HomeMy WebLinkAbout1998-01-13; City Council; 14518 Exhibit 3; FEDERAL ASSET FORFEITURE AUDIT REPORT JUNE 30, 1997e
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CITY OF CARLSBAD
Federal Asset Forfeiture Audit Report
e Year Ended June 30,1997
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CITY OF CARLSBAD
Federal Asset Forfeiture Audit Report
Year Ended June 30,1997
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TABLE OF CONTENTS
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Independent Auditors' Report
Financial Statement:
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Notes to Schedule
Schedule of Federal Asset Forfeiture Funds Received and Expended
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Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
a Status of Prior Audit Findings
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CERTIFIED PUBLIC ACCOUP
11 00 MAIN STREE
IRVINE, CALIFORI
(71 4)
CONRAD
%ASSOCIATES, A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATlONS L.L.R
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The Honorable Members of City Council City of Carlsbad, California
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INDEPENDENT AUDITORS’ REPORT
We have audited the schedule of federal asset forfeiture funds received and expended by the ( of Carlsbad, California for the year ended June 30, 1997. This financial statement is responsibility of the City of Carlsbad’s management. Our responsibility is to express an opir on this financial statement based on OUT audit.
We conducted our audit in accordance with generally accepted auditing standards Government Auditing Standards, issued by the Comptroller General of the United States. Th standards require that we plan and perform the audit to obtain reasonable assurance at: whether the financial statement is free of material misstatement. An audit includes examin
on a test basis, evidence supporting the amounts and disclosures in the financial statement. audit also includes assessing the accounting principles used and significant estimates made management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinion.
In our opinion, the aforementioned schedule presents fairly, in all material respects, the fed asset forfeiture funds received and expended by the City of Carlsbad, California for the y ended June 30, 1997 in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued OUT report da October 3, 1997 on our consideration of the City of Carlsbad’s internal control over federal a: forfeiture financial reporting and our tests of its compliance with certain provisions of la regulations, contracts and grants.
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October 3, 1997
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECT ION
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CITY OF CARLSBAD
Schedule of Federal Asset Forfeiture Funds Received and Expended
Year Ended June 30,1997
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Department Department e
of Justice of Treasury - Toti
Revenues: Fines and forfeits $136,238 - 136,: Interest 42,834 - 42.1
Total revenues 179,072 - 179,(
Salaries 138,877 - 138,t Repairs and maintenance 162,489 - 162:
Total expenditures 458,155 - 458,l
- (279,O
Operating transfers out (9,237) m
Total other financing sources (uses) (9,237) m
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Expenditures:
e Equipment purchases 156,789 - 156,7
Excess (deficiency) of revenues over (under) expenditures (279,083) 0
Other financing sources (uses): -
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Excess (deficiency) of revenues and other financing sources over (under) expenditures and other
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financing uses (2 8 8,3 20) - (288,3
Fund balance at beginning of year 930,325 - 930,3
Residual equity transfer in 4,122 - 4,l
Fund balance at end of year $646,127 - 646,l
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See accompanying notes to financial statement.
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CITY OF CARLSBAD Asset Forfeiture Fund
Notes to Schedule
Year Ended June 30,1997
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(1) Summarv of Significant Accounting Policies
The following is a summary of the significant accounting policies of the Federal A Forfeiture Fund of the City of Carlsbad.
(a) Fund Accounting; 0
All transactions of the Federal Asset Forfeiture Fund are included in the repor entity of the City of Carlsbad (City) and are recorded in a separate fund of City. A fund is defined as an independent fiscal and accounting entity with a : balancing set of accounts recording resources, related liabilities, obligati reserves and equities segregated for the purpose of carrying out specific activ or attaining certain objectives in accordance with special regulations, restrict or limitations.
(b) Basis of Accounting
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The modified accrual basis of accounting is utilized by the Federal A, Forfeiture Special Revenue Fund. Special revenue funds are used to account revenues derived from specific sources (other than major capital projects) that restricted by law or administrative regulation to expenditures for spec purposes. Revenues are recognized when they are measurable and available expenditures are recorded when the related liability is incurred.
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(c) Scope of Reporting
The accompanying schedule includes only the asset forfeiture funds received the City of Carlsbad from the U.S. Departments of Justice and Treasury w2 have been reported on the Federal Annual Certification Report filed by the CiQ Carlsbad. Excluded from the schedule are asset forfeiture activities for w2 there was no federal participation.
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(d) Interest Revenue
The federal asset forfeiture funds were pooled with various other City funds deposit and investment purposes. The share of each fund in the pooled c account was separately maintained and interest income was apportioned to participating funds based on the relationship of their average monthly balance: the total of the pooled cash and investments.
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CITY OF CAFUSBAD
Asset Forfeiture Fund
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(Continued)
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(2) Program Information
The U.S. Attorney's ofice and the Department of Treasury have issued guide involving the sharing of federally forfeited property with state and local law enforce] agencies.
The primary purpose of the Forfeiture Programs is to deter crime by depriving crim of the profits and proceeds of their illegal activities and to weaken criminal enterprisc removing the instruments of crime. Any state or local law enforcement agency directly participates in an investigation or prosecution that results in a federal forfe may request an equitable share of the net proceeds of the forfeiture.
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CERTIFIED PUBLIC ACCOUN
0 %ASSOCIATES, A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS L.L.R (71 4)
11 00 MAIN STREET
IRVINE, CALIFORh
CONRAD
The Honorable Members of City Council City of Carlsbad, California
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
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We have audited the schedule of federal asset forfeiture funds received and expended by the of Carlsbad, California, for the year ended June 30, 1997, and have issued our report the dated October 3, 1997. We conducted our audit in accordance with generally accepted audi standards and the standards applicable to financial audits contained in Government Audi Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City of Carlsbad’s schedul federal asset forfeiture funds received and expended is free of material misstatement,
performed tests of its compliance with certain provisions of laws, regulations, contracts grants, noncompliance with which could have a direct and material effect on the determinatio financial statement amounts. However, providing an opinion on compliance with tl provisions was not an objective of our audit and, accordingly, we do not express such an opin The results of our tests disclosed no instances of noncompliance that are required to be repo under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Carlsbad’s internal control ( federal asset forfeiture financial reporting in order to determine our auditing procedures for purpose of expressing our opinion on the financial statement and not to provide assurance on internal control over financial reporting. Our consideration of the internal control over finar reporting would not necessarily disclose all matters in the internal control over finar reporting that might be material weaknesses. A material weakness is a condition in which design or operation of one or more of the internal control components does not reduce relatively low level the risk that misstatements in amounts that would be material in relatio the financial statement being audited may occur and not be detected within a timely perioc employees in the normal course of performing their assigned functions. We noted no mal involving the internal control over financial reporting and its operation that we consider tc material weaknesses.
This report is intended for the information of management and federal awarding agencies pass-through entities. However, this report is a matter of public record and its distribution is limited .
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October 3, 1997
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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CITY OF CAIUSBAD
Status of Prior Audit Findings
Year Ended June 30,1997
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0 The program specific audit report for the City of Carlsbad federal asset forfeiture funds fo: year ended June 30, 1996 did not disclose any internal control or compliance findings.
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