CITY OF RIPON
CALIFORNIA
SINGLE AUDIT REPORT
FOR THE YEAR ENDED
JUNE 30, 2022
2022.06.30 City of Ripon - Single-Audit Report
CITY OF RIPON
CALIFORNIA
SINGLE AUDIT REPORT
JUNE 30, 2022
TABLE OF CONTENTS
Page
Independent Auditor’s Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards ....................................................................................1 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance ................................................................................................................................3 Schedule of Expenditures of Federal Awards ..............................................................................................6 Notes to the Schedule of Expenditures of Federal Awards .........................................................................7 Schedule of Findings and Questioned Costs ...............................................................................................8 Summary Schedule of Prior Audit Findings ...............................................................................................10 2022.06.30 City of Ripon - Single-Audit Report
1 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Ripon, 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 modified cash basis financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Ripon, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated October 26, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. 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. 2022.06.30 City of Ripon - Single-Audit Report
2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Clovis, California
October 26, 2022
2022.06.30 City of Ripon - Single-Audit Report
3 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and
Members of the City Council
City of Ripon, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Ripon, California’s (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 City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City of Ripon, California 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, 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; 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 Auditor’s 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.
2022.06.30 City of Ripon - Single-Audit Report
4 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with 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. 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.
2022.06.30 City of Ripon - Single-Audit Report
5 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.
Clovis, California
October 26, 2022
2022.06.30 City of Ripon - Single-Audit Report
The accompanying notes are an integral part of this statement. 6 CITY OF RIPON
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2022
Assistance Pass-Through
Listing Grantor's Federal Passed Through
Number Number Expenditures to Subrecipients
U.S. DEPARTMENT OF TRANSPORTATION
Pass-through California Department of Transportation:
Highway Planning and Construction
STPL California Department of Transportation 20.205 STPL-5286 (025) 1,644,913 $ - $ Total U.S. Department of Transportation - 1,644,913
U.S. DEPARTMENT OF JUSTICE
Direct Award:
Bureau of Justice Assistance - Bulletproof Vest Partnership 16.607 FY 2020 429 Bureau of Justice Assistance - Bulletproof Vest Partnership 16.607 FY 2021 1,892 - Total U.S. Department of Justice - 2,321
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Pass-through California Department of Finance:
Coronavirus State and Local Fiscal Recovery Funds
American Rescue Plan Act 21.027 N/A - 3,919,880
Pass-through State Water Resources Control Board:
Coronavirus State and Local Fiscal Recovery Funds
California Water and Wastewater Arrearage Payment Program 21.027 N/A - 32,945 Pass-through County of San Joaquin:
Community Development Block Grants:
Senior Center Retrofit 14.218 RIP 19.06 & RIP 20.3 20,837 - County of San Joaquin, CA Community Development Block Grants 14.218 RIP 21.24, RIP 20.29 &
RIP 21.29 10,000 15,000
Total U.S. Department of Housing and Urban Development 10,000 3,988,662 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 10,000 5,635,896 $ Federal Grantor/Pass-Through Grantor/Program Title
2022.06.30 City of Ripon - Single-Audit Report
7 CITY OF RIPON
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2022
GENERAL
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Ripon (the City). Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies are included in the schedule. The information in this SEFA 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).
BASIS OF ACCOUNTING
The accompanying SEFA is presented using the modified cash basis of accounting, which is described in Note 1 of the City’s basic financial statements.
RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Federal award expenditures agree or can be reconciled with the amounts reported in the City’s basic financial statements.
INDIRECT COST RATE
The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
2022.06.30 City of Ripon - Single-Audit Report
8 CITY OF RIPON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2022
SECTION I – SUMMARY OF AUDITOR’S RESULTS
FINANCIAL STATEMENTS
Type of auditor's report issued:
Internal control over financial reporting:
Material weaknesses identified? Yes X No
Significant deficiencies identified -
not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No
FEDERAL AWARDS
Internal control over major programs:
Material weaknesses identified? Yes X No
Significant deficiencies identified -
not considered to be material weaknesses? Yes X None reported Type of auditor's report issued on compliance for
major programs:
Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? Yes X No
IDENTIFICATION OF MAJOR PROGRAMS:
Assistance Listing Number(s)
21.027
Dollar threshold used to distinguish
between Type A and Type B programs:
Auditee qualified as low-risk auditee? Yes X No
$750,000
Unmodified
Unmodified
Name of Federal Program or Cluster
Coronavirus State and Local Fiscal Recovery
Funds
2022.06.30 City of Ripon - Single-Audit Report
9 CITY OF RIPON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2022
SECTION II – FINANCIAL STATEMENT FINDINGS
None reported.
SECTION III – FEDERAL AWARD FINDINGS
None reported.
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10 CITY OF RIPON
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2022
FINANCIAL STATEMENT FINDINGS
None reported.
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None reported.
2022.06.30 City of Ripon - Single-Audit Report