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Home My WebLink AboutSingle Audit Report June 30, 2005 - - TOWN OF MARANA, ARIZONA SINGLE AUDIT REPORTING PACKAGE FOR THE YEAR ENDED JUNE 30, 2005 - - - TOWN OF MARANA, ARIZONA SINGLE AUDIT REPORTING PACKAGE FOR THE YEAR ENDED JUNE 30, 2005 CONTENTS Pa2e 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 Report on Compliance With Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance With OMB Circular A-133 3 Schedule of Expenditures of Federal Awards 5 - Notes to Schedule of Expenditures of Federal Awards 6 Schedule of Findings and Questioned Costs: Section I - Summary of Auditors' Results 7 Section II - Financial Statement Findings 8 Section ill - Federal Award Findings and Questioned Costs 8 Summary Schedule of Prior Audit Findings 9 - - ~ HEINFELD, MEECH & CO., P.C. I1S'fI CERTIFIED PUBLIC ACCOUNTANTS Gary Heinfeld, CPA, CGFM Nancy A. Meech, CPA, CGFM Jennifer L. Shields, CPA Corey Arvizu, CPA Scott W. Kies, CPA 10120 N. Oracle Road Tucson, Arizona 85704 (520) 742-261 I Fax (520) 742-2718 www.heinfeldmeech.com 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 The Honorable Mayor and Members ofthe Town Council of the Town of Maran a, Arizona We have audited the financial statements ofthe governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Town of Maran a, Arizona as of and for the year ended June 30, 2005, which collectively comprise Town of Maran a, Arizona's basic financial statements and have issued our report thereon dated December 9, 2005. We conducted our audit in accordance with 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. - Internal Control Over Financial Reporting In planning and performing our audit, we considered Town of Marana, Arizona's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. - Compliance and Other Matters As part of obtaining reasonable assurance about whether Town of Marana, Arizona's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. However, we noted certain matters that we reported to management of Town of Maran a, Arizona in a separate letter dated December 9, 2005. This report is intended solely for the information and use of the Town Council, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 1-f~{,JJ~ M~' ~. PC HEINFELD, MEECH & CO., P.C. Certified Public Accountants December 9,2005 Page 2 ~ HEINFELD, MEECH & CO., P.C. .I1S,'f.l. CERTIFIED PUBLIC ACCOUNTANTS Gary Heinfeld, CPA, CGFM Nancy A. Meech, CPA, CGFM Jennifer L. Shields, CPA Corey Arvizu, CPA Scott W. Kies, CPA 10120 N. Oracle Road Tucson, Arizona 85704 (520) 742-2611 Fax (520) 742-2718 www.heinfeldmeech.com REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 The Honorable Mayor and Members ofthe Town Council of the Town of Maran a, Arizona - Compliance We have audited the compliance of Town of Marana, Arizona with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to its major federal program for the year ended June 30,2005. Town of Maran a, Arizona's major federal program is identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of Town of Maran a, Arizona's management. Our responsibility is to express an opinion on Town of Marana, Arizona'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 financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A- 133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-B3 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 Town of Maran a, Arizona'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 Town of Maran a, Arizona's compliance with those requirements. In our opinion, Town of Maran a, Arizona complied, in all material respects, with the requirements referred to above that are applicable to its major federal program for the year ended June 30, 2005. - Page 3 - Internal Control Over Compliance The management of Town of Marana, Arizona is responsible for establishing and maintaining effective internal control over compliance with the requirements oflaws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Town of Marana, Arizona's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-B3. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements oflaws, regulations, contracts, and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. Schedule of Expenditures of Federal Awards We have audited the fmancial statements ofthe governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Town of Maran a, Arizona as of and for the year ended June 30, 2005, and have issued our report thereon dated December 9,2005. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise Town of Marana, Arizona's basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the Town Council, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. t-l ~ W J M.ac.k. f; {o" p.c, HEINFELD, MEECH & CO., P.C. Certified Public Accountants December 9, 2005 Page 4 TOWN OF MARANA, ARIZONA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2005 Federal Grantor I CFDA Grantor's Pass-Through Grantor I Program Title Number Number Expenditures U.S. Department of Housing and Urban Development Passed through Pima County - 2002 Community Development Block Grant 14.218 o 1-39-M-131845-1 002 $ 59,896 2003 Community Develpoment Block Grant 14.218 01-39-M-133380-1003 12,927 2004 Community Develpoment Block Grant 14.218 01-70-M-135462-1104 46,577 Total U.S. Department of Housing and Urban Development 119,400 U.S. Department of Transportation Direct Grant - Airport Improvement Program 20.106 AlP 3-04-0058-07 8,766 Airport Improvement Program 20.106 AlP 3-04-0058-09 47,700 Airport Improvement Program 20.106 AlP 3-04-0058-10 184,912 Total U.S. Department of Transportation 241,378 U.S. Department of Justice Direct Grant - Public Safety Partnership and Community Policing Grants 16.710 95-CF- WX-0929 181,022 U.S. Department of Homeland Security Passed through Pima County - 2002 State Domestic Preparedness Program Grant 97.004 01-01- M -134902-0904 6,452 Total Expenditures of Federal Awards $ 548,252 Page 5 See accompanying notes to the schedule. TOWN OF MARANA, ARIZONA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2005 NOTE 1 - BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards includes the federal grant activity of Town of Marana, Arizona and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements ofOMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. NOTE 2 - CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS The program titles and CFDA numbers were obtained from the federal or pass-through grantor or the 2005 Catalog of Federal Domestic Assistance. Page 6 TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2005 SECTION I - SUMMARY OF AUDITORS' RESULTS Financial Statements Type of auditors' report issued: Unqualified - Internal control over financial reporting: Material weakness( es) identified? yes X no Reportable condition(s) identified that are not - considered to be a material weakness(es)? X none reported yes Noncompliance material to financial statements noted? yes X no - Federal Awards Internal control over major programs: Material weakness(es) identified? yes X no Reportable condition(s) identified that are not considered to be a material weakness(es)? yes X none reported Type of auditors' report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) ofOMB Circular A-133? yes X no Identification of major programs: CFDA Numbers Name of Federal Program or Cluster 16.710 Public Safety Partnership and Community Policing Grants Dollar threshold used to distinguish between Type A and - Type B programs: $300,000 Auditee qualified as low-risk auditee? X yes no Page 7 TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2005 SECTION II - FINANCIAL STATEMENT FINDINGS We noted no reportable conditions, material weaknesses or instances of noncompliance related to the basic financial statements that are required to be reported in accordance with Government Auditing Standards. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS We noted no reportable conditions, material weaknesses or instances of noncompliance related to the audit of major federal programs as required to be reported by OMB Circular A-133. - - Page 8 TOWN OF MARANA, ARIZONA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2005 Status of Federal Award Findings and Questioned Costs The Town had no fmdings or questioned costs related to federal awards noted in prior audits that require a status. ... Page 9