Loading...
HomeMy WebLinkAboutSingle Audit Report June 30, 2021 SINGLE AUDIT REPORTING PACKAGE Year Ended June 30, 2021 TOWN OF MARANA, ARIZONA SINGLE AUDIT REPORTING PACKAGE Year EndedJune 30, 2021 CONTENTSPage Independent AuditorsReport on Internal Control Over Financial Reporting and on Complianceand OtherMatters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards1 Independent AuditorsReport on Compliance for Each Major Program and on Internal Control Over Compliance Required bythe Uniform Guidance3 Schedule of Expenditures of Federal Awards Notes to the Schedule of Expenditures of Federal Awards8 Schedule of Findings and Questioned Costs9 Summary Schedule of Prior Audit Finding1 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 City 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 Standardsissued 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 endedJune 30, 2021, and the related notes to the financial statements, which collectively comprise theTown of Marana thereon datedJanuary 4, 2022. Internal Control over FinancialReporting In planning and performing our audit of the financial statements, we considered the Town of Maranaas a basis for designingaudit 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 do not express an opinion on the effectiveness of the Town of Marana control. Adeficiency ininternal controlexists whenthe 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 weaknessis a deficiency,or a combination of deficiencies, in internal control, such that there is a reasonable ements will not be prevented ordetected and corrected on a timely basis. A significant deficiencyis a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attentionby those charged with governance. Our consideration of internal control was forthe limited purpose describedinthe first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies, and therefore, material weaknesses or significant deficiencies may exist that havenot been identified. Compliance and Other Matters As part ofobtaining reasonable assurance about whether the Town of Marana financial statements are free from material misstatement, we performed tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on thefinancial statements. However, providing an opinion on compliance with those provisionswas not an objective of our audit, and accordingly,wedo 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. Purpose of thisReport The purpose of this report is solely to describe thescope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of rnalcontrol or oncompliance. Thisreport is an integral part of an audit performedin accordance with Government Auditing Standards internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Tempe,Arizona January 4, 2022 INDEPENDENT AUDITORSLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 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 requirements described in the OMB Compliance Supplementthat could have a direct and material effect on each of theTown of Marana endedJune 30, 2021. The Town ofMarana, Aisidentified in the costs. Management is responsible forcompliance with federal statutes,regulations and the terms and conditions of its federal awards applicable to its federal programs. AuditorsResponsibility Our responsibility is to express an opinion on compliance for the Town of Marana, major federal programbased 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 standardsapplicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Those standards and the Uniform Guidancerequire that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirementsreferred 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 Maranas compliance withthose 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 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 its major federal programfor the year ended June 30, 2021. Report on Internal Control Over Compliance Management oftheTown of Marana,Arizona, is responsible for establishing and maintaining effective internal control overcompliance with the typesof compliance requirementsreferred to above. In planning and performing our audit of compliance, we considered the Town of Marana, Arizonaththe types of requirements that could have a direct andmaterial effect on themajor federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for eachmajor federalprogram and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinionon the effectiveness of theTown of Marana, Arizona compliance. Adeficiency in internal control over complianceexists when the design or operation of a control over compliance doesnot 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 complianceisadeficiency, orcombination 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 beprevented, or detected and corrected, on a timely basis.Asignificant deficiency in internal control over complianceis a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federalprogram thatis 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 describedin the first paragraph of thissection 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. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control overcompliance and the results ofthat testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statementsof 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 yearendedJune 30, 2021, and the related notes to the financial statements, which collectively comprise the Town of Marana,Arizonacfinancial statements. We issued our report thereon datedJanuary 4, 2022,which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose offorming 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 the Uniform Guidanceand isnot 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.Theinformation 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 usedto prepare the basic financial statements orto thebasic 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 allmaterialrespects in relation to the basic financial statements as a whole. Tempe,Arizona January 4, 2022 TOWN OF MARANA, ARIZONA SCHEDULE OFEXPENDITURES OF FEDERAL AWARDS Year EndedJune 30, 2021 Assistance Federal Grantor / ListingGrantor's Pass-Through Grantor / Cluster / Program TitleNumberNumberExpenditures U.S. Department of Housing and Urban Development Passed through Pima County Community Development Block Entitlement Grant Cluster Community Development Block Grant 2019-202014.218CT.CD.20*215$ 15,272 Community Development Block Grant 2018-201914.218CT-CR-21-28837,786 Total Community Development Block Entitlement Grant Cluster53,058 Total U.S. Department of Housing and Urban Development53,058 U.S. Department of Justice Direct Grant Bulletproof Vest Partnership Program16.607JAG-06-1357,745 Law Enforcement Assistance_Narcotics and Dangerous Drugs_Laboratory Analysis16.001Resolution 2018-076 MOU15,645 Passed through City of Tucson Edward Byrne Memorial Justice Assistance Grant Program16.738DC-20-01386,645 Total U.S. Department of Justice110,035 Executive Office of the President, Office of National Drug Control Policy Passed through Pima County - High Intensity Drug Trafficking Program95.001HT-19-291532,726 High Intensity Drug Trafficking Program95.001HT-20-293079,100 High Intensity Drug Trafficking Program95.001HT-21-293033,505 Total Executive Office of the President, Office of National Drug Control Policy145,331 U.S. Department of Transportation Passed through Governor's Office of Highway Safety- Highway Safety Cluster Selective Traffic Enforcement (Step/Speed)20.6162020-PTS-030 15,156 Selective Traffic Enforcement (Step/Speed)20.6162021-PTS-033 21,766 DUI/Impaired Driving Enforcement20.6162020-II-003 7,537 DUI/Impaired Driving Enforcement20.6162021-II-003 30,527 Total Highway Safety Cluster 74,986 U.S. Department of Agriculture Passed through Arizona State Parks and Trails Cooperative Forestry Assistance10.664TREE-17-1051,621 Seeaccompanying notes to the schedule of expenditures of federal awards. TOWN OF MARANA, ARIZONA SCHEDULE OFEXPENDITURES OF FEDERAL AWARDS Year EndedJune 30, 2021 Assistance Federal Grantor / ListingGrantor's Pass-Through Grantor / Cluster / Program TitleNumberNumberExpenditures U.S. Department of Homeland Security Passed through Arizona Department of Emergency and Military Affairs Homeland Security Grant Program - Operation Stonegarden97.067190419-01367,286 Homeland Security Grant Program - Operation Stonegarden97.067190419-02 1,050 Total U.S. Department of Homeland Security 368,336 U.S. Department of Treasury Direct Grant COVID-19 - AZ Cares Fund21.019ERMT-20-0572,480,555* COVID-19 - State and Local Fiscal Recovery Fund21.027AZ-0032 *8,187,523 Total U.S. Department of Treasury10,668,078 Federal Aviation Administration Direct Grant COVID-19 FAA Cares Act Grant20.1063-04-0058-023-2020 38,780 U.S. Environmental Protection Agency Passed through the Water Infrastructure Finance Authority of Arizona Clean Water State Revolving Fund Cluster Capitalization Grants for Clean Water State Revolving Funds66.458910176-191,171,761* Drinking Water State Revolving Fund Cluster Capitalization Grants for Drinking Water State Revolving Funds66.4689202993-195,311,335* Total U.S. Environmental Protection Agency6,483,096 Total Expenditures of Federal Awards$ 17,943,321 *Denotes major program Seeaccompanying notes to the schedule of expenditures of federal awards. TOWN OF MARANA, ARIZONA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year EndedJune 30, 2021 NOTE 1BASIS OF PRESENTATION Theaccompanying Scheduleof Expenditures of Federal Awardsincludes the federal grant activity of the Town of Maranaunder programs of the federal government forthe year ended June 30, 2021.Theinformation in this schedule ispresented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor FederalAwards(Uniform Guidance). Because the Schedule presentsonly a selected portion of the operations of the Town of Marana, it is not intended to and does not present the financial position, changes in net position,or cash flows of the Town of Marana. NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A)Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types ofexpenditures are not allowable or are limited as toreimbursement. B)TheTown of Maranahas not elected to use the 10 percent de minimisindirect cost rate as allowed under the Uniform Guidance. TOWN OF MARANA,ARIZONA SCHEDULEOFFINDINGS AND QUESTIONED COSTS Year Ended June 30, 2021 SECTION I Financial Statements Unmodified Internal controlover financial reporting: Materialweakness(es) identified?__yes__X_no Significant deficiency(ies) identified that are not considered to be a material weakness(es)?__ _yes__X_nonereported Noncompliance material to financialstatements noted?yes__X_no Federal Awards Internal controlover 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_nonereported Typeofompliance for each major programlisted belowUnmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR section 200.516(a)?____yes__X_no Identificationofmajor programs: CFDA NumbersName of Federal Program or Cluster 21.027COVID-19 -Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan) 21.019COVID-19 -Coronavirus Aid, Relief, and Economic Security Act (CARES Act) 66.468Capitalization Grants for Drinking WaterState Revolving Funds 66.458Capitalization Grants for CleanWaterState Revolving Funds Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditeequalified as low-risk auditee?___yes__X__no TOWN OF MARANA,ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year EndedJune 30, 2021 SECTION II FINDINGSRELATED TO FINANCIAL STATEMENTS REPORTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS None Noted SECTIONIII FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS None Noted