TO
Agenda Item No.
CITY OF YUCAIPA
AGENDA REPORT
Honorable Mayor and City Council
White, Director of Finance
City Council Meeting of March 1 1, 2024
Alternative Compliance Examination Engagement for Fiscal Year Ended June 30,2023
FROM:
FOR:
SUBJECT:
RECOMMENDATION:
That the City Council receive and file the Alternative Compliance Examination Engagement for Fiscal Year Ended June 30, 2023.
DISCUSSION:
The Single Audit Act generally requires an annual audit of non-Federal entities that expend 5750,000 or more of Federal Financial Assistance in a fiscal year. However, although during Fiscal Year 2022-23, the City of Yucaipa exceeded the $750,000 threshold, it was only due to the expenditure of American Rescue Plan Act (ARPA) dollars. Because of this unusual result, the City qualified for, and opted to have an Altemative Compliance Examination Engagement (ACEE) performed in lieu of a single audit.
This alternative approach to a Single Audit under 2 CFR Part 200, Subpart F, permits eligible recipients to engage a practitioner to perform a compliance examination engagement in accordance with the Government Accountability Office (GAO) Government Auditing Standards. The GAO Govemment Auditing Standards direct practitioners to conduct these engagements in accordance with the American Institute of Certified Public Accountants (AICPA) Statements on Standards for Attestation Engagements. The AICPA attestation standards are codified in the AT-C section of the AICPA's Professional Standards and AT-C Section 315, Compliance Attestation, which is the standard to be followed.
The City engaged Van Lant & Fankhanel, LLP (VLF) to perform the ACEE and an unmodified opinion was rendered on February 8,2024.
The ACEE deliverable satisfies the City's reporting requirement for expenditures of federal awards for Fiscal Year 2022-23.
FISCAL IMPACT:
There is no fiscal impact of the recommended action.
Attachment:
l. FY 2022-23 Altemative Compliance Examination Engagement Approved by:
I
ATTACHME,NT 1
Von Lonl e
Fonkhonel, LLP
(iertrfred Publrc Accourrtants
!ndependent Auditor's Report on Compliance for the U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds Program (CSLFRF) Requirements for an Alternative CSLFRF Compliance Examination Engagement City Council
City of Yucaipa
Yucaipa, California
We have examined the City of Yucaipa's (the Ci$) compliance with the compliance requirements "activities allowed or unallowed" and "allowable cosVcost principles" (the specified requirements) as described in Part lV "Requirements for an Alternative Compliance Examination Engagement for Recipients That Would Othenarise be Required to Undergo a Single Audit or Program-Specific Audit as a Result of Receiving Coronavirus State and Local Fiscal Recovery Funds" of the CSLFRF section of the 2023 OMB Compliance Supplement (referred to herein as "Requirements for an Alternative CSLFRF Compliance Examination Engagement") during the year ended June 30, 2023. Management of the City is responsible for its compliance with the specified requirements. Our responsibility is to express an opinion on the City's compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the AICPA; the standards applicable to attestation engagements contained in Government Auditing Standards, issued by the Comptroller General of the United States; and in the "Requirements for an Alternative CSLFRF Compliance Examination Engagement." Those standards and requirements require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.
Our examination does not provide a legal determination on the City's compliance with specified requirements.
ln our opinion, the City of Yucaipa complied, in all material respects, with the specified requirements referenced above during the year ended June 30, 2023.
Van Lent & Fankhanel, LIP
29970 Technology Drive Suite 105 A
Murrieta CA 92563
s9 856 6879
1 Other Reporting Required by Government Auditing Standards ln accordance with Government Auditing Standards, we are required to report all deficiencies that are considered to be significant deficiencies or materialweaknesses in internal control; fraud, and noncompliance with provisions of laws, regulations, contracts, or grant agreements that have a material effect on City's compliance with the specified requirements and any other instances that warrant the attention of those charged with governance. We are also required to obtain and report the views of responsible officials concerning the findings, conclusions, and recommendations, as well as any planned corrective actions. We performed our examination to express an opinion on the City's compliance with the specified requirements and not for the purpose of expressing an opinion on the internal control over the specified requirements or on compliance and other matters; accordingly, we express no such opinions. The results of our tests disclosed no matters that are required to be reported under Govemment Auditing Sfandards. lntended Purpose
The purpose of this examination report is solely to express an opinion on whether the City complied, in all material respects with the specified requirements referenced above during the year ended June 30, 2023. Accordingly, this report is not suitable for any other purpose.
Lk+ YM,//F
Murrieta, CA
February 8, 2024
2