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HomeMy WebLinkAboutSingle Audit Report June 30, 2013SINGLE AUDIT REPORTING PACKAGE Year Ended June 30, 2013 TOWN OF MARANA, ARIZONA SINGLE AUDIT REPORTING PACKAGE YEAR ENDED June 30, 2013 CONTENTS Page Independent Auditors’ 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 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by OMB Circular A-133 3 Schedule of Expenditures of Federal Awards 7 Notes to the Schedule of Expenditures of Federal Awards 8 Schedule of Findings and Questioned Costs 9 INDEPENDENT AUDITORS’ 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 To the Honorable Mayor and Town Council Town of Marana, Arizona We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Marana, Arizona, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Town of Marana, Arizona’s basic financial statements, and have issued our report thereon dated December 18, 2013. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Town of Marana, Arizona’s internal control over financial reporting (internal control) to determine the 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 Town of Marana, Arizona’s internal control. Accordingly, we do not express an opinion on the effectiveness of Town of Marana, Arizona’s internal control. Adeficiency 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. è×ÏÌ×éÙÍÈÈÉØÛÐ×ùÛÉÛõÊÛÎØ×  ÷ùÍÙÔÓÉ×êÍÛØ ÷ùÍÈÈÍÎÅÍÍØðÛÎ× éÇÓÈ× éÇÓÈ× éÇÓÈ× è×ÏÌ×ûâ éÙÍÈÈÉØÛÐ×ûâ ùÛÉÛõÊÛÎØ×ûâ             öÛÄ   öÛÄ   öÛÄ   ÅÅÅÔ×ÎÊÃÛÎØÔÍÊÎ×ÙÍÏ Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town of Marana, Arizona’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 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 underGovernment Auditing Standards. 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. Casa Grande, Arizona December 18, 2013 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 To the Honorable Mayor and Town Council Town of Marana, Arizona Report on Compliance for Each Major Federal Program We have audited Town of Marana, Arizona’s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the Town of Marana, Arizona’s major federal programs for the year ended June 30, 2013. The Town of Marana, Arizona’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 the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Town of Marana, Arizona’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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 Town of Marana, 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 on compliance for each major federal program. However, our audit does not provide a legal determination of the Town of Marana, Arizona’s compliance. è×ÏÌ×éÙÍÈÈÉØÛÐ×ùÛÉÛõÊÛÎØ×  ÷ùÍÙÔÓÉ×êÍÛØ ÷ùÍÈÈÍÎÅÍÍØðÛÎ× éÇÓÈ× éÇÓÈ× éÇÓÈ× è×ÏÌ×ûâ éÙÍÈÈÉØÛÐ×ûâ ùÛÉÛõÊÛÎØ×ûâ             öÛÄ   öÛÄ   öÛÄ   ÅÅÅÔ×ÎÊÃÛÎØÔÍÊÎ×ÙÍÏ Opinion on Each Major Federal Program In our opinion, the Town of Marana, Arizona, 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, 2013. Report on Internal Control Over Compliance Management of the Town of Marana, Arizona, 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 Town of Marana, Arizona’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 OMB Circular A-133, 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 Town of Marana, Arizona’s internal control over compliance. Adeficiency 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 OMB Circular A-133 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 Town of Marana, Arizona, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Town of Marana, Arizona’s basic financial statements. We issued our report thereon dated December 18, 2013, 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 as required by OMB Circular A-133 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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Casa Grande, AZ December 18, 2013 TOWN OF MARANA, ARIZONA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2013 Federal Grantor / CFDAGrantor's Pass-Through Grantor / Program Title NumberNumberExpenditures U.S. Department of Housing and Urban Development Passed through Pima County - Community Development Block Grant 2012-201314.21801-70-M-143070-071027,020 Community Development Block Grant 2011-201214.21801-70-M-141622-10083,303 Community Development Block Grant 2010-201114.21801-70-M-141622-100957,880 Total U.S. Department of Housing and Urban Development88,203 U.S. Department of Justice Direct Grant -16.607JAG-06-1355,367 Bulletproof Vests Passed through Drug Enforcement Administration -16.unknown2009-15511,010 Total U.S. Department of Justice16,377 U.S. Department of Transportation Federal Aviation Administration20.106AIP 3-04-0058-019-2012551,307 * Passed through Governer's Office of Highway Safety- DUI Taskforce20.605DUI-10-030 / 2012-AL-019 / 2011 AL-02657,016 Minimum Penalties for Repeat Offenders for Driving While Intoxicated20.6082013-164-06934,153 Minimum Penalties for Repeat Offenders for Driving While Intoxicated20.6082013-164-0703,663 Total Minimum Penalties for Repeat Offenders for Driving While Intoxicated37,816 Highway Safety Cluster State and Community Highway Safety20.6002013-AI-0026,500 Highway Safety Plan (SPEED)20.6022009-PT-027 / 2012-PT-015 / 2013-PT-00123,079 Total Highway Safety Cluster29,579 Passed through Arizona Department of Transportation - Highway Planning and Construction 20.205TEA MRN-0(201)A 1,481 Total U.S. Department of Transportation677,199 U.S. Department of Treasury Secret Service21.unknownMOU1,307 Executive Office of the President, Office of National Drug Control Policy Passed through Pima County - High Intensity Drug Trafficking Program95.001HT17-06-171180,547 U.S. Department of Homeland Security Passed through Arizona Department of Emergency and Military Affairs Homeland Security Grant Program97.067444416-01, 444416-024,901 Homeland Security Grant Program97.067888425-01, 888425-02130,194 Homeland Security Grant Program97.067999431-0165,483 Total U.S. Department of Homeland Security200,578 Total Expenditures of Federal Awards $ 1,064,211 *-indicates major program See accompanying notes to the schedule TOWN OF MARANA, ARIZONA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 NOTE 1 BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards includes the federal 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 of OMB 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 2013 CFDA catalog. è TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2013 SECTION I – SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? ____ yes __X_ no Significant deficiency(ies) identified that are not considered to be a material weakness(es)? __ _ yes __X_ none reported Noncompliance material to financial statements noted? yes __X_ no Federal Awards Internal control over major programs: Material weakness(es) identified? ____ yes __X_ no Significant deficiency(ies) indentified that are not considered to be a material weakness(es)? __ _ yes __X_ none reported Type of auditors’ report issued on compliance for each major program listed below Unmodified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of OMB Circular A-133? ____ yes __X_ no Identification of major programs: CFDA Numbers Name of Federal Program or Cluster 20.106 Airport Improvement Program Dollar threshold used to distinguish between Type A and Type B programs: $300,000 Auditee qualified as low-risk auditee? __X_ yes _____ no TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2013 SECTION II – FINDINGS RELATED TO FINANCIAL STATEMENTS REPORTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS None Noted SECTION III – FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS None Noted SECTION IV – PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS There were no prior year findings. ïð