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Home My WebLink About _ 9A--Reports from Independent Auditors for the year ended June 30, 2024C IT Y OF REMDINO�" AN CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: March 18, 2025 FROM: Jack Munns, Mayor, Mike ITEM NO. 9A Littau, Vice Mayor ***APPROVED BY*** zee "� it 01 3/5/2025 ,Jack 4� a s,�4air�' 1t 5/202.. jmunns@cityofredding.org, mtittaugcityofredding.org jmunns@cityofredding.org SUBJECT: 9A--Consider Reports from Independent Auditors for the year ended June 30, 2024. Recommendation Approve the Audit Committee's recommendation to accept the Statement on Auditing Standards AU-C 260 Letter and the draft copy of the Single Audit Reports for the year ended June 30, 2024. Fiscal Impact There is no fiscal impact associated with this item. Alternative Action The City Council (Council) could reject the Statement on Auditing Standards AU-C 260 Letter and the draft copy of the Single Audit Reports for the year ended June 30, 2024, and provide additional direction to the Audit Committee and/or staff. Background/Analysis Attached is a copy of the AU-C 260 Letter to the Council and a draft copy of the Single Audit Reports for the year ended June 30, 2024. The Audit Committee met on March 7, 2025, to review and discuss the reports. The Audit Committee recommended that the AU-C 260 Letter and the draft of the Single Audit Reports be brought to the Council for acceptance. The AU-C 260 Letter is commonly known as the `The Auditor's Communication with those Charged with Governance' and provides the auditors the forum to share their perspective on accounting policies, estimates, and disclosures used in the preparation of the financial statements and whether there were any difficulties, disagreements, or other findings in performing the audit. The auditors found no problems or issues to convey. Report to Redding City Council March 12, 2025 Re: 9A--Reports from Independent Auditors for the year ended June 30, 2024 Page 2 The Single Audit Reports pertain to the compliance and internal control in the expenditure of federal awards and the collection and expenditure of passenger facility charges. No findings or questioned costs were noted in the reports. Environmental Review This is not a project defined under California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals This is a routine operational item occurring on an annual basis. Attachments 2024 City of Redding Governance Communication - AU-C-260 FINAL 2024 City of Redding Single Audit Report FINAL Clifton LarsonAl len LLP CLAconnect.com To the Honorable Mayor and Members of the City Council of the City of Redding Redding, California We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of Redding as of and for the year ended June 30, 2024, and have issued our report thereon dated March 11, 2025. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as well as certain information related to the planned scope and timing of our audit in our statement of work dated July 15, 2024. Professional standards also require that we communicate to you the following information related to our audit. Significant audit findings or issues Qualitative aspects of accounting practices Accounting policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Redding are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2024. We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: • Management's estimate of the claims liabilities is based on actuarial valuation reports and listings of open claims obtained from specialists. We evaluated the methods, assumptions, and data used to develop the claims liability estimate and related disclosures in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of the net other post -employment benefits (OPEB) liability and related deferred inflows/outflows of resources is based on actuarial valuation reports obtained from specialists. We evaluated the methods, assumptions, and data used to develop the net OPEB liability and related deferred inflows/outflows of resources estimate and related disclosures in determining that it is reasonable in relation to the financial statements taken as a whole, CLAglobalxom/disclaimer To the Honorable Mayor and Members of the City Council of the City of Redding Page 2 Management's estimate of the net pension liability and related deferred inflows/outflows of resources is based on actuarial valuation reports obtained from CalPERS. We evaluated the methods, assumptions, and data used to develop the net pension liability and related deferred inflows/oufflows of resources estimate and related disclosures in determining that it is reasonable in relation to the financial statements taken as a whole. • Management's estimate of the liability for the landfill closure/postclosure care costs is based on yearly estimates prepared by the City and reviewed by the California Department of Resources Recycling and Recovery agency. We evaluated the methods, assumptions, and data used to develop the liability for the landfill closure/postclosure estimate and related disclosures in determining that it is reasonable in relation to the financial statements taken as a whole. Financial statement disclosures Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no particularly sensitive financial statement disclosures. The financial statement disclosures are neutral, consistent, and clear. Significant unusual transactions We identified no significant unusual transactions. Difficulties encountered in performing the audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Uncorrected misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management did not identify, and we did not notify them of any uncorrected financial statement misstatements. Corrected misstatements Management did not identify, and we did not notify them of any financial statement misstatements detected as a result of audit procedures. Disagreements with management For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. No such disagreements arose during our audit. Management representations We have requested certain representations from management that are included in the management representation letter dated March 11, 2025. To the Honorable Mayor and Members of the City Council of the City of Redding Page 3 Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the entity's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement. Required supplementary information With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management's responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI. Supplementary information in relation to the financial statements as a whole With respect to the schedule of expenditures of federal awards (SEFA) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the SEFA to determine that the SEFA complies with the requirements of the Uniform Guidance, the method of preparing it has not changed from the prior period or the reasons for such changes, and the SEFA is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the SEFA to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated March 11, 2025. With respect to the Combining and Individual Non -major Fund Financial Statements and Budgetary Comparison Schedules and the Schedule of Passenger Facility Charges Collected and Expended and Interest Collected (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated March 11, 2025. To the Honorable Mayor and Members of the City Council of the City of Redding Page 4 Other information included in annual reports Other information (financial or nonfinancial information other than the financial statements and our auditors' report thereon) is being included in your annual report and is comprised of the introductory and statistical sections and the supplementary historical information. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report. We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors' report thereon may be undermined by material inconsistencies between the audited financial statements and other information. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Our auditors' report on the financial statements includes a separate section, "Other Information," which states we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements. This communication is intended solely for the information and use of the Honorable Mayor and members of City Council and management of City of Redding and is not intended to be, and should not be, used by anyone other than these specified parties, Roseville, California March 11, 2025 A vil o i 0 -11 l re - SINGLE AUDIT REPORT, PASSENGER FACILITY CHARGES PROGRAM, AND INDEPENDENT AUDITORS' REPORTS YEAR ENDED JUNE 30, 2024 CITY OF REDDING TABLE OF CONTENTS YEAR ENDED JUNE 30, 2024 SINGLE AUDIT: INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND REPORT ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 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 7 SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 12 PASSENGER FACILITY CHARGES: INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE PASSENGER FACILITY CHARGE PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON THE SCHEDULE OF PASSENGER FACILITY CHARGES 14 SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED AND INTEREST COLLECTED 17 NOTES TO SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED AND INTEREST COLLECTED 19 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 20 � y k ,f.�Y 1 i��l 1l�f INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND REPORT ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH G0VER1VMENTAUD/T11VG STANDARDS Honorable Mayor and Members of City Council of the City of Redding Redding, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standardsapplicable to financial auditscontained in GovernmentAuditing r. r issued by • • • of `r States, the financial. of the governmental business-typeactivities, the activities, each r •fund, and the aggregate r • fund information issuedof the City of Redding (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have our pthereondated r Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City'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 entity'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. 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 or significant deficiencies may exist that were not identified. :. CL�loba( com disclaimer. Honorable Mayor and Members of City Council of the City of Redding Report on 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 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 over financial reporting and the results of that testing and not to provide an opinion on the effectiveness of the entity's internal control and compliance. This communication is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control over financial reporting. Accordingly, this communication is not suitable for any other purpose. Clifton LarsonAllen LLP Roseville, California March 11, 2025 (2) ChftonLarsonAllen LLP @AW CLAconnect.co 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 Honorable Mayor and Members of City Council of the City of Redding Redding, California Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Redding's (the City) compliance with the types of compliance requirements identified as subject to audit 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, 2024. The City's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. 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, 2024. 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. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. CLA obalcomJdisclaimer. (3) Honorable Mayor and Members of City Council of the City of Redding Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's federal programs. Auditors' Responsibility for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GARS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding City of Redding's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. (4) Honorable Mayor and Members of City Council of the City of Redding Report on 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 a 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 Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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. (5) Honorable Mayor and Members nfCity Council of the City of Redding Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental 8CtivUUOS' the business -type activities, each major fund.andtheaggnagatenernaininQfundinfonnationoftheCitvaaofandforthuyeurended June 30' 2024, and the related notes to the DO8OCi8| St8teDleDLS, which CO||eCtiVe|y C000p[iSe the Qty'S basic financial statements. We issued our report thereon dated March 11' 2025. which contained unmodified opinions 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 purposes of additional analysis GS required by the Uniform Guidance and is not 8 required part Of the basic financial statements. Such information is the responsibility ofmanagement 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 pn]C0dUne3 applied in the audit of the financial statements and certain additional pn0C8dur8G. including comparing and reconciling such information directly to the underlying 8CCOUDdOg and other [8COPdS used to prepare the basic financial St8tHDleOtS 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 asawhole. Roseville, California (6) CITY OF REDDING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2024 Federal Grantor/Pass-Through Grantor/ Program or Cluster Title U. S. Department of Housing and Urban Development Direct Program: CDBG - Entitlement Grants Cluster: Community Development Block Grant Community Development Block Grant Community Development Block Grant - CARES Community Development Block Grant Subtotal CDBG Entitlement Grants Cluster Passed through State of California: Community Development Block Grant Community Development Block Grant Subtotal Assistance Listing Number 14.228 Emergency Solutions Grant Program: Passed through State of California: Emergency Solutions Grant Program - CV HOME Investment Partnership HOME Investment Partnership HOME Investment Partnership HOME Investment Partnership HOME Investment Partnership Subtotal Assistance Listing Number 14.239 Housing Vouchers Cluster: Section 8 Housing Choice Vouchers Emergency Housing Vouchers (EHV) Subtotal Assistance Listing Number 14.871 Mainstream Vouchers Cluster: Mainstream Vouchers Subtotal Housing Vouchers Cluster Family Self -Sufficiency (FSS) Program: FSS Coordinator FSS Coordinator Subtotal Assistance Listing Number 14.896 Total U.S. Department of Housing and Urban Development U.S. Department of Interior Passed through State of California: Sport Fish Restoration Total U.S. Department of Interior (DO[) U.S. Department of Justice Direct Programs: Bulletproof Vest Partnership Program 2023 Edward Byrne Memorial Justice Assistance Grant Edward Byrne Memorial Justice Assistance Grant Subtotal Assistance Listing Number 16.738 Asset Seizure Program Total U.S. Department of Justice U.S. Department of Transportation Direct Programs: Airport Improvement Program: COVID-19 - CARES Act Benton Airport Layout Plan Drawing Set Update ARP (American Rescue Plan / Airport Rescue Plan) Benton Runway 16/34 MAGVAR Design Phase 2 Airport Master Plan Update - Muni Terminal Loop Construction Phase 2 Add Alt 2 Subtotal Assistance Listing Number 20.106 Federal Assistance Grant Listing Identification Federal Passed Through Number Number Expenditures to Subrecipients 14.218 B-20-MC 060-033 $ 30,000 $ 14,218 B-21-MC 060-033 112,365 18,498 14.218 B-22-MC 060-033 333,479 170,134 14.218 B-23-MC 060-033 284,743 3,000 760,587 191,632 14.228 21-DRMHP-21008 2,884,927 - 14.228 32000302/304/416 886,534 3,771,461 - 14.231 22-ESG-1 7060 / E-22-DC-06-0001 200,000 14.239 M20-MC060238 35,348 14.239 M21-MC060238 39,282 - 14.239 M22-MC060238 43,723 14.239 M21-MP060238 756,812 - 14.239 M23-MC060238 386,985 - 1,262,150 - 14,871 CA 106 13,833,090 14.871 CA 106 593,145 14,426,235 - 14.879 CA 106 598,199 15,024,434 - 14.896 FSS23CA5065 60,771 14.896 FSS24CA5065 41,804 102,575 21,121,207 15.605 F23AGO1256-00 216,864 216,864 16.607 19,097,427 6,114 16.738 15PBJA-22-GG-02533-JAGX 374 16.738 15PBJA-22-GG-02533-JAGX 49,198 49,572 16.922 2XXX 30,962 86,648 20.106 3-06-0308-022 25,825 20.106 3-06-0308-023-2021 4,873 20.106 3-06-0308-027-2021 32,000 20.106 3-06-0194-061-2022 417,862 20.106 3-06-0194-063-2022 254,691 20.106 3-06-0194-065-2023 10,188 745,439 See accompanying Notes to Schedule of Expenditures of Federal Awards. (7) 191,632 CITY OF REDDING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Federal Assistance Grant Federal Grantor/Pass-Through Grantor/ Listing Identification Federal Passed Through Program or Cluster Title Number Number Expenditures to Subrecipients U.S. Department of Transportation Passed through State Department of Transportation: Highway Planning and Construction: FHBP study 5068-34 Sacramento / Olney 20.205 HBRR 5068-34 $ 18,474 $ FHBP study 5068-35 Eastside / Canyon 20.205 HBRR 5068-35 48,557 FHBP study 5068-36 Eastside Olney 20.205 HBRR 5068-36 935,442 - FHBP study 5068-37 Canyon / ACID 20.205 HBRR 5068-37 69,414 - FHBP study 5068-38 Westside / Canyon 20.205 HBRR 5068-38 182,949 FHBP study 5068-45 Old Alturas / Churn Creek 20.205 HBRR 5068-45 3,121,574 - Shoulder widening on Old Oregon Trail for recovery area and bike lanes 20.205 HSIP6-02-002 5068-52 102,133 - Enhanced Pedestrian Crossings 20.205 HSIPL-5068(62) 14,438 Bridge Preventative Maintenance 20.205 BPMP-5068(060) 22,556 Downtown to Turtle Bay Non -Motorized Improvements 20.205 RPSTPL 5068 (061) 25,908 - Shasta Street Railroad Crossing Project 20.205 STPLR-7500(254) 60,060 Girvan Road Railroad Crossing Project 20.205 STPLR-7500(225) 131,967 Victor/Cypress ATP 20.205 HSIPL-5068(64) 625,927 - Passed through Shasta Regional Transportation Agency: Bechelli-Loma Vista ATP Subtotal Assistance Listing 20.205 Federal Transit Cluster: Direct Programs: COVID-19 - Federal Transit —Formula Grants (CARES Act) Federal Transit —Formula Grants Federal Transit —Formula Grants Federal Transit —Formula Grants Subtotal Assistance Listing Number 20.507 Bus and Bus Facilities Formula Program Bus and Bus Facilities Formula Program Subtotal Assistance Listing Number 20.526 Subtotal Federal Transit Cluster Passed through California Department of Transportation through Shasta County Formula Grants for Rural Areas and Tribal Transit Program: Highway Planning and Construction Passed through California Office of Traffic Safety., Highway Safety Cluster: Selective Traffic Enforcement Program (STEP) Selective Traffic Enforcement Program (STEP) Subtotal Highway Safety Cluster Minimum Penalties for Repeat Offenders for Driving While Intoxicated Program: Selective Traffic Enforcement Program (STEP) Selective Traffic Enforcement Program (STEP) Subtotal Assistance Listing Number 20.608 Total U.S. Department of Transportation U.S. Department of Treasury Direct Programs: Coronavirus State & Local Fiscal Recovery Funds: COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds COVID-19 American Rescue Plan Act (ARPA) Funds Subtotal Assistance Listing Number 21.027 - Direct 20.205 HSIPL-5068(59) 427,845 5,787,244 20.507 2020-061 69,825 20.507 2022-109 893,224 20.507 2023-055 201,600 20.507 2024-021 2,000,000 3,164,649 20.526 2020-061 23,005 20.526 2021-107 259,818 282,823 3,447,472 20.509 2022-051 23,998 20.600 PT23150 2,932 20,600 PT23150 8,835 11,767 20.608 PT23150 15,382 20,608 PT23150 54,748 70,130 10,086,050 21,027 N/A 479,443 21.027 N/A 243,257 21.027 N/A 2,303,969 21,027 N/A 999,927 21.027 N/A 49,036 21.027 N/A 11,720 21.027 N/A 500 21.027 N/A 461,820 21.027 N/A 954,660 21.027 N/A 80,593 21.027 N/A 85,000 21.027 N/A 2,559 5,672,484 See accompanying Notes to Schedule of Expenditures of Federal Awards. (8) CITY OF REDDING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Federal Grantor/Pass-Through Grantor/ Program or Cluster Title Passed through Shasta County. COVID-19 Coronavirus State and Local Fiscal Recovery Funds Subtotal Assistance Listing Number 21.027 Total U.S. Department of Treasury U.S. Department of Homeland Security Passed through the California Natural Resources Agency - Division of Boating and Waterways: Boating Safety Boating Safety Boating Safety Subtotal Direct Assistance Listing Number 97.011 Small Water Craft Safety Program Direct Programs: Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Disaster Grants - Public Assistance Subtotal Direct Assistance Listing Number 97.036 Direct Programs: Disaster Grants - Public Assistance Disaster Grants - Public Assistance Subtotal Direct Assistance Listing Number 97.039 Direct Programs: Assistance to Firefighters Assistance to Firefighters Subtotal Direct Assistance Listing Number 97.044 Passed through the County of Shasta: Homeland Security Grant Program (HSGP) Direct Programs: Staffing for Adequate Fire & Emergency Response Total Department of Homeland Security Total Expenditures of Federal Awards Federal Assistance Grant Listing Identification Federal Passed Through Number Number Expenditures to Subrecipients 21,027 AGR.CAO.COR.SS.2324.FEX $ 243,176 $ 5,915,660 5,915,660 97.011 N/A 97.011 C8966331 97.011 N/A 97.012 97.036 97.036 97.036 97,036 97.036 97.036 97.036 97.036 97.036 97.036 97,036 97,036 97.036 97.036 97.036 97.036 97.036 97.036 97,036 97.036 97.036 C8965311 FEMA-4382-DR-Carr Fire FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding FEMA-4301-Flooding 97.039 HMGP 4382-143-27F 97.039 HMGP DR-4382-131-3R 97.044 EMW-2021-FG-05829 97.044 EMW-2022-FG-03871 97.067 97.083 AGR.PH.CityofRedding.HSG. FY20 See accompanying Notes to Schedule of Expenditures of Federal Awards. (9) 3,595 33,867 14,455 51,917 22,121 2,361 165,857 326 199 7 2,524 854 29,208 560 48 88,413 281 17,197 5,356 3,596 250,248 5,567 41,323 3,691 180,308 41,736 839,660 111,301 19,754 131,055 170 18,510 18,680 22,975 EMW-2021-FF-00741 797,245 1,883,653 $ 39,310,082 $ 191,632 CITY OF REDDING NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS J U N E 30, 2024 NOTE 1 REPORTING ENTITY The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of the City of Redding (City). The City's reporting entity is defined in Note 1 to the City'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 City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. NOTE 2 BASIS OF ACCOUNTING The accompanying Schedule 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 City'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 FEDERAL ASSISTANCE LISTING NUMBERS The program titles and federal assistance listing numbers were obtained from the federal or pass -through grantor. NOTE 4 INDIRECT COST RATE The City did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR §200.414. ILI[0S •1.7_F•'1:pd M IZ011Lt]M14Zki11d1*21Q4Z11dUVAlLI[e3,11111�1 *4 V When federal awards were received from a pass -through entity, the Schedule shows, if available, the identifying number assigned by the pass -through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program, or the City was unable to obtain an identifying number from the pass -through entity. CITY OF REDDING NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS J U N E 30, 2024 NOTE 6 BLENDED COMPONENT UNITS The accompanying Schedule of Expenditures of Federal Awards includes federal awards to the following blended component units: Federal Expenditures Redding Area Bus Authority: Federal Transit Assistance Cluster $ 3,447,472 Housing Authority of the City of Redding: Housing Vouchers Cluster $ 14,426,235 Mainstream Vouchers Cluster 598,199 Family Self Sufficiency (FSS Program) 102,575 CITY OF REDDING SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2024 Section I — Summary of Auditors' Results Financial Statements 1. Type of auditors' report issued: 2. Internal control over financial reporting: • Material weakness(es) identified? • Significant deficiency(ies) identified? 3. Noncompliance material to financial statements noted? Federal Awards 1. Internal control over major federal programs: • Material weakness(es) identified? • Significant deficiency(ies) identified? 2. Type of auditors' report issued on compliance for major federal programs: 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Identification of Major Federal Programs Assistance Listing Number(s) 14.871 /14.879 21.027 Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low -risk auditee? a 11 .. 9 We yes x no yes x none reported yes x no yes x no yes x none reported yes x no Name of Federal Program or Cluster Housing Voucher Cluster COVID-19 Coronavirus State and Local Fiscal Recovery Funds $ 1,179, 302 x yes no CITY OF REDDING SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30,2024 Section 11 — 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). � y k ,f.�Y 1 i��l 1l�f INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR THE PASSENGER FACILITY CHARGE PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND REPORT ON THE SCHEDULE OF PASSENGER FACILITY CHARGES Honorable Mayor and Members of City Council of the City of Redding Redding, California Report on Compliance for the Passenger Facility Charge Program Opinion on Compliance We have audited the City of Redding's (the City) compliance with the types of compliance requirements identified as subject to audit in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration (the Guide), for its passenger facility charge program for the year ended June 30, 2024. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on the Passenger Facility Charge Program for the year ended June 30, 2024. Basis for Opinion We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the Federal Aviation Administration. Our responsibilities under those standards and the Federal Aviation Administration are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's government programs. C!,AaiobaL oom, d sdaimer. (14) Honorable Mayor and Members of City Council of the City of Redding Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Federal Aviation Administration will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of the government program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Federal Aviation Administration, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Federal Aviation Administration, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on 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 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 compliance requirement 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 that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Honorable Mayor and Members of City Council of the City of Redding Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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 Federal Aviation Administration. Accordingly, this report is not suitable for any other purpose. Report on the Schedule of Passenger Facility Charges Collected and Expended and Interest Collected 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, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated March 11, 2025, which contained unmodified opinions on those financial statements. The accompanying Schedule of Passenger Facility Charges Collected and Expended and Interest Collected is presented for purposes of additional analysis as specified in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration, 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 basic financial statements, 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 Passenger Facility Charges Collected and Expended and Interest Collected is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Clifton LarsonAllen LLP Roseville, California March 11, 2025 (16) CITY OF REDDING SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED AND INTEREST COLLECTED YEAR ENDED JUNE 30, 2024 Unexpended (over expended) passenger facility charges and interest, beginning of period Revenues: Passenger facility charges collected Interest earned Total passenger facility charge revenue Expenses: Project Number/Project Name Completed and Closed Applications Open Projects Application 11-04-C-01-RDD 001-Storage Building for FAR Part 139 Equipment 002-Update Airport Layout Plan (ALP) 003-Prepare Airport Electrical Master Plan 004-Acquire Aircraft Rescue Fire Fighting (ARFF) Equipment 005-Rehabilitate Airfield Guidance Signs 006-Rehabilitate Runway 13/34 - Design Only 007-Rehabilitate Parallel and Connecting Taxiways - Design Only 008-Rehabilitate Terminal Building 009-Conduct Wildlife Hazard Assessment 010-Terminal Building Expansion - Design Only 011-PFC Administration Costs 017-Rehabilitate and Expand Terminal Building Application 17-05-C-00-RDD 001-Aircraft Rescue and Fire Fighting Vehicle Acquisition 002-Airport Master Plan Update 003-ADA Passenger Loading Ramp 004-Airport Pavement Management System Study 005-T-Hangar Taxilane Reconstruction 006-West Tie Down Apron Reconstruction 007-Aircraft Rescue and Fire Fighting Station Modifications 009-Environmental Assessment Parallel Runway 013-PFC Application/Administration Costs Application 23-06-C-00-RDD 001-PFC Audit 002-Guidance Sign Installation & Misc NAVAID 003-Terminal Loop Design 004-AAAE-IET Training Program 005-Update Airport Master Plan Study 006-Master Drainage Study Application 24-07-C-00-RDD 001-PFC Audit 002-PFC Application 003-NEPA Environmental Evaluation for Runway 16-34 Improvements 004-Runway 16-34 Rehabilitation Design 005-Runway 16-34 Blast Pad Design 006-Runway 16-34 Connector Taxiways Design 007-Runway 16-34 MAGVAR Update Design 008-Runway 16-34 Rehabilitation Construction 009-Runway 16-34 Blast Pad Construction 010-Runway 16-34 Connector Taxiways Construction 011-Runway 16-34 MAGVAR Update Construction Total passenger facility charge revenue expenditures Unexpended (over expended) passenger facility charges and interest, end of period Forth e Quarter Ended Cumulative Total September 30, December 31, June 30,2023 2023 2023 $ 247,576 $ 340,055 $ 407,127 Amount Approved 4,870,953 25,786 $ 6,483,283 4,896,739 Amount Approved $ 2,766,535 14,791 1,500 1,500 1,992 16,588 3,250 2,302 60,346 4,510 12,498 35,000 519,645 68,676 44,832 4,984 4,735 458,672 323,278 1,735 32,690 150,000 61,141 30,811 53,633 42,000 103,927 52,001 10,750 67,222 17,051 87,288 6,006 10,414 431 1,532,385 106,615 201,900 7,655 2,766,535 14,791 1,500 1,500 1,992 16,588 3,250 2,302 60,346 4,510 12,498 35,000 519,645 68,676 44,800 4,984 4,735 394,850 313,730 1,735 187 54,870 61,141 30,811 67,660 14,250 32,640 21.158 94,708 102,828 114 173 94,822 103,001 27,750 4,556,684 27,750 $ 340,055 $ 407,127 $ 510,128 (Continued) See accompanying Notes to Schedule of Passenger Facility Charges Collected and Expended and Interest Collected. (17) CITY OF REDDING SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED AND INTEREST COLLECTED (CONTINUED) YEAR ENDED JUNE 30, 2024 Unexpended (over expended) passenger facility charges and interest, beginning of period Revenues: Passenger facility charges collected Interest earned Total passenger facility charge revenue Expenses: Project Number/Project Name Completed and Closed Applications Open Projects Application 11.04-C-01-RDD 001-Storage Building for FAR Part 139 Equipment 002-Update Airport Layout Plan (ALP) 003-Prepare Airport Electrical Master Plan 004-Acquire Aircraft Rescue Fire Fighting (ARFF) Equipment 005-Rehabilitate Airfield Guidance Signs 006-Rehabilitate Runway 13/34 - Design Only 007-Rehabilitate Parallel and Connecting Taxiways - Design Only 008-Rehabilitate Terminal Building 009-Conduct Wildlife Hazard Assessment 010-Terminal Building Expansion - Design Only 011-PFC Administration Costs 017-Rehabilitate and Expand Terminal Building Application 17.05-C-00-RDD 001-Aircraft Rescue and Fire Fighting Vehicle Acquisition 002-Airport Master Plan Update 003-ADA Passenger Loading Ramp 004-Airport Pavement Management System Study 005-T-Hangar Taxilane Reconstruction 006-West Tie Down Apron Reconstruction 007-Aircraft Rescue and Fire Fighting Station Modifications 009-Environmental Assessment Parallel Runway 013-PFC Application/Administration Costs Application 23.06-C-00-RDD 001-PFC Audit 002-Guidance Sign Installation & Misc NAVAID 003-Terminal Loop Design 004-AAAE-IET Training Program 005-Update Airport Master Plan Study 006-Master Drainage Study Application 24.07-C-00-RDD 001-PFC Audit 002-PFC Application 003-NEPA Environmental Evaluation for Runway 16-34 Improvements 004-Runway 16-34 Rehabilitation Design 005-Runway 16-34 Blast Pad Design 006-Runway 16-34 Connector Taxiways Design 007-Runway 16-34 MAGVAR Update Design 008-Runway 16-34 Rehabilitation Construction 009-Runway 16-34 Blast Pad Construction 010-Runway 16-34 Connector Taxiways Construction 011-Runway 16-34 MAGVAR Update Construction Total passenger facility charge revenue expenditures Unexpended (over expended) passenger facility charges and interest, end of period For the Year For the Quarter Ended Ended March 31, June 30, June 30, Cumulative Total 2024 2024 2024 June 30, 2024 $ 510,128 $ 459,685 $ 340,055 $ 72,425 87,815 357,776 5,228,729 138 193 618 26,404 72,563 88,008 358,394 5,255,133 2,766,535 14,791 1,500 1,500 1,992 16,588 3,250 2,302 60,346 4,510 12,498 35,000 519,645 68,676 44,800 4,984 4,735 394,850 313,730 1,735 187 54,870 61,141 30,811 - 67,660 27,750 42,000 - 32,640 - - 21,158 14,796 (4,080) 10,716 10,716 22,567 766 23,333 23,333 71,453 12,212 83,665 83,665 4,919 841 5,760 5,760 8,525 1,457 9,982 9,982 350 60 410 410 328 5,130 5,458 5,458 23 357 380 380 43 676 719 719 2 26 28 28 123,006 17,445 168,201 4,724,885 $ 459,685 $ 530,248 $ 530,248 $ 530,248 (Concluded) See accompanying Notes to Schedule of Passenger Facility Charges Collected and Expended and Interest Collected. (18) CITY OF REDDING NOTES TO SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED AND INTEREST COLLECTED J U N E 30, 2024 NOTE 1 REPORTING ENTITY The accompanying Schedule of Facility Charges Collected and Expended and Interest Collected includes all the Passenger Facility Charges (PFC) and the interest earnings thereon collected by the City from July 1, 2023 through June 30, 2024. The City currently collects $4.50 per enplaned passenger. The current approval for the charges as approved by the Federal Aviation Administration (FAA) is expected to end on February 1, 2025. NOTE 2 BASIS OF ACCOUNTING The Schedule of Facility Charges Collected and Expended and Interest Collected was prepared on the accrual basis of accounting. PFCs are recorded as revenue when earned and expenditures for debt service and approved capital projects are recorded as expenditures are made. Expenditures are made in accordance with an approved FAA application. CITY OF REDDING PASSENGER FACILITY CHARGE PROGRAM SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2024 Section I — Summary of Auditors' Results A. Current Year Findings and Questioned Costs — Passenger Facility Charge Program No findings or questioned costs were noted on the City's compliance with requirements of the passenger facility charge program for the year ended June 30, 2024. B. Prior Year Findings and Questioned Costs — Passenger Facility Charge Program No findings or questioned costs were noted on the City's compliance with requirements of the passenger facility charge program for the year ended June 30, 2024. 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