receive updates via separate confidential reports
8 41
COMPLIANCE IMPROVEMENT 9
*Includes all unique findings excluding “Complete” or “Passed/No Longer Required” status Unresolved Audit Findings
Mar '19 Oct '19 Mar '20 Oct '20 Mar '21 Oct '21 Apr '22 Oct '22 Feb '23 Oct '23 Apr '24 0 10
20 30
40 50
60 70
80 90
100
87 57
53 16
5 5 3 3 2 2 1
COUNT OF UNRESOLVED* FINDINGS 2015-2024

BEST PRACTICE

NONCOMPLIANCE

SIGNIFICANT DEFICIENCY

MATERIAL WEAKNESS

TOTAL UNRESOLVED FINDINGS
Corrective Action Plan Status as of
42 o Two years in a row with no new audit findings
o Implementing the new Cost Allocation Plan with the FY 24-25 budget.
o Continue Targeted Risk Assessment focusing on:
o Vendor Master Maintenance
o Grants
o Purchasing Cards
o Capital Assets
o Continue to update financial processes and procedures during the ERP stabilization period.
o Continually training on governmental GAAP and GASB
updates and other relevant topics.

PROGRESS CONTINUES 10
43 Questions?
11 44

Finance & Governance CommitteeApril 23, 2024

Finance & Governance Committee
April 23, 2024