Single Audit Report, 2019-20

COUNTY OF SAN LUIS OBISPO SINGLE AUDIT REPORT YEAR ENDED JUNE 30, 2020 CLAconnect.com WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING COUNTY OF SAN LUIS OBISPO SINGLE AUDIT REPORT YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS 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 Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ............................................................................. 3 Schedule of Expenditures of Federal Awards ............................................................................................. 6 Notes to Schedule of Expenditures of Federal Awards ............................................................................... 12 Summary Schedule of Findings and Questioned Costs .............................................................................. 13 Supplementary Schedules of the California Governor’s Office of Emergency Services and the Board of State and Community Corrections Grant Expenditures .................................................. 15 Independent Auditors’ Report on Schedule of Passenger Facility Charge Revenues and Expenses ............................................................................................... 16 Independent Auditors’ Report on Compliance with Requirements Applicable to the Passenger Facility Charge Program and on Internal Control Over Compliance ............................................................................................................ 18 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Schedule of Passenger Facility Charge Revenues and Expenses Performed in Accordance with Government Auditing Standards ........... 20 Schedule of Passenger Facility Charge Revenues and Expenses .............................................................. 22 Schedule of Findings and Questioned Costs – Airport Passenger Facility Charge Program ....................... 23 CliftonLarsonAllen LLP CLAconnect.com 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 Board of Supervisors County of San Luis Obispo San Luis Obispo, 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 County of San Luis Obispo (the County), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated January 21, 2021. Our report includes a reference to other auditors who audited the financial statements of San Luis Obispo County Pension Trust (SLOCPT), a pension trust fund, as described in our report on the County’s financial statements. This report does not include the results of other auditors’ testing of internal controls over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County’s internal control over financial reporting (internal control) as a basis for designing 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 County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’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. 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. 1 Board of Supervisors County of San Luis Obispo Compliance and Other Matters As part of obtaining reasonable assurance about whether the County’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 financial statements. 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 entity'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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. (cid:38)(cid:79)(cid:76)(cid:73)(cid:87)(cid:82)(cid:81)(cid:47)(cid:68)(cid:85)(cid:86)(cid:82)(cid:81)(cid:36)(cid:79)(cid:79)(cid:72)(cid:81)(cid:3)(cid:47)(cid:47)(cid:51) Roseville, California January 21, 2021 2 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Board of Supervisors County of San Luis Obispo San Luis Obispo, California Report on Compliance for Each Major Federal Program We have audited the County of San Luis Obispo’s (the County) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of the County’s major federal programs for the year ended June 30, 2020. The County’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 federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the County’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 (CFR) 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 County’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 County’s compliance. Opinion on Each Major Federal Program In our opinion, the County 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, 2020. 3 Board of Supervisors County of San Luis Obispo Report on Internal Control Over Compliance Management of the County 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 County’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 County’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 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 4 Board of Supervisors County of San Luis Obispo Report on 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, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements. We have issued our report thereon dated January 21, 2021, which contained unmodified opinions on those financial statements. We did not audit the financial statements of San Luis Obispo County Pension Trust (SLOCPT), a pension trust fund. Those statements were audited by other auditors whose reports have been furnished to us, and in our opinion, insofar as it relates to the amounts included for SLOCPT, are based solely on the reports of other auditors. Our audit was conducted for the purpose of forming an opinion 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 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 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 expenditure of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Other Matters The supplementary schedules of the California Governor’s Office of Emergency Services and the Board of State and Community Corrections Grant Expenditures have not been subjected to auditing procedures applied in the audit of the basic financial statements, and accordingly, we express no opinion on them. CliftonLarsonAllen LLP Roseville, California April 6, 2021 5 COUNTY OF SAN LUIS OBISPO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2020 FEDERAL FEDERAL GRANTOR/PASS THROUGH GRANTOR/ CFDA PASS-THROUGH ENITY PASSED THROUGH FEDERAL PROGRAM OR CLUSTER TITLE NUMBER IDENTIFYING NUMBER/GRANT NUMBER TO SUBRECIPIENTS EXPENDITURES U. S. DEPARTMENT OF AGRICULTURE Direct Programs: USDA Community Food Project 10.225 $ - $ 7 ,844 USDA Community Food Project - PY 10.225 - 8 95 Subtotal CFDA 10.225 - 8 ,739 Passed through State Dept of Health Care Srvcs: 2019 Women Infant Children Nutrition Program 10.557 15-10074 - 3 49,831 2019 Women Infant Children Nutrition Program - PY 10.557 15-10074 (40,936) 2020 Women Infant Children Nutrition Program 10.557 19-10184 - 1 ,017,475 Subtotal CFDA 10.557 - 1 ,326,370 Passed through State Dept of Food and Agriculture: ACP Bulk Citrus 10.025 19-0255-000-SA - 8 ,953 Glassy-Winged Sharpshooter(cid:3) 10.025 17-0453-029-SF - 2 95,335 Glassy-Winged Sharpshooter - PY(cid:3) 10.025 17-0453-029-SF - (1,127) Asian Citrus Psyllid 10.025 18-0293-007-SF, 19-0737-024-SF - 1 98,383 European Grape Vine Moth 10.025 18-0619-023-SF - 1 69,581 Light Brown Apple Moth Detection(cid:3) 10.025 19-0268-041-SF - 6 ,546 Light Brown Apple Moth Regulatory(cid:3) 10.025 19-0268-013-SF - 9 2,272 Phytophthora ramorum (SOD)(cid:3) 10.025 19-0267-011-SF - 1 ,879 Phytophthora ramorum (SOD) - PY(cid:3) 10.025 19-0267-011-SF - 1 21 Pest Detection Trapping 10.025 19-0273 - 1 95,158 Subtotal CFDA 10.025 - 9 67,101 Passed through State Department of Public Health: 2019 Suppl'l Nutrition Asst Prog Ed (SNAP-ED) 10.561 16-10157 - 8 0,852 2019 Suppl'l Nutrition Asst Prog Ed (SNAP-ED) - PY 10.561 16-10157 - (20) 2020 Suppl'l Nutrition Asst Prog Ed (SNAP-ED) 10.561 19-10347 1 73,057 CalFresh&CalFresh Employment Training 10.561 N/A - 5 ,835,857 CalFresh&CalFresh Employment Training - PY 10.561 N/A - 1 14,347 Subtotal CFDA 10.561 - 6 ,204,093 Total U.S. Department of Agriculture - 8 ,506,303 U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT Direct programs: Low Income Hsing Assist Comm Devel. Block Grnts 2011 Community Devel. Block Grants 14.218 5 14,441 5 14,441 2017 Community Devel. Block Grants 14.218 1 65,460 1 65,460 2018 Community Devel. Block Grants 14.218 3 4,928 3 4,928 2019 Community Devel. Block Grants 14.218 7 10,841 7 10,841 Community Development Block Loans - 3rd Party 14.218 - 3 ,694,367 Subtotal CFDA 14.218 1 ,425,670 5 ,120,037 2017 Home Partnership Investment Program 14.239 2 28,485 2 28,485 2018 Home Partnership Investment Program 14.239 2 34,263 2 34,263 2019 Home Partnership Investment Program 14.239 9 2,077 9 2,077 Home Partnership Investment Programs - 3rd Party 14.239 - 1 9,784,760 Subtotal CFDA 14.239 5 54,825 2 0,339,585 Continuum of Care (Homeless Grants) 14.267 8 67,696 8 67,696 2019 Emergency Shelter Grant 14.231 1 62,320 1 62,320 Pass through California Housing & Community Development Emergency Solutions Grant Program (2017) 14.231 17-ESG-11120 6 9,612 6 9,612 Subtotal CFDA 14.231 2 31,932 2 31,932 Total U.S. Department of Housing & Urban Develop 3 ,080,123 2 6,559,250 U.S. DEPARTMENT OF THE INTERIOR Passed through California Bureau of Land Management: Taylor Grazing Act 15.227 N/A - 1 ,615 Total U.S. Department of Interior - 1 ,615 6 See accompanying notes to the Schedule of Expenditures of Federal Awards COUNTY OF SAN LUIS OBISPO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2020 FEDERAL FEDERAL GRANTOR/PASS THROUGH GRANTOR/ CFDA PASS-THROUGH ENITY PASSED THROUGH FEDERAL PROGRAM OR CLUSTER TITLE NUMBER IDENTIFYING NUMBER/GRANT NUMBER TO SUBRECIPIENTS EXPENDITURES U.S. DEPARTMENT OF JUSTICE Direct programs: Bureau of Immigration & Customs Enforcement 16.710 - 3 1,900 2019 State Criminal Alien Assistance Program 16.606 - 149,032 Federal Asset Forfeiture 16.000 - 24,965 2018 Office of Justic Programs JMHCP Project 16.745 - 150,843 DEA Domestic Cannabis Eradication & Suppression 16.111 - 27,750 DEA Domestic Cannabis Eradication & Suppression 16.111 - 2,466 Subtotal CFDA 16.111 - 30,216 2017 Justice Assistance Grant - PY 16.738 - 22,670 2018 Justice Assistance Grant 16.738 - 23,550 2019 Justice Assistance Grant 16.738 - 11,500 Mental Health Diversion Program 16.738 - 234,037 Subtotal CFDA 16.738 - 291,757 Bureau of Justice Assist Adlt Drg Crt Discret 16.585 - 1 03,467 Office Juvenile Just&Delinq Prev Fam Drug Ct Enhan 16.585 - 295,626 Subtotal CFDA 16.585 - 399,093 Passed through California Emergency Mgmt Agency: Victim Witness Assistance 16.575 VW18370400 - 516,293 County Victim Services (XC) Program 16.575 XC16010400 2 05,221 205,221 Unserved/Underserved Victim Advocacy (Elder) 16.575 XV15010400 - 150,326 Unserved/Underserved Victim Advocacy (CVWD) 16.575 XV15A10400 - 167,131 Subtotal CFDA 16.575 2 05,221 1,038,971 Total U.S. Department of Justice 2 05,221 2,116,777 U.S. DEPARTMENT OF LABOR Passed through CA Employment Development Dept: Workforce Investment Act-Adult 17.258 K9110060 & AA011038 5 70,629 570,629 Workforce Investment Act-Adult - PY 17.258 K9110060 & AA011038 3 9,910 39,910 Workforce Investment Act-Youth 17.259 K9110060 & AA011038 5 67,479 5 67,479 Workforce Investment Act-Youth - PY 17.259 K9110060 & AA011038 4 3,425 43,425 Workforce Innov Act-Disloc Workr&Rapid Resp 17.278 K9110060 & AA011038 5 94,355 594,355 Workforce Innov Act-Disloc Workr&Rapid Resp - PY 17.278 K9110060 & AA011038 2 6,849 26,849 Subtotal WIOA Cluster 1 ,842,647 1,842,647 Total U.S. Department of Labor 1 ,842,647 1,842,647 U.S. DEPARTMENT OF TRANSPORTATION Direct programs: Airport Improvement Program (Environmental) 20.106 3-06-0172-009-2018 - 21,633 Airport Improvement Program (Environmental) - PY 20.106 3-06-0172-009-2018 - (8,844) Airport Improvement Program (Runway) 20.106 3-06-0028-047-2019 - 504,668 FAA AIP Program (CARES Act) 20.106 3-06-0228-050-2020 - 4,513,130 Subtotal CFDA 20.106 - 5,030,587 Passed through State Department of Transportation: Highway Planning and Construction 20.205 BHLS-5949(136) - 46,174 Highway Planning and Construction 20.205 HSIPL-5949(168) - 27,401 Highway Planning and Construction 20.205 HSIPL-5949(167) - 34,037 Highway Planning and Construction 20.205 HSIPL-5949(169) - 22,175 Highway Planning and Construction 20.205 HSIPL-5949(170) - 24,586 Highway Planning and Construction 20.205 HSIPL-5949(176) - 10,194 Highway Planning and Construction 20.205 HSIPL-5949(177) - 7,010 Highway Planning and Construction 20.205 CML-5949(171) - 234,172 Highway Planning and Construction 20.205 CML-5949(178) - 218 Highway Planning and Construction 20.205 BRLS-5949(158) - 19,383 Highway Planning and Construction 20.205 BRLO-5949(116) - 3,864 Highway Planning and Construction 20.205 BRLO-5949(120) - 3,089,089 Highway Planning and Construction 20.205 BRLO-5949(127) - 7,737 Highway Planning and Construction 20.205 BRLO 5949(152) - 115,478 Highway Planning and Construction 20.205 BRLO-5949(156) - 344,038 7 See accompanying notes to the Schedule of Expenditures of Federal Awards COUNTY OF SAN LUIS OBISPO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2020 FEDERAL FEDERAL GRANTOR/PASS THROUGH GRANTOR/ CFDA PASS-THROUGH ENITY PASSED THROUGH FEDERAL PROGRAM OR CLUSTER TITLE NUMBER IDENTIFYING NUMBER/GRANT NUMBER TO SUBRECIPIENTS EXPENDITURES Highway Planning and Construction 20.205 BRLO-5949(157) - 87,565 Highway Planning and Construction 20.205 BRLS-5949(129) - 7 0,606 Highway Planning and Construction 20.205 BRLS-5949(131) - 1 79,250 Highway Planning and Construction 20.205 BRLS-5949(135) - 6 6,365 Highway Planning and Construction 20.205 BRLS-5949(137) - 2 25,680 Highway Planning and Construction 20.205 CMFERP16-5949(161) - 1 75,729 Highway Planning and Construction 20.205 BRLO-5949(149)BHLO-5949(164) - 2 ,904,087 Highway Planning and Construction 20.205 BPMPL-5949(151) - 5 9,006 Highway Planning and Construction 20.205 BPMPL-5949(162) - 4 ,056 Highway Planning and Construction 20.205 ER-32L0(110) - 1 97,159 Federal Transportation Improvement Program 20.205 RPSTPLE - 5949(140) - 1 04,206 Subtotal Pass-Through 20.205 - 8 ,059,265 Office Of Traffic Safety 20.600 AL1728 - 4 8,109 2019 Office Of Traffic Safety-Ped&Bicycle 20.600 PS19029 - 1 7,464 2019 Office Of Traffic Safety-Ped&Bicycle - PY 20.600 PS19029 - (575) 2020 Office Of Traffic Safety-Ped&Bicycle 20.600 PS20032 - 9 6,079 2019 Office Of Traffic Safety-ChildPassenger - PY 20.616 OP19015 - (32) 2019 Office Of Traffic Safety-ChildPassenger - PY 20.616 OP19015 - 9 ,788 2020 Office Of Traffic Safety-ChildPassenger 20.616 OP20021 - 4 5,535 Subtotal Highway Safety Cluster - 2 16,369 Total U.S. Department of Transportation - 1 3,306,221 INSTITUTE OF MUSEUM AND LIBRARY SERVICES Direct programs: Library Srvices & Technology Act 45.310 40-8913 - 4 ,851 Total Institute of Museum and Library Services - 4 ,851 U.S. DEPARTMENT OF HEALTH & HUMAN SERVICES Direct programs: SLO Health Integration Partnership (SAMHSA) 93.243 - 5 0,504 SLO Health Integration Partnership (SAMHSA) 93.243 - 1 42,511 SAMHSA CATS learning 93.243 - 3 30,498 MAT Learning Collaborative - PY 93.243 - 3 ,592 San Luis Obispo Sober Truth on Preventing Underage Drinking (SLO 93.243 - 5,661 MAT Access Points 93.243 - 6 2,078 Subtotal CFDA 93.243 - 5 94,844 Drug Free Community 101 Friday Night Live 93.276 - 1 01,775 COVID Crisis Response 93.354 - 4 66,280 State Opioid Response Grant 93.788 - 3 9,713 State Opioid Response Grant 93.788 - 7 1,784 Subtotal CFDA 93.788 - 1 11,497 Passed through State Dept of Alcohol&Drug Progms: Substnce Abuse Prev&Trtmt Blck-Discret 93.959 14-90098 - 1 ,129,946 Substnce Abuse Prev&Trtmt Blck-Discret - PY 93.959 14-90098 - (109,873) Substnce Abuse Prev&Trtmt Blck-Fri Night/Club 93.959 14-90098 - 3 0,000 Substnce Abuse Prev&Trtmt Blck-Fri Night/Club - PY 93.959 14-90098 - 1 ,734 Substnce Abuse Prev&Trtmt Blck-PrevSet-aside 93.959 14-90098 - 3 13,072 Substnce Abuse Prev&Trtmt Blck-PrevSet-aside - PY 93.959 14-90098 - 7 2,053 Substnce Abuse Prev&Trtmt Blck-Adult&Youth 93.959 14-90098 - 1 18,661 Substnce Abuse Prev&Trtmt Blck-Adult&Youth - PY 93.959 14-90098 - 1 9,152 Substnce Abuse Prev&Trtmt Blck-Perinatal 93.959 14-90098 - 7 2,569 Substnce Abuse Prev&Trtmt Blck-Perinatal - PY 93.959 14-90098 - 3 8,779 Subtotal CFDA 93.959 - 1 ,686,093 Passed through State Dept of Child Support Svcs: Child Support Enforcement: Child Support Admin & EDP 93.563 N/A - 2 ,650,805 8 See accompanying notes to the Schedule of Expenditures of Federal Awards COUNTY OF SAN LUIS OBISPO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2020 FEDERAL FEDERAL GRANTOR/PASS THROUGH GRANTOR/ CFDA PASS-THROUGH ENITY PASSED THROUGH FEDERAL PROGRAM OR CLUSTER TITLE NUMBER IDENTIFYING NUMBER/GRANT NUMBER TO SUBRECIPIENTS EXPENDITURES Passed Through CA Family Health Council: 2019 Title X 93.217 88000-5320-71209-19-20 - 1 66,193 2019 Title X - PY 93.217 88000-5320-71209-19-20 - 7 ,051 2020 Title X 93.217 N/A - 3 8,907 Subtotal CDFA 93.217 - 2 12,151 Health Resources Services Admin HPP 93.074 17-10191 - 1 34,001 Health Resources Services Admin HPP - PY 93.074 17-10191 - 4 ,660 CDC-BASE PH EMERGENCY PREPAREDNESS (PHEP) 93.074 17-10191 - 1 76,965 CDC-BASE PH EMERGENCY PREPAREDNESS (PHEP) - PY 93.074 17-10191 - (81) CDC Base PH Emergency Preparedness 93.074 17-10191 - 3 32,464 CDC Base PH Emergency Preparedness - PY 93.074 17-10191 - (6) Subtotal CFDA 93.074 - 6 48,003 TB Control branch/Real Time Allotment 93.116 1940R-TA00 - 2 6,094 TB Control branch/Real Time Allotment - PY 93.116 1940R-TA00 - (1,911) Subtotal CFDA 93.116 - 2 4,183 Maternal Child Health - Title V 93.994 201940 - 1 49,386 Passed through State Department of Health Care Services: Local Dental Pilot Project (LDPP) 93.778 16-93575 - 7 29,150 Local Dental Pilot Project (LDPP) - PY 93.778 16-93575 - (5,812) Medi-Cal Admin (MAA) 93.778 17-9024 - 4 49,550 Medi-Cal Admin (MAA) - PY 93.778 17-9024 - 3 3,856 First Five Medi-Cal (CBMAA) - PY 93.778 N/A - 1 7,757 School Based Medi-Cal Administration - PY 93.778 17-94052 - 5 04,763 Maternal Child Health - Title XIX 93.778 201940 - 3 79,351 Maternal Child Health - Title XIX - PY 93.778 201940 - (388) Targeted Case Management 93.778 40-19EVRGRN - 2 13,285 Targeted Case Management - PY 93.778 40-19EVRGRN - 3 63,177 CA Childrens Services Title XIX 93.778 19-05 - 2 86,028 CA Childrens Services Title XIX - PY 93.778 19-05 - 2 ,318 Health Care for Fostercare (HCPCFC) 93.778 19-02 - 1 27,651 Health Care for Fostercare (HCPCFC) - PY 93.778 19-02 - (28) Health Care for Fostercare (PMMO) 93.778 19-02 - 3 1,705 Health Care for Fostercare (PMMO) - PY 93.778 19-02 - (1,839) Health Care for Fostercare (Caseload Relief) 93.778 19-02 - 6 5,026 Health Care for Fostercare (Caseload Relief) - PY 93.778 19-02 - (6,642) Childhood Lead Program 93.778 17-10261 - 1 6,747 Childhood Lead Program - PY 93.778 17-10261 - (8,445) Child Hlth & Disability Prevention 93.778 19-01 - 1 96,369 IHSS, Public Authority & Medi-Cal 93.778 N/A - 8 ,688,549 IHSS, Public Authority & Medi-Cal - PY 93.778 N/A - 1 76,836 Medi-Cal Administration 93.778 N/A - 8 5,121 Medi-Cal Administration - PY 93.778 N/A - 6 ,590 Subtotal Medicaid Cluster - 1 2,350,675 Targeted Case Management (TCM) 93.779 N/A - 8 7,834 Targeted Case Management (TCM) - PY 93.779 N/A - (31,959) Subtotal CDFA 93.779 - 5 5,875 Mental Health-Substance Abuse (SAMHSA) 93.958 SM010005-19 - 3 79,594 Mental Health Services Block Grant (MHBG) 93.958 N/A - 2 61,705 Subtotal CDFA 93.958 - 6 41,299 Passed through State Dept of Social Services: KinGap -Kingship Guardian Assistance Program 93.090 N/A - 4 20,181 KinGAP IV-E Admin 93.090 N/A - 3 ,498 Subtotal CDFA 93.090 - 4 23,679 Promoting Safe and Stable Families 93.556 N/A - 1 38,165 Promoting Safe and Stable Families - PY 93.556 N/A - 1 7,229 Subtotal CDFA 93.556 - 1 55,394 9 See accompanying notes to the Schedule of Expenditures of Federal Awards COUNTY OF SAN LUIS OBISPO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2020 FEDERAL FEDERAL GRANTOR/PASS THROUGH GRANTOR/ CFDA PASS-THROUGH ENITY PASSED THROUGH FEDERAL PROGRAM OR CLUSTER TITLE NUMBER IDENTIFYING NUMBER/GRANT NUMBER TO SUBRECIPIENTS EXPENDITURES Temporary Assistance for Needy Families: Assistance : CALWORKS 93.558 N/A - 1 ,998,932 Administration: CalWORKS, SAWS-CalWIN, TANF 93.558 N/A - 1 2,966,467 CALWORKS HOME VISITING INITIATIVE (HVI) 93.558 CFL 18/19-51 - 1 78,302 Administration: CalWORKS,SAWS-CalWIN,TANF - PY 93.558 N/A - 6 06,298 Subtotal CFDA 93.558 - 1 5,749,999 Adoptions Incentive 93.603 N/A - 9 02 Adoptions Incentive - PY 93.603 N/A - (12) Subtotal CFDA 93.603 - 8 90 Foster Care - Title IV-E: Administration: Probation-Title IV E 93.658 N/A - 1 10,341 Administration: Probation-Title IV E - PY 93.658 N/A - 3 ,349 Child Welfare Services - Title IV E 93.658 N/A - 4 ,267,927 Child Welfare Services - Title IV E - PY 93.658 N/A - 6 81 Foster Care Assistance 93.658 N/A - 2 ,405,393 Subtotal CFDA 93.658 - 6 ,787,691 Child Welfare Services Title IV-B 93.645 N/A - 1 77,140 Child Welfare Services Title IV-B - PY 93.645 N/A - 4 2 Subtotal CFDA 93.645 - 1 77,182 Adoption Assistance 93.659 N/A - 7 71,695 Adoption Assistance - PY 93.659 N/A - (18,399) Assistance: Adoption 93.659 N/A - 4 ,552,512 Subtotal CFDA 93.659 - 5 ,305,808 Child Welfare Service - Title XX 93.667 N/A - 3 51,408 Foster Care Assitance - Title XX 93.667 N/A - 1 93,368 Subtotal CFDA 93.667 - 5 44,776 Independent Living Program 93.674 N/A - 9 3,382 Independent Living Program - PY 93.674 N/A - 6 18 Subtotal CFDA 93.674 - 9 4,000 CA Childrens Services and TLIP Title XXI 93.767 19-05 - 9 0,033 Passed through State Department of Health Care Services: Immunization Local Assistance Grant 93.268 17-10346 - 1 00,846 Passed through State Department of Mental Health: Mntl Hlth-McKinney Assist in Transitn from Hmeless 93.150 N/A - 5 0,456 CA COVID-19 Hospital Preparedness 93.889 1 U3REP200652-01-00 - 8 11 Total U.S Department of Health & Human Services - 4 9,174,431 DEPARTMENT OF HOMELAND SECURITY Direct Programs: Disaster Grants - Public Assistance 97.036 FEMA-4301, 05, 08-DR-CA - 8 2,809 Disaster Grants - Public Assistance 97.036 FEMA-4301, 05, 08-DR-CA - 3 1,445 Disaster Grants - Public Assistance 97.036 FEMA-4305 DR-CA - 1 ,911 Subtotal CFDA 97.036 - 1 16,165 Hazard Mitigation Grant 97.039 FEMA-1952-DR-CA - 1 ,046,339 Hazard Mitigation Grant - PY 97.039 FEMA-1952-DR-CA - 4 2,585 SLO COUNTY HAZARD MITIGATION PLANNING/MAPPING - PY 97.039 5GA18235 - 7 9,611 Hazard Mitigation Grant Program 2018 97.039 DR4308-PL0001 - 1 04,972 Subtotal CFDA 97.039 - 1 ,273,507 10 See accompanying notes to the Schedule of Expenditures of Federal Awards COUNTY OF SAN LUIS OBISPO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2020 FEDERAL FEDERAL GRANTOR/PASS THROUGH GRANTOR/ CFDA PASS-THROUGH ENITY PASSED THROUGH FEDERAL PROGRAM OR CLUSTER TITLE NUMBER IDENTIFYING NUMBER/GRANT NUMBER TO SUBRECIPIENTS EXPENDITURES Passed through CA Emergency Management Agency: 2019 Emergency Management Performance 97.042 2019-003 - 1 51,276 2017 Stonegarden Grant 97.067 2017-0083 - 5 6,412 2018 Stonegarden Grant 97.067 2018-0054 - 1 00,753 2017 Homeland Security 97.067 2017-0083 - 3 ,235 2018 Homeland Security 97.067 2018-0054 - 6 2,452 2017 Homeland Security 97.067 2017-0083 - 7 0,615 2018 Homeland Security 97.067 2018-0054 - 6 58 2018 Homeland Security - PY 97.067 2018-0054 - (1,418) 2019 Homeland Security 97.067 2019-0035 - 1 03,826 Subtotal CFDA 97.067 - 3 96,533 Total Department of Homeland Security - 1 ,937,481 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 5 ,127,991 $ 1 03,449,576 11 See accompanying notes to the Schedule of Expenditures of Federal Awards COUNTY OF SAN LUIS OBISPO NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2020 NOTE 1: REPORTING ENTITY The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the County of San Luis Obispo (County). The County’s reporting entity is defined in Note 1 to the County’s basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included in the schedule. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County. NOTE 2: BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting and the accrual basis of accounting for program expenditures accounted for in governmental funds and proprietary funds, respectively, as described in Note 1 of the County’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3: CATALOG OF FEDERAL DOMESTIC (CFDA) NUMBERS The program titles and CFDA numbers were obtained from the federal or pass-through grantor or the 2020 Catalog of Federal Domestic Assistance. NOTE 4: INDIRECT COST RATE The County did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR §200.414. Uniform Guidance, §200.510(6), requires the County to disclose whether or not it elected to use the 10 percent de minimis cost rate that §200.414(f) allows for nonfederal entities that have never received a negotiated indirect cost rate. NOTE 5: PASS-THROUGH ENTITIES’ IDENTIFYING NUMBER When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the County determined that no identifying number is assigned for the program or the County was unable to obtain an identifying number from the pass-through entity. NOTE 6: LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS Outstanding federally-funded program loans, with continuing compliance requirements, carried balances as of June 30, 2020 as follows: Federal SEFA FY 19-20 County Balance CFDA # Program June 30, 2020 Activity June 30, 2020 14.218 Community Development Block Grants/Entitlement Grants $ 3,694,367 $ (43,445) $ 3 ,650,922 14.239 HOME Investment Partnerships Program 19,784,760 (398,290) 1 9,386,470 12 COUNTY OF SAN LUIS OBISPO SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 Section I – Summary of Auditors’ Results Financial Statements 1. Type of auditors’ report issued: Unmodified 2. Internal control over financial reporting: (cid:120) Material weakness(es) identified? yes x no (cid:120) Significant deficiency(ies) identified? yes x none reported 3. Noncompliance material to financial statements noted? yes x no Federal Awards 1. Internal control over major federal programs: (cid:120) Material weakness(es) identified? yes x no (cid:120) Significant deficiency(ies) identified? yes x none reported 2. Type of auditors’ report issued on compliance for major federal programs: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes x no Identification of Major Federal Programs CFDA Number(s) Name of Federal Program or Cluster 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (SNAP) 14.239 Home Partnership Investment Programs 20.106 Airport Improvement Program 20.205 Highway Planning and Construction 93.558 Temporary Assistance for Need Families 93.563 Child Support Enforcement 93.659 Adoption Assistance Dollar threshold used to distinguish between Type A and Type B programs: $ 3,000,000 Auditee qualified as low-risk auditee? yes x no 13 COUNTY OF SAN LUIS OBISPO SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 Section II – Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Section III – Findings and Questioned Costs – Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a). 14 SUPPLEMENTARY SCHEDULES OF THE CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICES COUNTY OF SAN LUIS OBISPO SUPPLEMENTARY SCHEDULES OF THE CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICES AND THE BOARD OF STATE AND COMMUNITY CORRECTIONS GRANT EXPENDITURES (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2020 Share of Expenditures Expenditures Claimed Current Year For the Period For the Year Cumulative Through Ended As of Federal State County Program July 1, 2019 June 30, 2020 June 30, 2020 Share Share Share CVWD-XV;XV15A10400 Personal services $ 165,640 $ 1 81,390 $ 347,030 $ 144,027 $ - - $ 37,363 Operating expenses 23,740 23,105 $ 46,845 23,105 -- Totals $ 189,380 $ 2 04,495 $ 393,875 $ 167,132 $ - - $ 37,363 ELDER-XV;XV15010400 Personal services $ 205,190 $ 2 00,133 $ 405,322 $ 140,698 $ - - $ 59,435 Operating expenses 4,682 11,670 $ 16,352 9,628 -- 2,042 Totals $ 209,872 $ 2 11,803 $ 421,674 $ 150,326 $ - - $ 61,477 VICTIM,VW18370400 Personal services $ 416,589 $ 6 12,540 $ 1,029,129 $ 433,453 $ 28,830 $ 150,257 Operating expenses 87,207 102,845 190,052 82,840 13,252 6,753 Totals $ 503,796 $ 7 15,385 $ 1,219,181 $ 516,293 $ 42,082 $ 157,010 XC, XC16010400 Personal services $ 47,826 $ 50,989 $ 98,815 $ 1 6,356 $ - - $ 34,633 Operating expenses 122,511 189,581 312,092 188,865 -- 716 Totals $ 170,337 $ 2 40,570 $ 410,907 $ 205,221 $ - - $ 35,349 2017 Stonegarden Grant 2017-0083 Personal services $ 127,555 $ 37,483 $ 165,038 $ -- $ - - $ -- Operating expenses 11,222 6,302 17,524 - - -- -- Equipment 16,077 -- 16,077 - - -- -- Totals $ 154,854 $ 43,785 $ 198,639 $ -- $ - - $ -- 2018 Stonegarden 2018-0054 Personal services $ -- $ 91,992 $ 91,992 $ -- $ - - $ -- Operating expenses -- 10,400 10,400 - - -- -- Equipment -- 9,403 9,403 - - -- -- Totals $ -- $ 1 11,795 $ 111,795 $ -- $ - - $ -- 15 AVIATION PASSENGER FACILITY CHARGE PROGRAM CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON SCHEDULE OF PASSENGER FACILITY CHARGES Board of Supervisors County of San Luis Obispo San Luis Obispo, California Report on the Schedule We have audited the accompanying Schedule of Passenger Facility Charges (PFC), Revenues, and Expenses (Schedule) of the County of San Luis Obispo (County), for the year ended June 30, 2020, and the related notes. Management’s Responsibility Management is responsible for the preparation and fair presentation of this schedule in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the schedule that is free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on the schedule based on our audit. We conducted our audit 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 requirements described in the Passenger Facility Charge Audit Guide for Public Agencies (Guide) issued by the Federal Aviation Administration. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether the schedule is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the schedule. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the schedule, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the schedule in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Airport’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the schedule. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 16 Opinion on Schedule of Passenger Facility Charges In our opinion, the Schedule referred to above presents fairly, in all material respects, the passenger facility charges received, held, and used by the County for the period and each quarter during the period from July 1, 2019 to June 30, 2020, as defined by the Federal Aviation Administration of the U.S. Department of Transportation. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 6, 2021 on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering County’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Roseville, California April 6, 2021 17 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE PASSENGER FACILITY CHARGES PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE Board of Supervisors County of San Luis Obispo San Luis Obispo, California Report on Compliance for Passenger Facility Charges We have audited the compliance of the County of San Luis Obispo (County) with the compliance requirements described in the Passenger Facility Charge Audit Guide for Public Agencies (Guide), issued by the Federal Aviation Administration, for its Passenger Facility Charge program for the period from July 1, 2019 to June 30, 2020. Management’s Responsibility Management is responsible for compliance with the requirements of laws and regulations applicable to its passenger facility charge program. Auditors’ Responsibility Our responsibility is to express an opinion on the County’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Guide. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on the passenger facility charge program occurred. An audit includes examining, on a test basis, evidence about the County’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. Our audit does not provide a legal determination of the County’s compliance with those requirements. Opinion on Compliance In our opinion, the County of San Luis Obispo complied, in all material respects, with the compliance requirements referred to above that are applicable to its passenger facility charge program for the year ended June 30, 2020. Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws and regulations applicable to the Passenger Facility Charge program referred to above. In planning and performing our audit, we considered the County’s internal control over compliance with requirements that could have a direct and material effect on the Passenger Facility Charge program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance 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 County’s internal control over compliance. 18 Internal Control Over Compliance (Continued) 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 the passenger facility charge program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that a material noncompliance with a type of compliance requirement of the passenger facility charge 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 the passenger facility charge 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 that might be deficiencies, significant deficiencies or material weaknesses in internal control over compliance. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses may exist that have not been identified. Purpose of this Report 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 Guide. Accordingly, this report is not suitable for any other purpose. However, this report is a matter of public record and its distribution is not limited. It also serves to disseminate information to the public as a reporting tool to help citizens assess government operations. CliftonLarsonAllen LLP Roseville, California April 6, 2021 19 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE SCHEDULE OF PASSENGER FACILITY CHARGES, REVENUES, EXPENSES AND FUND BALANCE PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Supervisors County of San Luis Obispo San Luis Obispo, 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 Schedule of Passenger Facility Charges, Revenues, Expenses and Fund Balance (Schedule) of the County of San Luis Obispo (County), as of and for the year ended June 30, 2020, and the related notes to the financial Schedule, which collectively comprise the Passenger Facility Charges, financial schedules, and have issued our report thereon dated April 6, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the Schedule, we considered the County’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the Schedule, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’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 Schedule 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. 20 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Schedule is 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 Schedule. 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 County’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Roseville, California April 6, 2021 21 COUNTY OF SAN LUIS OBISPO SCHEDULE OF PASSENGER FACILITY CHARGE REVENUES AND EXPENSES FOR THE YEAR ENDED JUNE 30, 2020 Current Year Project to Date Approved Receipts Receipts Unliquidated Approved Federal Application Number/ Project or Revenues Interest or Revenues Interest Balance Project Description Allocation Recognized Earned Expenditures Recognized Earned Expenditures PFC Trust 1997-04-I and 2000-06-U Revenues $ - $ - $ - $ - $ 6,370,839 $ 449,991 $ - $ 6,820,830 Expenditures: - - - - - - - - Approved Application #4/6: $6,820,830 - - - - - - - - Terminal development and construction 6,820,830 - - - - - 6,820,830 ( 6,820,830) Total 4/6: 1997-04-I and 2000-06-U 6,820,830 - - - 6,370,839 449,991 6,820,830 - 2007-08-C Revenues - - - - 1,692,375 16,115 - 1,708,490 Expenditures: - - - 464,321 - - 464,321 ( 464,321) Approved Application #8: $2,028,190 2,028,190 - - - - - 1,328,771 ( 1,328,771) Total 8: 2007-08-C 2,028,190 - - 464,321 1,692,375 16,115 1,793,092 ( 84,602) 2018-09-C Revenues - 984,997 30,414 - 1,964,087 48,236 - 2,012,323 Expenditures: - - - 436,621 - - 436,621 ( 436,621) Approved Application #9: $4,081,071 Terminal development and construction and debt service and financing 4,081,071 - - - - - - - Total 9: 2018-09-C 4,081,071 984,997 30,414 436,621 1,964,087 48,236 436,621 1,575,702 $ 12,930,091 $ 984,997 $ 30,414 $ 900,942 $ 10,027,301 $ 514,342 $ 9,050,543 $ 1,491,100 22 COUNTY OF SAN LUIS OBISPO SCHEDULE OF FINDINGS AND QUESTIONED COSTS AIRPORT PASSENGER FACILITY CHARGE PROGRAM FOR THE YEAR ENDED JUNE 30, 2020 Current Year: There were no findings in the year ending June 30, 2020 that require reporting in accordance with Government Auditing Standards related to the Airport Passenger Facility Charge Program. Prior Year: No findings noted in the prior year. 23