BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT: Title
Receive the Single Audit Report for Fiscal Year Ending June 30, 2024.
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RECOMMENDATION: Recommendation
Receive the Single Audit Report for Fiscal Year ending June 30, 2024.
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SUMMARY:
The Single Audit is a rigorous, organization-wide audit of an entity that expends $750,000 or more of federal assistance received for its operations. Usually performed annually, the Single Audit's objective is to provide assurance to the US federal Government as to the management and use of such funds by recipients. The audit is performed by an independent certified public accountant and encompasses both financial and compliance components. Once completed, the Single Audit must be submitted to the Federal Clearinghouse.
Attached is the final report for the Single Audit for the year ended June 30, 2024, prepared by Vasquez and Company.
Staff is pleased to report that there were no findings in the Fiscal Year (FY) 24 Single Audit Report.
Follow Up on FY 23 Single Audit Report
The FY 23 Single Audit contained a finding noting a material weakness in internal control because Santa Clara Valley Water District (Valley Water) reported $3.3 million of federal expenditures in FY 23, when $980K of those expenditures were actually incurred in FY 22. Since a Single Audit must be performed when an agency's federal expenditures exceed $750K, a Single Audit should have been performed for FY 22 and was not. For the sake of clarity, the finding was related to the timing of reporting, as opposed to a lack of reporting.
Staff was unaware of the FY 22 eligible expenditures because of a multiple year pause in project activity for the South Santa Clara County Recycled Water Project Phases 1B and 2A. More specifically, while the project was an active project in Valley Water's Capital Improvement Program (CIP), construction had been delayed since...
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