Item Number: 10
City Council / Board of Directors
Written Communications
Meeting of: April 15, 2025
Submitted By:
Carmen Cun, Finance Director / City Treasurer
Subject:
Annual Single Audit Report on Federal Grants for Year Ended June 30, 2024 Recommendation:
That the Honorable City Council receive and file the Fiscal Year 2023-2024 Single Audit Report.
Fiscal Impact:
There is no fiscal impact from this receive and file item.
Strategic Plan Goal:
Annual single audit and reporting is part of Goal A: Financial Sustainability as this report acts as a tool for management to monitor Federal program activities.
Background:
The Single Audit Act of 1984 establishes uniform audit requirements for local governments expending federal awards greater than $750,000 a year. The audit is on an entity wide basis and imposes additional requirements in relation to testing of and reporting on, internal control and compliance with laws and regulations. These rules are listed in Title 2 US Code of Federal Regulations (CFR) Part 200.
The purpose of the single audit is to evaluate the City’s internal controls and compliance and report any findings to those charged with governance. Additionally, the single audit provides confirmation to the federal agencies granting the funds that funds are being utilized in accordance with program requirements and Uniform Guidance. In response to any identified deficiencies, the City develops a corrective action plan to address issues and implement recommended improvements. Consequently, audit findings serve as valuable opportunities to enhance internal controls, improve operational efficiencies, and establish best practices within our business processes. 4 0
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Discussion:
The City's independent auditors, Badawi & Associates, CPAs (Badawi), have completed the annual single audit of the City's federal activities for the fiscal year ended June 30, 2024. The auditing firm Badawi conducted an audit of one major program in accordance with the requirements set forth in 2 CFR 200; which is a set of regulations that establishes unform administrative requirements, cost principles, and audit requirements for all federal awards. The primary federal program that underwent auditing was the American Rescue Plan Act (ARPA), which is associated with the Coronavirus Relief Fund. The Federal Single Audit resulted in no internal control weakness or instances of non-compliance.
Staff remains available for any questions the Council may have.
Attachments: A. Single Audit of Federally Assisted Grant Programs Year Ended June 30, 2024