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Home My WebLink About4.05 Single Audit Report FY 85-86 CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 21, 1987 SUBJECT Dublin ' s Single Audit Report fbr Fiscal Year 85/86 EXHIBITS ATTACHED 1 . Report of Internal Controls 2 . Report on. Compliance 3 . Accountant ' s Report on Supplementary Schedule at Federal Assistance . RECOMMENDATION ` That the City Council review and accept the reports. FINANCIAL STATEMENT: The City has received a bill totalling $1500.00 for these reports. DESCRIPTION Now that cities operate under the Single Audit Act , Dublin ' s Audit is composed of three major phases: 1 . preliminary planning 2 . a review of internal accounting controls, and 3 . tests of compliance The preliminary planning usually includes schedules that identify both the various tasks and the estimated completion times for each task in the Audit . No report is generated for public consumption that presents 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 relied upon in the performance of substantive tests . Note that the gist of this report is favorable . Based upon the results of the review of internal controls , the auditor will make whatever compliance tests are deemed necessary. These tests include reviews and analyses of source documents to assure that appropriate laws and regulations have been followed by the City . The report is straight forward and states that Dublin ' s Municipal Corporation is in compliance . Finally , the Supplementary Schedules of Federal Assistance states 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 . ---------------------------------------------------------------------------- COPIES TO: ITEM NO. CITY OF DUBLIN SINGLE AUDIT REPORTS FISCAL YEAR 1965/86 Perry H. Carter, Certified Public Accountant S `rY w n .r.':"' n+ ''�(':xajm1a1•t^ .r oy r163* r.,,,+- s:riN4'^"""'x v Y"G,n ;i r sr i ti �.° h� '-^f^w x ".>' 5 .'a PERRY H. CAR C.P.A. CERTIFIED PUBLIC ACCOUNTANT 1558 Street,Suite 2 Hayward,California 94541 (415) 537-1835 REPORT ON INTERNAL CONTROLS To the Honorable Mayor, City Council and City Manager City of Dublin, California I have examined the general-purpose financial statements of the City of Dublin (the City) for the year ended June 30, 1986 and have issued my report thereon dated October 9, 1986. 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 as required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organisations, Programs, Activities, and Functions, issued by the U. S. General Accounting Office, the Single Audit Act of 1984, and the provisions of OMB Circular A-128, Audits of State and Local Governments. For the purpose of this report, I have classified the significant inter- nal accounting and administrative controls used in administering federal financial assistance programs in the following categor- ies : Accounting Controls Treasury Cycle Revenue Cycle Purchasing Cycle Reporting Administrative Controls General requirements, such as political activity Specific requirements, such as types of services The management of the City is responsible for establishing and maintaining internal control systems used in administering. feder- al financial assistance programs. In fulfilling that responsi- bility, estimates and judgments by management are required to assess the expected benefits and related costs of control proce- dures . The objectives of internal control systems used in admin- istering 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. City of Dublin June 22, 1987 Report on Internal Controls Page 2 Because of inherent limitations in any system of internal ac- counting and administrative controls used in administering feder- al 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 above. During the year ended June 30, 1986, the City had no major federal financial assistance programs and expended 100 percent of its total federal financial assistance under the following nonmajor federal financial assistance programs : Revenue Sharing, Community Development Block Grant Program, Department of Transportation FAU Project and Federal Emergency Management Agency Disaster Assistance Program. With respect to internal control systems used in administering these nonmajor federal financial assistance program, my study and. evaluation included considering the types of errors and irregu- larities that could occur, determining the internal control procedures that should prevent or detect such errors and irregu- larities, determining whether the necessary procedures are Ares= cribed and are being followed satisfactorily, and evaluating any weaknesses. With respect to the internal control systems that would be used solely in administering other nonmajor federal financial assist- ance programs of the authority, 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 trans- actions through the accounting system. My study and evaluation of the internal control system that would be used solely in administering nonmajor federal financial assistance programs of the City 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. Accordingly, I do not express an opinion on the internal control systems used in administering the federal financial assistance programs of the City. Also, my examination, made in accordance with the standards mentioned above, would not necessarily disclose material weak- nesses in the internal control systems, for which my study and evaluation was limited to a preliminary review of the systems, as discussed in the fifth paragraph of this report. Perry H. Carter, Certified Public Accountant ' y City of Dublin June 22, 1987 Report on Internal Controls Page 3 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. . 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 is a matter of public .record. PERRY H. CARTER June 22, 1987 Perry H. Carter, Certified Public Accountant .-....-.1:yv-.-..va.,,.�.;r m�...n.•+M�1,:x'PO+k'ti'ir'-`n...zR;4TT•l'"C'S'l9:tiA',C•l�^;:1inPws!l�^`:4P4'4p"`�Sy ,YC•.c+Tk^:4;a}t`A.....,. ,,.4.. .+.. - 1 n y ..4-t..� < . - ^.y'Y-..ay.+,rr+ , . PERRY H. CAR` 1; , C.P.A. CERTIFIED PUBLIC ACCOUNTANT 1558 B Street,Suite 2 Hayward, California 94541 (415) 537-1835 REPORT ON COMPLIANCE To the Honorable Mayor, City Council and City Manager Dublin, California I have examined the general purpose financial statements of the City of Dublin (the City) for the year ended June 30, 1986 and have issued my report thereon dated October 9, 1986. My examina- tion was made in accordance with generally accepted auditing standards ; the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organiza- tions, Programs, Activities, and Functions, issued by the U. S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments, and accordingly, included such tests of the account- ing records and such other auditing procedures as I considered necessary in the circumstances. The management of the City is responsible for the City's compli- ance with laws and regulations. In connection with the examina- tion referred to above, I selected and tested transactions and records from nonmajor federal financial assistance programs to determine the City's compliance with laws and regulations, non- compliance with which I believe could have a material effect on the allowability of program expenditures. The results of my tests indicate that for the transactions and records tested the City 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 administered those programs in compliance in all material respects with laws and regulations, noncompliance with which I believe could have a material effect on the allowability of program expenditures; however, with respect to the transactions that were not tested by me, nothing came to my attention to indicate that the City had violated such laws and regulations. PERRY H. CARTER June 22, 1987 .PERRY H. CAR'.' R, C.P.A. CERTIFIED PUBLIC ACCOUNTANT 1558 B Street,Suite 2 Hayward,California 94541 (415) 537-1835 ACCOUNTANT'S REPORT ON SUPPLEI WARY SCHEDULE OF FEDERAL ASSISTANCE To the Honorable Mayor, City Council and City Manager Dublin, California I have examined the combined (general purpose) financial state- ments of the City of Dublin (the City) as of and for the year ended 'June 30, 1986 and have issued my report thereon, dated October 9, 1986. My examination was made in accordance with generally accepted auditing standards and 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, 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 combined (general purpose) financial statements taken as a whole. The accompanying Supplementary Schedule of Federal Assis- tance is presented for purposes of additional analysis and is not a required part of the combined (general purpose) financial statements of the City. Such information has been subjected to the auditing procedures applied in the examination of the com- bined (general purpose) financial statements and, in my opinion, is fairly stated in all material respects in relation to the financial statements of the combined (general purpose) financial statements taken as a whole. PERRY H. CARTER June 22, 1987 a r, CITY OF DUBLIN SCHEDULE OF FEDERAL ASSISTANCE Year Ended June 30, 1986 z Balance Balance Catalog of Receivable Expenditures Receivable Federal Domestic (Deferred) at and Federal Funds (Deferred) at Term of Grant Assistance Number July 1 , 1985 Related Costs Received June 30, 1986 Department of the Treasury Entitlement 16 and `I Revenue Sharing Program Adjustments 21 .300 $ 54,627 $ $ 54,627 $ Entitlement 17 (October 1 , 1985- September 30, 1986) 252,786 192,699 60,087 Y 54,627 252,786 247,326 60,087 . Department of Housing and Urban Development Community Development Block Federal Fiscal Grant Program, Entitlement Years 1985, Grant 1986, 1987 14.218 30,000 30,000 Department of Transportation Urban Mass Transportation Capital Improvement Grant Master Agreement FAU Project M-3072(91 ) Dated 12/12/83 20.500 84,195 84,195 ' Federal Emergency Management #. Agency (FEMA) Disaster Assistance Program 1985/86 83.516 4,543 4,543. $ 168.822 $ 257.329 $ 361 .521 $ .630 �x r� Perry A. Carter, Certified Public Accountant -2- 4 .y t