City of Suffolk 6-30-2021 Compliance Reporting Package

CITY OF SUFFOLK, VIRGINIA COMPLIANCE REPORTS For the Year Ended June 30, 2021 And Reports of Independent Auditor

CITY OF SUFFOLK, VIRGINIA TABLE OF CONTENTS

COMPLIANCE REPORTS Report of Independent Auditor 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 .................................................................. 1-2 Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance ............................................. 3-4 Report of Independent Auditor on Compliance with Commonwealth of Virginia’s Laws, Regulations, Contracts, and Grants.................................................................................................................. 5

SCHEDULES Schedule of Expenditures of Federal Awards ................................................................................................... 6-9 Notes to the Schedule of Expenditures of Federal Awards ............................................................................... 10 Schedule of Findings and Questioned Costs ..................................................................................................... 11

Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the City Council City of Suffolk, Virginia We have audited, in accordance with the 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 Specifications for Audits of Counties, Cities, and Towns issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Suffolk, Virginia (the “City”), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 14, 2021. That report recognizes that the City restated certain net position and fund balance amounts due to the implementation of a new accounting standard, effective July 1, 2020.

Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) 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 City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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.

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.

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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.

Richmond, Virginia December 14, 2021

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Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance To the City Council City of Suffolk, Virginia

Report on Compliance for Each Major Federal Program We have audited the City of Suffolk, Virginia’s (the “City”) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2021. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs.

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

Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.

Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.

Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

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A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Report on 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 aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 14, 2021, 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 the purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

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.

Richmond, Virginia April 28, 2022

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Report of Independent Auditor on Compliance with Commonwealth of Virginia’s Laws, Regulations, Contracts, and Grants To the City Council City of Suffolk, Virginia We have audited, 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 Specifications for Audits of Counties, Cities, and Towns (the “Specifications”) issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Suffolk, Virginia (the “City”), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 14, 2021.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of the City’s compliance with certain provisions of the Commonwealth of Virginia’s laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, the objective of our audit of the basic financial statements was not to provide an opinion on overall compliance with such provisions, and accordingly, we do not express such an opinion.

The following is a summary of the Commonwealth of Virginia’s laws, regulations, contracts, and grants for which we performed tests of compliance: Code of Virginia Budget and Appropriation Laws Cash and Investments Conflicts of Interest Intergovernmental Revenues

Procurement Unclaimed Property Property Taxes Debt Provisions

State Agency Requirements Education Children’s Services Act Funds Social Services Highway Maintenance Funds Fire Programs Aid to Localities Stormwater Utility Program

The results of our tests disclosed no instances of noncompliance with those requirements, which are required to be reported in accordance with the Specifications.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of compliance with certain provisions of the Commonwealth of Virginia’s laws, regulations, contracts, and grants and the results of that testing, and not to provide an opinion on the City’s compliance. Accordingly, this communication is not suitable for any other purpose.

Richmond, Virginia April 28, 2022

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CITY OF SUFFOLK, VIRGINIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2021

Grant Numbers

59047

Federal Grantor/Pass-Through Grantor/Grant Program U.S. Department of Agriculture Passed Through Commonwealth of Virginia: Department of Agriculture and Department of Education Child Nutrition Cluster National School Lunch Program Summer Food Service Program for Children#59047 Child & Adult Food Program Department of Social Services State Administrative Matching Grants for Food Stamp Program

Assistance Passed Listing Through To Number Sub-Recipients

10.555 10.559

Cluster Total

$

4,568,622

Federal Expenditures

$

310,127 4,258,495

10.558

165,989

10.561

1,399,523

Total U.S. Department of Agriculture U.S. Department of Defense Direct Program: JROTC Instruction

12.000

$

Department Totals

$

6,134,134

$

144,564

$

784,574

144,564

Total U.S. Department of Defense U.S. Department of Housing and Urban Development Direct Program: B11MC510024, B12MC510024, B13MC510024, B14MC510024, B15MC510024, B16MC510024 B17MC510024

M11DC510213, M12DC510213, M13DC510213, M14DC510213, M15MC510024, M16DC510216, M07DC512013, M08DC510213,

Community Development Block Grants/Entitlement Grants ForKids SRHA Ememrgency Repair The Genieve Shelter Western Tidewater Clinic Boys & Girls Club of Southeastern VA

14.218

Home Investment Partnerships Program City of Franklin Isle of Wight County Southampton County

14.239

Total U.S. Department of Housing and Urban Development

469,410 $

$

469,410

28,164 42,708 44,849 98,085 16,497

315,164 89,880 21,563 116,675

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CITY OF SUFFOLK, VIRGINIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2021

Grant Numbers

Federal Grantor/Pass-Through Grantor/Grant Program U.S. Department of Justice Direct Program: Bullet Proof Vests Partnership Program

17-V8580VW16, 19-Y8580VW17 16-R9824VA15, 17-R9824VA16, 18-U9824VA17, 2016-DJ-BX-0413, 2017-DJ-BX-0141, 17-A6095AD13, 17-B3197AD13, 16-A3276BY11, 18-C3197AD11, 18-A4241AD11, 18-B6905AD15, 18-A4497AD12, 2018-DJ-BX-0411, 19-B4241AD15, 20-DJ-BX-0482, 20-A4932AD16 COVD19 Emergency Supplemental Funding

Assistance Passed Listing Through To Number Sub-Recipients

Cluster Total

16.607

Federal Expenditures

$

Department Totals

44,459

Passed Through Department of Criminal Justice Services Crime Victim Assistance

16.575

323,129

Violence Against Women Formula Grants

16.588

80,187

Edward Byrne Memorial Justice Assistance Grant Program Equitable Sharing Program

16.738 16.922

87,948 19,381

2020 COVD19 Emergency Supplemental Funding Program Soliciation

16.034

81,250

Total U.S. Department of Justice

$

636,354

$

1,501,376

$

870,644

U.S. Department of Transportation Direct Program: 3-51-0050-024-2015, 3-51-0050-022-2015, 3-51-0050-025-0216, 3-51-0050-26-2016 154AL-2016-56196-6396, 154AL-201656425-6630, 15AL-2017-57087-6736, 15AL2017-57146-6795, 154AL-2018-582078207 M2HVE-2017-56206-6745, M2HVE-2018-58205-

0017-133-350 U000-133-S22 U000-133-S23 U000-133-S24 U000-133-351 U000-133-427

Airport Improvement Program

20.106

Highway Safety Grant -Selective Enforcement-Alcohol

20.607

410

Highway Safety Grant- Selective Enforcement-Occupant Protection Highway Safety Grant -Selective Enforcement-Speed Highway Safety Grant Cluster Total

20.600 20.600

1,507 15,077

FFY21 Section 5307-6

20.507

Highway Planning and Construction Cluster Passed Through Commonwealth of Virginia: Highway Planning and Construction CMAQ Bridge Road Traffic Signal Upgrades UPC #102991 HSIP Portsmouth Boulevard Sidewalk, Phase I UPC #110998 HSIP Portsmouth Boulevard Sidewalk, Phase II UPC #110999 HSIP Portsmouth Boulevard Sidewalk, Phase III UPC #111000 CMAQ Nansemond Pkwy Traffic Singal Upgrades #102990 CMAQ Emergency Vehicle Preemption Deployment #113826 CMAQ Nansemond Pkwy/Wilroy Road Overpass UPC #110634 Suffolk Bypass ITS UPC 102994 Project 2200 Shoulders Hill Road UPC 102992 Project 2222 Highway Planning and Construction Cluster Total U.S. Department of Transportation

$

180,139

16,584 1,304,243

20.205 20.205 20.205 20.205 20.205 20.205 20.205 20.205 20.205

1,304,243

$

272,850 11,656 27,110 19,630 66,220 101,675 340,058 5,851 25,594

870,644

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CITY OF SUFFOLK, VIRGINIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2021

Grant Numbers

S041B-2015-5303 V048A150046 S367A150044

S010A150046 H027A150107 H173A150112

Federal Grantor/Pass-Through Grantor/Grant Program U.S. Department of Education Direct Program: Impact Aid Award #S041B-2015-5303 Passed Through Commonwealth of Virginia: Career and Technical-Basic Grants to States#V048A150046 Title II-A #S367A150044 Title IV-A Grant Title IV-B Grant COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Fund COVID-19 Cares CRF K-12 Schools Title I, Part A Cluster Title I Grants to Local Educational Agencies #S010A150046 Special Education Cluster (IDEA) Special Education - Grants to States #H027A150107 Special Education - Preschool Grants #H173A150112 Special Education Cluster Total School Improvement Grants Cluster School Improvement Grants

Assistance Passed Listing Through To Number Sub-Recipients

Cluster Total

84.041

Federal Expenditures

$

84.048 84.367 84.424 84.287

399,277 336,113 560,734 188,172 87,920

84.425D 21.019 84.010

2,963,142 2,417,590 3,164,702

3,164,702

84.027 84.173

2,625,294 86,621 2,711,915

84.377

54,346

54,346

Total U.S. Department of Education U.S. Department of Health and Human Services Direct Payments: CARES Act 1003996083

Medical Assistance Program #1003996083 Passed Through Commonwealth of Virginia: Medical Assistance Program Medical Assistance Cluster Total Promoting Safe and Stable Families Temporary Assistance for Needy Families Refugee & Entrant Assistance Low-Income Home Energy Assistance ILP Education & Training Child Welfare Services Foster Care - Title IV-E Adoption Assistance Social Service Block Grant Foster Care Independent Living Children's Health Insurance Program CCDF Cluster Child Care and Development Block Grant Child Care Mandatory & Matching Funds for Child Care Dev Fund CCDF Cluster Total Total U.S. Department of Health and Human Services

Department Totals

90.404

$

93.778

$

12,883,911

$

4,305,327

78,238 399,052

93.778

1,076,829 1,475,881

93.556 93.558 93.566 93.568 93.599 93.645 93.658 93.659 93.667 93.674 93.767

5,805 776,345 1,854 129,659 325 330 759,715 195,881 690,095 13,036 13,716

93.575 93.596

(400) 164,847 164,447

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CITY OF SUFFOLK, VIRGINIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONCLUDED) FOR THE YEAR ENDED JUNE 30, 2021

Grant Numbers

Federal Grantor/Pass-Through Grantor/Grant Program U.S. Department of Treasury Passed Through Virginia Department of Accounts COVID-19 CARES Act

Assistance Passed Listing Through To Number Sub-Recipients

21.019

Cluster Total

Federal Expenditures

$

10,521,837

Total U.S. Department of Treasury Executive Office of the President Passed Through Virginia HIDTA: High Intensity Drug Trafficking Areas Program

95.001

$

Department Totals

$

10,521,837

$

12,867

$

63,314

$

37,858,902

12,867

Total Executive Office of the President U.S. Department of Homeland Security Passed Through Department of Criminal Justice: EMW-2015-PU-00181, EMV-2016-PU00147

Port Security Grant Program

97.056

$

41,533

Passed Through Department of Emergency Services: 2017LEMPG, 2018 Radiological Prepardness Program, VDEM LEMPG2018

VDEM Emergency Mgmt Program Grant Total U.S. Department of Homeland Security

Grand Total

97.042

21,781

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CITY OF SUFFOLK, VIRGINIA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2021

Note 1—Basis of accounting This schedule was prepared on the modified accrual basis of accounting.

Note 2—Nonmonetary assistance Nonmonetary assistance is reported in the Schedule of Federal Awards at the fair market value of the food commodities.

At June 30, 2021, the School Board had USDA food commodities (ALN 10.555) totaling $149,261 in inventory.

Note 3—Reporting entity The Schedule of Expenditures of Federal Awards reports the expenditures for the City of Suffolk, Virginia and its component unit the School Board.

Note 4—De minimis cost rate The City did not elect to use the 10% de minimis cost rate.

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CITY OF SUFFOLK, VIRGINIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2021

A.

Summary of Auditor’s Results 1.

The type of report issued on the basic financial statements: Unmodified

2.

Significant deficiencies in internal control over financial reporting: None reported

3.

Material weaknesses in internal control over financial reporting: No

4.

Noncompliance, which is material to the financial statements: No

5.

Significant deficiencies in internal control over major programs: None reported

6.

Material weaknesses in internal control over major programs: No

7.

The type of report issued on compliance for major programs: Unmodified

8.

Any audit findings which are required to be reported under Uniform Grant Guidance: No

9.

The programs tested as major programs were: AL Number

Name of Federal Program or Cluster

84.027 and 84.173 21.019 84.425D

Special Education Cluster COVID-19 CARES Act Coronavirus Relief Fund COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Fund

10. Dollar threshold used to distinguish between type A and type B programs: $1,135,767 11. City of Suffolk, Virginia qualified as a low-risk auditee under Uniform Grant Guidance: Yes B.

Findings Relating to Financial Statements Reported in Accordance with Government Auditing Standards None reported

C.

Findings and Questioned Costs Relating to Federal Awards None reported

D.

Findings and Questioned Costs Relating to Compliance with Commonwealth of Virginia Laws, Regulations, Contracts, and Grants None reported

E.

Status of Prior Year Findings 2020-001 Property Taxes – Finding not repeated

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