Finance and Management Services
www.santa-ana.org/finance
Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 7, 2024
TOPIC: Receive and file the Single Audit Report for the Fiscal Year Ended June 30, 2023
AGENDA TITLE
Receive and File Single Audit Report for the Fiscal Year Ended June 30, 2023
RECOMMENDED ACTION
Receive and file Single Audit Report for the Fiscal Year Ended June 30, 2023.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
All non-Federal entities that expend $750,000 or more of Federal awards each fiscal year are required to obtain a Single Audit to comply with the regulations of the Federal Office of Management and Budget (OMB). The Single Audit for the fiscal year ended June 30, 2023 has been completed by the City’s independent auditor, Clifton Larson Allen LLP.
During the fiscal year 2022-23, the City administered twenty-six (26) Federal grant programs and expended $114.5 million, representing an increase of $8.7 million from the prior fiscal year. The increase was primarily due to $4.9 million in additional HOME American Rescue Plan Program expenditures and $4.5 million in additional Section 8 Housing Choice Vouchers.
Of the twenty-six (26) programs administered by the City, the auditors identified five major programs for the audit: Community Development Block Grant – Entitlements Grants Cluster ($9.5 million), Coronavirus State and Local Fiscal Recovery ($22.8 million), Emergency Rental Assistance Program ($5.2 million), Community Programs to Improve Minority Health Grant ($2.1 million), and the Homeland Security Grant Program ($4.2 million).
The Finance and Management Services Agency is pleased to report that the City received an unmodified opinion commonly known as a clean opinion; which is considered the most favorable conclusion for the audit. The unmodified opinion indicates that the City has complied, in all material respects, with the compliance requirements for the fiscal year ended June 30, 2023. However, the auditors disclosed
Receive and file the Single Audit Report for the Fiscal Year Ended June 30, 2023 May 7, 2024
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two compliance findings related to the Community Program to Improve Minority Health Grant program; the Federal Funding Accountability and Transparency Act (FFATA) reports and quarterly SF-425 financial reports were not filed timely.
The City’s Grant Management Policy (Policy) requires the grant administering departments to adhere to all reporting requirements for their grant programs. However, the department administering this program experienced turnover at key positions and was not able to submit the required reports on time. Program staff will follow the Policy and update procedures to ensure the status of all compliance requirements are tracked and proper knowledge transfer takes place to prevent future findings.
The report (Exhibit 1) is posted and available on the City’s website (https://www.santa- ana.org/financial-reports) along with prior fiscal years and has been submitted to the Federal Audit Clearinghouse. The Single Audit Report is required to be submitted by March 31.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT
1. FY22-23 Single Audit Report
Submitted By: Kathryn Downs, Executive Director of Finance and Management Services
Approved By: Alvaro Nuñez, Acting City Manager