CITY OF DIXON, CALIFORNIA

CITY OF DIXON, CALIFORNIA

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CITY OF DIXON JUNE 30, 2018 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, 2018 ... 6 Notes to the Schedule of Expenditures of Federal Awards ... 7 Schedule of Findings and Questioned Costs for the

Fiscal Year Ended June 30, 2018 ... 8 Schedule of Prior Year Findings and Questioned Costs for the

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 Dixon, 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 Dixon, California, (the City) as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated November 26, 2018.

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 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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. We did identify a deficiency in internal control that we consider to be a significant deficiency, which is addressed in the Schedule of Findings & Questioned Costs as Finding 2018-001.

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.

203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022

An Association of Independent Accounting Firms

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

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.

Brea, California November 26, 2018

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An Association of Independent Accounting Firms



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CITY OF DIXON

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Federal Pass-Through CFDA DUNS & Grant ID

Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures U.S. Department of Housing and Urban Development

Passed through the State of California

Department of Housing and Community Development:

Community Development Block Grant 14.228

02-122-5490 /

13-CDBG-8969 $ 228,658 Total U.S. Department of Housing

and Urban Development 228,658

U.S. Department of Transportation

Passed through the Solano Transportation Authority:

Highway Planning and Construction 20.205

N/A /

STPL-5056(020) 89,673 Passed through the State of California

Department of Transportation:

Formula Grants for Rural Areas* 20.509

84-088-1648 /

64BC15-00234 428,122

California Public Utilities 20.205

84-088-1648 /

75LZ289 38,558

Total U.S. Department of Transportation 556,353 U.S. Department of Justice

Direct Program:

Bulletproof Vest Partnership 16.607 BPV - 112 2,352

Total U.S. Department of Justice 2,352

Total Federal Expenditures $ 787,363

Federal Loan Beginning Balances with a Continuing Compliance Requirement

Community Development Block Grant 14.228 $ 286,832 HOME Investment Partnership Program* 14.239 15,812,705 Total Federal Loan Balances with a Continuing Compliance Requirement 16,099,537 TOTAL EXPENDITURES OF FEDERAL AWARDS INCLUDING LOANS $ 16,886,900

* Major Program Note a:

Note b:

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

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

There were no federal awards expended in the form of noncash assistance and insurance in effect during the year.

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