HomeMy WebLinkAbout19C - FY 2018-19 SINGLE AUDIT REPORTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MARCH 17, 2020
TITLE:
RECEIVE AND FILE — FISCAL YEAR
2018-19 SINGLE AUDIT REPORT
CLERK OF COUNCIL USE ONLY:
_••e•
❑ As Recommended
❑ As Amended
❑ Ordinance on 1sl Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CONTINUED TO
/s/Kristine Ridge FILE NUMBER
CITY MANAGER
RECOMMENDED ACTION
Receive and file the Single Audit Report for the fiscal year ended June 30, 2019.
DISCUSSION
All non-federal entities that expend $750,000 or more of federal assistance in a year are required
to obtain an annual audit to comply with the regulations and compliance requirements of the Office
of Management and Budget (OMB). The City of Santa Ana (the City) expended $49.5 million of
federal awards during Fiscal Year 2018-19 (from July 1, 2018 to June 30, 2019). The Single Audit
(Exhibit 1) has been completed by the City's independent auditor, White Nelson Diehl Evans LLP.
The Accounting Division is pleased to report that the City received an unmodified opinion (clean)
on the Single Audit Report and no compliance findings were noted. The clean opinion indicates
that the City complied, in all material respects, with the compliance requirements that could have a
direct and material effect on each of its major federal programs for the fiscal year ended June 30,
2019. The auditors selected Housing Voucher Cluster and Highway Planning and Construction as
major programs for the audit.
The Single Audit Report for the fiscal year ended June 30, 2019 is posted and available on the
City's website (https://www.santa-ana.org/finance/comprehensive-annual-financial-reports-cafr-
and-other-financial-reports), along with Single Audit reports for prior fiscal years. In addition, the
report has been submitted for certification as part of the Single Audit Data Collection Form process.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #1 (maintain
a Stable, Efficient, and Transparent Financial Environment).
19C-1
Receive and File — Fiscal Year 2018-19 Single Audit Report
March 17, 2020
Page 2
FISCAL IMPACT
There is no fiscal impact associated with this action.
Kathryn Downs, CPA
Executive Director
Finance and Management Services Agency
Exhibit: 1. Fiscal Year 2018-19 Single Audit Report
19C-2
EXHIBIT 7
CITY OF SANTAANA, CALIFORNIA
SINGLE AUDIT OF FEDERAL AWARDS
AND OTHER FINANCIAL INFORMATION
JUNE 30, 2019
19C-3
CITY OF SANTA ANA, CALIFORNIA
TABLE OF CONTENTS
June 30, 2019
Page
Number
Independent Auditors' 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 1-2
Independent Auditors' Report on Compliance for Each Major
Federal Program, Report on Internal Control over Compliance,
Report on Schedule of Expenditures of Federal Awards Required
by the Uniform Guidance, Schedule of Expenditures of State
Awards Required by the State of California, and Housing Authority
of the City of Santa Ana Financial Data Schedules Required by
the US Department of Housing and Urban Development 3 - 5
Schedule of Expenditures of Federal Awards 6-9
Schedule of Expenditures of State Awards 10
Notes to the Schedules of Expenditures of Federal and State Awards 11
Housing Authority of the City of Santa Ana Financial Data Schedules:
Financial Data Schedule of Assets, Liabilities, and Equity as of June 30, 2019 12
Financial Data Schedule of Revenues, Expenses, and Changes in Equity
for the Fiscal Year Ended June 30, 2019 13
Schedule of Findings and Questioned Costs
Summary Schedule of Prior -Year Audit Findings
14 - 15
16
19C-4
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
Honorable City Council
of the City of Santa Ana
Santa Ana, California
We have audited, in accordance with 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 the City of Santa Ana, California (the City), as of and for the year ended June 30, 2019, 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 3, 2019.
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) to determine the 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 may exist that have not been identified.
2875 Michelle Drive, Suite 300 1 Irvine, 491C..4606 I WNDECPA.com 1 714.978.1300
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the 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 determination of financial statement amounts. 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
City'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 City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
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Irvine, California
December 3, 2019
196-6
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE,
REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED
BY THE UNIFORM GUIDANCE, SCHEDULE OF EXPENDITURES OF STATE
AWARDS REQUIRED BY THE STATE OF CALIFORNIA, AND HOUSING AUTHORITY
OF THE CITY OF SANTAANA FINANCIAL DATA SCHEDULES REQUIRED BY
THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Honorable City Council
of the City of Santa Ana
Santa Ana, California
Report on Compliance for Each Major Federal Program
We have audited the City of Santa Ana's (the City) compliance with the types of compliance
requirements described in Office of Management and Budget 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,
2019. The City's major federal programs are identified in the summary of auditors' results section of
the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit
of compliance in accordance with auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, and the audit requirements of Title 2 US Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct
and material effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the City's compliance with those requirements and performing such other procedures
as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
3
2875 Michelle Drive, Suite 300 1 hvine, 491C. 7606 I WNDECPA.com 1 714.978.1300
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of 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, 2019.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the City's internal control over compliance with the types of
compliance requirements that could have a direct and material effect on each major federal program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major federal program 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 internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the City's 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 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 first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
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.
196-8
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance, the
Schedule of Expenditures of State Awards Required by the State of California, and the Housing
Authority of the City of Santa Ana Financial Data Schedules Required by the US Department of
Housing and Urban Development
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 of Santa Ana as of and for
the year ended June 30, 2019, and the related notes to the financial statements, which collectively
comprise the City's basic financial statements. We issued our report thereon dated December 3, 2019,
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, the Schedule of
Expenditures of State Awards, and the Housing Authority of the City of Santa Ana Financial Data
Schedules are presented for purposes of additional analysis as required by the Uniform Guidance, the
State of California, and the US Department of Housing and Urban Development, respectively, and are
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, the Schedule of
Expenditures of State Awards, and the Housing Authority of the City of Santa Ana Financial Data
Schedules are fairly stated in all material respects in relation to the basic financial statements as a
whole.
Irvine, California
February 28, 2020, except for the Report on the Schedule of Expenditures of Federal Awards Required
by the Uniform Guidance, the Schedule of Expenditures of State Awards Required by the State of
California, and the Housing Authority of the City of Santa Ana Financial Data Schedules Required by
the US Department of Housing and Urban Development to which the date is December 3, 2019.
196-9
SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS
19C-10
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2019
Federal Grantor /
Pass -Through Grantor /
Program Title
Catalog
of Federal
Domestic
Assistance
Number
Program
Identification
Number
U.S. Department of Housing and Urban Development
Direct Programs:
Community Development Block Grants/Entitlement Grants:
Community Development Block Grants
14.218
B-14-MC-06-0508
Community Development Block Grants
14.218
B-15-MC-06-0508
Community Development Block Grants
14.218
B-16-MC-06-0508
Community Development Block Grants
14.218
B-17-MC-06-0508
Community Development Block Grants
14.218
B-18-MC-06-0508
Community Development Block Grants
14.218
B-18-MC-06-0508(PI)
Neighborhood Stabilization Program 1
14.218
B-08-MN-06-0522(PI)
Neighborhood Stabilization Program 3
14.218
B-11-MN-06-0522(PI)
Subtotal Community Development Block Grants/Entitlement
Grants
Emergency Solutions Grant Program
Emergency Solutions Grant Program
Subtotal Emergency Solutions Grant Program
Housing Voucher Cluster:
Section 8 Housing Choice Vouchers
Mainstream Vouchers
Subtotal Housing Voucher Cluster
Family Self -Sufficiency Program
Family Self -Sufficiency Program
Subtotal Family Self -Sufficiency Program
HOME Investment Partnerships Program
HOME Investment Partnerships Program
HOME Investment Partnerships Program
HOME Investment Partnerships Program
HOME Investment Partnerships Program
HOME Investment Partnerships Program
HOME Investment Partnerships Program
HOME Investment Partnerships Program
Subtotal HOME Investment Partnerships Program
ARRA - Neighborbood Stabilization Program 2
Housing Opportunities for Persons with AIDS
Total U.S. Department of Housing and Urban Development
(PI) = Program Income
14.231 E-17-MC-06-0508
14.231 E-18-MC-06-0508
14.871 SF-503 Voucher
14.879 FR-6100-N43
14.896
14.896
14.239
14.239
14.239
14.239
14.239
14.239
14.239
14.239
FSS17CA2017-01-00
FSS18CA2644-01-00
M-11-MC-06-0535
M-13-MC-06-0535
M-14-MC-06-0535
M-15-MC-06-0535
M-16-MC-06-0535
M-17-MC-06-0535
M-17-MC-06-0535(PI)
M-18-MC-06-0535(PI)
14.256 B-09-LN-CA-0047(PI)
14.241 CA-H13-T0-06
See accompanying notes to Schedules of Expenditures of Federal and State Awards.
Federal
Awards
Expenditures
$ 96,079
9,957
51,607
260,355
2,648,836
282,254
8,172
4,545
3,361,805
Amount
Provided to
Subrecipients
810,218
33,274
843,492
86,781 54,283
469,790 386,485
556,571 440,768
35,592,582 -
16,416
35,608,998
58,504
52,005
110,509
471,844
29,568
108,229
93,032
171,756
186,403
4,710
36,976
1,102,518
10,310
2,992
40,753,703 1,284,260
(Continued)
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2019 (Continued)
Catalog
of Federal
Federal Grantor /
Domestic
Program
Federal
Amount
Pass -Through Grantor /
Assistance
Identification
Awards
Provided to
Program Title
Number
Number
Expenditures
Subrecipients
U.S. Department of Labor
Workforce Innovation and OpportunityAct (WIOA) Cluster:
Passed through CA Employment Development Department:
WIOA Adult Program(VOS Enhancement)
17.258
K7102060
$ 2,255
$ -
WIOA Adult Program
17.258
K8106656
102,285
-
WIOA Adult Program
17.258
K9110047
695,681
Subtotal WIOA Adult Program
800,221
WIOA Dislocated Worker Formula Grants
17.278
K8106656
220,021
-
WIOA Dislocated Worker FormulaGrants
17.278
K9110047
570,625
-
WIOADislocatedWorkerFormulaGrants(Rapid Response)
17.278
K8106656
290,794
-
WIOADislocatedWorkerFormulaGrants(Rapid Response)
17.278
K9110047
264,044
Subtotal WIOA Dislocated Worker Formula Grants
1,345,484
WIOA Youth Activities
17.259
K8106656
116,790
WIOA Youth Activities
17.259
K9110047
785,128
421,725
Subtotal WIOA Youth Activities
901,918
421,725
Passed through County of Orange Community Resources Agency
WIOA Dislocated Worker Formula Grants
17.278
16-28-0039-RWS-P
137,049
Subtotal Workforce Innovation and Opportunity Act (WIOA) Cluster
3, 184,672
421,725
Total U.S. Department of abor
3,184,672
421,725
U.S. Department of Transportation
Passed through CA Department of Transportation:
Highway Planning and Construction:
National Highway Performance Program
20.205
BRLS 5063(153)
17,517
-
National HighwayPerformanceProgram
20.205
BRLS 5063(184)
156,748
-
Bicycle Corridor Improvement
20.205
CMAQ 5063(180) BCI
38,738
-
Bicycle Corridor Improvement
20.205
CMAQ 5063(181) BCI
79,071
-
Bicycle Corridor Improverent
20.205
CMAQ 5063(183) BCI
15,500
-
Demonstration Sec 117
20.205
DEMO 5063(145)
365,805
-
Regional Surface Transportation Program
20.205
STPL 5063(176)
106,131
-
Highway Safety Improvement Program
20.205
HSIPL 5063(171)
45,778
-
Highway Safety Improvement Program
20.205
HSIPL 5063(186)
44,186
-
Highway Safety Improvement Program
20.205
HSIPL 5063(187)
32,874
-
Highway Safety Improvement Program
20.205
HSIPL 5063(188)
69,788
-
Highway Safety Improvement Program
20.205
HSIPL 5063(189)
37,357
-
Highway Safety Improvement Program
20.205
HSIPL 5063(190)
94288
Subtotal Highway Planning and Construction
1,103,781
(Continued)
See accompanying notes to Schedules of Expenditures of Federal and State Awards.
7
19C-12
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2019 (Continued)
Catalog
of Federal
Federal Grantor /
Domestic
Program
Federal Amount
Pass -Through Grantor /
Assistance
Identification
Awards Provided to
Program Title
Number
Number
Expenditures Subrecipients
Passed through CA Office of Traffic Safety:
State and Community Highway Safety:
Selective Traffic Enforcement
20.600
PT18133
$ 157,428 $ -
SelectiveTrafficEnforcement
20.600
PT19133
303,913 -
Public Education on Bicycle Safety
20.600
PS18029
74,565 -
Public Education on Bicycle Safety
20.600
PS19031
17,897
Subtotal State and Community Highway Safety
553,803
Total U.S. Department of Transportation
1,657,584
U.S. Department of Justice
Direct Programs:
Equitable Sharing Program (Asset Forfeiture)
16.922
-
795,436
Public Safety Partnership& Community Policing Grants
16.710
2016-UL-WX-0020
382,090
Passed through Human Options:
Culturally and Linguistically Specific Services Program
16.016
2016-WE-AX-0054
109295
Total U.S. Department of Justice
1,286,821
U.S. Department of Homeland Security
Homeland Security Grant Program:
Passed through CA Office of Emergency Services:
Urban Area Security Initiative 2017
97.067
2017-00083 059-95010
802,273 -
Passed through City of Anaheim:
Urban Area Security Initiative 2016
97.067
2016-SS-0102
895,739
Subtotal Homeland Security Grant Program
1,698,012
Passed through County of Orange Sheriffs Department:
Emergency Management Performance Grants
97.042
EMPG 2018-0008
42,303
Total U.S. Department of Homeland Security
1,740,315
U.S. Department of Health and Human Services
Passed through County of Orange Social Services Agency:
Temporary Assistance for Needy Families
93.558
WRR0216
535,110
(Continued)
See accompanying notes to Schedules of Expenditures of Federal and State Awards.
19d-13
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2019 (Continued)
Catalog
of Federal
Federal Grantor /
Domestic
Program
Pass -Through Grantor /
Assistance
Identification
Program Title
Number
Number
U.S. Institute of Museum and Library Services
Direct Program:
National L eadership CA ants 45.312 LG-07-14-0067-14
Passed through California State Library:
Grants to States (Library Services and Technology Act 2012) 45.310 L 5-00-17-0005-17
Total U.S. Institute of Museum and Library Services
U.S. Department of Treasury
Direct Program:
Equitable Sharing Program (Asset Forfeiture) 21.016 -
Total Expenditures of Federal Awards
See accompanying notes to Schedules of Expenditures of Federal and State Awards.
Federal Amount
Awards Provided to
Expenditures Subrecipients
$ 20,336 $
26,281
46,617
298,165
$ 49,502,987 $ 1,705,985
19G-14
SCHEDULE OF EXPENDITURES
OF STATE AWARDS
19C-15
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of State Awards
For the Fiscal Year Ended June 30, 2019
Program
State
Identification
Awards
Grantor / Program Title
Number
Expenditures
CA Department of Alcoholic Beverage Control
Alcoholic Beverage Control Grant
17G-LA44
$ 31,666
CA Department of Housing and Community Development
Housing Related Parks Program
16-HRPP-11475
518,109
Affordable Housing Sustainable Communities Program
16-AHSC-11200
5,973
524,082
CA Department of Motor Vehicles
SCAQMD Mobile Source Air Pollution Reduction
2012-MSRC NIL 12014
24,033
SCAQMD Mobile Source Air Pollution Reduction
MSRC GRANT -NIL 18046
60,000
84,033
CA Department of Parks and Recreation
Statewide Park Program - Proposition 84
C6905016
456,600
CA Natural Resources Agency
Urban Greening Grant Program - Proposition 84
U59151-0
17,439
CA Department of Resources Recycling and Recovery
Oil Payment Program
OPP4
7,716
Oil Payment Program
OPP7
20,340
OiI Payment Program
OPP8
90,695
Beverage Container Payment Program
FY 16/17
10,912
129,663
CA Department of Transportation
Active Transportation Program
ATPL-5063(161)
96,213
Active Transportation Program
ATPL-5063(170)
94,316
Active Transportation Program
ATPL-5063(172)
121,637
Active Transportation Program
ATPL-5063(173)
23,758
Active Transportation Program
ATPL-5063(174)
4,696
Active Transportation Program
ATPL-5063(177)
119,380
Active Transportation Program
ATPL-5063(178)
315,296
Active Transportation Program
ATPL-5063(185)
258,378
Active Transportation Program- SB 1 Augmentation
ATPSBIL-5063(191)
4,962
Active Transportation Program- SB 1 Augmentation
ATPSBIL-5063(193)
10,125
Active Transportation Program- SB 1 Augmentation
ATPSBIL-5063(195)
10,939
Southern California Association of Goverment Grant
2754823U3.01/4823E.01
99,770
1,159,470
Total Expenditures of State Awards $ 2.402,953
See accompanying notes to Schedules of Expenditures of Federal and State Awards.
10
19C-16
NOTES TO THE SCHEDULES OF EXPENDITURES
OF FEDERAL AND STATE AWARDS
19C-17
CITY OF SANTA ANA, CALIFORNIA
NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
For the year ended June 30, 2019
1. BASIS OF PRESENTATION
The accompanying Schedules of Expenditures of Federal and State Awards (the Schedules) include
the federal and state award activities of the City of Santa Ana, California (the City), under
programs of the federal government and the State of California, as well as federal and state
financial assistance passed through other government agencies for the year ended June 30, 2019.
The information in the Schedule of Expenditures of Federal Awards (SEFA) is presented in
accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Because the Schedules present only a selected portion of the operations of the
City, they are not intended to, and do not, present the financial statements of the City. The City's
reporting entity is defined in Note I of the notes to the City's financial statements.
2. BASIS OF ACCOUNTING
The accompanying Schedules are presented using the modified accrual basis of accounting for
governmental funds and the accrual basis for proprietary funds, which is described in the Note 1 of
the notes to the City's financial statements. Such expenditures are recognized following the cost
principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. The information in the SEFA is presented in
accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in
the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial
statements. Pass -through entity identifying numbers are identified where available.
1►11 1: • 1
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
4. CONTINGENCIES
Under the terms of federal and state grants, additional audits may be requested by the grantor
agencies and certain costs may be questioned as not being appropriate expenditures under the terms
of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.
196-18
HOUSING AUTHORITY OF THE CITY OF SANTA ANA
FINANCIAL DATA SCHEDULES
19C-19
CITY OF SANTA ANA, CALIFORNIA
Housing Authority of the City of Santa Ana
Financial Data Schedule of Assets, Liabilities, and Equity
June 30, 2019
Fam tiv Self
Line Item
sufficiency
noosing Choice
Mainstream
No.
Account Description
Program
Vouchers
Vouchers
Toul
Assets
Current Assets:
ill
Cash -Unrestricted
S -
$ 269,956
$ 14,546
$ 284,502
113
Cash - Other Restricted
-
428,007
375,905
803,912
115
Cash- Restricted for Payment of Current Liabilities
133,384
133,384
100
Total Cash
831,347
390,451
1,221,798
Receivables:
122
Accounts Receivable- HUD Other Projects
14,155
-
-
14,155
125
Accounts Receivable - Miscellaneous
-
1,872
-
1,872
129
Fraud Recovery
-
15,666
-
15,666
128.1
Allowance for Doubtful Accounts - Fraud
-
(5,640)
-
(5,640)
129
Accrued Interest Receivable
1,877
1,673
3,550
120
Total Receivables, Net of Allowances for Doubtful Accounts
14,155
13,775
1,673
29,603
142
Prepaid Expenses and Other Assets
20,247
20,247
150
Total Current Assets
14,155
865,369
392,124
1,271,648
Noncurrent Assets:
Fixed Assets:
164 Furniture,Equipment&Machinery - Administration
166 Accumulated Depreciation
160 Total Fixed Assets, Net of Accumulated Depreciation
174 Other Assets
180 Total Non -Current Assets
290 Total Assets and Deferred Outflows of Resources
Liabilities and Eenity
Liabilities:
312 Accounts Payable - HUD PHA Programs r90 days
322 Acemed Compensated Absences - Current Portion
331 Accounts Payable - HUD PHA Programs
342 Deferred Revenues
345 Other Current Liabilities
346 Accrued Liabilities - Other
310 Total Current Liabilities
Noncurent Liabilities:
353
Noncurrent L iabilities - Other
354
Accrued Compensated Absences - Non Current
350
Total Noncurrent Liabilities
300
Total Liabilities
Equity:
509.3
Restricted Fund Balance
511.3
Assigned Fund Balance
513
Total Equity- Net Assets/Position
14,155 865,369 392,124 1,271,648
12,402
22,639
283
- 10,809
14,155 133,385
12,402
22,639
- 283
698 11,507
- 147,540
14,155 179,518 698 194,371
400,150 - 400,150
67,916 67,916
468,066 468,066
14,155 647,584 698 662,437
49,845 376,880 426,725
167,940 14,546 182,486
217,785 391,426 609,211
600
Total Liabilities, Deferred Inflows of Resources and Equity- Net Assets/Posilum $ 14,155 $ 865,369 $ 392,124 $ 1,271,648
196-20
CITY OF SANTA ANA, CALIFORNIA
Housing Authority of the City of Santa Ana
Financial Data Schedule of Revenues, Expenses, and Changes in Equity
For the Fiscal Year Ended June 30, 2019
Focally Self
Line Item
Sufficiency
Housing
Choice
Mainstream
No.
Account Description
Program
vouchers
vouchers
Tout
Rev®ees
70600
HUD PHA Operating Grants
$ 110,509
$
35,377,665
$ 404,802
$
35,892,976
71100
Investment Income - Unrestricted - ADMIN
-
6,412
-
6,412
71400
Freud Recovery
-
19,934
-
19,934
71500
Other Revenue
-
154,483
-
154,483
72000
Investment Income - Restricted - HAP
153
3,040
3,193
70000
Total Revenue
110,509
35,558,647
407,842
36,076,998
Expens
Administrative:
91100
Administrative Salaries
-
977,991
-
977,991
91200
Auditing Fees
-
13,721
-
13,721
91400
Advertising and Marketing
-
8,593
-
8,593
91500
Employee Benefit Contributions - Administrative
-
517,896
-
517,896
91600
Other Operating - Administrative
3,818
449,188
-
453,006
91800
Travel, Training & Transportation
-
29
-
29
91810
Allocated Overhead
-
202,789
-
202,789
91900
Otlrm
36,150
36,150
Total Operating- Administrative Expenses
3,818
2,206,357
2,210,175
Tenant Services:
92100
Tenant Services - Salaries
74,843
-
-
74,843
92300
Employee Benefit Contributions - Tenant Services
31,848
31,848
92500
Total Tenavt Services
106,691
106,691
General Expenses:
96140
All Other Insurance
-
-
-
-
96200
Other General Expenses
-
750,602
-
750,602
96210
Compensated Absences
96000
Total Operating- General Expenses
750,602
750,602
96900
Total Operating Expenses
110,509
2,956,959
3,067,468
97000
Excess Operating Revenue over Operating Expenses
-
32,601,688
407,842
33,009,530
97300
Housing Assistance Payments
-
32,564,430
16,416
32,580,846
97350
HA Portability -In
44,766
44,766
90000
Total Expenses
110,509
35,566,155
16,416
35,693,080
10093
Transfers between Pregnant & Project -In
-
-
-
-
10094
Transfers between Program & Project -Out
10000
Excess (Deficiency) of Operating Revenues Over(Under)Expenses
$
$
(7,508)
$ 391,426
$
383,918
Memo Account Information:
11030
Beginning Equity
$ -
$
225,293
$ -
$
225,293
11040
Prior period Adjustments and Equity Transfers
-
-
-
-
11050
Changes in Compensated Absence Balance
-
-
-
-
11200
Unit Months Available
-
32,388
400
32,788
11210
Number f Unit Months Leased
-
31,030
22
31,052
11170
Administrative Fee Equity
-
167,940
14,546
182,486
11180
Humors Assistance Payments Equity
49,845
376,880
426,725
Line 11170 & 11180
-
217,785
391,426
$
609,211
Line 513
217,785
391,426
$
$
$
196-21
SCHEDULE OF FINDINGS
AND QUESTIONED COSTS
19C-22
CITY OF SANTA ANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended June 30, 2019
1. SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of auditors' report issued:
• Unmodified
Internal control over financial reporting:
• Material weakness identified? yes x no
• Significant deficiency identified? yes x none reported
Noncompliance material to financial statements noted: _ yes x no
Federal Awards
Internal control over major programs:
• Material weakness identified? yes x no
• Significant deficiency identified? yes x none reported
Type of auditors' report issued on compliance for major programs:
• Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR Section 200.516(a)? yes x no
Identification of major programs:
CFDA Number
14.871 and 14.879
20.205
Dollar threshold used to distinguish
between Type A and Type B programs:
Name of Federal Program or Cluster
Housing Voucher Cluster
Highway Planning and Construction
$ 1,485,090
Auditee qualified as low -risk auditee? x yes no
196 23
CITY OF SANTA ANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(CONTINUED)
For the year ended June 30, 2019
2. FINDINGS RELATING TO FINANCIAL STATEMENTS
None noted.
3. FINDINGS AND QUESTIONED COSTS RELATING TO MAJOR FEDERAL AWARDS
None noted.
196-24
CITY OF SANTA ANA, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR -YEAR AUDIT FINDINGS
For the year ended June 30, 2019
1. FINDINGS RELATING TO FINANCIAL STATEMENTS
None noted.
2. FINDINGS AND QUESTIONED COSTS RELATING TO MAJOR FEDERAL AWARDS
None noted.
196 25