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Home My WebLink AboutFY2014-15 Single Audit ReportCITY OF SAN RAFAEL SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 309 2015 This Page Left Intentionally Blank CITY OF SAN RAFAEL SINGLE AUDIT REPORT For The Year Ended June 30,2015 TABLE OF CONTENTS Schedule of Findings and Questioned Costs .............................................................................. 1 Section I - Summary of Auditor's Results ........................................................................... I Section Id — Financial Statement Findings ........................................................................... 2 Section 111 — Federal Award Findings and Questioned Costs ............................................. 2 Section IV - Status of Prior Year Findings andQuestioned Costs .................................................................................................... 2 Schedule of Expenditures of Federal Awards ............................................................................ 4 Notes to Schedule of Expenditures of Federal Awards ............................................................. 7 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 ....................... 9 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- 13 3 ...........11 This Page Left Intentionally Blank CITY OF SAN RAFAEL SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended June 30, 2015 SECTION I —SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: Internal control over financial reporting: 0 Material weakness(es) identified? 0 Significant deficiency(ies) identified? Noncompliance material to financial statements noted? Type of auditor's report issued on compliance for major programs: Internal control over major programs: 0 Material weakness(es) identified? 0 Significant deficiency(ies) identified? Any audit findings disclosed that are required to be reported in accordance with section 5 1 0(a) of OMB Circular A- 13 3 ? Identification of major programs: Unmodified Yes X No None X Yes Reported Yes X No Unmodified Yes X No None Yes X Reported Yes X No CFDA#(s) Name of Federal Program or Cluster 20.205 Highway Planning and Construction 20.600 State and Community Highway Safety 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 disclosed significant deficiencies, but no material weaknesses or instances of noncompliance material to the basic financial statements. We have also issued a separate Memorandum on Internal Control dated September 30, 2015 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 1V -STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS Financial Statement Prior Year Findings There were no prior year Financial Statement Findings reported. Federal Award Prior Year Findings and Questioned Costs There were no prior year Federal Award Findings and Questioned Costs reported. 2 This Page Left Intentionally Blank CITY OF SAN RAFAEL SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 309 2015 Federal Grantor/ Pass -Through Grantor/Program or Cluster Title Federal CFDA Number U.S. Department of Housing and Urban Development, Pass -Through Program Pass -Through County of Marin, California Community Development Block Grants/ Entitlement Grants Childcare 14.218 ADA / DOJ Compliance - Curb Ramps 14.218 ADA / DOJ Compliance - Curb Ramps 14.218 Total U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services, Pass -Through Program 11 Pass -Through State of California Health and Human Services Agency Medical Assistance Program Department of Health Care Services - Ground Emergency Medical Transportation Pass -Through County of Marin, California Special Programs for the Aging Title III, Part B - Grants for Supportive Services and Senior Centers Substance Abuse and Mental Health Services Projects of Regional and National Significance Strategic Prevention Framework State Incentive Grant - Alcohol Compliance Team Total U.S. Department of Health and Human Services U.S. Department of Transportation, Pass -Through Programs Pass -Through State of California Department of Transportation Highway Planning and Construction Francisco Boulevard East Improvements Puerto Suello Transit Center Connector SR Downtown Integrated Transit Center Study SR Downtown Parking and Wayfinding Study Safe Routes to School - Davidson School FY13 Subtotal for Highway Planning and Construction Metropolitan Transportation Planning and State and Non -Metropolitan Planning and Research Del Presidio Blvd. - Pt. San Pedro Resurfacing State and Community Highway Safety 2nd Street at Grand Ave Intersection Modification Pass -Through California Office of Traffic Safety State and Community Highway Safety Selective Traffic Enforcement Program FY2014 Selective Traffic Enforcement Program FY2015 Subtotal for State and Community Highway Safety Pass -Through California Office of Traffic Safety Minimum Penalties for Repeat Offenders for Driving While Intoxicated Sobriety Checkpoint Grant FY13-14 Avoid Grant FY13-14 Avoid Grant FY14-15 Sub -total for Minimum Penalties for Repeat Offenders for Driving While Intoxicated Total U.S. Department of Transportation 93.778 93.044 93.243 Pass -Through Identifying Number HUD-04527-01-14 HUD-04536-01-08 HUD-04536-01-13 Federal Expenditures $16,200 2105642 54,826 281,668 SFY 2013/14 77,055 10-204 8,332 2117 82,664 168,051 20.205 04-5043R-013 N 24,936 20.205 04-5043R 017-N 332,084 20.205 RSTPL-6406(014) 472135 20.205 RSTPL-6406(014) 12,967 20.205 SRTSL 5043 (034) 348,210 r 765,332 20.505 STPL-5043 (035) 43,565 20.600 HISPL-5043 (037) 512633 20.600 20.600 20.608 20.608 20.608 PT1499 127033 PT1585 133,089 196,755 SC14381 222496 AL1456 67,599 AL1505 1135,474 203,569 1,209,221 (Continued) M CITY OF SAN RAFAEL SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Federal Pass -Through Federal Grantor/ CFDA Identifying Federal Pass -Through Grantor/Program or Cluster Title Number Number Expenditures U.S. Department of Justice, Direct Programs Edward Byrne Memorial Justice Assistance Grant (JAG) Program Gang Enforcement Grant 2011 16.738 112799 Bulletproof Vest Partnership (BVP) Grant Program PD Vest Grant 2014 16.607 3,894 Total U.S. Department of Justice 153,693 U.S. Department of Homeland Security, Pass -Through Programs Pass -Through County of Marin, California Homeland Security Grant Program Mann County CERT 2013 97.067 2013-001110 24,144 Marin County CERT 2014 97.067 2014-00093 182175 Mobile ALPR 97.067 2014-00093 382640 Total U.S. Department of Homeland Security 802959 National Endowment for the Humanities, Pass -Through Programs Museums for America Pass -Through California State Library EnvisionZing a New Library 45.310 40-8435 15,805 Total Federal Expenditures $1,7712397 61 This Page Left Intentionally Blank CITY OF SAN RAFAEL NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended June 30, 2015 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 this entity, 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. V This Page Leff Intentionally Blank UJA M A 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 To the Honorable Members of the 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, 2015, and the related notes to the financial statements, and have issued our report thereon dated September 30, 2015. Our report included an emphasis of a matter paragraph disclosing the implementation of new accounting principles and prior period adjustments. 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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. We identified certain deficiencies in internal control, we consider to be significant deficiencies as listed on the Schedule of Significant Deficiencies included as part of our separately issued Memorandum on Internal Control dated September 30, 2015 which is an integral part of our audits and should be read in conjunction with this report. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 9 r 925.930.0902 F 925.930.0135 Emaze@mazeassociates.com w mazeassociates.com 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. City's response to the findings identified in our audit are described in our separately issued Memorandum on Internal Control dated September 30, 2015 which is an integral part of our audits and should be read in conjunction with this report. City's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. 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. o Pleasant Hill, California September 30, 2015 10 U/A M ACATE 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 To the Honorable Members of the 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, 2015. 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-13 3, 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, 2015. r 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 Emaze@mazeassociates.com Pleasant Hill, CA 94523 11 w mazeassociates.com 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 ma j or 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-13 3, 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, 2015, and have issued our report thereon dated September 30, 2015, 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. Pleasant Hill, California September 30, 2015 12