CITY OF RIVERSIDE, CALIFORNIA
JUNE 30, 2023 SINGLE AUDIT REPORT
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CITY OF RIVERSIDE, CALIFORNIA
Single Audit Report
June 30, 2023
Table of Contents
Page
Number
Independent Auditors’ Re
port 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 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
Fiscal Year Ended June 30, 2023 ...................................................................................................................... 6 Notes to the Schedule of Expenditures of Federal Awards ................................................................................... 8 Schedule of Findings and Questioned Costs for the
Fiscal Year Ended June 30, 2023 ...................................................................................................................... 9 Schedule of Prior Year Findings and Questioned Costs for the Fiscal Year Ended June 30, 2022 .................................................................................................................... 11
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
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Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
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Opinion on Each Major Federal Program
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Responsibilities of Management for Compliance
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5 CITY OF RIVERSIDE
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2023
Assistance Passed
Listing Pass-Through Through to
Federal Grantor/Pass-Through Grantor/Program Title Number Unique Entity ID Subrecipients Expenditures CDBG - Entitlement Grants Cluster
U.S. Department of Housing and Urban Development
Direct Programs:
Community Development Block Grants/Entitlement Grants 14.218 N/A 2 ,057,768$ 5,352,386$ CDBG Loans Program with Compliance Requirements 14.218 N/A - 115,904 Total CDBG - Entitlement Grants Cluster 2,057,768 5,468,290 Highway Planning and Construction Cluster
U.S. Department of Transportation
Pass-through the California Department of Transportation:
Highway Planning and Construction * 20.205 EHEGWCLJEVJ4 - 963,938 Total Highway Planning and Construction Cluster - 963,938 Highway Safety Cluster
U.S. Department of Transportation
Pass-through State of California Office of Traffic Safety:
State and Community Highway Safety 20.600 XCA4E3XL2KY7 - 24,800 Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 XCA4E3XL2KY7 - 359,321 Total Highway Safety Cluster - 384,121 Other Programs
U.S. Department of Housing and Urban Development:
Direct Programs:
Emergency Solutions Grants Program 14.231 N/A 1,753,710 1,753,710 Home Investment Partnerships Program 14.239 N/A - 1,449,862 HOME Loans Program with Compliance Requirements 14.239 N/A - 888,380 Total Home Investment Partnerships Program - 2,338,242 Housing Opportunities for Persons with AIDS * 14.241 N/A 3,193,699 3,262,046 Pass-through the County of Riverside:
Continuum of Care Program 14.267 JBYVCCGM6C95 - 322,776 Total U.S. Department of Housing and Urban Development 4,947,409 7,676,774 U.S. Department of Justice
Direct Programs:
Missing Children's Assistance 16.543 N/A - 29,293 Bulletproof Vest Partnership Program 16.607 N/A - 12,851 Edward Byrne Memorial Justice Assistance Grant Program 16.738 N/A 43,993 190,420 Equitable Sharing Program 16.922 N/A - 294,433 Total U.S. Department of Justice 43,993 526,997 U.S. Department of Transportation
Direct Programs:
Airport Improvement Program 20.106 N/A - 205,445 Consolidated Rail Infrastructure and Safety Improvements 20.325 N /A - 6,478 Total U.S. Department of Transportation - 211,923 U.S. Department of Treasury
Direct Programs:
Asset Forfeiture 21.U01 N/A - 32,597 Emergency Rental Assistance Program * 21.023 N/A - 2,606,993 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds * 2 1.027 N/A - 26,711,375 Total U.S. Department of Treasury - 29,350,965 Institute of Museum and Library Services
Pass-through State of California:
Promotion of the Humanities Federal/State Partnership 45.129 TE22 Z7JFP4P2 - 4,500 Total Institute of Museum and Library Services - 4,500 Executive Office of the President - Office of National Drug Control Policy Pass-through State of California:
High Intensity Drug Trafficking Areas Program 95.001 E2TSDGFNMF99 - 391,856 Total Executive Office of the President - Office of National Drug Control Policy - 391,856
6 CITY OF RIVERSIDE
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2023
Assistance Passed
Listing Pass-Through Through to
Federal Grantor/Pass-Through Grantor/Program Title Number Unique Entity ID Subrecipients Expenditures U.S. Department of Homeland Security
Direct Programs:
National Urban Search and Rescue (US&R) Response System 97.025 N/A- 1,522,848 Disaster Grants - Public Assistance (Presidentially Declared Disasters) * 97.036 N/A - 568,581 Pass-through the State of California:
Homeland Security Grant Program 97.067 UTM3S7LKYQZ4 - 159,408 Pass-through the County of Riverside:
Homeland Security Grant Program 97.067 UGKSJJCNHPP3 957,367 2,005,561 Emergency Management Performance Grants 97.042 UGKSJJCNHPP3 - 63,724 Total U.S. Department of Homeland Security 957,367 4,320,122 Total Other Programs 5,948,769 42,483,137
Total Federal Expenditures 8,006,537$ 49,299,486 $
* Denotes major program
Note b: There were 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 fora description of significant accounting policies used in preparing this schedule.
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Criteria
Title 2, Subtitle A, Chapter II, Part 200 Subpart F, Section 200.510(b) requires that the auditee prepare a schedule of expenditures of federal award for the period covere d by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with Section 200.502.
Condition
Following the original completion and issuance of the Single Audit Report and submission to the Federal Audit Clearinghouse, the City discovered that the Coronavirus State a nd Local Fiscal Recovery Fund programs in the amounts of $11,076,056 passed through the California Depart ment of Community Services and Development and $4,135,234 passed through the State of California Water Resource Control Board were omitted from the schedule of expenditures of federal awards.
Cause of Condition
The programs were omitted from t he schedule of expenditures of federal awards due to the nature of the revenues received. The revenues of $11,076,056 were received as pass-through for customer electric bills from the California Department of Community Services and Development as part of the California Arrearages Payment Program and $1,944,242 of customer water bills and $2,3 70,992 for customer wastewater bills from the State of California Water Re source Control Board as part of the California Arrearages Payment Program, which were intended to apply credits to past-due active custome r account balances for services provided by the City for customers who had been negatively impacted by the COVID-19 pandemic.
Effect of Condition
Due to this condition, the original schedule of expenditures of federal awards submitted was understated and the Single Audit Report is now revised and resubmitted to the Federal Audit Clearinghouse past the March 31 st
deadline to include these pass-through grants.
Questioned Costs
None
Context
All other programs were properly identified and included on the schedule of expenditures of federal awards, indicating that this was an isolated incident.
Current Status:
Appropriate corrective actions were taken; this finding is considered resolved and is not repeated in the fiscal year ended June 30, 2023.
12