HomeMy WebLinkAboutSingle Audit Report June 30, 2002 •
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• TOWN OF MARANA
Marana, Arizona
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SINGLE AUDIT REPORTS
• June 30, 2002
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• TABLE OF CONTENTS
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• 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
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• Clifton
• Gunderson LLP
• Certified Public Accountants&Consultants
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• 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, 2002, and have issued our report thereon dated
December 6, 2002. 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.
• 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
• 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 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.
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• LL /
• Tucson, Arizona
December 6, 2002
• Member o,
HLB International
• Offices in 13 states and Washington,DC
•
• Clifton
• Gunderson LLP
• Certified Public Accountants&Consultants
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• 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, 2002. 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 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, 2002.
• 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.
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• Member o,
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• Offices in 13 states and Washington,DC HLB International
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• 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, 2002, and have issued our report thereon dated December 6,
• 2002. 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.
LLA
•
Tucson, Arizona
O December 6, 2002
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• TOWN OF MARANA, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2002
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• 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-128426-1000 $ 184,538
• 1999 14.218 #01-39-M-127073-0100 10,152
HOME Program 14.239 #01-30-M-125573-0199 74,312
• Subtotal 269,002
U.S. DEPARTMENT OF JUSTICE
• Passed-through the Arizona Criminal
. Justice Commission and the City of
Tucson, Arizona:
• Mantis 16.579 0266-90 43,021
HIDTA X 16.544 #01-11-0-127264-1099 56,861
• Subtotal 99,882
• U.S. DEPARTMENT OF TRANSPORTATION
Airport Improvement Program 20.106 AIP 3-04-0058-07 388,948*
• U.S. DEPARTMENT OF EDUCATION
• Passed-through the Arizona Governor's
Office - Gang and Drug Prevention -
• GITEM 84.186 97-077-DPS 164,912*
• TOTAL $ 922,744
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• * Major program
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This schedule should be read only in connection with
• the accompanying note to the schedule.
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• TOWN OF MARANA,ARIZONA
• NOTE TO SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS
• June 30, 2002
• 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.
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• This information is an integral part of the accompanying schedule.
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• TOWN OF MARANA, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
• Year Ended June 30,2002
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• 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:
GITEM 84.186
• Airport Improvement Program 20.106
• 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, 2002.
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• QUESTIONED COSTS
S There were no questioned costs noted during the audit for the year ended June 30, 2002.
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• TOWN OF MARANA,ARIZONA
• SCHEDULE OF STATUS OF PRIOR FINDINGS
Year Ended June 30, 2002
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• None.
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