Loading...
HomeMy WebLinkAboutFin FY2009-10 Single Audit ReportCiTY of 6 Agenda Item No: Meeting Date: March 21, 2011 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Cindy Mosser Finance Director City Manager Approval: SUBJECT: FY 2009-2010 SINGLE AUDIT REPORT RECOMMENDATION: ACCEPT THE FY 2009-2010 SINGLE AUDIT REPORT BACKGROUND: As is required by both local code and State law, the City of San Rafael must complete an annual audit of its financial activities. The auditing firm of Maze and Associates, Accountancy Corporation conducted the audit for fiscal year 2009-2010. Their work was completed in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A-133, Audits of State and Local Government and Non -Profit Organizations. The Federal Government requires that any local agency receiving or expending $500,000 or more in combined federal grant funds, either directly or indirectly in a fiscal year, is subject to a separate audit on those programs and a separate Single Audit Report is issued. This threshold amount occurred in fiscal year 2009-2010; therefore, this separate audit report was required. ANALYSIS: As required under the Single Audit Act, a number of separate reports are contained within this document. Most of these reports comment on either compliance with Federal assistance regulations or recommendations regarding the City's accounting practices. With respect to compliance, the auditors have found no material instances of noncompliance with laws, regulations, contracts or grants applicable to our programs. There were no current findings or recommendations. FISCAL IMPACT: No fiscal impact occurs by having the Council accept the report. FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 OPTIONS: The City Council can choose to either: 1) Accept the Fiscal Year 2009-2010 Single Audit Report or 2) Reject the report. The Council is required under current law to accept the report and file it with numerous County, State and Federal agencies. Rejecting these reports would leave the City out of compliance with applicable laws. ACTION REQUIRED: Staff recommends Council accept the report as presented. Attachments: Single Audit Report W:\Management Services- WorkFile\Finance- WorkFile\Council Material\Staff Reports\2011\City\Audit report fy2009-10 Single Audit. doc CITY OF SAN RAFAEL SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2010 This Page Left Intentionally Blank CITY OF SAN RAFAEL SINGLE AUDIT REPORT For The Year Ended June 30, 2010 TABLE OF CONTENTS Page Schedule of Findings and Questioned Costs.............................................................................. l Section I - Summary of Auditor's Results........................................................................... l Section II — Financial Statement Findings........................................................................... 2 Section III — Federal Award Findings and Questioned Costs ............................................. 2 Section IV - Status of Prior Year Findings andQuestioned Costs.................................................................................................... 2 Schedule of Expenditures of Federal Awards............................................................................ 3 Notes to Schedule of Expenditures of Federal Awards............................................................. 5 Independent Auditor's 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 ......................................... 7 Independent Auditor's 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 ................................................. 9 This Page Left Intentionally Blank CITY OF SAN RAFAEL SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended June 30, 2010 SECTION I—SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified that are not None considered to be material weaknesses? Yes X Reported Noncompliance material to financial statements noted? Yes X No Federal Awards Type of auditor's report issued on compliance for major programs: Unqualified Internal control over major programs: • Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified that are not None considered to be material weaknesses? Yes X Reported Any audit findings disclosed that are required to be reported in accordance with section 510(a) of OMB Circular A-133? Yes X No Identification of major programs: CFDA#(s) Name of Federal Program or Cluster 20.205 U.S. Department of Transportation — Highway Planning and Construction Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? X Yes No 1 SECTION II — FINANCIAL STATEMENT FINDINGS Our audit did not disclose any significant deficiencies, or material weaknesses or instances of noncompliance material to the basic financial statements. We have also issued a separate Memorandum on Internal Control dated October 29, 2010, which is an integral part of our audits and should be read in conjunction with this report. SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Our audit did not disclose any findings or questioned costs required to be reported in accordance with section 510(a) of OMB Circular A-133. SECTION IV - STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS — Prepared by Management Financial Statement Prior Year Findings There were other matters reported in the prior year which we have communicated in a separate Memorandum on Internal Control dated October 30, 2009, which is an integral part of our audits and should be read in conjunction with this report. Federal Award Prior Year Findings and Questioned Costs There were no prior year Federal Award Findings and Questioned Costs reported. CITY OF SAN RAFAEL SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Fiscal Year Ended June 30, 2010 Office of Homeland Security, Pass -Through Programs State of California Department of Boating and Waterways Boating Safety Financial Assistance 97.012 09-204-773 25,000 Total Office of Homeland Security, Pass -Through Program 25,000 $2,230,865 Total Expenditures of Federal Awards See Accompanying Notes to Schedule of Expenditures of Federal Awards Federal Pass -Through Federal Grantor/ CFDA Identifying Federal Pass -Through Grantor/Program or Cluster Title Number Number Expenditures U,S. Department of Housing and Urban Development, Pass -Through Programs Community Development Block Grants Marin County Childcare 14.218 HUD -04527-01-10 $16,781 ADA / DOJ Compliance - Curb Ramps 14.228 HUD -04527-01-10 68,947 Total U.S, Department of Housing and Urban Development 85,728 U.S. Department of Health and Human Services, Pass -Through Programs State of California Department of Education Child Care and Development Block Grant 93.575 CIMS -9316 and CPRM-8070 8,141 Pass -Through Marin County Special Programs for the Aging Title III, Part B 93.044 10-204 20,000 Total U.S. Department of Health and Human Services 28,141 U.S. Department of Transportation, Pass -Through Programs State of California Department of Transportation Highway Planning and Construction 20.205 ARRA Street Resurfacing 2009 ESPL-5043(030) 1,188,000 Safe Routes to School - Sun Valley Elementary 04 -5034R -013-N 2,167 Francisco Boulevard East Improvements 04-50438-013-N 122,364 Puerto Suello Transit Center Connector 04 -5043R -017-N 46,517 Mahon Creek Path - Transit Center Connector 04 -5043R -016-N 16,141 Terra Linda North San Rafael Improvements 04 -5043R -015-N 178,235 Northgate Gap Closure 04 -5043R -014-N 188,144 Canal Street Pedestrian Access and Safety Improvements 04 -5043R -019-N 18 Subtotal Department of Transportation Pass -Through Programs 1,741,586 U.S. Department of Transportation, Direct Programs State and Community Highway Safety 20.600 Office of Traffic Safety - Click it or Ticket CT10 381 22,824 Office of Traffic Safety - DUI Mini Grant SC09 381 32,807 Office of Traffic Safety - Sobriety Checkpoint -mini grant SC10 381 17,708 Office of Traffic Safety - Avoid the Marin 13 AL0942 188,176 Office of Traffic Safety - DUI Enforcement and awareness program AL1006 31,498 Subtotal Department of Transportation Direct Programs 293,013 Total of Department of Transportation 2,034,599 U.S. Department of Justice, Direct Programs Edward Byrne Memorial JAG Program/Grants to Units of Local Government 16.804 ARRA - Bureau of Justice Assistance Grant - Citizen Police Academy 2009 -SB -B9-0330 33,493 Bureau of Justice Assistance Grant - Swat Trailer 2009 -DJ -BX -627 23,904 Total U.S. Department of Justice Direct Program 57,397 Office of Homeland Security, Pass -Through Programs State of California Department of Boating and Waterways Boating Safety Financial Assistance 97.012 09-204-773 25,000 Total Office of Homeland Security, Pass -Through Program 25,000 $2,230,865 Total Expenditures of Federal Awards See Accompanying Notes to Schedule of Expenditures of Federal Awards This Page Left Intentionally Blank CITY OF SAN RAFAEL NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended June 30, 2010 NOTE 1 -REPORTING ENTITY The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City of San Rafael, California and its component units as disclosed in the notes to the Basic Financial Statements, except for federal awards of the San Rafael Sanitation District (District). Federal awards expended by the District, if any, are excluded from the Schedule and are subject to a separate Single Audit performed by other auditors. NOTE 2 -BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds and agency funds are accounted for using the modified accrual basis of accounting. All proprietary funds are accounted for using the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. NOTE 3 -DIRECT AND INDIRECT (PASS-THROUGH) FEDERAL AWARDS Federal awards may be granted directly to the City by a federal granting agency or maybe granted to other government agencies which pass-through federal awards to the City. The Schedule includes both of these types of Federal award programs when they occur. This Page Left Intentionally Blank MAZE . ASSOCIATES .ACCOUNTANCY CORPORATION 3473 Buskirk Ave. m Suite 215 Pleasant dill, California 94523 (925) 930-0902 0 FAX (925) 930®0135 maze C mazeassociates.com WGVW,lvazeassociates, coal INDEPENDENT AUDITOR'S 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 Honorable Mayor and City Council of the City of San Rafael, California We have audited the financial statements of the City of San Rafael as of and for the year ended June 30, 2010, and have issued our report thereon dated October 29, 2010. We conducted our audit in accordance with generally accepted auditing standards 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. Internal Control over Financial Reporting In planning and performing our audit, we considered the City'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 City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency 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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City'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. A Professiop�ar Corporation Compliance and Other Matters As part of obtaining reasonable assurance about whether the City'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 and other matters that are required to be reported under Government Auditing Standards. We have also issued a separate Memorandum on Internal Control dated October 29, 2010, which is an integral part of our audits and should be read in conjunction with this report. This report is intended solely for the information and use of City 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. 4(A� V- 4 1 1)0,4 u:a,& October 29, 2010 MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 3478 Buskirk Ave. - Suite 215 Pleasant Hill, California 94523 (925) 930-0902 ° FAX (925) 930-0135 maze Omazeassociates. corn www.mazeassociates.com INDEPENDENT AUDITOR'S 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 Honorable Mayor and City Cowlcil of the City of San Rafael, California Compliance We have audited City of San Rafael'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 the City's major federal programs for the year ended June 30, 2010. The City'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 City's management. Our responsibility is to express an opinion on the City'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. 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 City'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 of the City's compliance with those requirements. In our opinion, the City 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. Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the 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 City's internal control over compliance. A Professional Corporation 9 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 internal control over compliance 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 compliance 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 City as of and for the year ended June 30, 2010, and have issued our report thereon dated October 29, 2010. Our audit was performed for the purpose of forming our opinions on the financial statements that collectively comprise the City's basic financial statements. 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 basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of management, City Council, 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. I 0(�e- i M-t;�M January 28, 2011 10