HomeMy WebLinkAboutSingle Audit - Fdrly Assistd Grnt Pgrms FYE 6-30-2013 CITY OF PALM DESERT
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FINANCE DEPARTMENT
Staff Report
REQUEST: RECEIVE AND FILE THE SINGLE AUDIT OF FEDERALLY
ASSISTED GRANT PROGRAMS FOR THE FISCAL YEAR ENDED
JUNE 30, 2013
DATE: February 27, 2014
SUBMITTED BY: Paul S. Gibson, Finance Director
CONTENTS: Single Audit Report for the Fiscal Year Ended June 30, 2013
Recommendation
By Minute Motion, that the City Council receive and file the single audit
report of Federally Assisted Grant Programs for fiscal year ended June 30,
2013.
Committee Recommendation
The Audit, Investment and Finance Committee received the single audit report at their
February 25, 2014 meeting, and it was recommended that the report for the fiscal year
ended June 30, 2013 be received and filed by the City Council.
Backqround
The Single Audit Act and Office of Management and Budget (OMB) Circular A-133, Audits
of States, Local Governments, and Non-Profit Organizations, requires non-federal
entities that expend equal to or in excess of$500,000 in a fiscal year in federal awards to
have an audit performed in accordance with the Single Audit Act.
The City was required to undergo an audit of federal funds it received because the City
expended more than $500,000 in the year ended June 30, 2013. On Pages 6 and 7 of the
Single Audit of Federally Assisted Grant Programs, a detail of federal expenditures is
given. In total, the City expended $1,029,255 for the year ended June 30, 2013.
During the audit, our auditors made us aware that as a prime recipient, the City is required
to report any sub-awards over $25,000 to other agencies. Upon review of the
requirement, City staff filed all sub-awards greater than or equal to $25,000. Staff does its
utmost to remain on top of the reporting requirements and plans to continue to comply
with any such requirements.
G:\Finance\Niamh Ortega\Staff ReportsWudit staff reportsWudit Staff Reports 2013\SR-Council single audit 2013.docx
Staff Report
Approval of Single Audit Report for Fiscal Year ended June 30, 2013
February 27, 2014
Page 2 of 2
Staff requests that the Council receive and file the single audit report for fiscal year ended
June 30, 2013.
Fiscal Impact
There is no fiscal impact associated with this action.
Submitted by: Approved by:
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Paul S. Gibson, Finance Director ohn M. Wohlmuth, City Manager
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CITY OF PALM DESERT, CALIFORNIA
SINGLE AUDIT OF FEDERALLY
ASSISTED GRANT PROGRAMS
JUNE 30,2013
CITY OF PALM DESERT, CALIFORNIA
TABLE OF CONTENTS
June 30, 2013
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
Program and on Internal Control Over Compliance in Accordance
with OMB CircularA-133 and on the Schedule of Expenditures
of Federal Awards 3 - 5
Schedule of Expenditures of Federal Awards and Schedule of
Findings and Questioned Costs:
Schedule of Expenditures of Federal Awards 6 - 7
Notes to Schedule of Expenditures of Federal Awards 8 - 9
Schedule of Findings and Questioned Costs 10 - 12
Summary Schedule of Prior Audit Findings 13
, r
INDEPENDENTAUDITORS' 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
City Council
City of Palm Desert
Palm Desert, 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, the discretely presented component unit, each major fund, and
the aggregate remaining fund information of the City of Palm Desert, California (the City), as of and
for the year ended June 30, 2013, 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 4, 2013.
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.
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2875 l�lichelle Drive,Snite 300,Iivine, CA 92606 •Tel: %14.978.1300 • Fax: 714.9%8.7893
O�ce.r located in Orai�ge and San Diego Coaentie�
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.
G���.feJ ��� � ��� LL�
Irvine, California
December 4, 2013
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INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 AND ON THE
SCHEDULE OF EXPENDITURES OF FEDERALAWARDS
City Council
City of Palm Desert
Palm Desert, California
Report on Compliance for Each Major Federal Program
We have audited the City of Palm Desert's (the City) compliance with the types of compliance
requirements described in the OMB Circular A-133 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, 2013. 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 requirements of laws, regulations, contracts, and
grants 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 comp(iance 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 OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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.
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2875 Michelle Drive,Stute 300,Itvine,Ct1 92606 •Tel: 71�.9'8.1300 • Fax: 714.978.7893
O�ce.r locate�l in Or�nqe and S�zn llie�o Coarntie�
Opinion on Each Major Federal Program
In our opinion, the City of Palm Desert 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, 2013.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required to be
reported in accordance with OMB Circular A-133 and which is described in the accompanying
schedule of findings and questioned costs as item Number 2013-01. Our opinion on each major federal
program is not modified with respect to this matter.
The City's response to the noncompliance findings identified in our audit is described in the
accompanying schedule of findings and questioned costs. The City's response was not subjected to the
auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the
response.
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
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 OMB Circular A-133, 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 de�ciency 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
si�ni�cant de�ciency 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
OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
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Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133
We have audited the financial statements of the governmental activities, the business-type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Palm Desert, as of and for the year ended June 30, 2013, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements. We
issued our report thereon dated December 4, 2013, which contained unmodified opinions on those
financial statements. Our audit was conducted for the purpose of forming opinions on the financial
statements that collectively comprise the basic financial statements. The accompanying schedule of
expenditures of federal awards is presented for purposes of additional analysis as required by
OMB Circular A-133 and is not a required part of the basic financial statements. Such information is
the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the schedule of expenditures of federal
awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
���� .�in� .��� �i�a� LLP
Irvine, California
January 22, 2014, except to the date for the Schedule of Expenditures of Federal Awards to which the
date is December 4, 2013
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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CITY OF PALM DESERT, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended June 30, 2013
Catalog of
Federal Expenditures
Federal Grantor/ Domestic Program of Disbursements
Pass-Through Grantor/ Assistance Identification Federal to
Program Title Number Number Awards Subrecipients
U.S.Denartment of Housin�and Urban Development
Direct Programs:
Community Development Block Entitlement
Grants Cluster:
Community Development Block Grants/
EntitlemenY Grants 14.218 B-11-MC-06-0594 $ 294,665 $ 93,013
B-12-MC-06-0594 82,578 IS1,250
ARRA-Community Development Block
Grants-Entitlement Grant 14.253 B-09-MY-06-0594 5,038 -
Total U.S.Department of Housing and Urban Development 382,281 244,263
U.S.Department ofJustice
Direct Programs:
Edward Byrne Memorial Justice Assistance
Grant Program(JAG) 16.804 2009-SB-B9-0954 100 -
U.S.Denartment of Transnortation
Passed through the State of California
Department of Transportation:
Highway Planning and Construction 20.205 CML 5414(008) 50,275 -
CML 5414(009) 195,962 -
CML 5414(O10) 49,218 -
HSIPL 5414(Ol 1) 186,966 -
Total Highway Planning and Construction 482,421 -
Passed through the University of California,Berkeley
Traffic Safety Center:
State and Community Highway Safety- 20.600 SC 12302 27,234 -
Sobriety Checkpoint Program LLEA SC 13302 41,718 -
Total Passed through the University of California,
Berkeley Traffic Safety Center 68,952 -
Passed through the City ofRiverside:
State and Community Highway Safety-Avoid 30 20.600 AL0842 4,134 -
Passed through the California Office of Traffic Safety:
State and Community Highway Safety 20.600 PT13114 77,812
Total State and Community Highway Safety 15Q898 -
Total U.S.Department of Transportation 633,319 -
See Independent Auditors' Report on Compliance for Each Major Program and on Internal Control Over
Compliance Required by OMB Circular A-133 and on the Schedule of Expenditures of Federal Awards
(pages 3 through 5) and Notes to Schedule of Expenditures of Federal Awards(pages 8 and 9).
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CITY OF PALM DESERT, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(CONTINUED)
For the year ended June 30, 2013
Catalog of
Federal Expenditures
Federal Grantor/ Domestic Program of Disbursements
Pass-Through Grantor/ Assistance Identification Federal to
Program Title Number Number Awards Subrecipients
U.S.Department of Energy
Direct Program:
Energy Efficiency and Renewable Energy
Information Dissemination,Outreach,
Training and Technical Analysis/Assistance 81117 DE-EE0005696 $ 6,915 $ -
U.S.Department of Homeland Securitv
Passed through Riverside County Treasurer.
Homeland Security Grant Program 97.067 2010-0085 6,640 -
TOTAL DISBURSEMENTS
TO SUBRECIPIENTS $ 244,263
TOTAL EXPENDITURES
OF FEDERAL AWARDS $ 1,029,255
See Independent Auditors' Report on Compliance for Each Major Program and on Internal Control Over
Compliance Required by OMB Circular A-133 and on the Schedule of Expenditures of Federal Awards
(pages 3 through 5) and Notes to Schedule of Expenditures of Federal Awards(pages 8 and 9).
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CITY OF PALM DESERT, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
June 30, 2013
1. GENERAL:
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal
financial assistance programs of the City of Palm Desert (the City). The City's reporting entity is
defined in Note 1 of the notes to the City's financial statements. All financial assistance received
directly from federal agencies as well as federal financial assistance passed through other
government agencies to the City is included in the accompanying schedule.
2. BASIS OF ACCOUNTING:
The accompanying Schedule of Expenditures of Federal Awards is 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.
3. RELATIONSHIP TO COMPREHENSIVE ANNUAL FINANCIAL REPORT:
Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree to
amounts reported within the City's Comprehensive Annual Financial Report (CAFR).
4. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS:
Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree with
amounts reported in federal financial reports.
See Independent Auditors' Report on Compliance for Each Major Program and on Internal Control
Over Compliance Required by OMB Circular A-133 and on the Schedule of Expenditures of Federal
Awards (pages 3 through 5) and Schedule of Expenditures of Federal Awards(pages 6 and 7).
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CITY OF PALM DESERT, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(CONTINUED)
June 30, 2013
5. SUBRECIPIENTS:
During the fiscal year ended June 30, 2013, the City disbursed federal funds to the following
subrecipients under the Community Development Block Grant Program (CFDA#14.218):
Amount
Disbursed
CDBG
Borrego Community Health Foundation $ 12,500
Angel View 5,000
Desert Aids Project 29,083
Desert ARC 50,000
Desert Best Friends Closet 5,000
FIND 19,977
Fair Housing Council of Riverside County 32,515
Ranch Recovery Center 90,188
Total Subrecipient Payments $ 244,263
6. DEFERRED LOANS RECEIVABLE:
The CDBG balance of deferred loans receivable at June 30, 2013 was $5,755.
7. 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 grant. Such audits could lead to a request for reimbursement to the grantor agencies.
See Independent Auditors' Report on Compliance for Each Major Program and on Internal Control
Over Compliance Required by OMB Circular A-133 and on the Schedule of Expenditures of Federal
Awards (pages 3 through 5) and Schedule of Expenditures of Federal Awards (pages 6 and 7).
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CITY OF PALM DESERT, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended June 30, 2013
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(es) identified? _ yes x no
• Significant deficiency(es) 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 Section 510(a) of OMB
Circular A-133? x yes _ no
See Finding Number 2013-01
Identification of major programs:
CFDA Number(s) Name of Federal Pro�ram or Cluster
14.218 United States Department of Housing and Urban
Development, Direct Assistance, Community
Development Block Grant(CDBG)
14.253 ARRA - United States Department of Housing and Urban
Development, Direct Assistance, Community
Development Block Grant(CDBG)
Dollar threshold used to distinguish
between type A and type B programs: $ 300,000
Auditee qualified as low-risk auditee? x yes _ no
See Independent Auditors' Report on lnternal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards and Independent Auditors' Report on Compliance for Each Major
Program and on Internal Control Over Compliance Required by OMB Circular A-133 and on the
Schedule of Expenditures of Federal Awards (pages 1 through 5).
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CITY OF PALM DESERT, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(CONTINUED)
For the year ended June 30, 2013
2. FINDINGS - FINANCIAL STATEMENT AUDIT:
There were no significant deficiencies, material weaknesses or noncompliance material to the
financial statements which were disclosed by the audit of the financial statements of the City of
Palm Desert for the year ended June 30, 2013.
3. FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAM AUDIT:
Finding Number 2013-01
Noncompliance-Reporting
Major Pro_gram
United States Department of Housing and Urban Development; Direct Assistance; Community
Development Block Entitlement Grant; Community Development Block Grants Entitlement
Grants (CFDA#14.218), Grant Identification Numbers: B-11-MC-06-0594 and B-12-MC-06-0594
Criteria
As of October 1, 2010,the Federal Funding Accountability and Transparency Act(FFATA) requires
a prime recipient of non-recovery act grants to report sub-awards of$25,000 or more on the FFATA
Subaward Reporting System (FSRS - www.fsrs.gov). The prime awardee is required to file a
FFATA sub-award report by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $25,000.
Condition
The City, a prime recipient, made three sub-awards in the amounts of $29,690, $29,083, and
$50,000 subseyuent to October 1, 2010 and did not report the required information on the FFATA
Subaward Reporting System.
See 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 and Independent Auditors' Report on Compliance for Each Major
Program and on Internal Control Over Compliance Required by OMB Circular A-133 and on the
Schedule of Expenditures of Federal Awards (pages 1 through 5).
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CITY OF PALM DESERT, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(CONTINUED)
For the year ended June 30, 2013
3. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT
(CONTINUED):
Finding Number 2013-01 (Continued)
Noncompliance—Reportin� (Continued)
Context
The City had three sub-awards over $25,000 for the year ended June 30, 2013 and was unaware of
the FFATA filing requirement sub-award report.
Ouestioned Costs
None.
Cause
The City staff was not aware of the FFATA requirement.
Effect
The City did not comply with the FFATA filing requirement.
Recommendation
We recommend that the City establish procedures that will ensure the reporting of required
information for sub-awards greater than or equal to $25,000 on the FFATA Subaward Reporting
System.
Mana�ement Response
The City was not aware of the reporting requirements for the Federal Funding Accountability and
Transparency Act (FFATA). Upon receiving notification from our auditors regarding the report
requirement, City staff filed all sub-awards greater than or equal to $25,000 on the FFATA
sub-award Reporting System. City staff is now aware of the requirement and going forward will
file the required FFATA sub-award report by the end of the month following the month in which
the City of Palm Desert as prime recipient awards any sub-grant greater than or equal to $25,000.
See 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 and Independent Auditors' Report on Compliance for Each Major
Program and on Internal Control Over Compliance Reyuired by OMB Circular A-133 and on the
Schedule of Expenditures of Federal Awards (pages 1 through 5).
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CITY OF PALM DESERT, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the year ended June 30, 2013
There were no findings reported for fiscal year 2011-12.
See 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 and Independent Auditors' Report on Compliance for Each Major
Program and on Internal Control Over Compliance Required by OMB Circular A-133 and on the
Schedule of Expenditures of Federal Awards (pages 1 through 5).
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January 22, 2014
CITY OF PALM DESERT
Corrective Action Plan for the
Fiscal Year ended June 30, 2013
The City of Palm Desert respectFully submits the following corrective action plan for the !,
year ended June 30, 2013. j
Name and address of the independent public accounting firm: II
White Nelson Diehl Evans, LLP 1
2875 Michelle Drive, Suite 300 '
Irvine, CA 92606
Audit Period: '
July 1, 2012 to June 30, 2013
The findings from December 4, 2013 schedule of findings and questioned costs are
discussed below. The findings are numbered consistently with the numbers assigned in
the schedule.
FINDINGS-FINANCIAL STATEMENT AUDIT
There were no significant deficiencies or material weaknesses.
��!�>.6`l.:e�C.�i. >.i. �
Corrective Action Plan for Fiscal Year ended June 30, 2013 ''
January 22, 2014 �
Page 2 of 2 ,
FINDINGS-FEDERAL AWARD PROGRAMS AUDITS I
2013-01 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT — �Ii
Community Development Bfock Grant (CFDA# 14.218) �
Deficiency: '
See Finding 2013-01.
Recommendation: i
We recommend that the City establish procedures that will ensure the reporting of �
required information for sub-awards greater than or equal to $25,000 on the FFATA sub- i
award Reporting System. �
Action Taken: '
�
�
The City was not aware of the reporting requirements for the Federal Funding
Accountability and Transparency ACT (FFATA). Upon receiving notification from our I
auditors regarding the report requirement, City staff filed all sub-awards greater than or �
equal to $25,000 on the FFATA sub-award Reporting System. City staff is now aware of �
requirement and going forward will file the required FFATA sub-award report by the end �
of the month following the month in which the City of Palm Desert as prime recipient '
awards any sub-grant greater than or equal to $25,000. �
If you have any questions regarding this plan, please call Paul S. Gibson, Director of !�
Finance at (760) 346-0611, Ext. 320. ,�
�
Sincere �
_ ��
John Wohlmuth i
City nager !
CIiY OF PBLM � fSERi '
w�'�raiFiFo ou eicrnro rRata �