HomeMy WebLinkAboutItem 16 - Receive and File Single Audit Report for the Fiscal Year Ended June 30, 2023 Finance and Management Services
www.santa-ana.org/finance
Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 7, 2024
TOPIC: Receive and file the Single Audit Report for the Fiscal Year Ended June 30, 2023
AGENDA TITLE
Receive and File Single Audit Report for the Fiscal Year Ended June 30, 2023
RECOMMENDED ACTION
Receive and file Single Audit Report for the Fiscal Year Ended June 30, 2023.
GOVERNMENT CODE §84308 APPLIES: No
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, 2023 has been completed by the City’s independent auditor, Clifton Larson
Allen LLP.
During the fiscal year 2022-23, the City administered twenty-six (26) Federal grant
programs and expended $114.5 million, representing an increase of $8.7 million from
the prior fiscal year. The increase was primarily due to $4.9 million in additional HOME
American Rescue Plan Program expenditures and $4.5 million in additional Section 8
Housing Choice Vouchers.
Of the twenty-six (26) programs administered by the City, the auditors identified five
major programs for the audit: Community Development Block Grant – Entitlements
Grants Cluster ($9.5 million), Coronavirus State and Local Fiscal Recovery ($22.8
million), Emergency Rental Assistance Program ($5.2 million), Community Programs to
Improve Minority Health Grant ($2.1 million), and the Homeland Security Grant Program
($4.2 million).
The Finance and Management Services 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, 2023. However, the auditors disclosed
Receive and file the Single Audit Report for the Fiscal Year Ended June 30, 2023
May 7, 2024
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two compliance findings related to the Community Program to Improve Minority Health
Grant program; the Federal Funding Accountability and Transparency Act (FFATA)
reports and quarterly SF-425 financial reports were not filed timely.
The City’s Grant Management Policy (Policy) requires the grant administering
departments to adhere to all reporting requirements for their grant programs. However,
the department administering this program experienced turnover at key positions and
was not able to submit the required reports on time. Program staff will follow the Policy
and update procedures to ensure the status of all compliance requirements are tracked
and proper knowledge transfer takes place to prevent future findings.
The report (Exhibit 1) is posted and available on the City’s website (https://www.santa-
ana.org/financial-reports) along with prior fiscal years and has been submitted to the
Federal Audit Clearinghouse. The Single Audit Report is required to be submitted by
March 31.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT
1. FY22-23 Single Audit Report
Submitted By: Kathryn Downs, Executive Director of Finance and Management
Services
Approved By: Alvaro Nuñez, Acting City Manager
CITY OF SANTA ANA, CALIFORNIA
SINGLE AUDIT OF FEDERAL AWARDS
AND OTHER FINANCIAL INFORMATION
JUNE 30, 2023
EXHIBIT 1
CITY OF SANTA ANA, CALIFORNIA
JUNE 30, 2023
TABLE OF CONTENTS
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 - 6
Schedule of Expenditures of Federal Awards 7 - 10
Schedule of Expenditures of State Awards 11
Notes to the Schedules of Expenditures of Federal and State Awards 12
Housing Authority of the City of Santa Ana Financial Data Schedules:
Financial Data Schedule of Assets, Liabilities, and Equity as of June 30, 2023 13
Financial Data Schedule of Revenues, Expenses, and Changes in Equity
for the Fiscal Year Ended June 30, 2023 14
Schedule of Findings and Questioned Costs 15 - 17
Summary Schedule of Prior-Year Audit Findings 18
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
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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
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, 2023, 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 11, 2023.
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 or significant deficiencies may exist that were not identified.
Honorable City Council
of the City of Santa Ana
Santa Ana, California
2
Report on 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 11, 2023
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
3
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
Opinion on the 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, 2023. The City’s major
federal programs are identified in the summary of auditors’ results section of the accompanying
schedule of findings and questioned costs.
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 its major federal program for the year
ended June 30, 2023.
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 (GAAS); 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 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 Auditors’
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 the
major federal program. Our audit does not provide a legal determination of the City’s compliance
requirements referred to above.
Honorable City Council
of the City of Santa Ana
Santa Ana, California
4
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.
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 omission, misrepresentations, or 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 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 the 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 2023-001 through 2023-002. Our opinion on each
major federal program is not modified with respect to these matters.
Honorable City Council
of the City of Santa Ana
Santa Ana, California
5
Government Auditing Standards requires the auditor to perform limited procedures on the City’s
responses to the noncompliance findings identified in our compliance audit described in the
accompanying schedule of findings and questioned costs. The City’s responses were not subjected to
the other auditing procedures applied in the audit of compliance and, accordingly, we express no
opinion on the responses.
Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the
Auditors’ 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 2023-001 and 2023-002 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
responses to the internal control over compliance findings identified in our audit described in the
accompanying schedule of findings and questioned costs. The City’s responses were not subjected to
the other auditing procedures applied in the audit of compliance and, accordingly, we express no
opinion on the responses.
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.
Honorable City Council
of the City of Santa Ana
Santa Ana, California
6
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, 2023, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements. We issued our report thereon dated December 11,
2023, 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 26, 2024
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2023
Federal Grantor / Pass-Through Total 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:
Community Development Block Grants - Entitlement Grants Cluster:
Community Development Block Grants N/A 7,885,514$ 1,280,747$
COVID-19 - Community Development Block Grants N/A 417,418 148,347
Neighborhood Stabilization Program 1 N/A 1,064,234 -
Neighborhood Stabilization Program 3 N/A 94,898 -
Subtotal Community Development Block Grants -
Entitlement Grants Cluster 9,462,064 1,429,094
Emergency Solutions Grant Program N/A 480,379 362,716
COVID-19 - Emergency Solutions Grant Program N/A 2,583,686 1,605,974
Subtotal Emergency Solutions Grant Program 3,064,065 1,968,690
Housing Voucher Cluster:
Section 8 Housing Choice Vouchers N/A 48,528,016 -
COVID-19 - Emergency Housing Voucher Rental Assistance (ARPA) N/A 1,284,998 -
COVID-19 - Emergency HSG Voucher Rental Assist-Admin (ARPA) N/A 342,390 265,260
Subtotal Section 8 Housing Choice Vouchers 50,155,404 265,260
Mainstream Vouchers N/A 2,744,877 -
Subtotal Housing Voucher Cluster 52,900,281 265,260
Family Self-Sufficiency Program N/A 82,066 -
Family Self-Sufficiency Program N/A 114,161 -
Subtotal Family Self-Sufficiency Program 196,227 -
HOME Investment Partnerships Program N/A 3,109,689 -
COVID-19 - HOME - American Rescue Plan Program N/A 3,938,163 -
Subtotal HOME Investment Partnerships Program 7,047,852 -
ARRA - Neighborhood Stabilization Program 2 N/A 478,288 -
Total U.S. Department of Housing and Urban Development 73,148,777 3,663,044
U.S. Department of the Interior - Bureau of Reclamation
Direct Programs:
Reclamation States Emergency Drought Relief N/A 7,769 -
WaterSMART (Sustain & Manage America's Resources for Tomorrow) N/A 349,874 -
Total U.S. Department of Interior - Bureau of Reclamation
357,643 -
U.S. Department of Justice
Direct Programs:
Equitable Sharing Program (Asset Forfeiture) N/A 145,282 -
Public Safety Partnership and Community Policing Grants N/A 418,994 -
(Continued)
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
14.896
14.239
14.239
14.256
16.922
16.710
15.514
15.507
Federal
14.218
Assistance
Listing
Number
14.896
14.218
14.218
14.871
14.871
14.879
14.871
14.218
14.231
14.231
7
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2023 (Continued)
Federal Grantor / Pass-Through Passed
Pass-Through Grantor / Entity Identifying Federal Through to
Program / Cluster Title Number Expenditures Subrecipients
Passed through County of Orange Sheriff's Department:
Edward Byrne Memorial Justice Assistance Grant Program:
Byrne Justice Assistance Grant 2019 2019-DJ-BX-0899 1,744$ -$
Byrne Justice Assistance Grant 2020 2020-DJ-BX-0773 3,556 -
Byrne Justice Assistance Grant 2021 15PBJA-21-GG-01188-JAGX 82,618 -
Subtotal Edward Byrne Memorial Justice Assistance Grant Program 87,918 -
Total U.S. Department of Justice 652,194 -
U.S. Department of Labor
Workforce Innovation and Opportunity Act (WIOA) Cluster:
Passed through CA Employment Development Department:
WIOA Adult Program AA211027 541,701 -
WIOA Adult Program AA311027 114,348 -
Subtotal WIOA Adult Activities 656,049 -
WIOA Dislocated Worker Formula Grants AA211027 465,776 -
WIOA Dislocated Worker Formula Grants AA311027 500,340 -
WIOA Dislocated Worker Formula Grants (Rapid Response) AA211027 85,352 -
WIOA Dislocated Worker Formula Grants (Rapid Response) AA311027 253,597 -
Subtotal WIOA Dislocated Worker Formula Grants 1,305,065 -
WIOA Youth Activities AA211027 163,585
WIOA Youth Activities AA311027 501,784 399,517
Subtotal WIOA Youth Activities 665,369 399,517
Passed through County of Orange Community Resources Agency:
WIOA Adult Program MA-012-22010003 9,517 -
Subtotal Workforce Innovation and Opportunity Act (WIOA) Cluster 2,636,000 399,517
Passed through CA Employment Development Department:
WIOA National Dislocated Worker Grants AA111027 145,060 -
Total U.S. Department of Labor 2,781,060 399,517
U.S. Department of Transportation
Highway Planning and Construction Cluster:
Passed through CA Department of Transportation:
National Highway Performance Program BRLS 5063(184) 215,066 -
Bicycle Corridor Improvement CMAQ 5063(181) BCI 9,702 -
Bicycle Corridor Improvement CMAQ 5063(200) BCI 83,899 -
Highway Safety Improvement Program HSIPL 5063(189) 412,587 -
Highway Safety Improvement Program HSIPL 5063(190) 316,737 -
Highway Safety Improvement Program HSIPL 5063(205) 92,158 -
Active Transportation Program - Federal ATPLNI-5063(203) 6,075 -
Active Transportation Program - Federal ATPSB1L-5063(191) 1,331 -
Active Transportation Program - Federal ATPSB1L-5063(193) 4,143 -
Active Transportation Program - Federal ATPSB1L-5063(195) 405,765 -
Subtotal Highway Planning and Construction Cluster 1,547,463 -
(Continued)
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
20.205
20.205
20.205
20.205
20.205
17.278
17.278
17.259
17.258
Federal
Assistance
Listing
Number
16.738
16.738
20.205
17.258
17.278
17.278
20.205
20.205
20.205
17.259
17.277
16.738
17.258
20.205
8
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2023 (Continued)
Federal Grantor / Pass-Through Passed
Pass-Through Grantor / Entity Identifying Federal Through to
Program / Cluster Title Number Expenditures Subrecipients
Highway Safety Cluster:
State and Community Highway Safety:
Passed through CA Office of Traffic Safety:
Selective Traffic Enforcement PT22130 124,605$ -$
Selective Traffic Enforcement PT23066 310,206 -
Public Education on Bicycle Safety PS22025 64,700 -
Public Education on Bicycle Safety PS23007 84,143 -
Subtotal State and Community Highway Safety Cluster 583,654 -
Total U.S. Department of Transportation 2,131,117 -
U.S. Department of Treasury
COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA):
Direct Program:
COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) N/A 20,362,081 3,428,396
Passed through the State Water Resource Control Board:
COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) CA3010038 36,623 -
COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) 443251 5,974 -
Passed through County of Orange Community Resources Agency:
COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) None 1,200,000 -
Passed through California Volunteers:
COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) JP21-002 1,172,272 333,680
Subtotal COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) 22,776,950 3,762,076
COVID-19 - Emergency Rental Assistance Program:
Direct Program:
COVID-19 - Emergency Rental Assistance Program 1 N/A 86,522 86,522
COVID-19 - Emergency Rental Assistance Program 2 N/A 60,672 -
Passed through CA Department of Housing & Community Development:
COVID-19 - Emergency Rental Assistance Program - State 21-ERAP-20081 5,022,175 4,829,388
Subtotal COVID-19 - Emergency Rental Assistance Program 5,169,369 4,915,910
Total U.S. Department of Treasury 27,946,319 8,677,986
U.S. Department of Health and Human Services
Direct Program:
COVID-19 - Community Programs to Improve Minority Health Grant N/A 2,097,385 2,004,659
Passed through County of Orange Social Services Agency:
Temporary Assistance for Needy Families WDM0522 614,896 -
Total U.S. Department of Health and Human Services 2,712,281 2,004,659
U.S. Department of Homeland Security
Homeland Security Grant Program:
Passed through CA Office of Emergency Services:
Urban Area Security Initiative 2019 2019-0035 059-95010 2,644,926 2,560,084
Urban Area Security Initiative 2021 2021-0081 059-95050 891,982 -
Passed through City of Anaheim:
Urban Area Security Initiative 2018 2018-0054 43,603 -
Urban Area Security Initiative 2020 2020-0095 667,594 -
Subtotal Homeland Security Grant Program 4,248,105 2,560,084
(Continued)
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
21.027
20.600
21.027
20.600
93.137
21.023
21.023
93.558
21.023
97.067
97.067
97.067
21.027
21.027
97.067
Federal
Assistance
Listing
21.027
Number
20.600
20.600
9
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2023 (Continued)
Federal Grantor / Pass-Through Passed
Pass-Through Grantor / Entity Identifying Federal Through to
Program / Cluster Title Number Expenditures Subrecipients
Passed through CA Office of Emergency Services:
Disaster Grants - Public Assistance (FEMA) 059-69000 381,591$ -$
Passed through County of Orange Sheriff's Department:
Emergency Management Performance Grants EMPG 2021-0015 51,210 -
Passed through County of Orange Sheriff's Department:
Hazard Mitigation Grant DR-4353-020-45 74,000 -
Total U.S. Department of Homeland Security 4,754,906 2,560,084
Total Expenditures of Federal Awards 114,484,297$ 17,305,290$
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
Listing
Number
Federal
Assistance
97.039
97.042
97.036
10
CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of State Awards
For the Fiscal Year Ended June 30, 2023
Program State
Identification Awards
Grantor / Program Title Number Expenditures
CA Business Consumer Services and Housing Agency
Homeless Housing Assistance & Prevention 20-HHAP-00019 255,799$
Homeless Housing Assistance & Prevention 2 21-HHAP-00012 311,565
Homeless Housing Assistance & Prevention 3 22-HHAP-10004 850,441
1,417,805
CA Department of Housing and Community Development
Affordable Housing Sustainable Communities Program 16-AHSC-11200 36,826
SB2 Planning Grants Program 19-PGP-13895 218,556
Local Early Action Planning Program 20-LEAP-15676 24,977
Permanent Local Housing Allocation 20-PLHA-15193 2,274,765
2,555,124
CA Department of Justice
Sexual Assault Evidence Grant 2019-2020-02 1,252
CA Department of Motor Vehicles
SCAQMD - Mobile Source Air Pollution Reduction 2015 MSRC - ML-14012 17,500
CA Department of Resources Recycling and Recovery
Oil Payment Program OPP12-21-0194 43,455
Beverage Container Payment Program CCP-19-276 71,270
Beverage Container Payment Program CCP-20-280 4,379
119,104
CA Department of Transportation
Solutions for Congested Corridors Program SB1 SCCPSB1L-5063(202)1,816,676
Active Transportation Program ATPL-5063(170) 460,373
Active Transportation Program ATPL-5063(177) 963
Active Transportation Program ATPL-5063(179) 3,103
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(191) 26,765
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(196) 93,359
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(197) 133,430
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(198) 289,267
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(199) 58,042
Highway Safety Improvement Program - State HSIPSL-5063(204) 26,711
Clean California Local Grant Program CCL-5063-206 101,817
3,010,506
CA Department of Water Resources
Prop 1 Integrated Regional Water Management Program 4600013842 1,098,890
CA Natural Resources Agency
Statewide Park Development & Community Revitalization C9801033 149,689
Statewide Park Development & Community Revitalization C9801034 988,896
Youth Soccer - 2002 Resources Bond C0232020 1,000,000
Per Capita Grant - 2018 Parks Bond C9801458 177,952
Advanced Metering Infrastructure GF1806-0 222,826
Proposition 68 Urban Flood Protection UF8807-0 120,196
2,659,559
CA Office of Emergency Services
FY 2020-21 Community Power Resiliency Allocation None 300,000
CA State Coastal Conservancy
Santa Ana River Conservancy Program 19-097, 19-158 172,872
CA State Library
Zip Books ZIP22-68 6,834
Building Forward Library BF-1-21-053 17,677
24,511
Total Expenditures of State Awards 11,377,123$
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.
11
12
CITY OF SANTA ANA, CALIFORNIA
NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS
FOR THE YEAR ENDED JUNE 30, 2023
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,
2023. 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. 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.
CITY OF SANTA ANA, CALIFORNIA
Housing Authority of the City of Santa Ana
Financial Data Schedule of Assets, Liabilities, and Equity
June 30, 2023
Line Item
No. Account Description
Family Self
Sufficiency
Program
FSS Escrow
Forfeiture
Account
Housing Choice
Vouchers
Mainstream
Vouchers
Emergency
Housing
Voucher ARPA Total
Assets
Current Assets:
111 Cash - Unrestricted -$ -$ 2,962,000$ 316,559$ -$ 3,278,559$
113 Cash - Other Restricted - 153,865 889,280 - - 1,043,145
115 Cash - Restricted for Payment of Current Liabilities - - 189,089 - - 189,089
100 Total Cash - 153,865 4,040,369 316,559 - 4,510,793
Receivables:
122 Accounts Receivable - HUD Other Projects - - 209,072 15,987 47,713 272,772
125 Accounts Receivable - Miscellaneous - - - - -
128 Fraud Recovery - - 12,376 - - 12,376
128.1 Allowance for Doubtful Accounts - Fraud - - (6,188) - - (6,188)
129 Accrued Interest Receivable - - - - -
120 Total Receivables, Net of Allowances for Doubtful Accounts - - 215,260 15,987 47,713 278,960
142 Prepaid Expenses and Other Assets - - - - - -
150 Total Current Assets - 153,865 4,255,629 332,546 47,713 4,789,753
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 - 153,865 4,255,629 332,546 47,713 4,789,753
Liabilities and Equity
Liabilities:
312 Accounts Payable - HUD PHA Programs <=90 days - - 150,252 1,855 11,056 163,163
322 Accrued Compensated Absences - Current Portion - - 44,947 - - 44,947
331 Accounts Payable - HUD PHA Programs - - - - - -
342 Deferred Revenues - - 6,188 - - 6,188
345 Other Current Liabilities - - 189,089 - - 189,089
346 Accrued Liabilities - Other - - - - -
310 Total Current Liabilities - - 390,476 1,855 11,056 403,387
Noncurrent Liabilities:
353 Noncurrent Liabilities - Other - - 567,268 - - 567,268
354 Accrued Compensated Absences - Non Current - - 134,841 - - 134,841
350 Total Noncurrent Liabilities - - 702,109 - - 702,109
300 Total Liabilities - - 1,092,585 1,855 11,056 1,105,496
Equity:
509.3 Restricted Fund Balance - 153,865 271,897 - - 425,762
511.3 Assigned Fund Balance - - 2,891,147 330,691 36,657 3,258,495
512.3 Unassigned Fund Balance - - - - - -
513 Total Equity - Net Assets/Position - 153,865 3,163,044 330,691 36,657 3,684,257
600 Total Liabilities, Deferred Inflows of Resources and Equity
- Net Assets/Position -$ 153,865$ 4,255,629$ 332,546$ 47,713$ 4,789,753$
13
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, 2023
Line Item
No. Account Description
Family Self
Sufficiency
Program
FSS Escrow
Forfeiture
Account
Housing Choice
Vouchers
Mainstream
Vouchers
Emergency
Housing
Voucher ARPA Total
Revenues
70600 HUD PHA Operating Grants 196,227$ -$ 49,499,200$ 2,928,498$ 1,218,520$ 53,842,445$
71100 Investment Income - Unrestricted - ADMIN - - - - - -
71400 Fraud Recovery - - 400 - - 400
71500 Other Revenue - 153,865 50,808 15,950 87,450 308,073
72000 Investment Income - Restricted - HAP - - - - - -
70000 Total Revenue 196,227 153,865 49,550,408 2,944,448 1,305,970 54,150,918
Expenses
Administrative:
91100 Administrative Salaries - - 1,353,638 80,912 34,973 1,469,523
91200 Auditing Fees - - 18,717 560 52 19,329
91400 Advertising and Marketing - - 12,138 - - 12,138
91500 Employee Benefit Contributions - Administrative - - 746,215 43,244 20,757 810,216
91600 Other Operating - Administrative - - 642,101 14,450 5,398 661,949
91800 Travel, Training & Transportation - - 2,248 - - 2,248
91810 Allocated Overhead - - 249,103 14,408 6,327 269,838
91900 Other - - 61,125 2,550 3,825 67,500
91000 Total Operating - Administrative Expenses - - 3,085,285 156,124 71,332 3,312,741
Tenant Services:
92100 Tenant Services - Salaries 115,512 - - - 173,933 289,445
92300 Employee Benefit Contributions - Tenant Services 76,887 - - - - 76,887
92400 Tenant Services - Other 3,828 - - - 91,327 95,155
92500 Total Tenant Services 196,227 - - - 265,260 461,487
General Expenses:
96140 All Other Insurance - - - - - -
96200 Other General Expenses - 794,197 520 377 795,094
96210 Compensated Absences - - - - - -
96000 Total Operating - General Expenses - - 794,197 520 377 795,094
96900 Total Operating Expenses 196,227 - 3,879,482 156,644 336,969 4,569,322
97000 Excess Operating Revenue over Operating Expenses - 153,865 45,670,926 2,787,804 969,001 49,581,596
97300 Housing Assistance Payments - 44,718,751 2,586,852 1,284,998 48,590,601
97350 HA Portability-In - 28,638 16,094 92,871 137,603
90000 Total Expenses 196,227 - 48,626,871 2,759,590 1,714,838 53,297,526
10093 Transfers between Program & Project-In - - - - - -
10094 Transfers between Program & Project-Out - - - - - -
10000
Excess (Deficiency) of Operating Revenues Over (Under)
Expenses -$ 153,865$ 923,537$ 184,858$ (408,868)$ 853,392$
Memo Account Information:
11030 Beginning Equity - - 2,239,507 145,833 445,525 2,830,865
11040 Prior period Adjustments and Equity Transfers - - - - -
11050 Changes in Compensated Absence Balance - - - - -
11190 Unit Months Available - - 34,344 2,772 1,068 38,184
11210 Number of Unit Months Leased - - 33,615 1,644 750 36,009
11170 Administrative Fee Equity - - 2,891,147 330,691 36,657 3,258,495
11180 Housing Assistance Payments Equity - 153,865 271,897 - - 425,762
Line 11170 & 11180 - 153,865 3,163,044 330,691 36,657 3,684,257$
Line 513 - 153,865 3,163,044 330,691 36,657
-$ -$ -$ -$ -$
14
15
CITY OF SANTA ANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2023
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? x yes 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)? x yes no
Identification of Major Federal Programs
Assistance Listings Number(s) Name of Federal Program or Cluster
14.218 Community Development Block Grant –
Entitlement Grants Cluster
21.027 COVID-19 - Coronavirus State and Local Fiscal
Recovery Funds
21.023 COVID-19 - Emergency Rental Assistance
93.137 COVID-19 - Community Programs to Improve
Minority Health Grant
97.067 Homeland Security Grant Program
Dollar threshold used to distinguish between
Type A and Type B programs: $ 3,000,000
Auditee qualified as low-risk auditee? x yes no
16
CITY OF SANTA ANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2023
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
2023-001 - Reporting
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: COVID-19 - Community Programs to Improve Minority Health Grant
Assistance Listing Number: 93.137
Award Period: July 1, 2021, through December 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance and other matter
Criteria or Specific Requirement: Prime recipients awarded a federal grant greater than or equal
to $30,000 are subject to FFATA sub-award reporting requirements as outlined in the Office of
Management and Budgets guidance issued August 13, 2020. The prime recipient is required to file a
FFATA subaward report by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $30,000.
Condition: The City is a prime recipient and provided subawards totaling $3,599,804 to four
recipients, each over the $30,000 reporting threshold. FFATA reports were not filed for these sub-
grants awarded until after inquiry by auditors.
Questioned Costs: None.
Context: The City is a prime recipient and provided subawards totaling $3,599,804 to four recipients,
each over the $30,000 reporting threshold. FFATA reports were not filed for these sub-grants
awarded until after inquiry by auditors.
Cause: There was turnover in the department overseeing the program and knowledge of FFATA
reporting requirements, if any, was not passed along due to the turnover.
Effect: The City was not in compliance with the FFATA reporting requirements.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the City implement policies and procedures to ensure that
FFATA reporting occurs for all subawards of $30,000 or more for all federal awards and that the
reporting be performed timely.
Views of Responsible Officials: The City’s Grant Management Policy requires grant administering
departments to ensure compliance with the Uniform Guidance and all other requirements per their
grant agreements. The City will update its procedures for accepting new federal grant awards and
inform departments of the Uniform Guidance and Compliance Supplement, including the FFATA
reporting requirements.
17
CITY OF SANTA ANA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2023
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
2023-002 - Reporting
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: COVID-19 - Community Programs to Improve Minority Health Grant
Assistance Listing Number: 93.137
Award Period: July 1, 2021, through December 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance and other matter
Criteria or Specific Requirement: Federal Financial Reports (SF-425) should be submitted within
30 days of the end of each quarter.
Condition: Three of the four reports for the fiscal year ended June 30, 2023 were not submitted
timely.
Questioned Costs: None.
Context: Three of four reports required during the fiscal year were not submitted timely.
Cause: There was turnover in the department and the tracking of reporting deadlines was tracked
personally by an employee who terminated employment with the City.
Effect: The City did not timely comply with its reporting requirements.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the City review its processes for managing grants, whereby
deadlines for reporting, and other compliance requirements, are not isolated solely within one
individual's tracking system.
Views of Responsible Officials: The department administering the COVID-19 – Community
Programs to Improve Minority Health Grant will review and update procedures to ensure the status of
all federal grant compliance requirements are properly tracked. Grant related documents and files will
be saved in a secure network location that can be accessed by grant managers. When there is
employee turnover, the department will ensure effective knowledge transfer takes place to maintain
continued compliance with federal grant requirements.
18
CITY OF SANTA ANA, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR-YEAR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2023
Section I – Financial Statement Findings
None noted.
Section II – Findings and Questioned Costs – Major Federal Programs
2022-001 - Suspension and Debarment
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Award Period: March 3, 2021, through December 31, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Award requires compliance with the provisions of
suspension and debarment. The City should have internal controls designed to ensure compliance
with those provisions.
Condition: The City was not able to provide supporting documentation that the City verified the
vendor was not suspended or debarred prior to entering the transaction.
Status: Corrected.