City of Patterson
Patterson, California
Single Audit and
Independent Auditors’ Reports
For the Year Ended June 30, 2021
City of Patterson
Single Audit Reports
For the Year Ended June 30, 2021
Table of Contents
Page
Independent Auditors’ Reports:
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................... 1 Report on Compliance for Each Major Federal Program
and on Internal Control Over Compliance Required by the Uniform Guidance and on Schedule of Expenditures of Federal Awards ...................................................................................... 3 Schedule of Expenditures of Federal Awards ................................................................................................................ 5 Notes to the Schedule of Expenditures of Federal Awards ............................................................................................ 6 Schedule of Findings and Questioned Costs .................................................................................................................. 7 This page intentionally left blank.
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, 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, each major fund, and the aggregate remaining fund information of the City of Patterson, California (the “City”), as of and for the year ended June 30, 2021, and the related notes to the basic financial statements which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 29, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the basic 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 basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
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 may exist that have not been 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. 2121 North California Blvd., Suite 290,Walnut Creek, California 94596 Tel: 925-974-3394 • Fax: 949-777-8850
www.pungroup.cpa
To the Honorable Mayor and Members of City Council
of the City of Patterson
Patterson, California
2 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.
Walnut Creek, California
December 29, 2021
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM,
AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE,
AND ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Independent Auditors’ Report
To the Honorable Mayor and Members of City Council
of the City of Patterson
Patterson, California
Report on Compliance for Each Major Federal Program
We have audited the City of Patterson, California’s (the “City”) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2021. The City’s major federal programs are identified in the summary of the auditor's results section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of it federal awards applicable to its federal programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. 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). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program.
However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Each Major Federal Program
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, 2021.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program 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 internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City’s internal control over compliance. 2121 North California Blvd., Suite 290,Walnut Creek, California 94596 Tel: 925-974-3394 • Fax: 949-777-8850
www.pungroup.cpa
To the Honorable Mayor and Members of City Council
of the City of Patterson
Patterson, California
4 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 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 first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental 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, 2021, and have issued our report thereon dated December 29, 2021 which contained an unmodified opinion on those financial statements.
Our audit was conducted for the purpose of forming our opinion on the City’s financial statements. The accompanying Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the 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.
Walnut Creek, California
January 11, 2022, except for the Schedule of Expenditures of Federal Awards, which is as of December 29, 2021.
City of Patterson
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2021
See accompanying Notes to the Schedule of Expenditures of Federal Awards 5 Federal Grantor/Passed through Grantor CFDA Grant Award Federal Program Title Number Number Expenditures
U.S. Department of Transportation:
Highway Planning and Construction Cluster:
Passed Through State of California Department of Transportation:
Las Palmas Overlay 20.205 STPL-5244 (039) 76,828 $
Roundabout at Salado and 7th Street 20.205 CML-5244 (037) 534,371 Rogers Road DMC Bridge 20.205 BRLS-5244 (032) 93,809
Safety Improvements Ward/Las Palams 20.205 ATPL-5244 (034) 34,982 Total Highway Planning and Construction Cluster 739,990 Total U.S. Department of Transportation 739,990
U.S. Department of Treasury:
Direct Program:
Coronavirus State and Local Fiscal Recovery Funds 21.027 NEU - CA0198 117,718 Total U.S. Department of Treasury 117,718
U.S. Department of Homeland Security:
Direct Program:
COVID-19 - Disaster Grants - Public Assistance 97.036 FEMA-4482-DR-CA 47,676 SAFER Hiring Grant 97.083 EMW-2016-FH-00493 52,966
Total U.S. Department of Homeland Security 100,642
Total Expenditures of Federal Awards $ 958,350
City of Patterson
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2021
6 Note 1 – Reporting Entity
The financial reporting entity consists of the primary government, City of Patterson (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.
Note 2 – Basis of Accounting
The various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements.
Note 3 – Schedule of Expenditures of Federal Awards
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California, Turlock County and Stanislaus County is included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or results of operations of the City.
Note 4 – Subrecipients
During the fiscal year ended June 30, 2021, there were no amounts provided to subrecipients.
Note 5 – Indirect Cost Rate
The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
City of Patterson
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2021
7 Section I – Summary of Auditors’ Result
Financial Statements
Types of auditors’ report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported Noncompliance material to the financial statements noted? No Federal Awards
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in Accordance with 2 CFR 200.516(a)? No
Identification of major programs:
Federal Federal
Major Program CFDA # Expenditures
Highway Planning and Construction Cluster 20.205 739,990 $ Total major program expenditures $ 739,990
Total expenditures of federal awards $ 958,350
Percent of total federal award expenditures 77.22%
Dollar threshold used to distinguish between type A and type B program: $750,000 Auditee qualified as low-risk auditee in accordance with 2 CFR 200.520? Yes City of Patterson
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2021
8 Section II – Financial Statement Findings
A. Current Year Findings – Financial Statement Audit
No findings were noted on the City’s financial statement audit for the year ended June 30, 2021.
B. Prior Year Findings – Financial Statement Audit
No findings were noted on the City’s financial statement audit for the year ended June 30, 2020.
Section III – Federal Award Findings
A. Current Year Findings and Questioned Costs – Major Federal Award Program Audit No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2021.
B. Prior Year Findings and Questioned Costs – Major Federal Award Program Audit No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2020.