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Home My WebLink About4.03 Federal Grant Audit I .-.-~_. - e Y 20- 30 . ' CITY OF DUBLIN AGENDA STATEMENT MEETING DATE: MAY 8, 1989 SUBJECT : June 30, 198~'"AUDIT OF FEDERAL GRANT FUNDS EXHIBITS ATTACHED :Letter from State Controller RECOMMENDATION :Receive, accept and file letter (report prepared by Phillip S. lVloliha) FINANCIAL STATEMENT:No direct financial affect. DESCRIPTION :The City is required to submit a single audit report to the State' Controller's office for the Federal Grants and Federal Pass' Through grants received. The single audit requirements are more strict than the standard audit requirements in that they include compliance requirements of the granting source and a review of the City's internal control procedures. The City's auditor prepared the single audit report based upon i.nformation provided by various City departments. The single audit report included the programs funded by Federal Aid to Urban Areas from the Department of Transportation and the Community Development Block Entitlement from the Department of Housing and Urban Development. The State Controller's Office determined that the Ci~y's single audit report was acceptable and the review by the State resulted in "no findings", which is tantamount to a clean report. To place this in perspective, the State is expecting 502 single audi-t reports for the reporting period. Presently only 125 reports are in the caliber of receiving a "no findings" response from the State. 1~ e - GRAY DAVIS Cllnntroll.er of tly2 ~ of Cllalifnntia P. O. BOX 942850 SACRAMENTO, CA 94250-0001 April 13, 1989 Honorable Members of the city council City of Dublin 6500 Dublin Boulevard Post Office BOX 2340 DUblin, California 94568 Dear Council Members: SUBJECT: FISCAL YEAR 1987-88 SINGLE AUDIT REPORT CERTIFICATION AND AUDIT FINDING RESOLUTION RECEIVED APR 18 198J CITY .OF DUBLIN We have completed a desk review of your single audit report for the 1987-88 fiscal year. A copy of the audit report is enclosed for your reference. We have found that the report generally meets the requirements of the United States Office of Management and Budget's (OMB) Circular A-128. OMB Circular A-128 prescribes the audit and reporting standards for state and local governments which receive federal financial assistance. OMB Circular A-128 requires that the federal and state funding agencies resolve any audit findings cited in the report which may affect federal financial assistance programs. We have identified those findings which require resolution in attachments A and B to this letter. The findings are referenced by enclosure and page numbers. Attachment A lists findings which are to be resolved by state agencies. Under OMB policies, the state is responsible for resolving findings which affect federal programs administered by state agencies. Please coordinate each audit finding listed with the responsible state agency. The State Controller's Office (SCO) is the responsible state agency for cross-cutting findings. A cross-cutting finding is one which affects the programs of more than one agency. You will be contacted by our office at a later date regarding those findings. .-- -,~ -.' -.- . ,e -2- Attachment B lists findings which affect programs directly administered by federal agencies, they are to be resolved by the federal agencies indicated. You may be contacted by these agencies for resolution of these findings. Your audit report may also contain general internal accounting control findings and management report comments which were not referenced in attachments A and B. These findings do not appear to affect federal financial assistance programs; therefore, we have not identified them for resolution action. However, you should ensure that these findings are addressed in your audit report for fiscal year 1988-89. Your audit '. satisfies all financial and compliance audit requirements under individual federal assistance programs. However, state and federal agencies may make any additional audits which are necessary to carry out their responsibilities under federal laws and regulations. You may be contacted by state and federal agencies to arrange for additional audits. If you have any questions regarding the information provided with this letter and its attachments, please contact my audit staff at (916) 324-6442. Sincerely, .~ l:<.. ~~ Gerald A. Long, Chief Single Audit Branch Division of Audits GAL/vv Attachments Enclosures . e DATE: 04/13/89 ATTACHMENT A AUDIT REPORT FINDINGS - STATE AGENCIES City of Dublin FEDERAL AGENCY NAME PROGRAM NAME CATALOG PAGE EN -------------------- ---------------------------------------- ------- ------ NO FINDINGS NOTED .. - tit DATE: 04/13/89 ATTACHMENT B AUDIT REPORT FINDINGS - FEDERAL AGENCIES City of Dublin FEDERAL AGENCY NAME PROGRAM NAME CATALOG PAGE EN -------------------- ---------------------------------------- ------- ------ NO FINDINGS NOTED ~'-,~.:: ......", - F ~J; ~ J} ~ [........ , . ~ i f" f~ .." ~., 5'~;;; III". ~ ." ;1 t r~ L L n L r~ L u.~... \~ :'~ 11 l4 f,: :'"."' " i.': '. . i~ l!r1 ~.'."~ iL'1 g ": r &..c r' b r: L w.; L r~ ~1 ] b CITY OF DUBLIN SINGLE AUDIT REPORT YEAR ENDED JUNE 30, 1988 e tHee? .'.,.." If; ~,,::; ~i.1J e CITY OF DUBLIN e !J f;i'" ,~ : ~~ SINGLE AUDIT REPORT YEAR ENDED JUNE 30. 1988 F 'iJ~ , .1 r. o.; :; TABLE OF CONTENTS ~'" t. ':' ....,~ Page l"'- f b:....; Auditors Report on Schedule of Federal Financial Assistance 1 Schedule of Federal Financial Assistance 2 !....' ~ t . L,. Auditors Report on Accounting and Administrative Internal Controls Used in Administering Federal Financial Assistance Programs 3 ~...~ t '; L Auditors Report on Compliance with Laws and Regulations that may have a Material Effect on the Financial Statements 5 ~';; t~ :~ L. Auditors Report on Compliance with Laws and Regulations Related to Major and Nonmajor Federal Assistance Programs 6 If"', r L Auditors Report on Internal Accounting Controls Based Solely on a Study and Evaluation made as a Part of the Audit of the General Purpose F.inancial Statements 7 u U"', " " r" I i t. . L r:: L~ ,.~.~ L a -.', ! ' ~ . ld r" L r &.. fl t:~ b 'Jf ~~" ~ MAZE & . . ."f' ASSOCIATES e ~'; ..~ .', 1:," ~ J ~ 11 AUDITOR'S REPORT ON SCHEDULE OF FEDERAL ASSISTANCE ACCOUNTANCY CORPORA nON Creekside Oaks 1470 Maria Lane - Suite 200 Walnut Creek, California 94596 (415) 930-0902 · (916) 972-7333 f I~ f1f7 t liP Q ': tL To the City Council City of Dublin, California ri I . L;: We have examined the general purpose financial statements of the City of Dublin, California, for the year ended June 30, 1988, and have issued our report thereon dated November 23, 1988. Our examination was made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in the Standards for Audit of Governmental Or~anizations. Pro~rams. Activities. and Functions issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of O.M.B. Circular A-128, Audits of State and Local Governments, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. r-; 1 . ~. . .~ I" I , L;: r--' I ' I'" L~) [-,'3, ".I .~ Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Assistance is presented for the purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. .- (? ~: '.'~ u Ir Ii [',",. i', if .i ... ~/#~ l'J",: H . i.i; November 23, 1988 ;:'1 \1' i;:, ~,,: i:'j ~'i i:r-~ ~ fr~ t.... [:~ .' tk: -1- A Professional Corporation L.. e e '. F" ) , \ -. ., N N .. N N ~ ... ... ... :I N N ... .., , ..... '" '" ~ .. 0'0 00 00 ~: ... c: "" .. ~-.~ ~ III l'.'~' I N 0 N tl N 0 N I.i~J .... ... 0 .... CO N' ",' ~ .., 0 '" N ... 1-1 00 ~ 00 If.", ,~ ~'-:.- ~ ~ '0 0 0 .. .. 0 0 ... e 0 0 II ... 0 ",- lit'" .. .. U '" :I ... c: N N :1' c: ....... ~ .. Q ~ t.) > .. .. I>: .... II.D .... ... ; .., CO a- a- ~,,~ 9':: a- a- ... ",' ~ eo 0 .. ~. 0 u u ~ ~ L ... u .. N N "" : .... .... ,..., 00 '0 ... ... 00 .. ... .... L a- .c: > .,; .,; ... .,... co .. ... .... III U u '" '" U.o .. ~... I>: [ 1-1 III .,,:z; .....::> ."...., :z;'" .... .....<Q a- ....l III .... a- IQ~Q CO .; ::> :z; .., Q III 0 .,., ~ lo:: 1-1 \0 :! lo.Q ~ ...; 01<1 l&o III >< >< VI l-llo. .., I .....0 ~ c: N U .. ... 1<1 U e CO ... I r ....l ." .. II .. ::>..... ... >< > .:, Ql&o .., 0 1<1 ... ... ;.., tl::1< '" r U .... I I. _ ... .. " 0 I< 0 00 ....... .. 0 ... I .. ".D ""'. N '0 .., 9 .. " 0 ~ l&oU:Z; N ... 1._':" .., c: .. .. e c: r. " c... ? 0 e I ... .. ..... L, > .., ..... Q .., c: C:I: t! ... ... U .. ~ .., 0 c: .., ::> 0 u ... ...; 0 r.: .... c: e..;,J 1-1 .., ... "... '0 III " CO .., I<a- c: .. .. .., " t.!>~ " ~ VI c: ... .., N ... f' " 0 ... ..,.... ..Ii VI ... 0.0 ':0 c: e II t.!> III 0. ..... ... 0. < ~. . c: ., S. VI 0 (f, 1l " c: ..::c :I.... .... i::.. ... " >. 0 .. " CO 1-1 ... 0 .. tI:: > ... 1-1 I< u .. .. '" ... c... "'Q '0 u 0 ., S..., 0 .. p. c: ., ..... 0 ;.., lo. .. .., " ... .. .., ~ .. c:::c...."" c: ... ... < .. " .. c: " .~~ S c: ..,:, e ~ .., ... .., " ...< .., 0 0 ....D 0.1<. ... 1-1 .., " ... " " 0 .: c.::> U C.U r:' " .. .. ... Q Q ~ . t.!> (/ .;"",: - ^1 < AZE & . e ASSOCIATES 'e "'-...... . " ~ ! L, ("",'''' ! ~ L ACCOUNTANCY CORPORA nON Creekside Oaks 1470 Maria Lane - Suite 200 Walnut Creek, California 94596 (415) 930-0902 · (916) 972-7333 AUDITOR'S REPORT ON INTERNAL CONTROLS (Accounting and Administrative) - Used in Administering Kajor and Nonmajor Financial Assistance Programs f'"': 1 : L. j"' I L. f -., I L To the City Council City of Dublin, California r', I:..;.' We have examined the general purpose financial statements of the City of Dublin, California for the year ended June 30, 1988, and have issued our report thereon dated November 23, 1988. As part of our examination, we made a study and evaluation of the internal control systems, including applicable internal administrative controls, used in administering federal financial assistance programs to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations. Programs, Activities, and Functions, issued by the U.S. General Accounting Group, the Single Audit Act of 1984, and the provisions of O.M.B. Circular A-128, Audits of State and Local Governments. For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering federal financial assistance programs in the following categories: . f:'1 L ~,',;: 1<.> ["'" '; " -;;j J~ li 1:",' j'; , . ',.}; i'. <;" " f .,~ Accounting Controls Treasury or financing Revenue and receipts Purchases and disbursements External financial reporting Federal assistance program management I~ Administration Controls f'" i.-:' General Requirements Political activity Davis-Bacon Act Civil Rights Cash management Relocation assistance and real property acquisition Federal financial re~orts ,- ~ , 'L... [' l..: ~.: ~ l ; ie., Specific Requirements Types of services Eligibili ty Matching level of effort Reporting Cost allocation Monitoring subrecipients r: L /I": iJ "j ~i ...... -3- A Professional Corporation r'~ , ;..., e e AUDITOR'S REPORT ON INTERNAL CONTROLS (Continued) f"~- I ' L:' r-' ~ L The management of the City of Dublin is responsible for establishing and maintaining internal control systems used in administering federal financial assistance programs. In fulfilling that responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in administering federal financial assistance programs are to provide management with reasonable, but not absolute, assurance that with respect to federal financial assistance programs, resource use is consistent with laws, regulations, and policies; resources are safeguarded against waste, loss, and misuse; and' reliable data are obtained, maintained, and fairly disclosed in reports. t-' I ~ t.. f' . 1 ~ t '.' r'-. I L Because of inherent limitations in any system of internal accounting and administrative controls used in administering federal financial assistance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. !F; ~ L i".' ". . \ ' ~ Our study included all of the applicable control categories listed in the first paragraph. During the year ended June 30, 1988, The City of Dublin expended 100% of its total fe~eral financial assistance under the following major federal financial assistance program: E'. "1 ' ,j~ U. , ,-~ Federal Department of Transportation - Urban Mass Transportation Capital Improvement Grant {' With respect to internal control systems used in administering this major federal financial assistance program our study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors or irregularities, determining whether the necessary procedures are prescribed and are being followed satisfactorily, and evaluating any weaknesses. t, ~. . l ~';' ; ~ } Our study and evaluation was more limited than would be necessary to express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Dublin. Accordingly, we do not express an opinion on the internal control systems used in administering the major federal financial assistance programs of the City of Dublin. [...... ';, ~ ' r L However, our study and evaluation and our examination disclosed no condition that we believe to be a material weakness in relation to a federal financial assistance program of the City of Dublin. ~f' !. . ~ ':t r.,e> it L,; This report is intended solely for the use of management and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Dublin, is a matter of public record. ~/A'~ ~ " :i .: ~ ' fl ~u November 23, 1988 -4- ~ i ; , ' lVJAZE & . e ASSOCIATES e r- r~ ! i i.:.. ACCOUNTANCY CORPORA TlON Creekside Oaks 1470 Maria Lane - Suite 200 Walnut Creek, California 94596 (415) 930-0902 · (916) 972-7333 ".". l. L n I I.. AUDITOR'S REPORT ON COMPLIANCE VITH FEDERAL lAWS AND REGULATIONS THAT MAY HAVE A MATERIAL EFFECT ON THE FINANCIAL STATEMENTS r i , I l._ # To the City Council City of Dublin, California C' I: l,," We have examined the general purpose financial statements of the City of Dublin, California, for the year ended June 30, 1988, and have issued our report thereon dated November 23, 1988. Our examination was made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations. Programs. Activities. and Functions issued by the U.S. ,General Accounting Office; the Single Audit Act of 1984; and the provisions of O.M.B. Circular A-l28 Audits of State and Local Governments, and accordingly included such tests of the accounting records and such other auditing procedures as considered necessary in the circumstances. f'" u, r" ~ " i-.~ [~,', .~ J 1"' l.~~ The management of the City of Dublin is responsible ,for the City's compliance with laws and regulations. In connection with our examination referred to above, we selected and tested transactions and records to determine the City's compliance with laws and regulations noncompliance with which could have a material effect on the general purpose financial statements of the City. rl L~, ["~, .. r':' ,J The results of our tests indicate that for the items tested the City of Dublin complied with those provisions of laws and regulations noncompliance with which could have a material effect on the general purpose financial statements. Nothing came to our attention that caused us to believe that for the items not tested the City of Dublin was not in compliance with laws or regulations noncompliance with which could have a material effect on the City's general purpose financial statements. r,',',' iLi f' lii i!I,"',' ~ ;'. ~'" it~ November 23, 1988 ~) ~l; tL f;;".o, }-,:' i~~ r': l~ i~;;' A Professionar~orporation ('-~ lVJAZE & . e . ASSOCIATES e tj ! ACCOUNTANCY CORPORA nON Creekside Oaks 1470 Maria Lane - Suite 200 Walnut Creek, California 94596 (415) 930-0902 · (916) 972-7333 r-~ i r.-'.' , ; , L. AUDITOR'S REPORT ON COMPLIANCE WITH lAWS AND REGULATIONS RElATED TO KAJOR FEDERAL ASSISTANCE PROGRAMS To the City Council City of Dublin, California ~ _ c.'; We have examined the general purpose financial statements of the City of Dublin, California, for the year ended June 30, 1988, and have issued our report thereon dated November 23, 1988. Our examination was made in our accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations. Programs. Activities. and Functions issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of O.M.B. Circular A-128, Audits of State and Local Governments, and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. ,~~- I : ~ . l r i r.~ l r.' ~~I Ii.' The management of the the City of Dublin is responsible for the City's compliance with laws and regulations. In connection with our examination referred to above, we selected and tested transactions and records from the major federal financial assistance program. ! ~ L F ~ " ~:.;. The purpose of our testing transactions and records from the federal financial assistance program was to obtain reasonable assurance that the City of Dublin had in all material respects administered the major program in compliance with laws and regulations, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. ~ a~ 1'~ t In our opinion, for the year ended June 30, 1988 the City of Dublin administered its major federal financial assistance program in compliance in all material respects with laws and regulations, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. [........ ,. ~: . lil" Vi -: n &;. . With respect to the transactions that were not tested by us nothing came to our attention to indicate the City of Dublin had. violated laws and regulations noncompliance with which could have a material effect on the financial statements. ~r ~ ~!' ~.~ (1.'1 ~: ~ 'j ..,;,0 November 23, 1988 -6- A ProfessioncH Corporation MAZE-& - e I." A SSOCIA rES e t~--" ACCOUNTANCY CORPORA TION ' Creekside Oaks 1470 Maria Lane - Suite 200 Walnut Creek, California 94596 (415) 930-0902' · (916) 972-7333 .~--: , r. : LJ r'~ i \... AUDITOR'S REPORT ON INTERNAL CONTROL :Rased Solely on a Study and Evaluation Made as a part of an Examination of the :Rasic Financial Statements r '~ , , i 1 1... ~-' To the City Council, City of Dublin, California P" l ' l.; .' n l,,~; We have examined the general purpose financial statements of the City of Dublin, California, for the year ended June 30, 1988, and have issued our report thereon dated November 23, 1988. As part of our examination, we made a study and evaluation of the system of internal accounting control of the City of Dublin, California, to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial compliance audits contained in the U.S. General Accounting Office Standards for Audit of Governmental Organizations. Programs. Activities. and Functions. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: treasury or financing, revenue and receipts, purchases and disbursements, external financial reporting and federal assistance program management. f,',; "Id i'" ;zi; V,:"! L1 g'~ :.;{ .1 ' ,~', ~ Our study included all of the control categories listed above. The purpose of our study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the entity's ,general purpose financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. i'," " ;.j f~: lb The management of the City of Dublin is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations In any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. ~~' I~, r" , I. t..; r i;,; <<.~ It ., '~t . ~',',', <a&! ~.,: ~ -7- A Professioryal Corporation ~, ; i ! L f;--~ r"" L Ir~ (l." l' L (1:.~ [ fl [J U' ,~ ~_t. i I l _ f; i . \c.," I".'. . ",- .~ f' ~, iL, ["." ~ .' ~, i~ lr....' ~(' ~ ~.., L f" (~ iL.... " , ., e e AUDITOR'S REPORT ON INTERNAL CONTROL (continued) Our study and evaluation made for the limited purposes described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of the City of Dublin taken as a whole or on any of the categories of controls identified in the first paragraph. However, our study and evaluation disclosed no condition that we believe to be a material weakness. This report is intended solely for the use of management and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City Council, is a matter of public record. ~f/~ November 23, 1988 . ;\:'~c', _-: ::.::..,~-",--,.-,.,-;;:- -8-