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HomeMy WebLinkAboutSingle Audit Report June 30, 2022 S June30,2022 TOWN OF MARANA, ARIZONA SINGLE AUDIT REPORTING PACKAGE Year EndedJune 30, 2022 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 by the Uniform Guidance3 Schedule of Expenditures of Federal Awards 7 NotestotheSchedule of Expenditures ofFederal Awards Schedule of Findings and Questioned Costs Summary Schedule ofPrior AuditFinding REPORTING AND ON COMPLIANCE AND OTHERMATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITINGSTANDARDS To the Honorable Mayor and City Council TownofMarana, Arizona We haveaudited,inaccordancewiththeauditingstandardsgenerallyacceptedin theUnited Statesof Americaandthestandardsapplicableto financialauditscontainedinGovernment AuditingStandardsissuedbytheComptrollerGeneralof theUnitedStates,thefinancial statements of the governmental activities, the business-type activities, each major fund, and the aggregateremainingfundinformationof the Townof Marana,Arizona,asofand for the year endedJune30,2022,andtherelatednotesto thefinancialstatements,whichcollectively comprise the Town of Marana, Arizonaave issued our report thereon dated. Report on Internal Control over FinancialReporting In planning and performing our audit of the financial statements, we considered the Town of Marana, Arizonaernal control over financial reporting (internal control) as a basis for designing 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 theTown of Marana, Arizona do not express an opinion on the effectiveness of theTown of Marana, Arizona control. Adeficiency in internal controlexists when the design or operation of a control does not allow management or employees, in thenormal 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 possibilinted, or detected 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 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 or significant deficiencies may exist that were not identified. Report onCompliance and Other Matters As partof obtainingreasonableassuranceaboutwhethertheTownof Marana,Arizona financialstatementsarefreefrom materialmisstatement,we performedtestsof itscompliance withcertainprovisionsof laws,regulations,contracts,and grantagreements,noncompliance withwhichcouldhavea directandmaterialeffecton thefinancialstatements.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 Thepurposeof thisreportissolelyto describethescopeof ourtestingof internalcontroland compliance and the results of that testing, and not to provide an opinion on the effectiveness of ntegralpartof an audit performedinaccordancewithGovernmentAuditingStandards internalcontrolandcompliance.Accordingly,this communicationisnotsuitablefor anyother purpose. Tempe,Arizona 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 Opinion on Each Major Federal Program We have audited the Town of Marana identified as subject to audit in the OMB Compliance Supplementthatcould have a direct and material effect on each of the Town of Marana June 30, 2022. The Town of Maranagrams are identified in the summary of In our opinion, the Town of Maranacomplied, in all material respects, withthe 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, 2022. Basis for Opinion on Each Major Federal Program 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 inGovernment 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). Our responsibilities under those standards and the Uniform Guidance are report. We are required to be independent of the Town of Maranaand to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the Town of Maranaith the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Town of Marana ities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Town of Maranae based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud mayinvolve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Town of Marana the requirements of each major federal program as a whole. Inperforming an audit in accordance with generallyaccepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Town of Marana compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the Town of Maranainternal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not forthepurpose of expressing an opinion on the effectiveness of the Town of Marana such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on 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 theirassignedfunctions,to prevent,or detectandcorrect,noncompliancewitha typeof compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliancerequirementof a federalprogram willnotbe prevented,or detectedand corrected,ona timelybasis.Asignificantdeficiencyin internalcontrolovercomplianceisa deficiency,or a combinationof deficiencies,ininternalcontrolovercompliancewitha typeof compliancerequirementof a federalprogramthatislessseverethana materialweaknessin internal control over compliance, yet important enough to merit attention by those charged with governance. Our considerationof internalcontrolovercompliancewas forthelimitedpurposedescribedin ibilitiesfor the AuditofCompliancesectionabove andwasnot designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be materialweaknesses,asdefinedabove.However,materialweaknessesorsignificant deficiencies in internal control over compliance may exist that were not identified. Ourauditwas not designedforthe purposeofexpressinganopiniononthe effectivenessof internal control over compliance. Accordingly, nosuch opinion isexpressed. Report onSchedule of Expenditures of Federal AwardsRequired by the Uniform Guidance We haveauditedthefinancialstatementsof thegovernmentalactivities,thebusiness-type activities,eachmajor fund,andtheaggregateremainingfundinformationof theTownof Marana,asof andfor theyearendedJune30,2022,andtherelatednotesto thefinancial statements, which collectively comprise the Town of Marana issued our report thereon dated, which contained unmodified opinions on those financial statements. Our audit was performed 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 the Uniform Guidance 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Tempe,Arizona . deral awards nditures of fe hedule of expe c TURES OF FEDERAL AWARDS , ARIZONA ying notes to the s June 30, 2022 compan c a CHEDULE OF EXPENDIear Ended TOWN OF MARANASYSee . deral awards nditures of fe FEDERAL AWARDS hedule of expe c , ARIZONA XPENDITURES OF E ying notes to the s June 30, 2022 compan DULE OF c E a ear Ended TOWN OF MARANASCHYSee TOWN OF MARANA,ARIZONA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year EndedJune 30, 2022 NOTE1BASIS 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, 2022.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 theTown 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 notelected to usethe 10 percent de minimisindirect cost rate as allowed under the Uniform Guidance. TOWN OF MARANA,ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year EndedJune 30, 2022 SECTION I Financial Statements Type of auditorsUnmodified 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) 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(Continued) Year EndedJune 30,2022 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