HomeMy WebLinkAboutItem 12 - Recieve and File Single Audit Report for the Fiscal Year Ended June 30, 2020 Finance and Management Services
https://www.santa-ana.org/finance
Item # 12
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 20, 2021
TOPIC: Receive and File Single Audit Report for the Fiscal Year Ended June 30, 2020
AGENDA TITLE:
Receive and File Single Audit Report for the Fiscal Year Ended June 30, 2020
RECOMMENDED ACTION
Receive and file the Single Audit Report for the Fiscal Year ended June 30, 2020.
DISCUSSION
All non-Federal entities that expend $750,000 or more of Federal awards each fiscal year
are required to obtain a Single Audit to comply with the regulations of the Federal Office
of Management and Budget (OMB). The Single Audit for the fiscal year ended June 30,
2020 has been completed by the City’s independent auditor, CliftonLarsonAllen LLP.
During Fiscal Year 2019-20, the City administered 27 Federal grant programs and
expended $59.1 million, representing an increase of $9.6 million from the prior fiscal
year. The increase was primarily due to $4.8 million in additional Community
Development Block Grant (CDBG) capital improvement expenditures, $2.9 million passed
through to a subrecipient related to the Urban Area Security Initiative program, and $1.7
million of various COVID-19 related expenditures.
Of the 27 programs administered by the City, the auditors identified three major programs
for the audit: CDBG Cluster ($8.9 million), Homeland Security Grant Program ($4.3
million), and COVID-19 Coronavirus Relief Fund ($0.5 million).
The Finance and Management Agency is pleased to report that the City received an
unmodified opinion commonly known as a clean opinion, which is considered the most
favorable conclusion for the audit. The unmodified opinion indicates that the City has
complied, in all material respects, with the compliance requirements for the fiscal year
ended June 30, 2020 and no compliance findings were noted related with its federal grant
programs.
The report (Exhibit 1) is posted and available on the City’s website
Receive and File Single Audit Report for the Fiscal Year Ended June 30, 2020
April 20, 2021
Page 2
6
5
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(https://www.santa-ana.org/finance/comprehensive-annual-financial-reports-and-other-
financial-reports) along with prior fiscal years. In addition, the report has been submitted
for certification as part of the Single Audit Data Collection Form process.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT(S)
1. FY 2019-20 Single Audit Report
Submitted By: Kathryn Downs, Executive Director Finance and Management Services
Approved By: Kristine Ridge, City Manager
CLAconnect.com
WEALTH ADVISORY
OUTSOURCING
AUDIT, TAX, AND
CONSULTING
CITY OF SANTA ANA, CALIFORNIA
SINGLE AUDIT OF FEDERAL AWARDS
AND OTHER FINANCIAL INFORMATION
JUNE 30, 2020
Exhibit 1
CITY OF SANTA ANA, CALIFORNIA
TABLE OF CONTENTS
June 30, 2020
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, 2020 12
Financial Data Schedule of Revenues, Expenses, and Changes in Equity
for the Fiscal Year Ended June 30, 2020 13
Schedule of Findings and Questioned Costs 14 - 15
Summary Schedule of Prior-Year Audit Findings 16
CliftonLarsonAllen LLP
CLAconnect.com
1
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
To the Honorable City Council
of the City of Santa Ana
Santa Ana, 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 the City of Santa Ana, California (the City), as of and for the year ended June 30, 2020, and the
related notes to the basic financial statements, which collectively comprise the City’s basic financial
statements and have issued our report thereon dated December 10, 2020.
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 may exist that have not been identified.
2
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 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
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.
CliftonLarsonAllen LLP
Irvine, California
December 10, 2020
CliftonLarsonAllen LLP
CLAconnect.com
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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE,
REPORT ON THE 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
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 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, 2020. 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.
4
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, 2020.
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.
5
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, 2020, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements. We issued our report thereon dated December 10, 2020,
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.
CliftonLarsonAllen LLP
Irvine, California
March 25, 2021
SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2020
Federal Grantor / Pass-Through Passed
Pass-Through Grantor / Entity Identifying Federal Through to
Program / Cluster Title Number Expenditures Subrecipients
U.S. Department of Housing and Urban Development
Direct Programs:
CDBG - Entitlement Grants Cluster:
Community Development Block Grants/Entitlement Grants:
Community Development Block Grants N/A 501,121$ -$
Community Development Block Grants N/A 445,289 -
Community Development Block Grants N/A 1,403,996 -
Community Development Block Grants N/A 1,109,914 -
Community Development Block Grants N/A 1,001,043 17,370
Community Development Block Grants N/A 3,411,862 810,171
Community Development Block Grants N/A 211,038 39,771
COVID-19 - Community Development Block Grants N/A 845,751 492,803
Neighborhood Stabilization Program 1 N/A 15,522 -
Neighborhood Stabilization Program 3 N/A 4,212 -
Subtotal CDBG - Entitlement Grants Cluster 8,949,748 1,360,115
Emergency Solutions Grant Program N/A 5,910 5,910
Emergency Solutions Grant Program N/A 449,179 372,938
COVID-19 - Emergency Solutions Grant Program N/A 10,590 -
Subtotal Emergency Solutions Grant Program 465,679 378,848
Housing Vouchers Cluster:
Section 8 Housing Choice Vouchers N/A 37,606,806 -
COVID-19 - Section 8 Housing Choice Vouchers - CARES Act N/A 69,762 -
Subtotal Section 8 Housing Choice Vouchers 37,676,568 -
Mainstream Vouchers N/A 845,417 -
COVID-19 - Mainstream Vouchers - CARES Act N/A 633 -
Subtotal Mainstream Vouchers 846,050 -
Subtotal Housing Voucher Cluster 38,522,618 -
Family Self-Sufficiency Program N/A 86,754 -
Family Self-Sufficiency Program N/A 51,104 -
Subtotal Family Self-Sufficiency Program 137,858 -
HOME Investment Partnerships Program N/A 124,383 -
HOME Investment Partnerships Program N/A 13,972 -
HOME Investment Partnerships Program N/A 81,788 -
HOME Investment Partnerships Program N/A 178,300 -
HOME Investment Partnerships Program N/A 28,378 -
Subtotal HOME Investment Partnerships Program 426,821 -
(Continued)
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards
6
Catalog
of Federal
Domestic
Assistance
Number
14.218
14.218
14.218
14.218
14.218
14.218
14.218
14.218
14.218
14.239
14.239
14.218
14.879
14.239
14.239
14.239
14.896
14.896
14.871
14.231
14.231
14.231
14.871
14.879
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2020 (Continued)
Federal Grantor / Pass-Through Passed
Pass-Through Grantor / Entity Identifying Federal Through to
Program / Cluster Title Number Expenditures Subrecipients
ARRA - Neighborhood Stabilization Program 2 N/A 5,662$ -$
Housing Opportunities for Persons with AIDS N/A 20,728 20,728
Total U.S. Department of Housing and Urban Development 48,529,114 1,759,691
U.S. Department of Labor
Workforce Innovation and Opportunity Act (WIOA) Cluster:
Passed through CA Employment Development Department:
WIOA Adult Program K9110047 39,507 -
WIOA Adult Program AA011027 912,263 -
Subtotal WIOA Adult Program 951,770 -
WIOA Dislocated Worker Formula Grants K9110047 226,182 -
WIOA Dislocated Worker Formula Grants AA011027 624,593 -
WIOA Dislocated Worker Formula Grants (Rapid Response) K9110047 8,498 -
WIOA Dislocated Worker Formula Grants (Rapid Response) AA011027 344,052 -
Subtotal WIOA Dislocated Worker Formula Grants 1,203,325 -
WIOA Youth Activities K9110047 79,654 -
WIOA Youth Activities AA011027 598,651 420,708
Subtotal WIOA Youth Activities 678,305 420,708
Passed through County of Orange Community Resources Agency
WIOA Adult Program 16-28-0039-RWS-P 1,471 -
Passed through Goodwill Industries of Orange:
WIOA Adult Program (Veterans Employment Assistance Program) K9110010 21,164 -
Subtotal Workforce Innovation and Opportunity Act (WIOA) Cluster 2,856,035 420,708
Passed through CA Employment Development Department:
WIOA National Dislocated Worker Grants 17.277 AA011027 759 -
Total U.S. Department of Labor 2,856,794 420,708
U.S. Department of Transportation
Highway Planning and Construction Cluster:
Highway Planning and Construction:
Passed through CA Department of Transportation:
National Highway Performance Program BRLS 5063(184) 130,462 -
Bicycle Corridor Improvement CMAQ 5063(180) BCI 1,323 -
Bicycle Corridor Improvement CMAQ 5063(181) BCI 26,667 -
(Continued)
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
7
14.256
Catalog
of Federal
Domestic
Assistance
Number
14.241
17.258
17.258
20.205
20.205
17.278
20.205
17.278
17.259
17.278
17.259
17.258
17.258
17.278
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2020 (Continued)
Federal Grantor / Pass-Through Passed
Pass-Through Grantor / Entity Identifying Federal Through to
Program / Cluster Title Number Expenditures Subrecipients
Bicycle Corridor Improvement CMAQ 5063(182) BCI 3,601$ -$
Bicycle Corridor Improvement CMAQ 5063(183) BCI 39,238 -
Demonstration Sec 117 DEMO 5063(145)930 -
Highway Safety Improvement Program HSIPL 5063(171) 846 -
Highway Safety Improvement Program HSIPL 5063(186) 2,328 -
Highway Safety Improvement Program HSIPL 5063(188) 1,249 -
Highway Safety Improvement Program HSIPL 5063(189) 27,186 -
Highway Safety Improvement Program HSIPL 5063(190) 3,503 -
Passed through Southern California Association of Government:
Active Transportation Program ATPLNI-6049(018) 27,563 -
Subtotal Highway Planning and Construction 264,896 -
Highway Safety Cluster:
State and Community Highway Safety:
Passed through CA Office of Traffic Safety:
Selective Traffic Enforcement PT19133 148,708 -
Selective Traffic Enforcement PT20164 363,688 -
Public Education on Bicycle Safety PS19031 32,100 -
Public Education on Bicycle Safety PS20034 4,750 -
Subtotal State and Community Highway Safety 549,246 -
Total U.S. Department of Transportation 814,142 -
U.S. Department of Justice
Direct Programs:
Equitable Sharing Program (Asset Forfeiture) N/A 517,261 -
Bulletproof Vest Partnership Program N/A 40,000 -
Body Worn Camera Policy and Implementation N/A 30,550 -
COVID-19 - Coronavirus Emergency Supplemental Funding Program N/A 344,739 -
Passed through County of Orange Sheriff's Department:
Edward Byrne Memorial Justice Assistance Grant Program:
Byrne Justice Assistance Grant 2017 2017-DJ-BX-0990 92,190 -
Byrne Justice Assistance Grant 2018 2018-DJ-BX-0820 63,685 -
Subtotal Edward Byrne Memorial Justice Assistance Grant Program 155,875 -
Passed through Human Options:
Culturally and Linguistically Specific Services Program 2016-WE-AX-0054 10,864 -
Total U.S. Department of Justice 1,099,289 -
(Continued)
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
8
20.205
20.600
16.922
20.600
16.016
16.738
20.600
20.600
20.205
20.205
20.205
20.205
20.205
Catalog
of Federal
Domestic
Assistance
Number
20.205
20.205
20.205
16.738
16.607
16.835
16.034
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2020 (Continued)
Federal Grantor / Pass-Through Passed
Pass-Through Grantor / Entity Identifying Federal Through to
Program / Cluster Title Number Expenditures Subrecipients
U.S. Department of Homeland Security
Homeland Security Grant Program:
Passed through CA Office of Emergency Services:
Urban Area Security Initiative 2017 2017-00083 059-95010 3,789,975$ 3,122,200$
Passed through City of Anaheim:
Urban Area Security Initiative 2018 2018-0054 530,319 -
Subtotal Homeland Security Grant Program 4,320,294 3,122,200
Passed through CA Office of Emergency Services:
Disaster Grants - Public Assistance FEMA-4305-DR-CA 99,617 -
Passed through County of Orange Sheriff's Department:
Emergency Management Performance Grants EMPG 2019-0003 42,760 -
Total U.S. Department of Homeland Security 4,462,671 3,122,200
U.S. Department of Health and Human Services
Passed through County of Orange Social Services Agency:
Temporary Assistance for Needy Families WRR0216 593,102 -
U.S. Department of Treasury
Direct Program:
Equitable Sharing Program (Asset Forfeiture) N/A 285,036 -
Coronavirus Relief Fund:
Passed through County of Orange:
COVID-19 - Coronavirus Relief Fund A-2020-122 466,778 -
Subtotal Coronavirus Relief Fund 466,778 -
Total U.S. Department of Treasury 751,814 -
Total Expenditures of Federal Awards 59,106,926$ 5,302,599$
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
9
21.019
21.016
97.067
97.067
93.558
97.042
97.036
Assistance
Number
Catalog
of Federal
Domestic
SCHEDULE OF EXPENDITURES
OF STATE AWARDS
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of State Awards
For the Fiscal Year Ended June 30, 2020
Program State
Identification Awards
Grantor / Program Title Number Expenditures
CA Department of Alcoholic Beverage Control
Alcoholic Beverage Control Grant 19G-LA39 79,405$
CA Department of Education
RSCCD - Strong Workforce Program DO-18-2226-01 51,221
CA Business Consumer Services and Housing Agency
Homeless Emergency Aid Program 18-HEAP-00007 1,529,770
Homeless Housing Assistance & Prevention COVID-19 20-HCFC-00019 226,308
1,756,078
CA Department of Housing and Community Development
Affordable Housing Sustainable Communities Program 16-AHSC-11200 119,507
SB2 Planning Grants Program 19-PGP-13895 45,168
164,675
CA Department of Motor Vehicles
SCAQMD Mobile Source Air Pollution Reduction 2013-MSRC ML12014 34,000
CA Natural Resources Agency
Urban Greening Grant Program - Proposition 84 U59151-0 462,734
Advanced Metering Infrastructure GF1806-0 518,326
981,060
CA Department of Resources Recycling and Recovery
Oil Payment Program OPP9 45,610
Oil Payment Program OPP10 66,604
Beverage Container Payment Program FY 17/18 48,143
160,357
CA Department of Transportation
Active Transportation Program ATPL-5063(170)88,678
Active Transportation Program ATPL-5063(172)954,852
Active Transportation Program ATPL-5063(174)11,310
Active Transportation Program ATPL-5063(177)27,593
Active Transportation Program ATPL-5063(178)737,842
Active Transportation Program ATPL-5063(185)225,712
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(191)154,372
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(193)230,163
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(195)337,097
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(196)66,183
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(197)75,807
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(198)45,865
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(199)13,206
Southern California Association of Government Grant 275-4823U3.01/4823E.01 170,275
3,138,955
CA Office of Emergency Services
OES - Public Assistance Grant CAL OES ID 059-69000 27,383
CA Workforce Development Board
County of Orange Social Services - Prison to Employment 16-28-0039-RWS-P 30,274
Total Expenditures of State Awards 6,423,408$
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
10
NOTES TO THE SCHEDULES OF EXPENDITURES
OF FEDERAL AND STATE AWARDS
11
CITY OF SANTA ANA, CALIFORNIA
NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
FOR THE YEAR ENDED JUNE 30, 2020
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, 2020.
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 1 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 for all awards with the exception of CFDA 21.019,
which follows criteria determined by the Department of Treasury for allowability of costs. Under
these principles, 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.
3. INDIRECT COST RATE
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.
HOUSING AUTHORITY OF THE CITY OF SANTA ANA
FINANCIAL DATA SCHEDULES
CITY OF SANTA ANA, CALIFORNIA
Housing Authority of the City of Santa Ana
Financial Data Schedule of Assets, Liabilities, and Equity
June 30, 2020
Line Item
No. Account Description
Family Self
Sufficiency
Program
Housing Choice
Vouchers
Mainstream
Vouchers
Housing Choice
Vouchers
CARES ACT
Mainstream
Vouchers
CARES ACT Total
Assets
Current Assets:
111 Cash - Unrestricted $ - $ 529,637 $ - $ - $ - $ 529,637
113 Cash - Other Restricted - 1,908,980 19,641 529,157 2,195 2,459,973
115 Cash - Restricted for Payment of Current Liabilities - 150,861 - - - 150,861
100 Total Cash - 2,589,478 19,641 529,157 2,195 3,140,471
Receivables:
122 Accounts Receivable - HUD Other Projects - 17,701 16,630 - - 34,331
125 Accounts Receivable - Miscellaneous - - - - - -
128 Fraud Recovery - 13,426 - - - 13,426
128.1 Allowance for Doubtful Accounts - Fraud - (4,833) - - - (4,833)
129 Accrued Interest Receivable - - - - - -
120 Total Receivables, Net of Allowances for Doubtful Accounts - 26,294 16,630 - - 42,924
142 Prepaid Expenses and Other Assets - 13,425 - 13,425
150 Total Current Assets - 2,629,197 36,271 529,157 2,195 3,196,820
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 - 2,629,197 36,271 529,157 2,195 3,196,820
Liabilities and Equity
Liabilities:
312 Accounts Payable - HUD PHA Programs <=90 days - 4,797 - - - 4,797
322 Accrued Compensated Absences - Current Portion - 18,704 - - - 18,704
331 Accounts Payable - HUD PHA Programs - 1,608 2,473 - - 4,081
342 Deferred Revenues - 8,593 613 529,157 2,195 540,558
345 Other Current Liabilities - 150,861 - - - 150,861
346 Accrued Liabilities - Other - - - - - -
310 Total Current Liabilities - 184,563 3,086 529,157 2,195 719,001
Noncurrent Liabilities:
353 Noncurrent Liabilities - Other - 452,584 - - - 452,584
354 Accrued Compensated Absences - Non Current - 56,113 - - - 56,113
350 Total Noncurrent Liabilities - 508,697 - - - 508,697
300 Total Liabilities - 693,260 3,086 529,157 2,195 1,227,698
Equity:
509.3 Restricted Fund Balance - 1,468,213 17,168 - - 1,485,381
511.3 Assigned Fund Balance - 467,724 16,017 - - 483,741
513 Total Equity - Net Assets/Position - 1,935,937 33,185 - - 1,969,122
600 Total Liabilities, Deferred Inflows of Resources and Equity -
Net Assets/Position $ - $ 2,629,197 $ 36,271 $ 529,157 $ 2,195 $ 3,196,820
12
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, 2020
Line Item
No. Account Description
Family Self
Sufficiency
Program
Housing Choice
Vouchers
Mainstream
Vouchers
Housing Choice
Vouchers
CARES ACT
Mainstream
Vouchers
CARES ACT Total
Revenues
70600 HUD PHA Operating Grants $ 137,858 $ 39,158,024 $ 487,166 $ 69,762 $ 633 $ 39,853,443
71100 Investment Income - Unrestricted - ADMIN - 2,835 10 - - 2,845
71400 Fraud Recovery - 10,408 - - - 10,408
71500 Other Revenue - 138,106 - - - 138,106
72000 Investment Income - Restricted - HAP - - - - - -
70000 Total Revenue 137,858 39,309,373 487,176 69,762 633 40,004,802
Expenses
Administrative:
91100 Administrative Salaries - 871,720 18,458 36,605 493 927,276
91200 Auditing Fees - 33,597 - - - 33,597
91400 Advertising and Marketing - 3,418 - - - 3,418
91500 Employee Benefit Contributions - Administrative - 559,604 11,059 25,793 140 596,596
91600 Other Operating - Administrative 16,947 431,977 2,530 786 - 452,240
91800 Travel, Training & Transportation - - - - - -
91810 Allocated Overhead - 167,601 3,317 6,578 - 177,496
91900 Other - 36,525 - - - 36,525
91000 Total Operating - Administrative Expenses 16,947 2,104,442 35,364 69,762 633 2,227,148
Tenant Services:
92100 Tenant Services - Salaries 79,551 - - - - 79,551
92300 Employee Benefit Contributions - Tenant Services 41,360 - - - - 41,360
92500 Total Tenant Services 120,911 - - - - 120,911
General Expenses:
96140 All Other Insurance - - - - - -
96200 Other General Expenses - 728,413 - - - 728,413
96210 Compensated Absences - - - - - -
96000 Total Operating - General Expenses - 728,413 - - - 728,413
96900 Total Operating Expenses 137,858 2,832,855 35,364 69,762 633 3,076,472
97000 Excess Operating Revenue over Operating Expenses - 36,476,518 451,812 - - 36,928,330
97300 Housing Assistance Payments - 34,728,728 810,053 - - 35,538,781
97350 HA Portability-In - 29,638 - - - 29,638
90000 Total Expenses 137,858 37,591,221 845,417 69,762 633 38,644,891
10093 Transfers between Program & Project-In - - - - - -
10094 Transfers between Program & Project-Out - - - - - -
10000
Excess (Deficiency) of Operating Revenues Over (Under)
Expenses $ - $ 1,718,152 $ (358,241) $ - $ - $ 1,359,911
Memo Account Information:
11030 Beginning Equity - 217,785 391,426 - - 609,211
11040 Prior period Adjustments and Equity Transfers - - - - - -
11050 Changes in Compensated Absence Balance - - - - - -
11200 Unit Months Available - 32,388 611 - - 32,999
11210 Number of Unit Months Leased - 30,764 611 - - 31,375
11170 Administrative Fee Equity - 467,724 16,017 - - 483,741
11180 Housing Assistance Payments Equity - 1,468,213 17,168 - - 1,485,381
Line 11170 & 11180 - 1,935,937 33,185 - - $ 1,969,122
Line 513 - 1,935,937 33,185 - -
$ - $ - $ - $ - $ -
13
SCHEDULE OF FINDINGS
AND QUESTIONED COSTS
14
CITY OF SANTA ANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2020
Section I – Summary of Auditors’ Results
Financial Statements
1. Type of auditors’ report issued: Unmodified
2. Internal control over financial reporting:
Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? yes x none reported
3. Noncompliance material to financial
statements noted? yes x no
Federal Awards
1. Internal control over major federal programs:
Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? yes x none reported
2. Type of auditors’ report issued on
compliance for major federal programs: Unmodified
3. Any audit findings disclosed that are
required to be reported in accordance
with 2 CFR 200.516(a)? yes x no
Identification of Major Federal Programs
CFDA Number(s) Name of Federal Program or Cluster
14.218 Community Development Block Grants Cluster
97.067 Homeland Security Grant Program
21.019 Coronavirus Relief Fund
Dollar threshold used to distinguish between
Type A and Type B programs: $ 1,773,207
Auditee qualified as low-risk auditee? x yes no
15
CITY OF SANTA ANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2020
Section II – Financial Statement Findings
Our audit did not disclose any matters required to be reported in accordance with Government
Auditing Standards.
Section III – Findings and Questioned Costs – Major Federal Programs
Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a).
16
CITY OF SANTA ANA, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR-YEAR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2020
Section I – Financial Statement Findings
None noted.
Section II – Findings and Questioned Costs – Major Federal Programs
None noted.