HomeMy WebLinkAboutSingle Audit Report June 30, 2010
SINGLE AUDIT REPORTING PACKAGE
Year Ended June 30, 2010
TOWN OF MARANA, ARIZONA
SINGLE AUDIT REPORTING PACKAGE
YEAR ENDED June 30, 2010
CONTENTS Page
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 with Requirements Applicable
That Could Have a Direct and Material Effect on Each Major Program
and on Internal Control over Compliance in Accordance with OMB
Circular A-133 3
Schedule of Expenditures of Federal Awards 6
Schedule of Findings and Questioned Costs 8
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 Council
Town of Marana, Arizona
We have audited 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 (the “Town”), as of and for the year
ended June 30, 2010, which collectively comprise the Town’s basic financial
statements and have issued our report thereon dated December 21, 2010. 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
inGovernment Auditing Standards, issued by the Comptroller General of the United
States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Town’s internal control over
financial reporting as a basis for designing our auditing procedures 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’s internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of
the Town’s internal control over financial reporting.
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.
Our consideration of internal control over financial reporting 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 financial reporting that might be
deficiencies, significant deficiencies, or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
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The Honorable Mayor and Council
Town of Marana, Arizona
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town’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.
This report is intended solely for the information and use of management, Town
Council, others within the entity, 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.
Casa Grande, Arizona
December 21, 2010
2
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS
THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
The Honorable Mayor and Council
Town of Marana, Arizona
Compliance
We have audited the Town of Marana (the “Town”), 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 its major federal
programs for the year ended June 30, 2010. The Town’s major federal programs are
identified in the summary of auditor’s results section of the accompanying schedule
of findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts and grants applicable to each of its major federal programs is
the responsibility of the Town’s management. Our responsibility is to express an
opinion on the Town’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-133 require that we plan and perform the audit to obtain reasonable assur-
ance 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’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 on the Town’s compliance with those requirements.
In our opinion, the Town of Marana, Arizona, complied, in all material respects, with
the 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, 2010.
ZZZKHQU\DQGKRUQHFRP
The Honorable Mayor and Council
Page2
Internal Control Over Compliance
Management of the Town of Marana, Arizona is responsible for establishing and
maintaining effective internal control over compliance with requirements of laws,
regulations, contracts and grants applicable to federal programs. In planning and
performing our audit, we considered the Town’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 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’s internal control over
compliance.
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.
Our consideration of the internal control over compliance was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all
deficiencies in internal control that might be deficiencies, significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses, as defined above.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund
information of the Town, as of and for the year ended June 30, 2010, and have
issued our report thereon dated December 21, 2010, which contained unqualified
opinions on hose financial statements. Our audit was performed for the purpose of
forming our opinions on the financial statements as a whole. The schedule of
expenditures of federal awards is presented for purposes of additional analysis as
required by U.S. Office of Management and Budget Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations, and is not a required part of the
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 financial statements or to the
financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the
financial statements as a whole.
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The Honorable Mayor and Council
Page 3
This report is intended solely for the information and use of the Town Council, others
within the entity, 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.
Casa Grande, Arizona
December 21, 2010
5
TOWN OF MARANA, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
Federal Grantor / CFDAGrantor's
Pass-Through Grantor / Program TitleNumberNumberExpenditures
U.S. Department of Agriculture
Cooperative Forestry Assistance10.664CCG-08-006$ 2,070
U.S. Department of Housing and Urban Development
Passed through Pima County -
Community Development Block Grant 2006-200714.21801-70-M-138937-100612,041
Community Development Block Grant 2007-200814.21801-70-M-140542-100722,470
Community Development Block Grant 2008-200914.21801-70-M-141622-100824,974
Community Development Block Grant 2009-201014.21801-70-M-141622-100938,722
Total U.S. Department of Housing and Urban Development98,207
U.S. Department of Interior
Direct Grant -
Undocumented Immigrant Clean Up15.239L09AC154538,958
U.S. Department of Justice
Direct Grant -
Bulletproof Vests16.607JAG-06-1355,987
Passed through Drug Enforcement Administration -
DEA Task ForceUNKNOWN2009-15518,697
Total U.S. Department of Justice 24,684
U.S. Department of Transportation
Passed through City of Tucson-
Job Access Reverse Commute20.516AZ-37-X009-00141,417
Passed through Governor's Office of Highway Safety-
DUI Taskforce20.605DUI-10-03058,400
Highway Safety Plan (SPEED)20.6022009-PT-0276,419
Highway Safety Plan (SPEED)20.6022010-PT-06831,054
Click-it or Ticket20.6042009-NG-0223,285
Passed through Arizona Department of Transportation -
Highway Planning and Construction20.205SS58903D2,232,133 *
Total U.S. Department of Transportation2,472,708
Executive Office of the President, Office of National Drug Control Policy
Passed through Pima County -
High Intensity Drug Trafficking Program95.001HT17-06-171195,982
U.S. Department of Homeland Security
Passed through Arizona Department of Emergency and Military Affairs
Homeland Security Grant Program97.067444416-01, 444416-0296,868
TUASI Regional Planning Cooperative97.06722,395
Total U.S. Department of Homeland Security119,263
Total Expenditures of Federal Awards2,821,872$
*Denotes major program
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TOWN OF MARANA, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
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 2010 CFDA catalog.
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TOWN OF MARANA, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2010
Summary of Auditors’ Results
1. The auditor’s report expresses an unqualified opinion on the financial
statements of Town of Marana.
2. No significant deficiencies relating to the audit of the financial statements are
reported.
3. No instances of noncompliance material to the financial statements of the
Town of Marana were disclosed during the audit.
4. No significant deficiencies relating to the audit of the major federal award
programs are reported.
5. The auditor’s report on compliance for U.S. Department of Transportation
Highway Planning and Construction grant expresses an unqualified opinion.
6. The audit disclosed no findings that are required to be reported in accordance
with Section 510(a) of OMB Circular A-133.
7. The program tested as a major program includes U.S. Department of
Transportation Highway Planning and Construction grant (CFDA 20.205).
8. The threshold used for distinguishing between Type A and B programs was
$300,000.
9. Town of Marana qualified as a low-risk auditee.
10. There were no prior year findings.
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