HomeMy WebLinkAbout4.06 Single Audit Fiscal Year 1986-87 CITY OF DUBLIN
AGENDA STATEMENT .
CITY COUNCIL MEETING DATE: July 11, 1988
, SUBJECT :Dublin's Single Audit Report for fiscal year
86-87.
EXHIBITS ATTACHED : 1. Report of Internal Controls
2. Report of compliance
3 Accountant's report on supplementary
schedule of Federal Assistance.
RECOMMENDATIO :That the City Council review and accept the
reports.
FINANCE STATEMENT :The City received a bill totalling $2,700 for
these reports.
DESCRIPTION :The City's single audit is composed of three
major phases:
1. the preliminary planning phase,
2. a review of the internal controls, and
3 . the tests for compliance.
The preliminary planning phases usually includes schedules that
identify both the tasks and the estimated completion times for
each task in the audit. No report is generated for public
consumption that documents this process.
The Review of Internal Controls enables the auditor to gain an
understanding of the control environment and the flow of
transactions in order to determine the extent to which the
controls may be replied upon in the performance of substantive
test. Note that the gist of this report is favorable.
Finally the supplementary schedules of federal assistance state
that the auditor's opinion was rendered based upon an examination
of all the financial records of all funds and accounts for which
the Municipal Corporation is responsible. This is the major
reason for the single audit. Prior to the Federal requirements
for a single audit, cites were audited by different auditors
for each one of the Federal grants, loans, letters-of-credit,
and funds transferred to the local governments. It is not an
exaggeration to say that in _some cities the auditors were
present all year, because by the time one auditor finished a
specific audit another came to do another specific audit on a
separate amount of money. The Federal Government complied with
the request of local governments by instituting the Single Audit
Act, which states that all monies received from the Federal
Government will be audited at one time and by' the independent
auditor performing the cities' financial audit. By doing this
the city staff is saved the countless hours of presenting the
same data to multiple auditors. The State of California is in
the process of accepting the Federal Single Audit . report for the
State' s funds that come to cities. The Lead agency will be the
State Controller's Office. This will help to further diminish the
duplication of information and work conducted for the Federal and
then the State Government.
The staff recommends that the City Council accept the Single
Audit Report from Perry Carter, CPA.
6
r
r
�} CITY OF DUBLIN
d SINGLE AUDIT REPORT
! FISCAL YEAR 1986/87
i .
I
I
I
j
i
r '
`a PERRY H. CARTER, C.P.A.
CERTIFIED PUBLIC'ACCOUNTANT 22573 MAIN STREET
SUITE I
HAYWARD,CALIFORNIA 945"4
(415) 537-1836.
AUDITOR'S REPORT ON INTERNAL CONTROLS
' (Accounting and Administrative) - Used in Administering
Major and Nonmajor Financial Assistance Programs
`• To the City Council
City of Dublin, California
I have examined the general purpose financial statements of the City of
,-, Dublin, California for the year ended June 30, 1987, and have issued my
( report thereon dated November 20, 1987. As-part of my examination, I 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 I considered necessary to
evaluate the systems required by generally accepted auditing standards,
the standards for financial and compliance audits contained in the
Standards for Audit of Governmental Orzanizations, Programs. Activities,
i 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. For the purpose of this report, I have
classified the significant internal accounting and administrative controls
used in administering federal financial assistance programs in the
following categories: Treasury or financing, revenue and receipts,
purchases and disbursements, external financial reporting, and,
General Requirements
Political activity
Davis-Bacon Act
Civil Rights
Cash management
Relocation assistance and real property acquisition
-- Federal financial reports
Soecific Requirements:
Types of services
Eligibility
Matching level of effort
Reporting
Cost allocation
Monitoring subrecipients
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 :caste, loss, and misuse; and reliable
! '; data are obtained, maintained, and fairly disclosed in reports.
r
V.
AUDITOR'S REPORT ON INTERNAL CONTROLS (Continued)
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.
My study included all of the applicable control categories listed in the
first paragraph. During the year ended June 30, 1987, The City of Dublin
expended 86% of its total federal financial assistance under the following
major federal financial assistance program:
Federal Department of Transportation - FAU project i;
With respect to internal control systems used in administering this major
",' federal financial assistance program my 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
i.i procedures are prescribed and are being followed satisfactorily, and
L evaluating any weaknesses.
r-
�.{ With respect to the internal control systems used solely in administering
` the nonmajor federal financial assistance programs of the City of Dublin,
my study and evaluation was limited to a preliminary review of the systems
to obtain an understanding of the control environment and the flow of
transactions through the accounting system. My study and evaluation of
the internal control systems used solely in administering these nonmajor
federal financial assistance programs of the City of Dublin, did not
extend beyond this preliminary review phase.
_ My 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, I do not express an opinion on the internal control systems
used in administering the major federal financial assistance programs of
the City of Dublin.
Also, my examination, made in accordance with the standards mentioned in
the first paragraph, would not necessarily disclose material weaknesses in
the internal control systems used solely in administering nonmajor federal
financial assistance programs.
However, my study and evaluation and my examination disclosed no condition
that I believe to be a material weakness in relation to a federal
financial assistance program of the City of Dublin.
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.
i
i.
April 29, 1988
..� PERRY H. CARTER, C.P.A.
CCERTIFIED PUBLIC ACCOUNTANT 22572 MAIN STREET
SUITE I
HAYWARD,CALIFORNIA 94541
t (415) 517-1816
AUDITOR'S REPORT ON COMPLIANCE WITH LAGS AND REGULATIONS
REIATED TO MAJOR AND NONMAJOR FEDERAL ASSISTANCE PROGRAMS
1.�
i ; To the City Council
City of Dublin, California
"a I have examined the general purpose financial statements of the City of
Dublin, California, for the year ended June 30, 1987, and have issued my
report thereon dated November 20, 1987. My examination was made in
i. accordance with generally accepted auditing standards; the standards for
financial and''compliance audits contained in the Standards for Audit of
r-� 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~ The management of the City of Dublin is responsible for the City's
compliance with laws and regulations. In connection with my examination
referred to above, I selected and tested transactions and records from
each major federal financial assistance program and certain nonmajor
federal financial assistance programs.
The purpose of my testing transactions and records from those federal
financial assistance programs was to obtain reasonable assurance that the
City of Dublin had in all material respects administered major programs
and executed the tested nonmajor program transactions in compliance with
� = laws and regulations, including those pertaining to financial reports and
claims for advances and reimbursements, noncompliance with which I believe
could have a material effect on the allowability of program expenditures.
In my opinion, for the year ended June 30, 1987 the City of Dublin
administered each of its major federal financial assistance programs 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 I believe could have a material
effect on the allowability of program expenditures.
Il
t
i
r
AUDITOR'S REPORI jtl COMPLIANCE 'WITH LAWS AND REGL—.TIONS
{� RELATED TO MAJOR AND NONMAJOR FEDERAL ASSISTANCE PROGRAMS
(continued)
The results of my testing of transactions and records selected from
nonmajor federal financial assistance programs indicate that for the
transactions and records tested the City of Dublin, complied with the laws
and regulations referred to above. My testing was more limited than would
be necessary to express an opinion on whether the City of Dublin
administered these programs in compliance in all material respects with
laws and regulations noncompliance with which I believe could have a
material effect on allowability of program expenditures; however, with
respect to the transactions that were not tested by me nothing came to my
attention to indicate the City of Dublin had violated laws and regulations
noncompliance with which could have a material effect on the financial
statements.
I .1
April 29, 1988
' -6-
� PERRY H. CARTER, C.P.A.
1. 1
CERTIFIED PUBLIC ACCOUNTANT 22572 LN1A1N STREET
SUITE l
HAYWARD,CALIFORNIA 94541
(415) 537-1836
••I
t AUDITOR'S REPORT ON COMPLIANCE WITH FEDERAT, IAWS AND REGULATIONS
THAT MAY HAVE A MATERIAL EFFECT ON THE FINANCIAL STATEMENTS
�- To the City Council
City of Dublin, California
two
I have examined the general purpose financial statements of the City of
r-3 Dublin, California, for the year ended June •30, 1987, and have issued my
{ report thereon dated November 20, 1987. My -examination was made in
accordance with generally accepted auditing standards; the standards for
r- 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 I considered necessary in
the circumstances.
The management of the City of Dublin is responsible for the City's
compliance with laws and regulations. In connection with my examination
referred to above, I 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.
y The results of my 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 my attention that caused me
-s 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.
April. 29, 1988
L...
i
PERRY H. CARTER, C.P.A.
L C.L'RTIFILD P[1I3L1C ,1CCOUNTANT 33572 MAIN STREET
SUITE 1
z HAYWARD.CALIFORNIA 94541
(4151537-1336
AIIDITOR'S REPORT ON SCHEDULE OF
FEDERAL ASSISTANCE
r-�
To the City Council
Irk City of Dublin, California
n
I have examined the general purpose financial statements of the City of
Dublin, California, for the year ended June 30, 1987, and have issued my
report thereon dated November 20, 1987. My 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
r, 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 I considered necessary in
the circumstances.
My 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 my opinion, is fairly stated in all material
respects in relation to the general purpose financial statements taken as
a whole.
U
1 '
April 29, 1988
.�.,
14, Ca.,�—�
i
CITY OF DUBLIN
SCHEDULE OF FEDERAL ASSISTANCE
YEAR ENDED JUNE 30, 1987
(l7
Balance Balance
# Catalog of Receivable Expenditures Receivable
�'._) Federal Domestic (Deferred) at and Federal Funds (Deferred) at
Term of Grant Assistance Number July 1, 1986 Related Costs Received June 30, 1987
(A
�'a
Department of the Treasury October 1, 1986 21.300 $60,087 $ 48,399 $108,486
Revenue Sharing Program September 30,1987
,r^ Department of Housing and
( ' Urban Development
Community Development Block Federal Fiscal
r:
Grant Program, Entitlement YEAR 1987 14.218 85,340 111,340 $(26,000)
1 Grant
Department of Transportation
Urban Mass Transportation
Capital Improvement Grant Master Agreement
(( FAU Project M-3072(91) Dated 12/12/83 20.500 797,875 797,875
i' .
Federal Emergency Management
' Agency (FEMA)
Disaster Assistance Program 1986/87 83.516 4,543 1.194 5.737
64 630 $932.808 $1.023.438 S(26.000)
' I
i
it
t�
l'
L