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HomeMy WebLinkAboutSingle Audit Report June 30, 2000 • • • • • • • • • • TOWN OF MARANA Marana,Arizona • SINGLE AUDIT REPORTS • June 30,2000 • • • • • • • • • • • • • r • • • • • • • • • • • • TABLE OF CONTENTS •• • • • PAGE • INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING • BASED ON AN AUDIT OF GENERAL-PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH • GOVERNMENT AUDITING STANDARDS 1 • INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM, INTERNAL CONTROL OVER COMPLIANCE,AND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE • WITH OMB CIRCULAR A-133 2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 4 NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 5 • SCHEDULE OF FINDINGS AND QUESTIONED COSTS 6 SCHEDULE OF STATUS OF PRIOR FINDINGS 7 • • • • • • • • • • • • Clifton Gunderson L.L.C. Certified Public Accountants&Consultants • INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING • BASED ON AN AUDIT OF GENERAL-PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS • • Honorable Mayor and Town Council Town of Marana, Arizona • Marana, Arizona • We have audited the general-purpose financial statements of the Town of Marana, Arizona (the Town) as of and for the year ended June 30, 2000, and have issued our report thereon dated • December 15, 2000. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing • Standards, issued by the Comptroller General of the United States. • Compliance As part of obtaining reasonable assurance about whether the Town's general-purpose financial • statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, 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 that are required to be reported under Government Auditing Standards. • Internal Control Over Financial Reporting In planning and performing our audit, we considered the Town's internal control over financial ID reporting in order to determine our auditing procedures for the purpose of expressing our opinion • on the financial statements and not to provide assurance 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 over financial reporting that might be a material weaknesses. A material weakness is a 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 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. We noted no matters involving the • internal control over financial reporting and its operation that we consider to be a material weaknesses. • 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. • } u�, L•G.C. • Tucson, Arizona December 15, 2000 • Member of HLB International 1 AMERICAN INSTITUTE • OF CERTIFIED PUBLIC ARIZONA COLORADO ILLINOIS INDIANA IOWA MARYLAND MISSOURI OHIO TEXAS VIRGINIA WISCONSIN ACCOUNTANTS • • • Clifton Gunderson z.z.c. • Certified Public Accountants&Consultants • • INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM, • INTERNAL CONTROL OVER COMPLIANCE,AND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS • IN ACCORDANCE WITH OMB CIRCULAR A-133 • Honorable Mayor and Town Council Town of Marana, Arizona • Marana, Arizona • Compliance We have audited the compliance of the Town of Marana, Arizona (the Town) with the types of • compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs • for the year ended June 30, 2000. 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 generally accepted auditing standards; 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'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 requirements referred to above that are applicable to each of its major federal programs for the • year ended June 30, 2000. • Internal Control Over.Compliance The 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. • • • 'clamber Of • 2 HLB International AMERICAN INSTITUTE • OF CERTIFIED PUBLIC ARIZONA COLORADO ILLINOIS INDIANA IOWA MARYLAND MISSOURI OHIO TEXAS VIRGINIA WISCONSIN ACCOUNTANTS • Honorable Mayor and Town Council • Town of Marana, Arizona • Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be a material weakness. A material weakness is a • 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 of • laws, regulations, contracts and grants 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 internal control over compliance and its operation that we consider to be a material weakness. • Schedule of Expenditures of Federal Awards • We have audited the general-purpose financial statements of the Town of Marana, Arizona as of and for the year ended June 30, 2000, and have issued our report thereon dated December 15, • 2000. Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements taken as a whole. 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 general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and, in our opinion, is fairly stated in all material respects, in relation to the general- • purpose 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 these specified parties. • }C/cv e.WeA.oe-.... Z.L.C. • !/ • Tucson, Arizona December 15, 2000 • • • • • • • • • • 3 • • • • TOWN OF MARANA, ARIZONA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS • Year Ended June 30, 2000 • Federal Federal Grantor/Pass-Through CFDA Pass-Through • Grantor/Program Title Number Grantor's Number Expenditures U.S. DEPARTMENT OF HOUSING • AND URBAN DEVELOPMENT Passed-through Pima County, Arizona: • Comm. Dev. Block Grant - Small Cities Program: • 2000 14.218 #01-39-M-127073-0100 $ 10,043 1998 14.218 #01-39-M-125341-1198 49,961 HOME Program 14.239 #01-30-M-125573-0199 218,088 Subtotal 278,092 • U.S. DEPARTMENT OF JUSTICE Passed-through the Arizona Criminal Justice Commission and the City of • Tucson, Arizona: Mantis 16.579 0266-90 55,063 HIDTA IX 16.544 #01-11-0-127264-1099 50,918 COPS 16.710 95CFWX0929 162,009 Subtotal 267,990 • U.S. DEPARTMENT OF EDUCATION Passed-through the Arizona Governor's • Office - Gang and Drug Prevention - GITEM 84.186 97-183-DPS 157,818 • TOTAL $ 703,900 • • • • • • • • • • • This schedule should be read only in connection with the accompanying note to the schedule. • 4 • • • TOWN OF MARANA, ARIZONA NOTE TO SCHEDULE OF EXPENDITURES • OF FEDERAL AWARDS • June 30, 2000 • NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES • Basis of Accounting The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of • accounting. • • • • • • • • • • • • • • • • • • • • • This information is an integral part of the accompanying schedule. • 5 • • • • TOWN OF MARANA, ARIZONA • SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2000 • • SUMMARY OF AUDITOR'S RESULTS • 1. The auditor's report expresses an unqualified opinion on the general-purpose financial statements of the Town of Marana, Arizona. • 2. No instances of noncompliance material to the general-purpose financial statements of the • Town of Marana, Arizona were disclosed during the audit. 3. The auditor's report on compliance for the major federal awards programs for the Town of • Marana, Arizona expresses an unqualified opinion. • 4. No findings relative to major federal award programs for the Town of Marana, Arizona were noted. • 5. The following programs were tested as a major program: • HOME Program 14.239 • 6. The threshold for distinguishing Type A and B programs was $300,000. • 7. The Town of Marana, Arizona was determined to be a low-risk auditee. • FINDINGS AND QUESTIONED COSTS—MAJOR FEDERAL AWARD PROGRAMS • No findings were noted during the audit for the year ended June 30, 2000. • • • • • • • • • • • • • • 6 110 • • • TOWN OF MARANA, ARIZONA SCHEDULE OF STATUS OF PRIOR FINDINGS • Year Ended June 30, 2000 • • FINDING 98-01 — SEGREGATION OF DUTIES • Corrective action has been taken. • • • • • • • • • • • • • • • • • • • • • • • • 7 •