City of Santa Clarita
Santa Clarita, California
Single Audit and
Independent Auditors’ Reports
For the Year Ended June 30, 2024
City of Santa Clarita
Single Audit and Independent Auditors’ Reports
For the Year Ended June 30, 2024
Table of Contents
Page
Independent Auditors’ Reports:
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
Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ....................................................... 3
Schedule of Expenditures of Federal Awards ............................................................................................................... 7
Notes to the Schedule of Expenditures of Federal Awards ........................................................................................... 8
Schedule of Findings and Questioned Costs ................................................................................................................ 10
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200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
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
Independent Auditors’ Report
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, 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 (“ 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 Santa Clarita, California (the “City”), as of and for the 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 27, 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 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 City’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.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of 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 complian ce. Accordingly, this communication is not suitable for any other purpose.
Santa Ana, California
December 27, 2024
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
Independent Auditors’ Report
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Santa Clarita, 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, 2024. The City’s major federal programs are identified in the summary of the auditors' 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 major federal programs for the year ended June 30, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with a uditing standards generally accepted in the United States of America (“GAAS”); the standards 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 Auditors’ 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.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
4 Auditors’ 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 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 GAAS, 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 Auditors’ 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.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
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.
Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 27, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements 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 Uniform Guidance and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing 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 used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Schedule of Expenditure of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Santa Ana, California
December 27, 2024
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City of Santa Clarita
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
7 Assistance Agency or
Federal Grantor/Pass-Through Grantor Listing Pass-Through Federa l Expenditures Program Title Numbe r Number Expenditures to Subrecipients U.S . Department of Housin g and Urban Development
CDBG - Entitlement/Special Purpose Grants Cluster
Direct Programs:
Community Development Block Grants/Entitlement Grants 14.218 B-19-MC-06-0576 $ 307,567 $ 307,567 Community Development Block Grants/Entitlement Grants 14.218 B-20-MC-06-0576 507,154 341,198 Community Development Block Grants/Entitlement Grants 14.218 B-21-MC-06-0576 574,121 - Community Development Block Grants/Entitlement Grants 14.218 B-22-MC-06-0576 29,773 - COVID-19 - Community Development Block Grants/Entitlement Grants - CARES Act 14.218 B-20-MW-06-0576 173,969 167,420 Total CDBG - Entitlement/S pecial Purpose Grants Cluster 1,592,584 816,185 Total U.S . Department of Housin g and Urban Development 1,592,584 816,185 U.S . Department of Justice
Direct Program:
Edward Byrne M emorial Justice Assistance Grant Program 16.738 15PBJA-22-GG-02609-JAGX 6,903 - Edward Byrne M emorial Justice Assistance Grant Program 16.738 15PBJA-23-GG-03131-JAGX 23,665 - Total Edward Byrne M emorial Justice Assistance Grant Program 30,568 - Total U.S . Department of Justice 30,568 -
U.S . Department of Transportation
Pass-through the State of California Department of Transportation:
Highway Planning and Construction (Federal-Aid Highway Program) 20.205 HSIPL-5450(94) 126,087 - Highway Planning and Construction (Federal-Aid Highway Program) 20.205 STPL-5450 (102) 2,129,721 - Highway Planning and Construction (Federal-Aid Highway Program) 20.205 BHLS-5450(101) 52,966 - Highway Planning and Construction (Federal-Aid Highway Program) 20.205 DEML22-5450(104) 89,835 - Highway Planning and Construction (Federal-Aid Highway Program) 20.205 BPMPL-5450(095) 342,803 - Total Highway Planning and Construction (Federal-Aid Highway Program) 2,741,412 - Federal Transit Cluster
Direct Programs:
Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 CA-90-Y276-02 19,038 - Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 CA-2017-138-00 40,400 - Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 CA-2019-125-00 143,492 - COVID-19 - Federal Transit - Formula Grants
(Urbanized Area Formula Program) 20.507 CA-2021-138-00 2,747,564 - Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 CA-2021-193-00 2,630,393 COVID-19 - Federal Transit - Formula Grants
(Urbanized Area Formula Program) 20.507 CA-2022-125-00 9,806,928 - Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 CA-2022-167-00 62,499 - Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 CA-2023-074-00 272,872 - Total Federal Transit Cluster 15,723,186 -
Total U.S . Department of Transportation 18,464,598 - U.S . Department of the Treasur y
Direct Programs:
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 1505-0271 6,309,485 - Total U.S. De partment of the Treasur y 6,309,485 - Total Expenditures of Federal Awards 26,397,235$ 816,185 $
City of Santa Clarita
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2024
8 Note 1 – Reporting Entity
The financial reporting entity, as defined by the Governme ntal Accounting Standards Board (“GASB”) Codification, consists of the primary government, which is the City of Santa Clarita, California (the “City”), organizations for which the primary government is financially accountable , and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the City’s financial statements to be misleading or incomplete.
The City Council acts as the governing body and is able to impose its will on the following organization, establishing financial accountability:
The Santa Clarita Public Financing Authority
The Santa Clarita Public Television Authority
Note 2 – Summary of Significant Accounting Policies
Basis of Accounting
Funds received under the various grant programs have been recorded within the special revenue funds and enterprise fund of the City. The City utilizes the modified accrual basis of accounting for the special revenue funds and the accrual basis of accounting for the enterprise funds. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200 , Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of City’s basic financial statements.
Schedule of Expenditures of Federal Awards
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the State of California Department of Transportation, are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.
Indirect Cost Rate
The City did not elect to use the 10% de minimis cost rate.
City of Santa Clarita
Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2024
9 Note 3 – Subrecipients
During the year ended June 30, 2024, the City has the following subrecipients:
Assistance Amount Provided
Listing Number Program Name / Subrecipient Name to Subrecipients
14.218 Community Development Block Grants / Entitlement Grants:
Handyworker / Santa Clarita Valley Senior Center 395,690 $ Community Access / Santa Clarita Valley Senior Center 49,000 Rehab / Santa Clarita Valley Senior Center 5,000
Project Special Children of the Valley / Carousel Ranch Inc. 10,710 Ready to Work/Carousel Ranch Inc. 10,445
Comprehensive M ental Health / Single M others Outreach 29,984 Household Support / Family Promise of Santa Clarita 35,000 Case Management / Fostering Youth Independence 35,825
Homeless Intake and Assessment / Bridge To Home 52,323
Fair Housing / Hous ing Right s Cent er 24,788
COVID-19 - Community Development Block Grants / Entitlement Grants - CARES Act:
Childcare Scholarships / Santa Clarita Valley YM CA 36,758 Household Support / Family Promise of Santa Clarita 35,000 Rent & Utilities / The Salvation Army 30,705
Rent & Utilities - Disabled / Avenues 20,169
COVID-19 Childcare Scholarship / Boys & Girls Club 26,500 Study Place Program / Fostering Youth Independence 18,288 816,185$
City of Santa Clarita
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2024
10 Section I – Summary of Auditors’ Results
Financial Statements
Types of report the auditors issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None Reported
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major federal programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None Reported
Type of auditors’ report issued on compliance for major federal programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No
Identification of major federal programs:
Assistance Listing Federal
Numbers Major Federal Program or Cluster Expenditures
20.205 Highway Planning and Construction 2,741,412 $
21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 6,309,485 Total Expenditures of All Ma jor Federal Programs 9,050,897$ Total Expenditures of Federal Awards 26,397,235$
Percent of Total Expenditures of Federal Awards 34.29%
Dollar threshold used to distinguish between type A and type B programs: $791,917
Auditee qualified as a low-risk auditee in accordance with 2 CFR 200.520? Yes City of Santa Clarita
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2024
11 Section II – Financial Statement Findings
A. Current Year Findings – Financial Statement
No current year findings were reported.
B. Prior Year Findings – Financial Statement
No prior year findings were reported.
City of Santa Clarita
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2024
12 Section III – Federal Award Findings and Questioned Costs
A. Current Year Findings and Questioned Costs – Major Federal Award Program Audit
No current year findings were reported.
B. Prior Year Findings and Questioned Costs – Major Federal Award Program Audit
No prior year findings were reported.