Attachment A
Single Audit of Federally
Assisted Grant Programs
Year Ended June 30, 2025
City of
Victorville
Victorville, California
Single Audit Report
For the year ended June 30, 2025
City of Victorville
Single Audit Report
For the year ended June 30, 2025
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 Program and on Internal Control over Compliance Required by the Uniform Guidance and on the Schedule of Expenditures of Federal Awards ............................................. 3
Schedule of Expenditures of Federal Awards .......................................................................................................... 7
Notes to Schedule of Expenditures of Federal Awards .......................................................................................... 8
Schedule of Findings and Questioned Costs ............................................................................................................ 9
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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 Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of Victorville
Victorville, 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Victorville, California (City) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 6, 2026.
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 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 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 may exist that have not been identified.
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
THE UNIFORM GUIDANCE
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of Victorville
Victorville, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Victorville, California (City)’s 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, 2025. 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 major federal programs for the year ended June 30, 2025.
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 (GAAP); 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 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 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 Members of City Council
of the City of Victorville
Victorville, California
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether 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.
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 compliance. Accordingly, this communication is not suitable for any other purpose.
Badawi & Associates, CPAs
Emeryville, California
January 6, 2026
2 To the Honorable Mayor and Members of City Council
of the City of Victorville
Victorville, California
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 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 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.
Other Matters
The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items SA2025-01. Our opinion on each major federal program is not modified with respect to these matters. Government Auditing Standards requires the auditor to perform limited procedures on City’s response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
4 To the Honorable Mayor and Members of City Council
of the City of Victorville
Victorville, California
Report on Internal Control Over Compliance
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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be significant deficiencies.
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. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items SA2025-01 to be significant deficiencies.
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. Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the internal control over compliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
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.
5 To the Honorable Mayor and Members of City Council
of the City of Victorville
Victorville, California
Report on 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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated January 6, 2026, 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 the 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 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 auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Badawi & Associates, CPAs
Emeryville, California
March 24, 2026
6 City of Victorville
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2025
Assistance State/Other FY 2025
Listing Pass-through Program
Grantor Agency and Grant Title Number Number Expenditures U.S. Department of Housing and Urban Development
Direct Program:
CDBG Entitlement Grants Cluster:
Community Development Block Grants (CDBG) 14.218 n/a 902,641$ Neighborhood Stabilization Program (NSP1 & NSP3) 14.218 B08-MN-06-0523 & B11-MN-
06-0523 8,121
COVID-19 CDBG 14.218 n/a 71,125
Program Subtotal 981,887
Pass-through the Town of Apple Valley:
Home Investment Partnerships Program 14.239 n/a 576,901 Total U.S. Department of Housing and Urban Development 1,558,788 U.S. Department of Homeland Security
Pass-through from County of San Bernardino:
Emergency Management Performance Grant 97.042 n/a 22,750 Total U.S. Department of Homeland Security 22,750
U.S. Department of Transportation
Direct Program:
Airport Improvement Program 20.106 n/a 3,541,121
Passed-through from California Department of Transportation via San Bernardino County:
Highway Planning & Construction
State Transportation Improvement Program (STIP) 20.205 BHLS-5380 (026) 2,661 Highway Safety Improvement Program (HSIP) 20.205 BSIPL-5380 (037) 468,965 Program Subtotal 471,626
Total U.S. Department of Transportation 4,012,747
U.S. Department of Treasury
Direct Program:
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 n/a 4,408,443 Total U.S. Department of Justice 4,408,443
Total Federal Expenditures 10,002,728$
See accompanying Notes to Schedule of Expenditures of Federal Awards 7 City of Victorville
Single Audit Report
Notes to Schedule of Expenditures of Federal Awards
For the year ended June 30, 2025
1. REPORTING ENTITY
The financial reporting entity, as defined by Governmental Accounting Standards Board (GASB), consists of the primary government, which is the City of Victorville (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 reporting entity’s financial statements to be misleading or incomplete. The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City and its component units as disclosed in the notes to the Basic Financial Statements. Federal awards expended by this entity, if any, are excluded from the Schedule and are subject to a separate Single Audit.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
Funds received under the various grant programs have been recorded within the general, special revenue, and enterprise funds of the City. The City utilizes the modified accrual basis of accounting for the general and special revenue. The accrual basis of accounting is used for the enterprise fund. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented in accordance with the requirements of the U niform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
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 and other agencies are included in the Schedule. The Schedule of Expenditures of Federal Awards 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.
3. INDIRECT COSTS
The City did not elect to use the 10% de minimis indirect cost rate. 8 City of Victorville
Single Audit Report
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section I - Summary of Auditor’s Results
Financial Statements
Types of auditors’ report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None noted
Any noncompliance material to the financial statements noted: No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? Yes
Types of auditors’ report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with section 200.516(a): Yes
Identification of major programs:
Assistance
Listing Number Name of Federal Program or Cluster Expenditures
14.218 Community Development Block Grants/Entitlement Grants 981,887$
20.106 Airport Improvement Program 3,541,121
Total Expenditures of All Major Federal Programs 4,523,008$ Total Expenditures of Federal Awards 10,002,728$
Percentage of Total Expenditures of Federal Awards 45.2%
Dollar threshold used to distinguish between type A and type B program: $750,000 Auditee qualified as low-risk auditee under
section 200.520? No
9 City of Victorville
Single Audit Report
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section II - Current Year Findings
A. Current Year Findings – Financial Statement Audit
None reported.
B. Current Year Findings and Questioned Costs – Major Federal Award Program Audit
SA 2025-001: Unable to Retrieve FAA-Related Reports (Reporting) Federal Award Name: Airport Improvement Program
AL Number: 20.106
Name of Federal Agency: Department of Transportation
Federal Award Identification Number and Year: 3-06-0359-029-2021; 3-06-0359-031-2022; 3-06-0359-032- 2023; 3-06-0359-033-2024; Award Years: 2021, 2022, 2023, 2024.
Criteria
In accordance with 2 CFR § 200.328, the sponsor is required to submit FAA Form 5100-140 (Performance Report), FAA Form 5370-1 (Construction Progress and Inspection Report), and FAA Form 5100-127 (Operating and Financial Summary Report) to satisfy the performance reporting requirements.
Condition
During our audit, we noted that the City was required to submit the FAA-related reports (Forms 5100-140, 5370-01, and 5100-127). However, the City was unable to provide evidence that those reports were submitted.
Cause
The City has experienced staff turnover in the airport management during the grant period, which contributed to the City’s inability to locate previously submitted FAA documentation for our review.
Effect
We were unable to verify the City’s compliance based on the City’s retained FAA reporting records.
Recommendation
We recommend that the City enhance its document-retention procedures to ensure that copies of all required FAA reports are properly maintained and readily accessible for future audit purposes.
10 City of Victorville
Single Audit Report
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section II - Current Year Findings, Continued
B. Current Year Findings and Questioned Costs – Major Federal Award Program Audit, Continued
Management Response
The City acknowledges the auditors’ observation regarding the inability to locate copies of FAA Forms 5100-140, 5370-1, and 5100-127 within the City’s retained documentation at the time of the audit.
During the audit, the City provided the auditors with the FAA Grant Closeout Letter dated October 29, 2025, issued by the Federal Aviation Administration (FAA) for the applicable Airport Improvement Program grant. This letter represents the FAA’s formal confirmation that the grant was administratively closed and that all required documentation was received, reviewed, and accepted by the FAA.
Under 49 U.S.C. § 471, 2 CFR Part 200, and FAA Order 5100.38, grant closeout cannot occur until required documentation has been submitted and accepted by the FAA. Accordingly, the City believes the FAA’s issuance of the grant closeout letter provides reasonable assurance that all required reporting documentation was submitted and accepted as part of the closeout process.
To address this document retention observation, the City has updated its procedures to ensure that all FAA grant documentation is properly maintained and readily accessible for future audits. Responsibilities for monitoring and maintaining these documents have been assigned to designated personnel.
11 City of Victorville
Single Audit Report
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section III - Prior Year Findings
A. Prior Year Findings – Financial Statement Audit
None reported.
B. Prior Year Findings and Questioned Costs – Major Federal Award Program Audit
None reported.
12