CITY OF PASADENA, CALIFORNIA
SINGLE AUDIT OF FEDERALLY ASSISTED
GRANT PROGRAMS
YEAR ENDED JUNE 30, 2022
ATTACHMENT M
CITY OF PASADENA TABLE OF CONTENTS YEAR ENDED JUNE 30, 2022 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 STANDARDS1INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 3SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 1SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 1 (1)
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 Honorable Mayor and Members of the City Council of the City of Pasadena Pasadena, 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, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Pasadena, California (the City), as of and for the year ended June 30, 2022 to binder, and the related notes to the financial statements, which collectively comprise the Citys basic financial statements and have issued our report thereon dated March 17, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Citys 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 Citys internal control. Accordingly, we do not express an opinion on the effectiveness of the Citys 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 entitys financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all 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. CLA CliftonLarsonAllen LLP
Honorable Mayor and Members of the City Council of the City of Pasadena (2)
Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Citys 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 entitys internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entitys internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Irvine, California March 17, 2023
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. SeeCLAglobal.com/disclaimer. (3)
INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of the City Council of the City of Pasadena Pasadena, California Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Pasadenas (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the Citys major federal programs for the year ended June 30, 2022. The Citys major federal programs are identified in the summary of auditors results section of the accompanying schedule of findings and questioned costs. 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, 2022. 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 (GAAS); the standards applicable to financial audits contained in Government Auditing Standardsissued 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 Auditors Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination the Citys 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 Citys federal programs.
Honorable Mayor and Members of the City Council of the City of Pasadena (4)
Auditors 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 Citys 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 Citys 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 Citys 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 Citys 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 Citys 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. Other Matter The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2022-001. Our opinion on each major federal program is not modified with respect to these matters. Government Auditing Standards requires the auditor to perform limited procedures on the Citys response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The Citys response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
Honorable Mayor and Members of the City Council of the City of Pasadena (5)
Report on Internal Control Over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditors 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be significant deficiencies. 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. 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. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2022-001 and 2022-002 to be significant deficiencies. 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. Government Auditing Standards requires the auditor to perform limited procedures on the Citys response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The Citys response was not subjected 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 activities, business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Citys basic financial statements. We have issued our report thereon, dated March 17, 2023, 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.
Honorable Mayor and Members of the City Council of the City of Pasadena (6)
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance (Continued) The information has been subjected to the auditing procedures applied in the audit of the basic 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. CliftonLarsonAllen LLP Irvine, California April 5, 2023
CITY OF PASADENA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2022 See accompanying Notes to Schedule of Expenditures of Federal Awards. () FederalAssistance Pass-Through PassedListing Entity Identifying Federal Through toNumber Number Expenditures SubrecipientsU.S. Department of AgriculturePassed-through the California Department of Agriculture:WIC Special Supplemental Nutrition Program for Women,Infants, and Children 10.557 05-45781 936,495$ -$ Passed-through the California Department of Health Service:Supplemental Nutrition Assistance Program Cluster:State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Cluster 10.561 16-10156 138,284 - Total U.S. Department of Agriculture 1,074,779 - U.S. Department of Housing and Urban DevelopmentDirect Assistance:Community Development Block Grant - Entitlement Grants Cluster:Community Development Block Grant 14.218 N/A 1,488,277 189,471 COVID 19 - Community Development Block Grant Program 14.218 N/A 509,851 443,082 Subtotal Community Development Block Grant - Entitlement Grants Cluster 1,998,128 632,553 Emergency Solutions Grant Program 14.231 N/A 279,778 266,377 COVID 19 - Emergency Solutions Grant Program 14.231 N/A 1,487,088 1,390,335 Total Emergency Solutions Grant Program 1,766,866 1,656,712 HOME Investment Partnerships Program 14.239 N/A 84,427 - Community Development Block Grant Section 108 Loan Guarantees 14.248 N/A 431,748 - Continuum of Care Program 14.267 N/A 2,935,615 1,648,485 Housing Voucher Cluster:Section 8 Housing Choice Vouchers 14.871 N/A 17,370,638 - COVID 19 - Section 8 Housing Choice Vouchers 14.871 N/A 514,867 - Subtotal Housing Voucher Cluster 17,885,505 - Passed-through the City of Los Angeles:Housing Opportunities for Persons with AIDS 14.241 C-134697 54,811 - Total U.S. Department of Housing and Urban Development 25,157,100 3,937,750 U.S. Department of the InteriorDirect Assistance:WaterSMART (Sustain and Manage America's Resourcesfor Tomorrow) 15.507 N/A 49,184 - Water Conservation Field Services 15.530 N/A 48,391 - Total U.S. Department of the Interior 97,575 - U.S. Department of JusticeDirect Assistance:Justice Reinvestment Initiative 16.827 N/A 91,121 Equitable Sharing Program 16.922 N/A 1,236,062 - Total U.S. Department of Justice 1,327,183 - U.S. Department of LaborPassed through State of California:Workforce Innovation and Opportunity Act (WIOA) Cluster:WIOA Adult Program 17.258 AA011004 460,602 - WIOA Adult Program 17.258 K7102027 2,089 - WIOA Youth Activities 17.259 AA011004, AA111004 488,239 - WIOA Dislocated Worker Formula Grant 17.278 AA011004 987,624 - WIOA Dislocated Worker Formula Grant 17.278 K9110005, AA011004 353,451 - - Subtotal Workforce Innovation and Opportunity Act (WIOA) Cluster 2,292,005 - COVID 19 - WIOA National Dislocated Worker Formula Grants/WIA National Emergency Grants 17.277 AA011004 201,063 - Total U.S. Department of Labor 2,493,068 - Grantor / Program / Cluster TitleFederal Grantor / Pass - Through CITY OF PASADENA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) YEAR ENDED JUNE 30, 2022 See accompanying Notes to Schedule of Expenditures of Federal Awards. () FederalAssistance Pass-Through PassedListing Entity Identifying Federal Through toNumber Number Expenditures SubrecipientsU.S. Department of TransportationPassed-through State of California Department of Transportation:Highway Planning and Construction Cluster:Highway Planning and Construction 20.205 BHLS-5064(078) 205,232$ -$ Highway Planning and Construction 20.205 ATP-CML-5064(089) 37,415 - Highway Planning and Construction 20.205 HSIPL5064-(093) 403,051 - Highway Planning and Construction 20.205 HSIPL5064-(095) 8,847 - Highway Planning and Construction 20.205 HSIPL5064-(096) 9,308 - Highway Planning and Construction 20.205 HSIPL5064-(097) 538 - Highway Planning and Construction 20.205 SAFTEA-LU HPLUL-5064(091) 252,184 - Subtotal Highway Planning and Construction Cluster 916,575 - Federal Transit Cluster:Federal Transit - Capital Investment Grants 20.500 SAFTEA-LU HPLUL-5064(091) 341,168 - Transit Services Program Cluster:Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 CA-16X066 72,118 - Job Access and Reverse Commute Program 20.516 CA-37-X171 - - Job Access and Reverse Commute Program 20.516 CA-37-X123-01 - - Job Access and Reverse Commute Program 20.516 CA-37-X171 113,650 - Job Access and Reverse Commute Program 20.516 CA-37-X100, -X123,-X171 88,218 - Subtotal Transit Services Program Cluster 273,986 - Highway Safety Cluster:State and Community Highway Safety 20.600 PT21190 31,733 - State and Community Highway Safety 20.600 PS21025 36,786 - State and Community Highway Safety 20.600 PT22053 92,500 - Subtotal Highway Safety Cluster 161,019 - Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 PT21190 105,695 - Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 PT22053 167,464 - Total Minimum Penalties for Repeat Offenders for Driving While Intoxicated 273,159 - Total U.S. Department of Transportation 1,965,907 - U.S. Department of TreasuryDirect Assistance:COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 12,766,669 408,262 Passed-through State Water Resources Control Board (State Water Board):COVID-19 - Coronavirus State and Local Fiscal Recovery Funds:California Water and Wastewater Arrearage Payment Program 21.027 CA1910124 1,532,553 - Passed-through California Department of Community ServicesCOVID-19 - Coronavirus State and Local Fiscal Recovery Funds:California Arrearage Payment Program 21.027 00001117 3,592,894 - Total COVID-19 - Coronavirus State and Local Recovery Funds/Total U.S. Department of Treasury 17,892,116 408,262 U.S. Department of Health and Human ServicesDirect Assistance:Substance Abuse and Mental Health Services Projectsof Regional and National Significance 93.243 N/A 473,481 - Passed-through the City of Inglewood:Temporary Assistance for Needy Families 93.558 19-W085 162,299 - Subtotal for Temporary Assistance for Needy Families 162,299 - Grantor / Program / Cluster TitleFederal Grantor / Pass - Through CITY OF PASADENA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) YEAR ENDED JUNE 30, 2022 See accompanying Notes to Schedule of Expenditures of Federal Awards. () FederalAssistance Pass-Through PassedListing Entity Identifying Federal Through toNumber Number Expenditures SubrecipientsU.S. Department of Health and Human Services (Continued)Passed-through the County of Los Angeles, Department of Public Health:Public Health Emergency Preparedness 93.354 PH-003349 205,166$ -$ COVID 19 - Public Health Emergency Preparedness 93.354 PH-003349 81,817 - Subtotal for Public Health Emergency Preparedness 286,983 - COVID 19 - Epidemiology and Laboratory Capacity for InfectiousDiseases (ELC) 93.323 PH-003349 3,036,860 - HIV Prevention Activities Health Department Based 93.940 PH-00809-2 120,198 - Block Grants for Prevention and Treatment of Substance Abuse 93.959 H702536 266,846 - Passed-through the State of California Department of Health Service:Project Grant and Cooperative Agreements forTuberculosis Control Programs 93.116 NU52PS004656 10,261 - Childhood Lead Poisoning Prevention Projects State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children 93.197 17-10227 84,781 - Immunization Cooperative Agreements 93.268 13-20337 39,186 - COVID-19 - Immunization Cooperative Agreements 93.268 13-20337 390,663 - Subtotal Immunization Cooperative Agreements 429,849 - Activities to Support State, Tribal, Local and Territorial HealthDepartment Response to Public Health or Healthcare Crises 93.391 PH-003349 137,176 - Maternal and Child Health Services Block Grant to the States 93.994 201061 289,473 - Medicaid Cluster:Medical Assistance Program 93.778 RFA #15-10146 115,799 - Total U.S. Department of Health and Human Services 5,414,006 - U.S. Department of Homeland SecurityDirect Assistance:Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 N/A 1,216,910 - Passed-through the State of California Governor's Office of Emergency Services:Hazard Mitigation Grant Program 97.039 037-56000-00 44,087 - Passed-through the County of Los Angeles: Homeland Security Grant Program 97.067 EMW-2020-SS-00032 88,460 - Homeland Security Grant Program 97.067 EMW-2019-SS-00035 113,716 - Homeland Security Grant Program 97.067 18LA0183 27,000 - Total Homeland Security Grant Program 229,176 - Total U.S. Department of Homeland Security 1,490,173 - TOTAL EXPENDITURES OF FEDERAL AWARDS 56,911,907$ 4,346,012$ Grantor / Program / Cluster TitleFederal Grantor / Pass - Through CITY OF PASADENA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2022 ()
NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Pasadena (the City) under programs of the federal government as well as federal financial assistance passed through other government agencies for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial statements of the City. The Citys reporting entity is defined in Note 1 of the notes to the Citys financial statements. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in Note 1 of the notes to the Citys financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. The information in the SEFA is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements. Pass-through entity identifying numbers are identified where available. NOTE 3 INDIRECT COST RATE The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
CITY OF PASADENA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2022 (1)
Section I Summary of Auditors Results Financial Statements 1. Type of auditors report issued:Unmodified 2.Internal control over financial reporting:Material weakness(es) identified? yes x no Significant deficiency(ies) identified? yes x none reported 3. Noncompliance material to financialstatements noted? yes x no Federal Awards 1. Internal control over major federal programs:Material weakness(es) identified? yes x no Significant deficiency(ies) identified? x yes none reported 2. Type of auditors report issued oncompliance for major federal programs: Unmodified 3. Any audit findings disclosed that arerequired to be reported in accordancewith 2 CFR 200.516(a)? x yes no Identification of Major Federal Programs Assistance Listing Number(s) Name of Federal Program or Cluster 14.218 Community Development Block Grants/Entitlement Grants 21.027 COVID-19 American Rescue Plan Act Local Fiscal Recovery 97.036 Disaster Grants Public Assistance 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Dollar threshold used to distinguish between Type A and Type B programs: $ 1,707,357 Auditee qualified as low-risk auditee? yes x no CITY OF PASADENA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2022 (1)
Section II Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Section III Findings and Questioned Costs Major Federal Programs 2022 001 Federal Agency: Department of Housing and Urban Development Federal Program Name: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Federal Award Identification Number: B-17-MC-06-0525 (2018); B-18-MC-06-0525 (2019); B-19-MC-06-0525 (2020); B-20-MC-06-0525 (2021); B-21-MC-06-0525 (2022)Award Period: October 1, 2017 through September 1, 2028Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other MatterCriteria or specific requirement: Program regulations require that the City submit the Consolidated Annual Performance and Evaluation Report (CAPER) 90 days after the close of the program year. Condition: The City submitted the report beyond the 90-day requirement. Questioned costs: None Context: The Consolidated Annual Performance and Evaluation Report was not submitted within the 90 days. Cause: The City was unable to reconcile year-end close and hold a public meeting within the 90 days. Effect: The required report was not submitted within a timely manner. Repeat finding: No Recommendation: We recommend that the City review its procedures to ensure timely submissions for all reporting requirements. Views of responsible officials: Management agrees with the recommendation.
CITY OF PASADENA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2022 (1)
Section III Findings and Questioned Costs Major Federal Programs (Continued) 2022 002 Federal Agencies: U.S. Department of the Treasury Federal Program Titles: Corona Virus State and Local Recovery Funds and Assistance Listing Numbers (ALN): 21.027 Federal Award Identification Number: SLFRP0305 Pass-Through Agency: State Water Board and CA Department of Community Services Pass-Through Numbers: State Water Board CA1910124; and, CA Department of Community Services - 00001117 Award Periods: ALN 21.027 - 03/03/2021 to 12/31/2024 Type of Finding: Significant deficiency in internal control over compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of suspension and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was not able to provide supporting documentation that the City verified the vendor was not suspended or debarred prior to entering the transaction. Questioned Costs: None. Context: Support could not be provided for one of three vendors. Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into the contract. Effect: The auditor noted no instances of noncompliance with the provisions of suspension and debarment; however, we were not able to verify that the City followed their internal controls to ensure the vendor was not suspended or debarred prior to entering the transaction. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement procedures to ensure that documentation of the verification process for suspension and debarment is maintained to support the City's internal control over compliance. View of Responsible Officials: There is no disagreement with the audit finding.
CITY OF PASADENA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS (CONTINUED) YEAR ENDED JUNE 30, 2022 (1)
Section I Financial Statement Findings There were no financial statements finding in the prior year. Section II Findings and Questioned Costs Major Federal Programs Finding Number 2021 001 Condition: While an agreement was entered into with the subrecipient prior to advancing funds to the subrecipient, the agreement did not include information such as the assistance listing number, award name and number; whether the award is research and development; the name of Federal awarding agency, and notification that the funds were subject to single audit, and we were unable to observe evidence that this information was communicated to the subrecipient by other means. Additionally, when reviewing evidence of the Citys monitoring of the subrecipient, it was unclear whether sufficient monitoring took place as schedules of grant expenditures contained immaterial unreconciled differences from the Citys records. Status: Corrective action was taken. Finding Number 2021 002 Condition: The City did not submit a performance report for January 2021 by the required deadline. Status: Corrective action was taken. Finding Number 2021 003 Condition: The City did not obligate all of the grant award within 240 days of signing the contract. Status: Corrective action was taken.