Attachment A
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CITY OF PASADENA, CALIFORNIA
FOR THE YEAR ENDED JUNE 30, 2025SINGLE AUDIT REPORT
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CITY OF PASADENA, CALIFORNIA
Single Audit Report
For the Year Ended June 30,2025
CITY OF PASADENA, CALIFORNIA
Single Audit Report
For the Year Ended June 30,2025
Table of Contents
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.
Page
Number
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, 2025.................................................................................................................. 6 Notes to the Schedule of Expenditures of Federal Awards................................................................................. 8 Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025.................................................................................................................. 9 Summary Schedule of Prior Year Findings and Questioned CostsFor the Year Ended June 30, 2024................................................................................................................11 LSU••••
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INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of 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 theComptroller General of the United States, the financial statements of the governmental activities, the business-typeactivities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fundinformation of the City of Pasadena, California (hereafter, the City), as of and for the year ended June 30, 2025,and the related notes to the financial statements, which collectively comprise the City's basic financial statements,and have issued our report thereon dated December 23, 2025.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control overfinancial reporting (internal control) as a basis for designing audit procedures that are appropriate in thecircumstances 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 opinionon 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 oremployees, 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 statementswill not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or acombination of deficiencies, in internal control that is less severe than a material weakness, yet important enoughto 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 andwas not designed to identify all deficiencies in internal control that might be material weaknesses or significantdeficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Giventhese limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from materialmisstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grantagreements, 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, andaccordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncomplianceor other matters that are required to be reported under Government Auditing Standards.
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To the Honorable Mayor and Members of the City Council
City of Pasadena, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
L.SL, LL.P
Irvine, California
December 23, 2025
2 LSU
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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
To the Honorable Mayor and Members of the City Council
City of Pasadena, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Pasadena, California (hereafter, the City)'s compliance with the types of compliance requirements identified as subject to audit in the 0MB Compliance Supplement {hat could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2025. The City's 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 types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.
Bas/s 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; 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 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 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.
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 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 generally accepted auditing standards, 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, ^y ^..^.
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To the Honorable Mayor and Members of the City Council
City of Pasadena, California
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 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, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
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.
A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
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. 4 LSU
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To the Honorable Mayor and Members of the City Council
City of Pasadena, California
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited 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, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated December 23, 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 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.
LSL. LLF
Irvine, California
March 26, 2026 (Except for the Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance, which is dated December 23,2025)
5 CITY OF PASADENA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30,2025
Federal Grantor/Pass-through Grantor/
Program or Cluster Title
U.S. Dep_artment of Aancylture:
SNAP Cluster
Pass Through Programs:
State of California Department of Health Services:
State Administrative Matching Grants for the
Supplemental Nutrition Assistance Program
Total SNAP Cluster
State of California Department of Agriculture:
WIC Special Supplemental Nutrition Program for Women,
Infants and Children
Total U.S. Department of Agriculture
U.S. Department of Housina and Urban Development:
Direct Programs:
CDBG - EntitlemenySpecial Purpose Grants Cluster
Community Development Block Grants/
Entitlement Grants
COVID-19 Community Development Block Grants/Entitlement Grants Subtotal for 14.218
Total CDBG - Entitlement/Special Purpose Grants Cluster Home Investment Partnerships Program *
Home Investment Partnerships Program -
Beginning Loan Balances *
Subtotal for 14.239
Emergency Solutions Grant Program
Community Development Block Grants Section 108 Loan Guarantees Continuum of Care
Housing Voucher Cluster
Section 8 Housing Choice Vouchers
COVID-19 Section 8 Housing Choice Vouchers (CARES Act)
Beginning loan balances
Subtotal for 14.871
Total Housing Voucher Cluster
Pass Through Programs:
City of Los Angeles
Home Opportunities for Persons with AIDS
Total U.S. Department of Housing and Urban Development
U.S. Desartment of Labor:
WIOA Cluster
Pass Through Programs:
State of California Department:
WIOA Adult Program
WIOA Youth Activities
WIOA Dislocated Worker Formula Grants
WIOA Dislocated Worker Formula Grants - Rapid Response
WIOA Dislocated Worker Formula Grants - Rapid Response Layoff Aversion WIOA Dislocated Worker Formula Grants - Foothill CalTech WIOA Dislocated Worker Formula Grants - LA Wildfire
County of Los Angeles:
WIOA Dislocated Worker Formula Grants - CalWorks
Subtotal for 17.278
Total WIOA Cluster
Total U.S. Department of Labor
U.S. Department of Justice:
Direct Programs:
Equitable Sharing Program - Justice
Justice Reinvestment Initiative
Total U.S. Department of Justice
Federal
Ass/stance
Listing Pass-Through Entity Passed-through
Number Identifying Number to Subrecipients
10.561
10.557
14.218
14.218
14.239
14.239
14.231
14.248
14.267
14.871
14.871
14.871
14.241
17.258
17.259
17.278
17.278
17.278
17.278
17.278
17.278
16.922
16.827
Total Federal
Expenditures
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219,222 $
58,943
278,165
278,165
7,235
2,787,632
3,073,032
607,715
694,055
477,019
235,875
92,077
133,401
92,929
31,731
1,063,032
2,364,802
2,364,802
244,076
244,076
1,039,874
1,283,950
1,533,157
58,943
1,592,100
1,592,100
1,652,076
14,836,484
16,488,560
64,842
408,396
4,099,062
22,197,305
3,093,207
50,000
25,340,512
25,340,512
297,135
48,290,607
607,715
694,055
477,019
235,875
92,077
133,401
92,929
31,731
1,063,032
2,364,802
2,364,802
812,700
70,904
883,604
See Accompanying Notes to this Schedule.6
CITY OF PASADENA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30,2025
Federal Grantor/Pass-through Grantor/
Program or Cluster Title
U.S. Department of Transportation:
Direct Programs:
Federal Transit Cluster
Job Access and Reverse Commute Program *
Pass Through Programs:
LA County Regional Park and Open Space District:
Enhanced Mobility of Seniors and Individuals with Disabilities * Total Transit Cluster
Pass Through Programs:
California Department of Transportation:
Highway Planning and Construction
California Department of Transportation:
Highway Safety Cluster
State and Community Highway Safety
Total Highway Safety Cluster
Federal h^ighway Administration
Local Roadway Safety Plan - Safety Improvements
Reconnecting Communities Pilot Program
Total U.S. Department of Transportation
U.S. Department of Health and_Human Services
Direct Programs:
Substance Abuse and Mental Health Services Projects of Regional and National Significance (MhlAT)
Substance Abuse and Mental Health Services Projects of Regional and National Significance (CDS)
Subtotal for 93.243
Public hlealth Preparedness, Emergency and Response/Monkeypox Pass Through Programs:
County of Los Angeles, Department of Public Health:
COVID-19 Epidemiology Laboratory Capacity
Public Health Emergency Preparedness
HIV Prevention Activities Health Department Based
CDC PH Infrastructure
State of California Department of Health Services:
Project Grants and Cooperative Agreements for Tuberculosis Control Programs Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children Immunization Cooperative Agreements
COVID-19 Immunization Cooperative Agreements
Subtotal for 93.268
CDC Work Force Development
DIS Workforce Development
Maternal and Child Health Services Block Grant to the States Maternal and Child Health Services Block Grant to the States Subtotal for 93.994
Total U.S. Department of Health and Human Services
U.S. Department of Homeland Security:
Direct Programs:
Disaster Grants - Public Assistance (Presidentially Declared Disasters) * Pass Through Programs:
County of Los Angeles:
Homeland Security Grant Program
Total U.S. Department of Homeland Security
Total Expenditures of Federal Awards Including Loans
Federal
Assistance
Listing Pass-Through Entity Passed-through Total Federal Number Identifying Number to Subreclpients Expenditures
20.516
20.513
20.205
20.600
20.939
20.940
93.243
93.243
93.354
93.323
93.354
93.940
93.967
93.116
93.197
93.268
93.268
93.391
93.977
93.994
93.994
97.036
97.067
N/A
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DN3NGS58SMT9 308,118
308,118
4,754,836
145,800
4,900,636
1,496,333
186,079
186,079
192,550
318,271
7,093,869
87,290
483,250
570,540
14,956
1,147,795
227,040
278,177
218,473
14,018
83,044
68,652
257,793
326,445
116,420
171,220
111,380
898,420
1,009,800
4,177,928
5,633,761
308,118
5,941,879
$ 5,745,952 $ 70,036,639
* Major Program
There were no federal awards expended in the form ofnoncash assistance and insurance in effect during the year.
See Accompanying Notes to this Schedule. 7
CITY OF PASADENA, CALIFORNIA
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30,2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS
A. Scope of Presentation
The accompanying schedule presents only the expenditures incurred by the City of Pasadena (the "City), that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule.
B. Basis of Accounting
The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
NOTE 2: SECTION 108 LOAN GUARANTEE PROGRAM
On October 29, 2015, the City entered into a Contract for Loan Guarantee Assistance under Section 108 with the U.S. Department of Housing and Urban Development in the amount of $6,000,000 for the Robinson Park Project. On March 28,2019 the loan was refinanced at $5,100,000 to lock in permanent fixed interest rates. Principal is payable in annual installments of $300,000 commencing on August 1, 2019 and ending August 1, 2035. Interest rate is fixed between 2.54%-3.635%. Interest payment is paid semi-annually from the effective date of March 28, 2019. The balance outstanding as of June 30, 2025, is $3,900,000.
NOTE 3: LOAN PROGRAMS WITH CONTINUING COMPLIANCE REQUIREMENTS The program costs listed below are administered directly by the City of Pasadena, and balances and transactions relating to these programs are included in the City's basic financial statements. Loans made during the year are included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. The balance of loans outstanding at June 30, 2025, consists of:
Assistance
Listing NumberProgram Name
Outstanding
Balance at
June 30, 2025
14.239 Home Investment Partnerships Program
14.871 Section 8 Housing Choice Vouchers
$ 15,799,514
_50,000
$ 15,849,514
Federal loan programs reported on the Schedule of Expenditures of Federal Awards (SEFA) for the Community Development Block Grants/Entitlement Grants have been removed in the current year. In accordance with Uniform Guidance (2 CFR §200.502(b)-(d)), loan and loan guarantee programs are required to be reported on the SEFA only for the value of new loans made during the fiscal year and for prior-year loan balances for which the federal government imposes continuing compliance requirements. Accordingly, these loan programs are not included on the SEFA for the current fiscal year as management has determined that there are no federally imposed continuing compliance requirements.
8 CITY OF PASADENA, CALIFORNIA
Schedule of Findings and Questioned Costs
For the Year Ended June 30,2025
SECTION I - SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of auditors' report issued:
Internal control over financial reporting:
• Material weaknesses identified?
Significant deficiencies identified?
Unmodified Opinion
yes
yes
x
x
Noncompliance material to financial
statements noted?
FederalAwards
Internal control over major programs:
Material weaknesses identified?
Significant deficiencies identified?
Type of auditors' report issued on compliance for major programs:
Any audit findings disclosed that are required to be reported in Accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform (Guidance)
yes x
no
none identified
No
yes
yes
x
x
No
none identified
Unmodified Opinion
yes x no
Identification of major programs:
Assistance Listing Numbers:
20.513,20.516,20.521
97.036
14.239
Dollar threshold used to distinguish
between type A and type B program
Auditee qualified as low-risk auditee?
Name of Federal Program or Cluster
Transit Services Programs Cluster
Disaster Grants - Public Assistance (Presidentially
Declared Disasters)
Home Investment Partnerships Program
$2,119,913
_no
9 CITY OF PASADENA, CALIFORNIA
Schedule of Findings and Questioned Costs
For the Year Ended June 30,2025
SECTION II - FINANCIAL STATEMENT FINDINGS
No matters were reported.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30,2024
Finding: 2024-001 -Year-End Close and Financial Reporting Appropriate corrective actions were taken; this finding is considered resolved and is not repeated in the fiscal year ended June 30, 2025.
Finding: Finding 2024-002: Continuing Loan Compliance
Appropriate corrective actions were taken; this finding is considered resolved and is not repeated in the fiscal year ended June 30, 2025.
11