City of Sacramento
Budget and Audit Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00977 5/27/2025 Item 2.
Fiscal Year (FY) 2023/24 Single Audit Report
File ID: 2025-00977
Location: Citywide
Recommendation: Pass a Motion: 1) accepting the (FY) 2023/24 Single Audit Report; and 2) forwarding it to City Council for approval.
Contact: Osvaldo Lopez, Finance Manager, (916) 808-4740, [email protected]; Peter Coletto, Finance Director, (916) 808-5416, [email protected]; Department of Finance Presenter: None
Attachments:
1-Description/Analysis
2-Single Audit Resolution
3-Exhibit A - Single Audit Report
Description/Analysis
Issue Detail: The Single Audit Report for FY2023/24 that ended June 30, 2024 (Exhibit A), was prepared to present the City’s Schedule of Expenditures of Federal Awards (SEFA). The SEFA reports $47.4 million in federal expenditures. As required by federal law, an independent public accounting firm audited the SEFA. The audit contains no findings, and the conclusion of the independent auditor is that the City complied, in all material respects, with program requirements.
Policy Considerations: This report is required by federal and state law. (Code of Federal Regulations, title 2, section 200.501 et seq., and California Government Code section 12410.5).
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): This action is not a project subject to CEQA because it involves only organizational or administrative activities that will not result in direct or indirect physical changes in the environment (CEQA Guidelines §15378(b)(5).
Sustainability: Not applicable.
File ID: 2025-00977 5/27/2025 Item 2.
Commission/Committee Action: None.
Rationale for Recommendation: It is in the best interest of the City to accept the FY2023/24 Single Audit Report and the Management Letter for the following reasons:
· The FY2023/24 Single Audit Report is required by federal and state law. · Macias, Gini & O’Connell LLP, an independent public accounting firm, has audited the SEFA and rendered an unmodified audit opinion that the information is fairly stated in relation to the City’s audited financial statements. The auditors tested three major federal programs and reported no instances of noncompliance in the FY2023/24 Single Audit Report.
Financial Considerations: There are no financial considerations associated with this report.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO.
Adopted by the Sacramento City Council
ACCEPTING THE FISCAL YEAR 2023/24 SINGLE AUDIT REPORT
BACKGROUND
A. The City’s Fiscal Year (FY) 2023/24 Single Audit Report was prepared to present the City’s Schedule of Expenditures of Federal Awards (SEFA) for the fiscal year ended June 30, 2024. The SEFA was audited, as required by federal law, by an independent public accounting firm.
B. The public accounting firm of, Macias, Gini & O’Connell LLP audited the City’s FY2023/24 SEFA and rendered its unmodified opinion that the schedule is fairly presented in relation to the City’s audited financial statements.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council accepts the FY2023/24 Single Audit Report, attached hereto as Exhibit A.
Section 2. Exhibit A is part of this resolution.
Table of Contents:
Exhibit A Single Audit Report
C
ITY OF SACRAMENTO, CALIFORNIA
S
ingle Audit Reports
F
or the Fiscal Year Ended June 30, 2024
CITY OF SACRAMENTO, CALIFORNIA
Single Audit Reports
For the Fiscal Year Ended June 30, 2024
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 Federal Program; Report 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 ............................................................................................... 6
Notes to Schedule of Expenditures of Federal Awards ................................................................................ 9
Schedule of Findings and Questioned Costs ............................................................................................... 11
www.mgocpa.com Macias Gini & O’Connell LLP
500 Capitol Mall, Suite 2200
Sacramento, CA 95814
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
The Honorable Mayor and Members of the
City Council of the City of Sacramento, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards a pplicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards) , the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Sacramento, California (City), as of and for the fiscal year ended June 30, 2024, 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 20, 2024.
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 pre vent, 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 attenti on 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.
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.
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, a nd 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 w ith Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Sacramento, California
December 20, 2024
www.mgocpa.com Macias Gini & O’Connell LLP
500 Capitol Mall, Suite 2200
Sacramento, CA 95814
3 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
The Honorable Mayor and Members of the
City Council of the City of Sacramento, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Sacramento, California’s (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 fiscal year ended June 30, 2024 .
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 complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its m ajor federal programs for the fiscal year ended June 30, 2024.
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 (GAAS); the stan dards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( Government Auditing Standards); 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 re sponsible 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, ru les and provisions of contracts or grant agreements applicable to the City’s federal programs.
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 GAAS, 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 i nvolve 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 i n accordance with GAAS, Government Au diting 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 complian ce, 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.
5 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.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of th e governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the fiscal year ended June 30, 2024, and the related notes to the financi al statements, which collectively comprise the City’s basic financial statements . We issued our report thereon dated December 20, 2024, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial s tatements 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 i s not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates direct ly to the underlying accounting and other records used to prepare the basic financial statements. The infor mation has been subjected to the audi ting procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records use d to prepare the basic financial statements or to the basic financial statements t hemselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditu res of federal awards is fairly stated in all material respects in relation to the financial statements as a whole.
Sacramento, California
March 21, 2025, except for our report on the Schedule
of Expenditures of Federal Awards, for which the
date is December 20, 2024
CITY OF SACRAMENTO, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2024
Federal
Assistance
Listing
Number
Pass-Through
Entity
Identifying
Number
Federal
Expenditures
Expenditures to
Subrecipients
United States Department of Housing and Urban Development Passed through Sacramento Housing and Redevelopment Agency:
CDBG - Entitlement Grants Cluster:
Tree Nursery Access Improvement Individual Project 14.218 2023-0199 1,239$ -$ China Town Light Study 14.218 2023-0240 45,266 - 21st Avenue Park Master Plan 14.218 2022-0318 37,160 - Nielsen Park 14.218 2020-1180 1,920 - Woodlake Park 14.218 2022-0925 17,764 - Lawrence Park Improvements 14.218 2022-0924 81,900 - O'Neil Park Restroom Replacement 14.218 2021-0800 444,125 - Mama Marks Park 14.218 2022-0513 608,290 - Wood Park Design 14.218 2022-0341 22,833 - Mangan Park Improvements 14.218 2021-0798-01 134,193 - Temple Avenue Park Improvements 14.218 2021-0799 8,232 - Chorley Park 14.218 2013-00125 189,714 - Camellia Park 14.218 2013-0125-02 17,904 - Nunn Park Improvements 14.218 2013-00125 163,316 - Thelma and Hawk Park Master Plan 14.218 2022-0514 21,363 - Ninos Park 14.218 2024-1212 16,005 - North Pointe Park 14.218 2013-00125 3,510 - Fruitridge Complete Streets 14.218 2023-1706 14,231 - Northgate Boulevard Signals Project 14.218 2022-0563 63,397 - Franklin Blvd Complete Street 14.218 2021-0213 47,443 - Franklin Blvd Complete Street Phase 3 14.218 2024-0023 5,693 - Northwood School Access Improvement 14.218 2023-0241 584,499 - Envision Broadway in Oak Park 14.218 2023-1683 21,372 - Subtotal Community Development Block Grant/Entitlement Grants 2,551,369 - Passed through Sacramento Housing and Redevelopment Agency:
HOPE VI Cluster
Choice Neighborhoods Implementation Grants:
Gateway 14.889 2015-2230 985 - Total United States Department of Housing and Urban Development 2,552,354 - United States Department of the Interior
Direct Programs:
Central Valley Improvement Act, Title XXXIV:
15.512 --- 264,638 -
15.512 --- 8,398 -
15.512 --- 1,755,693 -
15.512 --- 268,122 -
Subtotal Central Valley Improvement Act, Title XXXIV 2,296,851 - Central Valley Project Improvement Act (CVPIA):
American River Juvenile Salmonid and Habitat Monitoring 15.648 --- 544,354 - Total United States Department of the Interior 2,841,205 - United States Department of Justice
Direct Programs:
Public Safety Partnership and Community Policing Grants:
COPS Hiring Program - 2021 16.710 --- 592,106 - Edward Byrne Memorial Justice Assistance Grant Program:
Edward Byrne Memorial Justice Assistance Grant Program - 2021 16.738 --- 55,207 - Edward Byrne Memorial Justice Assistance Grant Program - 2022 16.738 --- 136,387 - Edward Byrne Memorial Justice Assistance Grant Program - 2023 16.738 --- 1,920 - Subtotal Edward Byrne Memorial Justice Assistance Grant Program 193,514 - Total United States Department of Justice 785,620 - Habitat and Facility Improvement American River Salmonid Spawning and Rearing Habitat Restoration Federal Grantor/Pass-Through Grantor/Cluster Title/
Federal Program Name/ City Program Name
Lower American River Salmonid Habitat Improvement Program - Upper Riverbend Phase 1 Lower American River Salmonid Habitat Improvement
Lower Sailor Bar
The accompanying notes are an integral part of this schedule. 6 CITY OF SACRAMENTO, CALIFORNIA
Schedule of Expenditures of Federal Awards (Continued)
For the Fiscal Year Ended June 30, 2024
Federal
Assistance
Listing
Number
Pass-Through
Entity
Identifying
Number
Federal
Expenditures
Expenditures to
Subrecipients
Federal Grantor/Pass-Through Grantor/Cluster Title/
Federal Program Name/ City Program Name
United States Department of Labor
Passed through Sacramento Employment and Training Agency:
Workforce Investment Act/Workforce Innovation and Opportunity Act (WIA/WIOA) Cluster:
WIOA Youth Activities 17.259 046301IS-23 221,151$ -$ Total United States Department of Labor 221,151 - United States Department of Transportation
Passed through State of California Department of Transportation (CALTRANS):
Highway Planning and Construction 20.205 CML-5002(155) 128,669 - Highway Planning and Construction 20.205 CML-5002(178) 547,444 - Highway Planning and Construction 20.205 ATPL-5002(189) 5,585,182 - Highway Planning and Construction 20.205 STPCML-5002(222) 203,829 - Highway Planning and Construction 20.205 STPL-5002(175) 100,997 - Highway Planning and Construction 20.205 BRLS-5002(220) 12,083 - Highway Planning and Construction 20.205 BRLS-5002(164) 1,792,978 - Highway Planning and Construction 20.205 BRLS-5002(168) 104,812 - Highway Planning and Construction 20.205 STPL-5002(195) 184,044 - Highway Planning and Construction 20.205 CML-5002(219) 348,017 - Highway Planning and Construction 20.205 STPL-5002(213) 240,346 - Highway Planning and Construction 20.205 ATPL-5002(203) 8,983,822 - Highway Planning and Construction 20.205 HSIPL-5002(198) 714,083 - Highway Planning and Construction 20.205 HSIPL-5002(199) 182,225 - Highway Planning and Construction 20.205 HSIPL-5002(200) 4,907,864 - Highway Planning and Construction 20.205 ATPL-5002(204) 3,308,826 - Highway Planning and Construction 20.205 ATPLNI-5002(234) 46,338 - Highway Planning and Construction 20.205 HSIPL-5002(209) 10,856 - Highway Planning and Construction 20.205 HSIPL-5002(210) 120,737 - Highway Planning and Construction 20.205 HSIPL-5002(211) 1,031,869 - Highway Planning and Construction 20.205 HSIPL-5002(212) 125,875 - Highway Planning and Construction 20.205 STPL-5002(221) 177,806 - Highway Planning and Construction 20.205 LPPSTPL-5002(226) 87,637 - Highway Planning and Construction 20.205 STPL-5002(221) 294,973 - Highway Planning and Construction 20.205 STPL-5002(224) 243,249 - Highway Planning and Construction 20.205 DEMOL 5002(223) 205,050 - Highway Planning and Construction 20.205 CML-5002(232) 244,507 - Highway Planning and Construction 20.205 RSSTPL-5002 (239) 9,185 - Subtotal Highway Planning and Construction 29,943,303 - Passed through State of California Department of Transportation (CALTRANS):
Highway Railroad Grade Crossing Safety Program 20.301 STPLR-7500(260) 961,356 Passed through State of California Office of Traffic Safety:
Highway Safety Cluster:
State and Community Highway Safety 20.600 PT21046 1,375 - State and Community Highway Safety 20.600 PT23162 22,031 - State and Community Highway Safety 20.600 PT24166 45,265 - Subtotal Highway Safety Cluster 68,671 - Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 PT23162 36,712 - Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 PT24166 22,684 - Subtotal Minimum Penalties for Repeat Offenders for Driving While Intoxicated 59,396 - Passed through California Governor's Office of Emergency Services Hazardous Materials Emergency Preparedness Planning
Hazardous Materials Emergency Preparedness 2022- Emergency Response Kit Project 20.703 --- 69,621 - Hazardous Materials Emergency Preparedness 2022- Self-Contained Breathing Apparatus (SCBA) 20.703 --- 21,098 - Subtotal Hazardous Materials Emergency Preparedness Planning 90,719 - Total United States Department of Transportation 31,123,445 - United States Department of the Treasury
Passed through California State Water Resources Control Board:
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 CA3410020, W00012 3,203,469 - Passed through County of Sacramento:
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 ER3-2022-01 1,006,106 - Total United States Department of the Treasury 4,209,575 - The accompanying notes are an integral part of this schedule. 7 CITY OF SACRAMENTO, CALIFORNIA
Schedule of Expenditures of Federal Awards (Continued)
For the Fiscal Year Ended June 30, 2024
Federal
Assistance
Listing
Number
Pass-Through
Entity
Identifying
Number
Federal
Expenditures
Expenditures to
Subrecipients
Federal Grantor/Pass-Through Grantor/Cluster Title/
Federal Program Name/ City Program Name
National Endowment for the Arts
Direct Programs:
COVID-19 Promotion of the Arts, Grants to Organizations and Individuals 45.024 1895554-66-22 132,501$ -$ Total National Endowment for the Arts 132,501 - United States Environmental Protection Agency
Direct Programs:
Brownfields Assessment and Cleanup Cooperative Agreements:
Revolving Loan Fund 66.818 --- 13,484 - Total United States Environmental Protection Agency 13,484 - United States Department of Homeland Security
Direct Programs:
National Urban Search & Rescue (US&R) Response System:
Urban Search and Rescue 2018 97.025 --- 73,232 - Urban Search and Rescue 2019 97.025 --- 57,175 - Urban Search and Rescue 2020 97.025 --- 45,933 - Urban Search and Rescue 2021 97.025 --- 171,802 - Urban Search and Rescue 2022 97.025 --- 419,745 - Urban Search and Rescue 2023 97.025 --- 1,031,854 - Urban Search and Rescue Hurricane Douglas 97.025 --- 16 - Urban Search and Rescue Tropical Cyclones Marco and Laura Deployment 97.025 --- 919 - Urban Search and Rescue 2021 Presidential Inauguration 97.025 --- 383 - Urban Search and Rescue Tropical Cyclone Ida 97.025 --- 872 - Urban Search and Rescue Kentucky Floods 97.025 --- 2,294 - Urban Search and Rescue Vermont Flooding 97.025 --- 29,131 - Urban Search and Rescue Hawaii Wildfires 97.025 --- 140,172 - Urban Search and Rescue Tropical Cyclone Idalia 97.025 --- 17,967 - Subtotal National Urban Search & Rescue (US&R) Response System 1,991,495 - Passed through California Governor's Office of Emergency Services:
Public Assistance Grants 97.036
FEMA-4482-DR-CA
FEMA-4683-DR-CA
PA-09-CA-4683-PW-01156(867) 215,243 - Public Assistance Grants- Emergency Protective Measures 97.036 PA-09-CA-4482-PW-02962(3248) 937,100 - Subtotal Public Assistance Grants 1,152,343 - Passed through State of California Office of Emergency Services:
Homeland Security Grant Program:
Homeland Security Grant Program - 2020 97.067 2020-0095 390,773 263,523 Homeland Security Grant Program - 2021 97.067 2021-0081 1,546,144 805,007 Homeland Security Grant Program - 2022 97.067 2022-0043 286,090 - Passed through the Sacramento County Office of Emergency Services:
Homeland Security Grant Program - 2022 97.067 2022-0043 138,093 - Subtotal Homeland Security Grant Program 2,361,100 1,068,530 Total United States Department of Homeland Security 5,504,938 1,068,530 Total Expenditures of Federal Awards 47,384,273$ 1,068,530$ The accompanying notes are an integral part of this schedule. 8 9
CITY OF SACRAMENTO, CALIFORNIA
Notes to the Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2024
NOTE 1 – BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Sacramento, California (City) under programs of the federal government for the fiscal year ended June 30, 2024. The information in the 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).
As a result of the COVID-19 pandemic, many new federal programs have been established and funding has been added to existing federal programs. Expenditures funded from the following acts are denoted by the prefix COVID-19 in the federal program title in the Schedule:
• C
oronavirus Preparedness and Response Supplemental Appropriations Act • Families First Coronavirus Response Act
• Coronavirus Aid, Relief, and Economic Security Act (CARES Act) • Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) • American Rescue Plan Act (ARP)
N
OTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICY
Expe
nditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for governmental funds and the full accrual basis for proprietary funds. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown, if any, in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
N
OTE 3 – ASSISTANCE LISTING NUMBERS (ALN)
Th
e ALNs included in the accompanying Schedule were determined based on the program name, review of grant contract information, and the U.S. General Service Administration’s SAM.gov website.
N
OTE 4 – INDIRECT COST RATE
T
he City has elected not to use the 10- percent de minimis indirect cost rate allowed under the Uniform Guidance Section 2 CFR 200.414.
CITY OF SACRAMENTO, CALIFORNIA
Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Fiscal Year Ended June 30, 2024
10 NOTE 5 – LITIGATION RELATED TO FEDERAL GRANT FUNDING FREEZE T
he City is currently engaged in litigation against the federal government concerning the suspension of certain federal grant funds. As of March 21, 2025, several federal grant programs listed in the Schedule have been impacted by the freeze, resulting in delayed reimbursements and uncertainty regarding future funding availability.
T
he affected programs include, but are not limited to, the following:
• C
OPS Hiring Program, ALN #16.710
• Edward Byrne Memorial Justice Assistance Grant Program, ALN #16.738 • Homeland Security Grant Program, ALN #97.067
T
he City continues to comply with all grant requirements and is actively pursuing legal remedies to ensure the release of awarded funds. While the outcome of this litigation remains uncertain, the City is monitoring the situation closely and assessing the potential financial and operational impacts.
CITY OF SACRAMENTO, CALIFORNIA
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2024
11 Section I Summary of Auditor’s Results
FINANCIAL STATEMENTS
Type of
report the auditor issued on whether the financial
statements audited were prepared in accordance with GAAP: Unmodified Inte
rnal control over financial reporting:
• Material weakness(es) identified? No
• Significant deficiency(ies) identified? None reported Non
compliance material to the financial statements noted? No FEDE
RAL AWARDS
Inte
rnal control over major federal programs:
• Material weakness(es) identified? No
• Significant deficiency(ies) identified? None reported Type of
auditor’s report issued on compliance
for major federal programs: Unmodified
Any audi
t findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)? No
Ident
ification of major federal programs:
Assistance
Listing Number Name of Federal Program
20.205 Highway Planning and Construction
20.301 Highway Railroad Grade Crossing Safety Program
21.027 Coronavirus State and Local Fiscal Recovery Funds Doll
ar threshold used to distinguish between type A and type B program: $1,421,528 Audit
ee qualified as a low-risk auditee? Yes
CITY OF SACRAMENTO, CALIFORNIA
Schedule of Findings and Questioned Costs (Continued)
For the Fiscal Year Ended June 30, 2024
12 Section II Financial Statement Findings
N
o matters were reported.
Section III Federal Awards Findings
N
o matters were reported.