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SR - - SINGLE AUDIT OF FEDERALLY ASSISTED GRANT PROGRAMS FISCAL YEAR ENDED JUNE 30 20161. SUBJECT Single Audit of Federally Assisted Grant Programs (Single Audit) for the fiscal year ended June 30, 2016. 2. SUMMARY Presentation of the Single Audit provided by the independent auditors as a result of the annual financial audit for the fiscal year ended June 30, 2016. 3. RECOMMENDATION Receive and file the following documents for the fiscal year ended June 30, 2016: • Single Audit of Federally Assisted Grant Programs 4. FISCAL IMPACT None. 5. STRATEGIC PLAN GOAL(S) Goal 2: Be a fiscally healthy community. 6. GENERAL PLAN IMPLEMENTATION Not applicable. 7. DISCUSSION and BACKGROUND The Single Audit, also known as the OMB A -133 audit, is required of an entity that expends $750,000 or more of Federal funds in any one fiscal year, and is designed to provide assurance to the Federal government as to the management and use of such funds by public entities. For the fiscal year ended June 30, 2016, the City expended a total of $3,816,272 in Federal funds. This audit was performed in conjunction with the annual audit by White Nelson Diehl Evans, LLP. The following Report for the fiscal year ended June 30, 2016 is presented: 1. Single Audit of Federally Assisted Grant Programs — audit of compliance requirements as described in the U.S. Office of Management and Budget (OMB) circular A -133 Compliance Supplement. This report is divided into three sections: a. 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. b. Independent Auditors' Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by Uniform Guidance and on the Schedule of Expenditures of Federal Awards c. Schedule of Expenditures of Federal Awards and Schedule of Findings and Questioned Costs. The Audit opinion is an "unqualified opinion ", which states that, in the auditor's opinion, the City complied with the requirements that have a direct and material effect on each of the major federal programs for the year ended June 30, 2016. There were two Compliance Findings as a result of the audit. The first is related to the timing of report submission to the Department of Housing and Community Development, and the second is related to the method of allocating HOME drawdowns of budgeted funds for committed projects. Staff has consulted with our HUD representative who has assured us neither of these findings reflect adversely on the City's ability to access nor administer our federal grant funds. The Single Audit reporting package was filed with the Federal Audit Clearinghouse and the California State Controller by its due date of March 31, 2017. 8. ATTACHMENTS 1. Single Audit of Federally Assisted Grant Programs, June 30, 2016. ITEM 2 04/11/17