&,7<2)5('21'2%($&+&$/)251,$
-81( 6,1*/($8',75(3257
&,7<2)5('21'2%($&+&$/,)251,$
6,1*/($8',75(3257
-81(
&,7<2)5('21'2%($&+
6,1*/($8',75(3257
-81(
7$%/(2)&217(176
3DJH
1XPEHU
,QGHSHQGHQW$XGLWRUV¶5HSRUWRQ,QWHUQDO&RQWURO2YHU)LQDQFLDO5HSRUWLQJDQGRQ &RPSOLDQFHDQG2WKHU0DWWHUV%DVHGRQDQ$XGLWRI)LQDQFLDO6WDWHPHQWV3HUIRUPHG LQ$FFRUGDQFHZLWKGovernment Auditing Standards ,QGHSHQGHQW$XGLWRUV¶5HSRUWRQ&RPSOLDQFHIRU(DFK0DMRU3URJUDPDQGRQ,QWHUQDO &RQWURO2YHU&RPSOLDQFH
DQG5HSRUWRQ6FKHGXOHRI([SHQGLWXUHVRI)HGHUDO
$ZDUGV5HTXLUHGE\WKH8QLIRUP*XLGDQFH 6FKHGXOHRI([SHQGLWXUHVRI)HGHUDO$ZDUGVIRUWKH
)LVFDO<HDU(QGHG-XQH 1RWHVWRWKH6FKHGXOHRI([SHQGLWXUHVRI)HGHUDO$ZDUGV 6FKHGXOHRI)LQGLQJVDQG4XHVWLRQHG&RVWVIRUWKH
)LVFDO<HDU(QGHG-XQH 6XPPDU\6FKHGXOHRI3ULRU<HDU)LQGLQJVDQG4XHVWLRQHG&RVWVIRUWKH )LVFDO<HDU(QGHG-XQH
Lance, Soll & Lunghard, LLP 203N.BreaBlvd.,Suite 203 Brea,CA92821 Phone: 714.672.0022 ,1'(3(1'(17$8',7256¶5(325721,17(51$/&21752/
29(5),1$1&,$/5(3257,1*$1'21&203/,$1&($1'27+(50$77(56 %$6('21$1$8',72)),1$1&,$/67$7(0(1763(5)250(',1$&&25'$1&( :,7+GOVERNMENT AUDITING STANDARDS
7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5HGRQGR%HDFK&DOLIRUQLD
:H KDYH DXGLWHG LQ DFFRUGDQFH ZLWK WKH DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI$PHULFDDQGWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXGLWVFRQWDLQHGLQGovernment Auditing Standards LVVXHG E\ WKH &RPSWUROOHU *HQHUDO RI WKH 8QLWHG 6WDWHV WKH ILQDQFLDO VWDWHPHQWV RI WKH JRYHUQPHQWDO DFWLYLWLHV EXVLQHVVW\SH DFWLYLWLHV HDFK PDMRU IXQG DQG DJJUHJDWH UHPDLQLQJ IXQG LQIRUPDWLRQ RI WKH &LW\RI5HGRQGR%HDFK&DOLIRUQLD
WKH&LW\
DVRIDQGIRUWKH\HDUHQGHG-XQHDQGWKHUHODWHG QRWHVWRWKHILQDQFLDO VWDWHPHQWVZKLFK FROOHFWLYHO\ FRPSULVHWKH&LW\¶V EDVLFILQDQFLDO VWDWHPHQWV DQG KDYHLVVXHGRXUUHSRUWWKHUHRQGDWHG'HFHPEHU ,QWHUQDO&RQWURORYHU)LQDQFLDO5HSRUWLQJ
,QSODQQLQJDQGSHUIRUPLQJRXUDXGLWRIWKHILQDQFLDOVWDWHPHQWVZHFRQVLGHUHGWKH&LW\¶VLQWHUQDOFRQWURO RYHUILQDQFLDOUHSRUWLQJ
LQWHUQDOFRQWURO
DVDEDVLVIRUGHVLJQLQJDXGLWSURFHGXUHVWKDWDUHDSSURSULDWHLQ WKHFLUFXPVWDQFHVIRUWKHSXUSRVHRIH[SUHVVLQJRXURSLQLRQVRQWKHILQDQFLDOVWDWHPHQWVEXWQRWIRUWKH SXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURO$FFRUGLQJO\ZHGRQRW H[SUHVVDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURO $deficiency in internal controlH[LVWVZKHQWKHGHVLJQRURSHUDWLRQRIDFRQWUROGRHVQRWDOORZPDQDJHPHQW RUHPSOR\HHVLQWKHQRUPDOFRXUVHRISHUIRUPLQJWKHLUDVVLJQHGIXQFWLRQVWRSUHYHQWRUGHWHFWDQGFRUUHFW PLVVWDWHPHQWVRQDWLPHO\EDVLV$material weaknessLVDGHILFLHQF\RUDFRPELQDWLRQRIGHILFLHQFLHVLQ LQWHUQDO FRQWURO VXFK WKDW WKHUH LV D UHDVRQDEOH SRVVLELOLW\ WKDW D PDWHULDO PLVVWDWHPHQW RI WKH HQWLW\¶V ILQDQFLDO VWDWHPHQWV ZLOO QRW EH SUHYHQWHG RU GHWHFWHG DQG FRUUHFWHG RQ D WLPHO\ EDVLV $ significant deficiency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
&RPSOLDQFHDQG2WKHU0DWWHUV
$V SDUW RI REWDLQLQJ UHDVRQDEOH DVVXUDQFH DERXW ZKHWKHUWKH &LW\¶VILQDQFLDO VWDWHPHQWV DUHIUHHIURP PDWHULDOPLVVWDWHPHQWZHSHUIRUPHGWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQV FRQWUDFWVDQGJUDQWDJUHHPHQWVQRQFRPSOLDQFHZLWKZKLFKFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQWKH ILQDQFLDO VWDWHPHQWV +RZHYHU SURYLGLQJ DQ RSLQLRQ RQ FRPSOLDQFH ZLWK WKRVH SURYLVLRQV ZDV QRW DQ REMHFWLYHRIRXUDXGLWDQGDFFRUGLQJO\ZHGRQRWH[SUHVVVXFKDQRSLQLRQ7KHUHVXOWVRIRXUWHVWVGLVFORVHG QR LQVWDQFHV RI QRQFRPSOLDQFH RU RWKHU PDWWHUV WKDW DUH UHTXLUHG WR EH UHSRUWHG XQGHU Government Auditing Standards
7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5HGRQGR%HDFK&DOLIRUQLD
3XUSRVHRIWKLV5HSRUW
7KHSXUSRVHRIWKLVUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURODQGFRPSOLDQFH DQGWKHUHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURO RU RQ FRPSOLDQFH 7KLV UHSRUW LV DQ LQWHJUDO SDUW RI DQ DXGLW SHUIRUPHG LQ DFFRUGDQFH ZLWK Government Auditing StandardsLQFRQVLGHULQJWKH&LW\¶VLQWHUQDOFRQWURODQGFRPSOLDQFH$FFRUGLQJO\ WKLVFRPPXQLFDWLRQLVQRWVXLWDEOHIRUDQ\RWKHUSXUSRVH %UHD&DOLIRUQLD
'HFHPEHU
2 Lance, Soll & Lunghard, LLP 203N.BreaBlvd.,Suite 203 Brea,CA92821 Phone: 714.672.0022 ,1'(3(1'(17$8',7256¶5(325721&203/,$1&()25($&+0$-25352*5$0 $1'21,17(51$/&21752/29(5&203/,$1&($1'5(3257216&+('8/(2) (;3(1',785(62))('(5$/$:$5'65(48,5('%<7+(81,)250*8,'$1&( 7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO
&LW\RI5HGRQGR%HDFK&DOLIRUQLD
5HSRUWRQ&RPSOLDQFHIRU(DFK0DMRU)HGHUDO3URJUDP
Opinion on Each Major Federal Program
:HKDYHDXGLWHGWKH&LW\RI5HGRQGR%HDFK
WKH&LW\
&DOLIRUQLD¶VFRPSOLDQFHZLWKWKHW\SHVRIFRPSOLDQFH UHTXLUHPHQWVGHVFULEHGLQWKHOMB Compliance SupplementWKDWFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFW RQHDFKRIWKH&LW\¶VPDMRUIHGHUDOSURJUDPVIRUWKH\HDUHQGHG-XQH7KH&LW\¶VPDMRUIHGHUDO SURJUDPVDUHLGHQWLILHGLQWKHVXPPDU\RIDXGLWRU¶VUHVXOWVVHFWLRQRIWKHDFFRPSDQ\LQJVFKHGXOHRIILQGLQJV DQGTXHVWLRQHGFRVWV
,Q RXU RSLQLRQ WKH &LW\ FRPSOLHG LQ DOO PDWHULDO UHVSHFWV ZLWK WKH W\SHV RI FRPSOLDQFH UHTXLUHPHQWV UHIHUUHGWRDERYHWKDWFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQHDFKRILWVPDMRUIHGHUDOSURJUDPVIRUWKH \HDUHQGHG-XQH
Basis for Opinion
:H FRQGXFWHG RXU DXGLW RI FRPSOLDQFH LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD
*$$6
WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ Government Auditing StandardsLVVXHGE\WKH&RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHV DQGWKHDXGLW
UHTXLUHPHQWVRI7LWOH86Code of Federal Regulations3DUWUniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 8QLIRUP *XLGDQFH
2XU UHVSRQVLELOLWLHV
XQGHUWKRVHVWDQGDUGVDQGWKH8QLIRUP*XLGDQFHDUHIXUWKHUGHVFULEHGLQWKH$XGLWRU¶V5HVSRQVLELOLWLHVIRU WKH$XGLWRI&RPSOLDQFHVHFWLRQRIRXUUHSRUW
:HDUHUHTXLUHGWREHLQGHSHQGHQWRIWKH&LW\DQGWRPHHWRXURWKHUHWKLFDOUHVSRQVLELOLWLHVLQDFFRUGDQFH ZLWKUHOHYDQWHWKLFDOUHTXLUHPHQWVUHODWLQJWRRXUDXGLW:HEHOLHYHWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLV VXIILFLHQW DQG DSSURSULDWH WR SURYLGH D EDVLV IRU RXU RSLQLRQ 2XU DXGLW GRHV QRW SURYLGH D OHJDO GHWHUPLQDWLRQRIWKH&LW\¶VFRPSOLDQFHZLWKWKHFRPSOLDQFHUHTXLUHPHQWVUHIHUUHGWRDERYH Responsibilities of Management for Compliance
0DQDJHPHQWLV UHVSRQVLEOHIRU FRPSOLDQFHZLWKWKH UHTXLUHPHQWVUHIHUUHGWRDERYHDQGIRUWKHGHVLJQ LPSOHPHQWDWLRQDQGPDLQWHQDQFHRIHIIHFWLYHLQWHUQDO FRQWURORYHU FRPSOLDQFHZLWKWKH UHTXLUHPHQWVRI ODZVVWDWXWHVUHJXODWLRQVUXOHVDQGSURYLVLRQVRIFRQWUDFWVRUJUDQWDJUHHPHQWVDSSOLFDEOHWRWKH&LW\¶V JRYHUQPHQWSURJUDPV
7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5HGRQGR%HDFK&DOLIRUQLD
Auditor’s Responsibilities for the Audit of Compliance
2XU REMHFWLYHV DUH WR REWDLQ UHDVRQDEOH DVVXUDQFH DERXW ZKHWKHU PDWHULDO QRQFRPSOLDQFH ZLWK WKH FRPSOLDQFHUHTXLUHPHQWVUHIHUUHGWRDERYHZKHWKHUGXHWRIUDXGRUHUURUDQGH[SUHVVDQRSLQLRQRQWKH &LW\¶V FRPSOLDQFH EDVHG RQ RXU DXGLW 5HDVRQDEOH DVVXUDQFH LV D KLJK OHYHO RI DVVXUDQFH EXW LV QRW DEVROXWHDVVXUDQFHDQGWKHUHIRUHLVQRWDJXDUDQWHHWKDWDQDXGLWFRQGXFWHGLQDFFRUGDQFHZLWK*$$6 Government Auditing Standards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¶VFRPSOLDQFHZLWKWKH UHTXLUHPHQWVRIWKHJRYHUQPHQWSURJUDPDVDZKROH
,Q SHUIRUPLQJ DQ DXGLW LQ DFFRUGDQFH ZLWK *$$6 Government Auditing Standards DQG 8QLIRUP*XLGDQFHZH
x ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSWLFLVPWKURXJKRXWWKHDXGLW x ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOQRQFRPSOLDQFHZKHWKHUGXHWRIUDXGRUHUURUDQGGHVLJQ DQGSHUIRUPDXGLWSURFHGXUHVUHVSRQVLYHWRWKRVHULVNV6XFKSURFHGXUHVLQFOXGHH[DPLQLQJRQ DWHVWEDVLVHYLGHQFHUHJDUGLQJWKH&LW\¶VFRPSOLDQFHZLWKWKHFRPSOLDQFHUHTXLUHPHQWVUHIHUUHG WRDERYHDQGSHUIRUPLQJVXFKRWKHUSURFHGXUHVDVZHFRQVLGHUHGQHFHVVDU\LQWKHFLUFXPVWDQFHV x 2EWDLQDQXQGHUVWDQGLQJRIWKH&LW\¶VLQWHUQDOFRQWURORYHUFRPSOLDQFHUHOHYDQWWRWKHDXGLWLQRUGHU WR GHVLJQ DXGLW SURFHGXUHVWKDW DUH DSSURSULDWH LQWKH FLUFXPVWDQFHV DQGWRWHVW DQG UHSRUW RQ LQWHUQDOFRQWURORYHUFRPSOLDQFHLQDFFRUGDQFHZLWK8QLIRUP*XLGDQFHEXWQRWIRUWKHSXUSRVHRI H[SUHVVLQJ DQ RSLQLRQ RQ WKH HIIHFWLYHQHVV RI WKH &LW\¶V LQWHUQDO FRQWURO RYHU FRPSOLDQFH $FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG
:HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKH SODQQHGVFRSHDQGWLPLQJRIWKHDXGLWDQGDQ\VLJQLILFDQWGHILFLHQFLHVDQGPDWHULDOZHDNQHVVHVLQLQWHUQDO FRQWURORYHUFRPSOLDQFHWKDWZHLGHQWLILHGGXULQJWKHDXGLW 5HSRUWRQ,QWHUQDO&RQWURORYHU&RPSOLDQFH
$ deficiency in internal control over compliance H[LVWV ZKHQ WKH GHVLJQ RU RSHUDWLRQ RI D FRQWURO RYHU FRPSOLDQFHGRHVQRWDOORZPDQDJHPHQWRUHPSOR\HHVLQWKHQRUPDOFRXUVHRISHUIRUPLQJWKHLUDVVLJQHG IXQFWLRQVWR SUHYHQW RU GHWHFW DQG FRUUHFW QRQFRPSOLDQFHZLWKDW\SH RI FRPSOLDQFH UHTXLUHPHQW RI D IHGHUDOSURJUDPRQDWLPHO\EDVLV$material weakness in internal control over complianceLVDGHILFLHQF\ RU D FRPELQDWLRQ RI GHILFLHQFLHV LQ LQWHUQDO FRQWURO RYHU FRPSOLDQFH VXFK WKDW WKHUH LV D UHDVRQDEOH SRVVLELOLW\WKDWPDWHULDOQRQFRPSOLDQFHZLWKDW\SHRIFRPSOLDQFHUHTXLUHPHQWRIDIHGHUDOSURJUDPZLOOQRW EHSUHYHQWHGRUGHWHFWHGDQGFRUUHFWHGRQDWLPHO\EDVLV$significant deficiency in internal control over complianceLVDGHILFLHQF\RUDFRPELQDWLRQRIGHILFLHQFLHVLQLQWHUQDOFRQWURORYHUFRPSOLDQFHWKDWLVOHVV VHYHUHWKDQDPDWHULDOZHDNQHVVLQLQWHUQDOFRQWURORYHUFRPSOLDQFH\HWLPSRUWDQWHQRXJKWRPHULWDWWHQWLRQ E\WKRVHFKDUJHGZLWKJRYHUQDQFH
2XU FRQVLGHUDWLRQ RI LQWHUQDO FRQWURO RYHU FRPSOLDQFH ZDV IRU WKH OLPLWHG SXUSRVH GHVFULEHG LQ WKH $XGLWRU¶V5HVSRQVLELOLWLHVIRUWKH$XGLWRI&RPSOLDQFHVHFWLRQDERYHDQGZDVQRWGHVLJQHGWRLGHQWLI\DOO GHILFLHQFLHVLQLQWHUQDOFRQWURORYHUFRPSOLDQFH*LYHQWKHVHOLPLWDWLRQVGXULQJRXUDXGLWZHGLGQRWLGHQWLI\ DQ\GHILFLHQFLHVLQLQWHUQDOFRQWURORYHUFRPSOLDQFHWKDWZHFRQVLGHUWREHDPDWHULDOZHDNQHVVDVGHILQHG DERYH+RZHYHUPDWHULDOZHDNQHVVHVRUVLJQLILFDQWGHILFLHQFLHVLQLQWHUQDOFRQWURORYHUFRPSOLDQFHPD\ H[LVWWKDWKDYHQRWEHHQLGHQWLILHG
4 7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5HGRQGR%HDFK&DOLIRUQLD
2XUDXGLWZDVQRWGHVLJQHGIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRILQWHUQDOFRQWURO RYHUFRPSOLDQFH$FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG 5HSRUWRQ6FKHGXOHRI([SHQGLWXUHVRI)HGHUDO$ZDUGV5HTXLUHGE\WKH8QLIRUP*XLGDQFH :HKDYHDXGLWHGWKHILQDQFLDOVWDWHPHQWVRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVVW\SHDFWLYLWLHVHDFK PDMRU IXQG DQG WKH DJJUHJDWH UHPDLQLQJ IXQG LQIRUPDWLRQ RI WKH &LW\ DV RI DQG IRU WKH \HDU HQGHG -XQHDQGWKH UHODWHGQRWHVWRWKHILQDQFLDO VWDWHPHQWVZKLFK FROOHFWLYHO\ FRPSULVHWKH&LW\¶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
0D\
H[FHSWIRURXUUHSRUWRQWKH6FKHGXOHRI([SHQGLWXUHVRI)HGHUDO$ZDUGVIRUZKLFKWKHGDWH LV'HFHPEHU
5 CITY OF REDONDO BEACH
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Assistance Pass-Through
Listing Grantor's DUNS Grant
Federal Grantor/Pass-Through Grantor/Program Title Number Number Number Expenditures Subrecipients U.S. Department of Housing and Urban Development
Direct Program:
CDBG - Entitlement Grants Cluster
Community Development Block Grant (CDBG) 14.218 N/A B-19-MC-06-0528 43,379 $ $ - Community Development Block Grant (CDBG) 14.218 N/A B-20-MC-06-0528 162,260 - Community Development Block Grant (CDBG) 14.218 N/A B-20-MW-06-0528 129,155 40,617 Total CDBG - Entitlement Grants Cluster 334,794 40,617
Housing Voucher Cluster
Section 8 - Housing Choice Voucher Program 14.871 N/A CA 103 6,607, 942 - Total Housing Voucher Cluster 6,607,942 -
Total U.S. Department of Housing and Urban Development 6,942,736 40,617 U.S. Department of Transportation
Direct Program:
Federal Transit Cluster*
Transportation Improvement Program - Transit Terminal 20.500 N/A CA-03-0775-01 792,708 - Transportation Improvement Program - Transit Terminal 20.500 N/A CA-04-0245-00 512,140 - Transportation Improvement Program - Transit Terminal 20.507 N/A CA-2017-083-00 1,191,940 - Transportation Improvement Program - Bus Equipment 20.507 N/A CA-2016-035-02 153,658 - Transportation Improvement Program - Urbanized Area Fomula Grant 20.507 N/A CA-2020-180-00 734,892 - Total Federal Transit Cluster 3,385,338 -
Passed through the State of California Office of Traffic Safety:
Highway Safety Cluster
OTS Pedestrian and Bicycle Safety Program 20.600 98-505-3908 PS21029 3,455 - OTS Selective Traffic Enforcement Program 10/19-9/20 20.600/20.608 98-505-3908 PT20112 9,661 - OTS Selective Traffic Enforcement Program 10/20-9/21 20.600/20.608 98-505-3908 PT21175 34,955 - Total Highway Safety Cluster 48,071 -
Total U.S. Department of Transportation 3,433,409 -
U.S. Department of Justice
Direct Programs:
Edward Byrne Memorial Justice Assistance Grant (JAG) 16.738 N/A 2019-DJ-BX-0328 395 - Edward Byrne Memorial Justice Assistance Grant (JAG) 16.738 N/A 2020-DJ-BX-0307 10,881 - Total 16.738 11,276
Equitable Sharing Program 16.922 N/A CA0195600 47,539 - Body Worn Camera Program 16.835 N/A 2019-BC-BX0077 97,923 - COVID-19 - Coronavirus Emergency Supplemental Funding Program 16.034 N/A 2020-VD-BX-0772 895 - Total U.S. Department of Justice 157,633 -
U.S. Department of Treasury
Direct Program:
Equitable Sharing Program 21.016 N/A CA0195600 43,297 - Passed through the State of California
COVID-19 - Coronavirus Relief Fund* 21.019 88-307-4270 827,184 50,000 Passed through the County of Los Angeles
COVID-19 - Coronavirus Relief Fund* 21.019 05-223-8763 HOA 102418333.1 416,073 - Total 21.019 1,243,257
Total U.S. Department of Treasury 1,286,554 -
U.S. Department of Homeland Security
Passed through the County of Los Angeles
State Homeland Security Program* 97.067 05-223-8763 EMW-2018-SS-00054 195,098 - Total U.S. Department of Homeland Security 195,098 -
Total Federal Expenditures $ 90,617 12,015,430 $
* Major Program
There was no federal awards expended in the form of noncash assistance and insurance in effect during the year.
Note a: Refer to Note 1 to the schedule of expenditures of federal awards for a description of significant accounting policies used in preparing this schedule.
Note b:
6 &,7<2)5('21'2%($&+
127(6727+(6&+('8/(2)(;3(1',785(62))('(5$/$:$5'6 )257+(<($5(1'('-81(
1RWH
6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV$SSOLFDEOHWRWKH6FKHGXOHRI([SHQGLWXUHV RI)HGHUDO$ZDUGV
D 6FRSHRI3UHVHQWDWLRQ
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
7KHH[SHQGLWXUHVLQFOXGHGLQWKHDFFRPSDQ\LQJVFKHGXOHZHUHUHSRUWHGRQWKHPRGLILHG DFFUXDOEDVLVRIDFFRXQWLQJ8QGHUWKHPRGLILHGDFFUXDOEDVLVRIDFFRXQWLQJH[SHQGLWXUHV DUHLQFXUUHGZKHQWKH&LW\EHFRPHVREOLJDWHGIRUSD\PHQWDVDUHVXOWRIWKHUHFHLSWRIWKH UHODWHG JRRGV DQG VHUYLFHV([SHQGLWXUHV UHSRUWHG LQFOXGHG DQ\ SURSHUW\ RU HTXLSPHQW DFTXLVLWLRQVLQFXUUHGXQGHUWKHIHGHUDOSURJUDP
F ,QGLUHFW&RVW5DWH
7KH&LW\KDVHOHFWHGQRWWRXVHWKHSHUFHQWGHPLQLPLVLQGLUHFWFRVWUDWHDOORZHGXQGHU WKH8QLIRUP*XLGDQFH
7 &,7<2)5('21'2%($&+
6&+('8/(2)),1',1*6$1'48(67,21('&2676
)257+(),6&$/<($5(1'('-81(
6(&7,21,6800$5<2)$8',7256
5(68/76
)LQDQFLDO6WDWHPHQWV
7\SHRIDXGLWRUV
UHSRUWLVVXHG
8QPRGLILHG2SLQLRQ
,QWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJ
x 6LJQLILFDQWGHILFLHQFLHVLGHQWLILHG" \HV [QRQHUHSRUWHG x 0DWHULDOZHDNQHVVHVLGHQWLILHG" \HV [QR 1RQFRPSOLDQFHPDWHULDOWRILQDQFLDO
VWDWHPHQWVQRWHG" \HV [QR
)HGHUDO$ZDUGV
,QWHUQDOFRQWURORYHUPDMRUSURJUDPV
x 6LJQLILFDQWGHILFLHQFLHVLGHQWLILHG" \HV [QRQHUHSRUWHG x 0DWHULDOZHDNQHVVHVLGHQWLILHG" \HV [QR 7\SHRIDXGLWRUV
UHSRUWLVVXHGRQFRPSOLDQFHIRUPDMRUSURJUDPV
8QPRGLILHG2SLQLRQ
$Q\DXGLWILQGLQJVGLVFORVHGWKDWDUHUHTXLUHGWREH
UHSRUWHGLQDFFRUGDQFHZLWK&)5
D
\HV [QR
,GHQWLILFDWLRQRIPDMRUSURJUDPV
$VVLVWDQFH/LVWLQJ1XPEHU
V
1DPHRI)HGHUDO3URJUDPRU&OXVWHU
6WDWH+RPHODQG6HFXULW\3URJUDP
)HGHUDO7UDQVLW&OXVWHU
&RURQDYLUXV5HOLHI)XQG
'ROODUWKUHVKROGXVHGWRGLVWLQJXLVK
EHWZHHQW\SH$DQGW\SH%SURJUDP
$XGLWHHTXDOLILHGDVORZULVNDXGLWHH" [\HV QR 8 &,7<2)5('21'2%($&+
6&+('8/(2)),1',1*6$1'48(67,21('&2676
)257+(),6&$/<($5(1'('-81(
6(&7,21,,),1$1&,$/67$7(0(17),1',1*6
1RPDWWHUVZHUHUHSRUWHG
6(&7,21,,,)('(5$/$:$5'),1',1*6$1'48(67,21('&2676 1RPDWWHUVZHUHUHSRUWHG
9 SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
No matters were reported.
10