CITY OF GALT, CALIFORNIA

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CITY OF GALT, CALIFORNIA

JUNE 30, 2019

SINGLE AUDIT REPORT

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CITY OF GALT SINGLE AUDIT REPORT

JUNE 30, 2019

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 Independent Auditors’ Report on Compliance for Each Major Program and on Internal

Control Over Compliance; and Report on Schedule of Expenditures of Federal

Awards Required by the Uniform Guidance ... 3 Schedule of Expenditures of Federal Awards for the

Fiscal Year Ended June 30, 2019 ... 6 Notes to the Schedule of Expenditures of Federal Awards ... 7 Schedule of Findings and Questioned Costs for the

Fiscal Year Ended June 30, 2019 ... 8 Schedule of Prior Year Findings and Questioned Costs for the

Fiscal Year Ended June 30, 2018 ... 12

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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 Mayor and Members of the City Council

City of Galt, 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 Galt, California, (the City) as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 26, 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) 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.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

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. We consider the following deficiencies, described in the accompanying schedule of findings and questioned costs, to be material weaknesses: 2019-001 through 2019-003.

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. We consider deficiency finding No. 2019-004, described in the accompanying schedule of findings and questioned costs, to be a significant deficiency.

2151 River Plaza Dr., Suite 150 Sacramento , CA 95833 Phone: 916.503.9691 Lance, Soll & Lunghard, LLP

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To the Honorable Mayor and Members of the City Council City of Galt, California

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.

City’s Response to Findings

The City’s response to the findings identified in our audit was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

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.

Sacramento, California June 26, 2020

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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES

OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and Members of the City Council

City of Galt, California

Report on Compliance for Each Major Federal Program

We have audited the City of Galt, California (the City)’s 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, 2019. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with federal statutes, regulations, and terms and conditions of its federal awards applicable to its federal programs.

Auditor’s 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 U.S. 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.

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, 2019.

2151 River Plaza Dr., Suite 150 Sacramento , CA 95833 Phone: 916.503.9691 Lance, Soll & Lunghard, LLP

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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 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.

Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 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 Galt, California, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated June 26, 2020, which contained an unmodified opinion 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 the purposes of additional analysis as required by the Uniform Guidance 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.

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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.

Sacramento, California June 26, 2020

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CITY OF GALT

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Federal Pass-Through Pass-Through

CFDA Grantor's Grantor's

Federal Grantor/Pass-Through Grantor/Program Title Number DUNS Number Expenditures

CDBG - Entitlement Grants Cluster

U.S. Department of Housing and Urban Development Passed through the County of Sacramento

Housing and Redevelopment Agency:

Community Development Block Grants 14.218 00-797-3530 N/A $ 369,681

Total CDBG - Entitlement Grants Cluster 369,681

U.S. Department of Justice Direct Program:

Bulletproof Vest Partnership Program 16.607 N/A N/A 1,075

Total U.S. Department of Justice 1,075

Highway Planning and Construction Cluster U.S. Department of Transportation

Passed through the State of California Department of Transportation

Highway Planning and Construction* 20.205 13-525-3776 ATPSTCML-5293(017) 1,744,953

Total Highway Planning and Construction

Cluster 1,744,953

U.S. Department of Energy

Passed through the State of California Energy Commission

State Energy Program 81.041 83-220-5355 LGC-16-013 283,665

Total U.S. Department of Energy 283,665

Total Federal Expenditures $ 2,399,374

* Major Program

Note a: Refer to Note 1 to the schedule of expenditures of federal awards for a description of significant accounting policies used in preparing this schedule.

Note b: There was no federal awards expended in the form of noncash assistance and insurance in effect during the year.

Note c: Total amount provided to subrecipients during the year was $0.

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CITY OF GALT

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2019

Note 1: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards

a. Scope of Presentation

The accompanying schedule presents only the expenditures incurred by the City of Galt, California, that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule.

b. Basis of Accounting

The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Note 2: Delayed Submission due to COVID-19

OMB has issued Memorandum M-20-17 related to the Administrative Relief for Recipients and Applicants of Federal Financial Assistance Directly Impacted by the Novel Coronavirus (COVID-19) due to Loss of Operations, which has extended the required deadline of Single Audit Submissions for six months. The City has exercised this extension due to the fact that COVID-19 delayed their ability to respond to requests timely.

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CITY OF GALT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2019

SECTION I - SUMMARY OF AUDITORS' RESULTS

Financial Statements

Type of auditors' report issued: Unmodified Opinion Internal control over financial reporting:

 Significant deficiencies identified? X yes none reported

 Material weaknesses identified? X yes no Noncompliance material to financial

statements noted? yes X no

Federal Awards

Internal control over major programs:

 Significant deficiencies identified? yes X none reported

 Material weaknesses identified? yes X no Type of auditors' report issued on compliance for major programs: Unmodified Opinion Any audit findings disclosed that are required to be

reported in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform

Guidance)? yes X no

Identification of major programs:

CFDA Number(s) Name of Federal Program or Cluster

14.218 CDBG - Entitlement Grants Cluster

20.205 Highway Planning and Construction Cluster

Dollar threshold used to distinguish

between type A and type B program $750,000

Auditee qualified as low-risk auditee? yes X no

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CITY OF GALT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2019

SECTION II - FINANCIAL STATEMENT FINDINGS Finding 2019-001: Duplicate Accruals of Accounts Payable (Material Weakness) Condition:

Through our audit procedures over the City’s accounts payable balances, we noted duplicate accruals of

$72,251 and $21,229 for invoices which related to fiscal year 2018-19 that were paid in fiscal year 2019-20 but were already properly recognized in the prior fiscal year.

Criteria:

All invoices should be recorded in the proper accounting period. Additionally, review procedures should be in place to prevent or detect duplicate accruals.

Cause of Condition:

The City had not reviewed all invoices for duplicate accrual.

Effect or Potential Effect of Condition:

Correcting journal entries for a total of $93,480 were recorded to reverse duplicate accruals as of June 30, 2019.

Recommendation:

LSL recommends that the city perform a more detailed review of all material invoices received after the close of the fiscal year to ensure that all invoices are properly captured, only once, in the proper period.

Management’s Response and Corrective Action:

The City agrees that detailed review of all material invoices should be completed before audit work begins.

The Finance Director and Accounting Manager will review and enhance written procedures as needed for the review of invoices including procedures for timely review of invoices after year end to detect and correct any duplicates.

Finding 2019-002: Reconciliation of Unavailable Revenue (Material Weakness) Condition:

Through our audit procedures over the City’s reconciliation of grant revenues and expenditures, we noted an unreconciled revenue balance relating to unavailable revenue recorded during fiscal year 2017-18. We estimate the total error to be $71,422. It was identified that unavailable revenue recorded in the prior year relating to the Safe Routes to School grant was only partially received in fiscal year 2018-19.

Criteria:

Billing for reimbursable projects should be made on a timely basis to ensure all revenue is recorded in the proper period according to the City’s revenue recognition policy. In addition, review procedures should be in place to determine the collectability of each receivable balance, in addition to each unavailable revenue balance, prior to recording in the City’s general ledger.

The City had not reviewed all unavailable revenue for proper collectability prior to recording in the City’s general ledger.

Revenue was estimated to be overstated as of June 30, 2018 for a total of $71,422. Revenue as of June 30, 2019 is consequently estimated to be understated by the same amount. Noted fund balance at the end of fiscal year 2018-19 is properly stated.

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CITY OF GALT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Recommendation:

LSL recommends that the City implement procedures to ensure the timely billing of reimbursable expenses by all departments. In addition, LSL recommends that the City perform a more detailed review of all unavailable revenue balances at the end of each fiscal year to determine the collectability of each balance.

The City’s Finance Director and Budget/Revenue Manager will review and enhance as needed procedures for the recording of grant related financial activity to include review of expenditure claims and recording of revenue activity into the general ledger. Training will be provided to department staff responsible for grant administration.

Finding 2019-003: Franchise Tax Revenue Adjustment (Material Weakness) Condition: Material Weakness

Through our audit procedures over the City’s revenue balances, we noted an understatement of revenue of

$174,027 relating to the City’s franchise tax revenue. Receipts relating to fiscal year 2018-19 were received in the subsequent period however were not properly captured for the year ending June 30, 2019.

Criteria:

All material revenue should be reviewed during the year-end closing process to ensure that revenue balances are within expectations. Additionally, cash receipts received in the subsequent period should be reviewed to ensure that they are captured in the proper period.

The City had not reviewed all revenue for proper accrual.

An adjusting entry totaling to $174,027 was recorded to accrue franchise tax revenue for the year ending June 30, 2019.

Recommendation:

LSL recommends that the City perform a more detailed review of all cash receipts received after the close of the fiscal year to ensure that all cash receipts are captured in the proper period. LSL also recommends that the City implement additional review procedures over year-end revenue balances to ensure that revenue balances are within expectations.

The City agrees with the recommendation. In FY20, the City reorganized positions within the department to establish the Accountant I position and filled the Senior Accounting Assistant position, The Finance Director will review the year end procedures and make necessary workload adjustments.

Finding 2019-004: Bank Reconciliation Procedures (Significant Deficiency) Condition: Significant Deficiency

Through our audit procedures over the City’s cash balances and bank reconciliation process, LSL noted that the City was not current in their bank reconciliation procedures as of our interim contact. However, LSL noted that as of our year-end contact, all bank reconciliations relating to fiscal year 2018-19 were now current.

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CITY OF GALT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2019

The cause of the condition resulted from carryover issues from the prior fiscal year.

Bank reconciliations that are not completed timely may result in potential unexplained reconciling differences above what audit standards allow us to consider trivial. No known effected resulted from this as of June 30, 2019.

Recommendation:

LSL recommends that the City continue to stay current in their bank reconciliation procedures throughout each fiscal year going forward.

The City understands the importance of reconciling bank accounts timely. Unfortunately, limited staffing resources and critical accounting vacancies compromise the bank reconciliation processes. In FY20, the City reorganized positions within the department to establish the Accountant I position and refilled the Senior Accounting Assistant position, in part to address timeliness of bank account reconciliation. The Finance Director and finance management team will routinely review the status of the bank reconciliation process.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

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SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

SECTION II - FINANCIAL STATEMENT FINDINGS Finding 2018-001: Debt Reconciliation Procedures (Material Weakness) Condition

As a result of our audit procedures, various adjustments were identified in reviewing the City’s debt reconciliation procedures.

Cause

The City did not accrue interest payable in the Successor Agency to properly classify interest expense in the proper period.

Criteria

The Successor Agency is a private-purpose trust fund accounted for under full accrual accounting, and therefore cannot have principal payments and needs to have interest accrued every year-end.

Effect of Condition

A correcting entry was recorded for $330,866 to restate net position for interest payable that should have been captured in fiscal year 2016-17, and an additional correcting journal entry was recorded for $321,917 to properly accrue current interest payable as of June 30, 2018. Additionally, the City recorded a principal payment of $340,000 for the 2011B Tax Allocation Bonds as an expense. As the Successor Agency operates on a full-accrual basis, a correcting journal entry was recorded to remove the expense and reduce the liability by $340,000.

Recommendation

LSL recommends that the City perform a more detailed review of all debt reconciliation procedures to ensure that treatment of all debt activity is properly reflected in the financial statements.

Management Response & Corrective Action: The City agrees that full accrual accounting treatment of the Successor Agency is appropriate for this type of fund and that year end results should reflect accurate debt liability after all related activity including principal payments. The Finance Director and General Ledger Accounting Manager will develop written procedures for the treatment of accounting entries of the Successor Agency Fund for application in the next fiscal year closing process.

Status of Finding: No similar finding was identified during fiscal year 2018-19.

Finding 2018-002: Revenue Adjustment (Material Weakness) Condition

As a result of our audit procedures, adjustments relating to the State Revolving Fund (SRF) loan disbursements were discovered.

Finance Department

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380 Civic Drive, Galt, California 95632-2039 (209) 366-7150 Fax: (209) 744-2253 finance@cityofgalt.org www.cityofgalt.org

CITY OF GALT

SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Criteria

Proceeds received on the SRF loan should never be recorded as revenue.

A correcting journal entry was recorded to properly restate net position in fiscal year 2017-18 in the amount of

$90,977.

Recommendation

LSL recommends that the City perform a thorough review of grant agreements and year-end reconciliation procedures to ensure transactions are classified correctly.

Management Response & Corrective Action: The City agrees that grant reconciliations should be performed annually during the year end close process. The Finance Director and General Ledger Accounting Manager will develop written procedures for the reconciliation of grant activity in collaboration with related department programs and considering timely claim processing. These reconciliations will be completed as appropriate and at year end and will include proper receivable and payable classifications.

Status of Finding: No similar finding was identified during fiscal year 2018-19.

Finding 2018-003: Cutoff Procedures (Significant Deficiency) Condition

As a result of our procedures to identify the existence of unrecorded liabilities, two invoices for $95,441 and

$5,732 were identified for work performed during fiscal year 2017-18 that were not properly accrued.

Cause

The City had not reviewed all invoices for accrual.

Criteria

All invoices should be recorded in the proper accounting period.

Correcting journal entries for a total of $101,172.95 were recorded to accrue both invoices as of June 30, 2018.

Recommendation

LSL recommends that the city perform a more detailed review of all material invoices received after the close of the fiscal year to ensure that all invoices are captured in the proper period.

Management Response & Corrective Action: The city agrees that material invoices should be accrued in the year end process and recognizes that our current process is insufficient to capture all invoices and needs revision. The evaluation of this process will include consideration of staff resources, annual purchase order review and decentralized versus centralized accounts payable processing. The Finance Director and General Ledger Accounting Manager will revise written procedures of the processing of year end invoices and provide training to department staff as applicable.

Status of Finding: Similar finding was identified during fiscal year 2018-19, see finding 2019-001.

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CITY OF GALT

SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Finding 2018-004: Bank Reconciliation Procedures (Significant Deficiency) Condition

As a result of our procedures over cash, LSL noted that the City was not current in their bank reconciliation procedures as of our interim contact.

Cause

The City was not current in their bank reconciliation procedures.

Criteria

Bank reconciliations need to be prepared timely to avoid errors.

Bank reconciliations for more than half of the fiscal year were not completed until after the close of the fiscal year causing unexplained reconciling differences above what audit standards allow us to consider trivial.

Recommendation

LSL recommends that the City stay current in their bank reconciliation procedures throughout every fiscal year.

Management Response & Corrective Action: The City recognized and understands the importance of reconciling bank accounts timely. Unfortunately, limited staffing resources and a critical accounting vacancy lasting more than seven months contributed to the delay in bank reconciliations. Because the bank statements were not reconciled timely during the year, reconciling items caused by system and timing differences were recorded after the normal closing process. It is not anticipated that such long-term vacancies will occur in the future. In addition, the General Ledger Accounting Manager will review the tasks to balance workloads in accounting and provide redundancies when possible. Going forward, the Finance Director and finance management team will review staffing resources and propose revisions, additions and or reorganization of operations as budgets allow.

Status of Finding: Similar finding was identified during fiscal year 2018-19, see finding 2019-004.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.