HomeMy WebLinkAbout1999-01-05; City Council; 14999 Exhibit 2; SINGLE AUDIT REPORT ON FEDERAL AWARD PROGRAMS JUNE 30, 19980
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CITY OF CAFUSBAD Carlsbad, California
Single Audit Report on 0 Federal Award Programs
Year ended June 30,1998
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CITY OF CARLSBAD
Single Audit Report on Federal Award Programs
Year ended June 30,1998 e
I, TABLE OF CONTENTS
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Report on Compliance arid on Internal Control over Financial e Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Report on Compliance with Requirements Applicable to Each Major Program, Internal Control over Compliance and on the Schedule of Federal Awards in Accordance with OMB @ Circular A- 133 1
Schedule of Federal Awards 4
Notes to Schedule of Federal Awards 4
e Schedule of Findings and Questioned Costs e
Summary Schedule of Prior Audit Findings 7
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CERTIFIED PUBLIC ACCOUf
11 00 MAIN STREE IRVINE, CALlFORl
(949) Fax (949)
CONRAD
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
-TES, L.L.p
e The Honorable Members of City Council City of Carlsbad
Carlsbad, California
0 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORM IN ACCORDANCE WITH GOVERh!MENT AUDITING STANDARDS
0 We have audited the financial statements of the City of Carlsbad (City) as of and for the ended June 30, 1998, and have issued our report thereon dated September 25, 1998 conducted our audit in accordance with generally accepted auditing standards and the stanr applicable to financial audits contained in Government Auditing Standards, issued b!
Comptroller General of the United States.
0 Compliance
As part of obtaining reasonable assurance about whether the City’s financial statements arc of material misstatement, we performed tests of its compliance with certain provisions of regulations, contracts and grants, noncompliance with which could have a direct and ma effect on the determination of financial statement amounts. However, providing an opinic compliance with those pjrovisions was not an objective of our audit and, accordingly, we d express such an opinion. The results of our tests disclosed no instances of noncompliance th; required to be reported under Government Auditing Standards.
Internal Control Over Firiancial Reporting
In planning and performing our audit, we considered the City’s internal control over fina reporting in order to determine our auditing procedures for the purpose of expressing our op on the financial statements and not to provide assurance on the internal control over fina
reporting. Our consideration of the internal control over financial reporting would necessarily disclose all matters in the internal control over financial reporting that migl material weaknesses. A material weakness is a condition in which the design or operation o or more of the internal control components does not reduce to a relatively low level the rid misstatements in amounts that would be material in relation to the financial statements 1 audited may occur and not be detected within a timely period by employees in the normal cc of performing their assigned functions. We noted no matters involving the internal control financial reporting and ils operation that we consider to be material weaknesses. Howeve noted other matters involving internal control over financial reporting that we have report management of the City in a separate letter dated September 25, 1998.
This report is intended for the infomation of the City’s management and federal awa agencies and pass-through entities. However, this report is a matter of public record ar
distribution is not limited.
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September 25, 1998
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MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
e MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
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CERTIFIED PUBLIC ACCOUh
11 00 MAIN STREE
IRVINE, CALIFORF
(949)
Fax (949)
CONRAD
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
%-rES, L.L.R
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The Honorable Members of City Council
City of Carlsbad Carlsbad, California
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EAC MAJOR PROGRAM, INTERNAL CONTROL OVER COMPLIANCE AND ON THE SCHEDULIE OF FEDERAL AWARDS IN ACCORDANCE WITH OMB
CIRCULAR A-133 e
Compliance
We have audited the coinpliance of the City of Carlsbad (City) with the types of compl requirements described in the U S. OfJice of Management and Budget (OMB) Circular 1 Compliance Supplement that are applicable to each of its major federal programs for the ended June 30, 1998. ‘The City’s major federal programs are identified in the summa auditor’s results sectiori of the accompanying schedule of findings and questioned ( Compliance with the requirements of laws, regulations, contracts and grants applicable to ea its major federal programs is the responsibility of the City’s management. Our responsibil to express an opinion on the City’s compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing stand the standards applicable to financial audits contained in Government Auditing Standards, i: by the Comptroller General of the United States; and OMB Circular A-133, Audits of S
Local Governments, and Non-Profit Organizations. Those standards and OMB Circular P require that we plan and perform the audit to obtain reasonable assurance about wh noncompliance with the types of compliance requirements referred to above that could h; direct and material effect on a major federal program occurred. An audit includes examinin a test basis, evidence about the City’s compliance with those requirements and performing other procedures as we considered necessary in the circumstances. We believe that our provides a reasonable basis for our opinion. Our audit does not provide a legal determinatic the City’s compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referrt
above that are applicable to each of its major federal programs for the year ended June 30, 1 However, we noted certain immaterial instances of noncompliance that we have reporte management of the City in a separate letter dated September 25, 1998.
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e Internal Control Over Compliance
The management of the City is responsible for establishing and maintaining effective int control over compliance with requirements of laws, regulations, contracts and grants applic to federal programs. In planning and performing our audit, we considered the City’s int control over compliance with requirements that could have a direct and material effect on a r federal program in order to determine our auditing procedures for the purpose of expressin: opinion on compliance and to test and report on internal control over compliance in accorc with OMB Circular A-133.
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAV INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
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The Honorable Members of City Council City of Carlsbad Page Two 0
Our consideration of the internal control over compliance would not necessarily disclo, matters in the internal control that might be material weaknesses. A material weaknes: condition in which the design or operation of one or more of the internal control compo does not reduce to a relatively low level the risk that noncompliance with appli
requirements of laws, regulations, contracts and grants that would be material in relatior major federal program being audited may occur and not be detected within a timely peric employees in the normal course of performing their assigned functions. We noted no m involving the internal control over compliance and its operation that we consider to be mi
Schedule of Federal Awe&
We have audited the financial statements of the City as of and for the year ended June 30, and have issued our report thereon dated September 25, 1998. Our audit was performed fc purpose of forming an opinion on the financial statements taken as a whole. The accompar schedule of federal awards is presented for purposes of additional analysis as required by ( Circular A-133 and is not a required part of the financial statements. Such information has subjected to the auditing. procedures applied in the audit of the financial statements and, i. opinion, is fairly stated, in all material respects, in relation to the financial statements taker whole.
This report is intended for the information of the City’s management and federal awa agencies and pass-through entities. However, this report is a matter of public record ar
distribution is not limited.
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September 25, 1998
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CITY OF CARLSBAD
Schedule of Federal Awards
Year ended June 30, 1998
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Catalog of Federal Federal Grantor/ Domestic Program Federal Federal 1 Pass-through Grantclr/ Assistance Identification Awards Awards PI Program Title Number Number Received Expenditures &I
U.S. Department of Housing and Urban Development:
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Direct Assistance: Section 8 Housing Certificate Program 14.857 CA16E077006/016 $2,249,918 2,080,109*
Section 8 Housing Voucher Program 14.855 CA16V00700/006 628,894 552,896*
Community Development Block Grant 14.21 8 B93MC060563 392,148 751,225* 41
Subtotal 3,270,960 3,384,230 4
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U.S. Department of Health and Human Services: Pass-through the County of San Diego: Senior Nutrition Prograrn 93.045 34111 62,168 74,899 - e
U.S. Department of Agriculture: Pass-through the County of San Diego:
Senior Nutrition Program 10.558 34111 24,281 24,281 -
U.S. Department of Education: Pass-through the California State e Library:
Library Services 84.034 40-4300 5,000 -
U.S. Department of Justice: Direct Assistance:
Law Enforcement Block Grant 16.592 96-LB-VX-2303 85,027 46,534 Police Asset Forfeiture 16-XXX 73,992 413,898 -
Subtotal 159,019 460,432 - e
U.S. Department of Interior-National Fish and Wildlife Foundation: Pass-through the San Diego Association of Governments (SANDAG): 0 Habitat Management Plan 15.608 14-16-0001-91 546 899 -
U.S. Department of Transportation: Pass-through the California Department of Transportation: Interrnodal Surface Transportation Efficiency Act - Bike Lanes 20.205 11-1 19914 145,479 79,475 -
Federal Emergency Management Agency: e
Direct Assistance: Harmony Grove Disaster Assistance 83.516 073-1 1194 229,097 20,246 Winter Storms - 1998 83.516 073- 1 1 194 13,144 -
Subtotal 229,097 33,390 -
$3,891,004 4,062,606 41: - e Total federal financial awards
* Major program
See accompanying notes to schedule of federal awards.
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CITY OF CARLSBAD
Notes to the Schedule of Federal Awards
Year ended June 30,1998
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(1) Summary of Sigrnificant Accounting Policies Applicable to the Schedule of Fc Awards
(a) Scope of Presentation
0 The accompanying schedule presents only the expenditures incurred (and rt awards received) by the City of Carlsbad (City) that are reimbursable programs of federal agencies providing financial assistance. For the purposes o schedule, financial assistance includes both federal financial assistance rec directly from a federal agency, as well as federal funds received indirectly b City from a non-federal agency or other organization. Only the portion of pro expenditures reimbursable with such federal funds are reported in the accompai schedule. Program expenditures in excess of the maximum federal reimburse authorized or the portion of the program expenditures that were funded with local or other non-federal funds are excluded from the accompanying schedule.
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(b) Basis of Accounting a
The expend; tures included in the accompanying schedule were reported 01 modified accrual basis of accounting. Under the modified accrual bas accounting, expenditures are incurred when the City becomes obligated for pay as a result of the receipt of the related goods and services. Expenditures rep included any property or equipment acquisitions incurred under the federal prog a
(c) Cash Receipts
Cash receipts reported in the accompanying schedule include the total amou awards actually received from the funding agency on a cash basis during the year reported on, which is July 1, 1997 through June 30, 1998. 0
(d) Subrecipients
During the fiscal year ended June 30, 1998, the City disbursed $412,543 c Community Development Block Grant to various subrecipients to be used fo allowable expenditures as provided in this grant agreement. e
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CITY OF CARLSBAD
Schedule of Findings and Questioned Costs
Year ended June 30,1998
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/A) Summarv of Auditors’ Results
1. An unqualified report was issued by the auditors on the financial statements c auditee.
There were no material weaknesses in internal control over financial reportin; were there any reportable conditions, based upon our audit of the fins statements of the auditee.
The audit disclosed no noncompliance which is material to the financial stater of the auditee.
There were rio material weaknesses or other reportable conditions in internal co over major programs of the auditee.
An unqualified report was issued by the auditors on compliance for major progra
The audit disclosed no audit findings required by the auditors to be reported L paragraph .5 lO(a) of OMB Circular A-133.
The major lirograms of the auditee were CFDA No. 14.857 and 14.855 Department of Housing and Urban Development - Section 8 Housing Certificatt Voucher programs; and CFDA No. 14.21 8 Community Development Block Gra
The dollar threshold used to distinguish Type A and Type B programs was $300,
The auditee was not considered to be a low risk auditee for the year ended Junt 1998.
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[B) Findings Related to the Financial Statements which are Required to be Reporte Accordance with GAGAS
There were no auditors’ findings required to be reported in accordance with GAGAS.
Findings and Questioned Costs for Federal Awards as Defined in Paragraph .510(i OMB Circular A-133
There were no auditors’ findings required to be reported in accordance with parag .51O(a) of OMB Circular A-133.
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CITY OF CARLSBAD
Summary Schedule of Prior Audit Findings
Year ended June 30,1998 @
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No prior year audit findiiigs.
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