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HomeMy WebLinkAboutSingle Audit Report June 30, 1993 TOWN OF MARANA Marana, Arizona SINGLE AUDIT REPORTS June 30, 1993 TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 2 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 3-6 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 7 INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 8 -11 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 12 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 13 -14 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 15 -16 SCHEDULE OF PRIOR YEAR'S FINDINGS 17 �'''" Clifton, Gunderson & Co. Ar Certified Public Accountants & Consultants Honorable Mayor and Town Council Town of Marana, Arizona INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE We have audited the general purpose financial statements of the Town of Marana, Arizona for the year ended June 30, 1993, and have issued our report thereon dated October 8, 1993. These general purpose financial statements are the responsibility of the Town of Marana, Arizona's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (OMB) Circular A -128, Audits of State and Local Governments. Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Town of Marana, Arizona taken as a whole. The accompanying schedule of federal financial assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. eq%-, "Co. Tucson, Arizona October 8, 1993 Members Of Mia INTERNATIONAL 1 !//. 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Certified Public Accountants & Consultants tt Honorable Mayor and Town Council Town of Marana, Arizona INDEPENDENT AUD TDR I S REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the general purpose financial statements of the Town of Marana, Arizona for the year ended June 30, 1993, and have issued our report thereon dated October 8, 1993. We conducted our audit in accordance with generally accepted auditing stars, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (OMB) Circular A - 128, Audi of State and I.oca1_Governnnents. Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the Town of Marana, Arizona for the year ended June 30, 1993, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the Town of Marana, Arizona is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. Members Of li \l ��ll�� I NTERNATIONAL 3 AMERICAN INSRRTUTE OF CERTIFIED PUBLIC ACCOUNTANTS ARIZONA rev nonnrn n i ininic inininnin InINA MARVI AND MI.SSOI RI NEW MEXICO OHIO WISCONSIN Honorable Mayor and Town Council Page 2 Town of Marana, Arizona For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Cash Fixed assets Long -term debt Revenue, receivables and receipts Expenditures and accounts payable General requirements: Political activity Davis -Bacon Act Civil rights Cash management (Not applicable) Relocation assistance and real property acquisition (Not applicable) Federal financial reports (Not applicable) Drug -free workplace Allowable costs /cost principles Administrative requirements Specific requirements: Types of services allowed or unallowed Matching For all of the control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize and report financial data consistent with the assertions of management in the general purpose financial statements. 1. GENERAL LEDGER: Condition: The Town's general ledger utilized for fiscal 1993 was not capturing all of the Town's activities, and the general ledger was not segregating activities by fund. Recommendation: We suggest the Town implement procedures to record and segregate all activities of the Tczn by fund in its general ledger. With the growth and expansion of the Town, it is becoming too cumbersome to segregate Town activities recorded within a combined general ledger. Segregation will enable the Town to better report financial activities, provide more assurance to the Town relative to grantor compliance requirements, and provide better information as to the cost of certain activities in order to determine self- sufficiency. Management's response: The Town has made substantial improvement in the maintenance of the general ledger over the last couple of years. The Town will continue to upgrade its accounting system to allow its general ledger to segregate activities by fund. 4 Honorable Mayor and Town Council Page 3 Town of Marana, Arizona 2. BUDGET Condition: The Town prepares its budgets by purpose and not by object. Recommendation: We recommend that management budget by object. This will allow for financial statements to display expenditures compared to budget for current operations, capital outlay, and debt service. Management's response: Budgets prepared for fiscal 1994 are by object and will allow for better financial statement presentation in 1994. 3. FIXED ASSET INVEN'T'ORY condition: The Town has not recently conducted a reconciliation of its physical property records and the items reflected in its general fixed assets group of accounts. In addition, the Town is not recording donated assets. Recommendation: We recommend that a physical inventory of property be conducted in the near future, and that a reconciliation of that inventory be made to the general ledger, with all appropriate adjustments being investigated and made, including those for donated assets. Detailed schedules of the fixed asset history have been provided by us to the Town to facilitate this physical inventory. Management's response: As soon as it is practicable, management will perform such a fixed asset inventory and reconciliation. 4. COORDINATION OF ACCOUNTING Condition: Currently, the Town has a number of individuals in addition to the Town accountant maintaining accounting records for certain Town activities. This makes it difficult for the Town accountant to properly . integrate these activities into the general ledger. As a result, errors in processing this information can occur. Recommendation: We recommend the Town accountant be given the responsibility of maintaining the accounting records for all Town activities. This should allow for the standardization of how accounting records are maintained and reduce the likelihood of errors in integrating accounting activity into the general ledger. Management's response: Management is in the process of redefining job descriptions for administrative employees and will take this condition into consideration during this process. 5. REVENUE RECONCILIATION PRbOCEDURES Condition: The Town has various department reports that contain financial information regarding revenue that are not being utilized by the Town accountant to reconcile revenue within the general ledger. In addition, reconciliations are not being performed for the control over prenunbered permits issued. Finally, information is not being requested from the Town's independent engineer to verify the calculations of development fee revenue and to reconcile receipts of cash from developers. 5 Honorable Mayor and Town Council Page 4 Town of Marana, Arizona Rec aendation: We reco mnend the Town utilize management reports, and information provided by the independent engineer in order to reconcile revenue within the general ledger, as well as reconcile prenuxnbered permits to permits issued. These procedures will provide the Town with better controls over revenue. Management's response: Subsequent to year end, the Town implemented the procedures suggested. 6. U1a007 LATERALTZED CASH BALANCES Condition: At June 30, 1993, the Town had bank balances with a financial institution that exceeded the amount insured by the FDIC by $133,017. Although this financial institution is a national bank, if it was to become insolvent, the Town could be limited to recovering $100,000 of its bank balances. Recommendation: We recommend the Town either maintain bank balances with individual financing institutions below $100, 000 or obtain collateral from the financial institutions that would be adequate to cover balances that exceed $100,000. This will better safeguard the Town's bank balances. Managements response: Management was under the impression that irx3iviciu 1 accounts were each insured for $100,000, rather than the total accounts with a financial institution being combined for the $100,000 limitation. Management will discuss this issue further with the financial institution in question and take whatever steps are necessary to safeguard bank balances. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose 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. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable conditions described above are material weaknesses. It should be noted that comments 1, 2, 3, and 4 are recurring. This report is intended for the information of the Town Council, management and various providers of governmental financial assistance. However, this report is a matter of public record and its distribution is not limited. Tucson, Arizona October 8, 1993 6 Clifton, A i Gunderson & Co. -_ Certified Public Accountants & Consultants Honorable Mayor and Town Council Town of Marana, Arizona INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH LAWS AMID REGULATIONS BASED ON AN AUDIT OF FILIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the general purpose financial statements of the Town of Marana, Arizona, as of and for the year ended June 30, 1993, and have issued our report thereon dated October 8, 1993. We conducted our audit in accordance with generally accepted auditing standards, Dove t.ng Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (OMB) Circular A-128, Audi of State and Local Gov errm ten ts. Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts and grants applicable to the Town of Marana, Arizona is the responsibility of the Town of Marana, Arizona's management. As part of our obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Town's compliance with certain provisions of laws, regulations, contracts and grants. However, our objective was not to provide an opinion On overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the Town of Marana, Arizona complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Town had not complied, in all material respects, with those provisions. This report is intended for the information of the Town Council, management and various providers of governmental financial assistance. However, this report is a matter of public record and its distribution is not limited. c,ipe_ ,45,4„,A.u.„.. 4(e. Tucson, Arizona October 8, 1993 1 1 1 M embers Of INTERNATIONAL 7 AMERICAN INSTITUTE ARIZONA OF CERTIHED PUBLIC ■ COLORAf r 11 1 INCAS INDIANA IflWA MAIM AND MISSOI IRI NPW MFXIm OHIO WISCONSIN ACCOUNTANTS i Clifton, Gunderson & Co. Certified Public Accountants & Consultants Honorable Mayor and Town Council Town of Marana, Arizona INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL CONTROL STRUCTURE USED =ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS We have audited the general purpose financial statements of the Town of Marana, Arizona, as of and for the year ended June 30, 1993, and have issued our report thereon dated October 8, 1993. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (OMB) Circular A- 128, 'ate and Focal Govern +ents. Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit of the Town of Marana, Arizona for the year ended June 30, 1993, we considered the Town's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Town's general purpose financial statements and to report in accordance with OMB Circular A -128. This report addresses our consider- ation of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance per. We have addressed policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated October 8, 1993. The management of the Town of Marana, Arizona is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. Members Of INTERNATIONAL 8 Ann... _ OF CERTIHED PUBL IC Honorable Mayor and Town Council Page 2 Town of Marana, Arizona For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: Cash Fixed assets Long -term debt Revenue, receivables and receipts Expenditures and accounts payable General requirements: Political activity Davis -Bacon Act Civil rights Cash management (Not applicable) Relocation assistance and real property acquisition (Not applicable) Federal financial reports (Not applicable) Drug-free workplace Allowable costs /cost principles Administrative requirements Specific requirements: Types of services allowed or unailowed Matching For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1993, the Town of Martina, Arizona expended 60.6% of its total federal financial assistance under the following nonmajor federal financial assistance program: Community Development Block Grant We performed tests of controls, as required by amB Circular A -128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements and general requirements that are applicable to the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control Structure that, in our judgment, could adversely affect the Town's ability to administer federal financial ass' applicable laws and i programs in accordance with regulations. ii. 9 Honorable Mayor and Town Council Page 3 Town of Marana, Arizona 1. OOORDI2 TI0N1 OF ACCOUNTING Condition: currently, the Town has an individual other than the Town accountant maintaining the accounting records for the Community Development Block Grant Program (CDBG). This makes it difficult for the Town accountant to properly integrate the CDBG activity into the general ledger. As a result, errors in processing this information can occur. Recommendation: We recommend the Town accountant be given the responsibility of maintaining the accounting records for cDBG. This will facilitate the Town accountant integrating the CDBG information into the general ledger and reduce the likelihood of errors being made in the processing of this information. Management's response: Management is in the process of redefining the job descriptions for administrative employees and will consider this condition during that process. 2. GENERAL LEDGER: Condition: The Town's general ledger utilized for fiscal 1993 was not capturing all of the Town's activities, and the general ledger was not segregating activities by fund. Recommendation: We suggest the Town implement procedures to record and segregate all activities of the Town by fund in its general ledger. With the growth and expansion of the Town, it is becoming too cumbersome to segregate Town activities recorded within a combined general ledger. Segregation will enable the Town to better report financial activities, provide more assurance to the Town relative to grantor compliance requirements, and provide better information as to the cost of certain activities in order to determine self- sufficiency. Management's response: The Town has made substantial improvement in the maintenance of the general ledger over the last couple of years. The Town will continue to upgrade its accounting system to allow its general ledger to segregate activities by fund. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable conditions described above are material weaknesses. It should be noted that comments 1 and 2 are recurring. 10 Honorable Mayor and Town Council Page 4 Town of Marana, Arizona This report is intended for the information of the Town Council, management and various providers of governmental financial assistance. However, this report is a matter of public record and its distribution is not limited. Tucson, Arizona October 8, 1993 11 7 / Clifton, Gunderson & Co. Certified Public Accountants & Consultants Honorable Mayor and Town Council Town of Marana, Arizona INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NDNMATOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS We have audited the general purpose financial statements of the Town of Marana, Arizona, as of and for the year ended June 30, 1993, and have issued our report thereon dated October 8, 1993. In connection with our audit of the 1993 general purpose financial statements of the Town of Marana, Arizona, and with our consideration of the Town of Marana, Arizona's internal control structure used to administer federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A -128, Audits of State and Local. Governments, we selected certain transactions applicable to certain normajor federal financial assistance pruyrans for the year ended June 30, 1993. As required by OMB Circular A -128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed and matching that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Town of Marana, Arizona's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the Preceding paragraph. With respect to items not tested, nothing came to our , attention that caused us to believe that the Town of Marana, Arizona had not complied, in all material respects, with those requirements. This report is intended for the information of the Town Council, management 1 and the various providers of governmental financial assistance. However, this report is a matter of public record and its distribution is not limited. Tucson, Arizona October 8, 1993 Members Of M INTERNATIONAL 1 I 12 AMERICAN INSITME OF CERTIRED PUBLIC An-. ' - . -' - -'- - ... ..... ....... ..I..........1 • tin ....r..i.... ..∎li.. “.c•.,KICOM ACCOUNTANTS W A Clifton, ff Gunderson & Co. — _ Certified Public Accountants & Consultants Honorable Mayor and Town Council Town of Marana, Arizona INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS We have audited the general purpose financial statements of the Town of Marana, Arizona, as of and for the year ended June 30, 1993, and have issued our report thereon dated October 8, 1993. We have applied procedures to test the Town of Marana, Arizona's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the accompanying schedule of federal financial assistance for the year ended June 30, 1993: General requirements: Political activity Davis -Bacon Act Civil rights Cash management (Not applicable) Relocation assistance and real property acquisition (Not applicable) Federal financial reports (Not applicable) Drug -free workplace Allowable costs/cost principles #, Administrative requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's �onmlianoe Suonl for S ngle A udits of State and Local Governments. Our procedures were substantially less in scope that an audit, the objective of which is the expression of an opinion on the Town of Marana, Arizona's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Town of Marana, Arizona had not cxmgplied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are described in the accompanying schedule of findings and questioned costs. Members Of I� INTERNATIONAL 13 AMERICAN INSTITUTE OF CERTIFIED PUBLIC Honorable Mayor and Town Council Page 2 Town of Marana, Arizona This report is intended for the information of the Town Council, management and various providers of governmental financial assistance. However, this report is a matter of public record and its distribution is not limited. Tucson, Arizona October 8, 1993 14 TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 1993 Questioned Costs 1. DRUG -FREE WORKPLACE -0- Finding: In performing our testing of payroll transactions, we noted that personnel files of three police officers, working in federally supported grant programs, did not contain evidence that the officers were aware of the Town's drug -free workplace policy. During fiscal 1993, there were a total of four police officers working in federally supported grant programs. The fourth officer was not selected in our sample. The Town has implemented a policy that meets the requirements of the Drug -Free Workplace Act. Management's response: The Town will go through all its personnel files and make sure all employees have signed documents that they are aware of the drug -free workplace policy and other personnel policies. The Town has experienced tremendous growth in recent years and has been making efforts to improve its personnel documentation. -0 - 2. DAVIS -BACON ACT Finding The Town did not pay the prevailing wage for a construction project under one of its Community Development Block Grant Programs. Normally, the Town contracts with its independent engineer to monitor contractors on construction projects involving federal funding for Davis -Bacon Act compliance. However, for this particular project, the Town decided not to use its independent engineer. This finding was discovered by Pima County, the pass- through grantor for these programs, and a payment of $366 was made to the contractor to bring wages to the prevailing wage rate. 15 TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 1993 Questioned Costs 2. DAVIS -BACON ACT (Continued) Management's response: With the payment of the $366, the finding is considered cleared. The Town will try not to deviate in the future from its policy of having its independent engineer monitor for Davis - Bacon Act compliance. 16 TOWN OF HARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 1993 Questioned Costs 2. DAVIS -BACON ACT (Continued) Management response: With the payment of the $366, the finding is considered cleared. The Town will try not to deviate in the future from its policy of having its independent engineer monitor for Davis -Bacon Act compliance. 16 TOWN OF MARANA, ARIZONA SCHEDULE OF PRIOR YEAR'S FINDINGS Year Ended June 30, 1993 There were no prior year findings. 1 1 I 17