Preheat oven to 400 degrees. Combine all ingredients for the meatballs in a large bowl. Mix everything together until well combined. Roll into 1½ inch balls and place on baking sheet. Bake for 15 minutes or until browned and cooked through.
In a medium sauce pan combine all sauce ingredients except for the tablespoon of flour. Bring sauce to a boil. Whisk in the flour and stir until thickened.