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Home My WebLink AboutFY2012-13 Single Audit ReportCITY OF SAN RAFAEL SINGLE AUDIT REPORT FOR THE YEAR ENDED JUKE 309 2013 This Page Left Intentionally Blank CITY OF SAN RAFAEL SINGLE AUDIT REPORT For The Year Ended June 30, 2013 TABLE OF CONTENTS Page Schedule of Findings and Questioned Costs.............................................................................. 1 Section I - Summary of Auditor's Results........................................................................... 1 Section II — Financial Statement Findings........................................................................... 2 Section III — Federal Award Findings and Questioned Costs ............................................. 2 Section IV - Status of Prior Year Findings and Questioned Costs.................................................................................................... 2 Schedule of Expenditures of Federal Awards............................................................................ 3 Notes to the 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 for Each Major Federal Program; Report on Internal Control Over Compliance; and Report On The Schedule of Expenditures of Federal Awards Required By 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, 2013 SECTION I —SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: • Material weakness(es) identified? Yes X No None • Significant deficiency(ies) identified? 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: Unmodified Internal control over major programs: • Material weakness(es) identified? Yes X No None • Significant deficiency(ies) identified? 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 (Federal - Aid Highway Program) 81.128 ARRA — U.S Department of Energy — Energy Efficiency and Conservation Block Grant Program (EECBG) 97.044 U.S Department of Homeland Security - Assistance to Firefighters Grant 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 fmancial statements. We have also issued a separate Memorandum on Internal Control dated October 18, 2013 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 fmdings 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 We have included the current status of the prior year fmdings in our Memorandum of Internal Control dated October 18, 2013 which is an integral part of our audit 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. 2 CITY OF SAN RAFAEL SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Fiscal Year Ended June 30, 2013 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 Pass -Through County of Marin, California Community Development Block Grants/ Entitlement Grants 14.218 Child Care HUD-04527-01-12 $10,000 ADA / DOJ Compliance - Curb Ramps HUD-04536-01-12 435,873 Total U.S. Department of Housing and Urban Development - Pass -Through Programs 445,873 U.S. Department of Health and Human Services, Pass -Through Programs Pass -Through County ofMarin, California Special Programs for the Aging Title I1I, Part B - Grants for Supportive Services and Senior Centers 93.044 10-204 14,999 Block Grants for Prevention and Treatment of Substance Abuse 93.959 ADP-AD-532-10-11 35,433 Total U.S. Department of Health and Human Services - Pass -Through Programs 50,432 U.S. Department of Transportation, Pass -Through Programs Pass -Through State of California Department of Transportation Highway Planning and Construction 20.205 Puerto Suello Transit Center Connector 04-5043R-017 N 6,814 Mahon Creek Path Transit Ctr. Connector 04-5043R-016 N 64,420 Citywide Street Resurfacing 2012 STPL 5043 (033) 1,019,000 Safe Routes to School - Davidson School FY 13 SRTSL 5043 (034) 25,745 Total for Highway Planning and Construction - Pass -Through Programs 1,115,979 Pass -Through California Office of Traffic Safety State and Community Highway Safety 20.600 Selective Traffic Enforcement Program PT 20042 59,275 Selective Traffic Enforcement Program FY2013 PT 1305 24,979 Avoid Grant FY13 AL1308 107,534 Total for State and Community Highway Safety - Pass -Through Programs 191,788 Pass -Through California Office of Traffic Safety Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 Sobriety Checkpoint Grant FY12-13 SC13381 8,557 Avoid Grant 20525 46,025 Selective Traffic Enforcement Program FY2013 PT 1305 32,255 Total for Minimum Penalties for Repeat Offenders for Driving While Intoxicated - Pass -Through Programs 86,837 Total U.S. Department of Transportation 1,394,604 U.S. Department of Justice, Direct Programs JAG Program Cluster ARRA - Edward Byrne Memorial Justice Assistance Grant (JAG) Program/ Grants to Units of Local Government 16.804 Citizen Police Academy 41,597 Edward Byrne Memorial Justice Assistance Grant Program 16.738 Gang Enforcement Grant 29,155 Community Connection Grant 1,548 Total for JAG Program Cluster - Direct Programs 72,300 Bulletproof Vest Partnership (BVP) Grant Program 16.607 PD Vest Grant 2011 1,983 PD Vest Grant 2012 2,377 PD Vest Grant 2013 3,069 Total for Bulletproof Vest Partnership (BVP) Grant Program - Direct Programs 7,429 Total U.S. Department of Justice 79,729 (Continued) 3 CITY OF SAN RAFAEL SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Fiscal Year Ended June 30, 2013 Federal Federal Grantor/ CFDA Pass -Through Grantor/Program or Cluster Title Number U.S Department of Homeland Security, Direct Program Assistance to Firefighters Grant 97.044 Self Contained Breathing Apparatus (SCBA) Replacement U.S Department of Homeland Security, Pass -Through Programs Pass -Through State of California Department of Boating and Waterways Boating Safety Financial Assistance 97.012 Police Quick Boat Purchase Contract Pass -Through County of Marin, California Homeland Security Grant Program 97.067 Marin County CERT 2011 Marin County CERT 2012 Total for Homeland Security Grant Program - Pass -Through Programs Pass -Through City and County of San Francisco Department of Emergency Management Regional Catastrophic Preparedness Grant Program (RCPGP) 97.111 GR5 Bay Area Total U.S. Department of Homeland Security, Pass -Through Programs Total Office of Homeland Security U.S. Department of Energy, Direct Program ARRA Energy Efficiency and Conservation Block Grant 81.128 Total U.S. Department of Energy - Direct Programs National Endowment for the Humanities, Pass -Through Programs Museums for America Pass -Through California State Library Middle School Lounge 45.310 Total Expenditures of Federal Awards See Accompanying Notes to Schedule of Expenditures of Federal Awards Pass -Through Identifying Federal Number Expenditures 329,316 09-204-751 64,973 2011-SS-0077 12,555 2012-SS-0123 5,022 17,577 2010CA-TO-0002 96,914 179,464 508,780 410,948 410,948 40-8145 4,530 $2,894,896 51 CITY OF SAN RAFAEL NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended June 30, 2013 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 may be 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 FIA, MAZE & ASSOCIATES 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 A UDITING STANDARDS Honorable Mayor and City Council City of San Rafael, California 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 Standards issued by the Comptroller General of the United States, the basic financial statements of the City of San Rafael, as of and for the year ended June 30, 2013, and the related notes to the financial statements, and have issued our report thereon dated October 18, 2013. Our report included an emphasis of a matter paragraph disclosing the implementation of new accounting principles. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City's internal control over financial reporting (internal control) to determine the 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 City's internal control. Accordingly, we do not express an opinion on the effectiveness of City's internal control. 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 a 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. A significant deficiency is 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 may exist that have not been identified. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 T 925.930.0902 F 925.930.0135 e maze@mazeassociates.com w mazeassociates.com 7 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from 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 or other matters that are required to be reported under Government Auditing Standards. We have also issued our Memorandum on Internal Control dated October 18, 2013 which is an integral part of our audit and should be read in conjunction with this report. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Pleasant Hill, California October 18, 2013 8 U/ MAZE ,, &ASSOCIATES INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133 Honorable Mayor and City Council City of San Rafael, California Report on Compliance for Each Major Federal Program 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, 2013. 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. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal programs based 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 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 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 on compliance for each major federal program. However, our audit does not provide a legal determination of the City's compliance. Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the 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, 2013. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 r 925.930.0902 F 925.930.0135 e maze@mazeassociates.com w mazeassociates.com E Report on Internal Control Over Compliance Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program 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 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. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is 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 described in the first paragraph of this section 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 over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the basic financial statements of the City as of and for the year ended June 30, 2013, and have issued our report thereon which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements 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 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 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 financial statements or to the 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 financial statements as a whole. G 2 & 6 &AwU6 Pleasant Hill, California September 13, 2013 10