Single Audit Report revisions 042507-1
Description
City of Midland, Michigan Federal Awards Supplemental Information June 30, 2008 City of Midland, Michigan Contents Independent Auditor's Report 1 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 2-3 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 4-5 Schedule of Expenditures of Federal Awards Back 6 Reconciliation of Basic Financial Statements Federal Revenue with Schedule of Expenditures of Federal Awards 7 Notes to Schedule of Expenditures of Federal Awards 8 Schedule of Findings and Questioned Costs 9-11 Supplemental Information - Transportation Fund (Dial-A-Ride) 12 Schedule 1 - Schedule of Operating Revenues 13 Schedule 1A - Schedule of Local Revenues 14 Schedule 2 - Expenditures of Federal and State Awards 15 Schedule 2A - Schedule of Nonoperating Revenues 16-17 Schedule 3 - Schedule of Nonurban Operating Expenses 18-19 Schedule 4R - Nonurban Regular Service Report 20 Schedule 4E - Nonurban Regular Service Expense Report 21 Schedule 4N - Nonurban Regular Service Nonfinancial Report 22 Schedule 5 - Operating Assistance Calculation 23 Independent Auditor's Report To the Honorable Mayor and City Council City of Midland, Michigan We have audited the financial statements of the ...
Informations
| Publié par | Sogoz |
| Nombre de lectures | 16 |
| Langue | English |
Extrait
City of Midland, Michigan
Federal Awards Supplemental Information June 30, 2008
City of Midland, Michigan
Independent Auditor's Report
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance withGovernment Auditing Standards
Contents
Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133
Schedule of Expenditures of Federal AwardsBack
Reconciliation of Basic Financial Statements Federal Revenue with Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Supplemental Information - Transportation Fund (Dial-A-Ride)
Schedule 1 - Schedule of Operating Revenues
Schedule 1A - Schedule of Local Revenues
Schedule 2 - Expenditures of Federal and State Awards
Schedule 2A - Schedule of Nonoperating Revenues
Schedule 3 - Schedule of Nonurban Operating Expenses
Schedule 4R - Nonurban Regular Service Report
Schedule 4E - Nonurban Regular Service Expense Report
Schedule 4N - Nonurban Regular Service Nonfinancial Report
Schedule 5 - Operating Assistance Calculation
1
2-3
4-5
6
7
8
9-11
12
13
14
15
16-17
18-19
20
21
22
23
Independent Auditor's Report
To the Honorable Mayor and City Council City of Midland, Michigan
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Midland, Michigan as of and for the year ended June 30, 2008, which collectively comprise City of Midland, Michigans basic financial statements, and have issued our report thereon dated December 8, 2008. Those basic financial statements are the responsibility of the management of City of Midland, Michigan. Our responsibility was to express opinions on those basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained inGerovmnnet Auditing Standards Those, issued by the Comptroller General of the United States. standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Midland, Michigans basic financial statements. The accompanying schedule of expenditures of federal awards, reconciliation of basic financial statements federal revenue with schedule of expenditures of federal awards, and the supplemental schedules related to the Transportation Fund are presented for the purpose of additional analysis and are not required parts of the basic financial statements. Except for the schedule of mileage data, the information in these schedules has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. We have applied certain limited procedures to the schedule of mileage data which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplemental information. However, we did not audit the information and express no opinion on it.
December 8, 2008
1
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance withGovernment Auditing Standards To the Honorable Mayor and City Council City of Midland, Michigan
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Midland, Michigan as of and for the year ended June 30, 2008, which collectively comprise City of Midland, Michigans basic financial statements, and have issued our report thereon dated December 8, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Midland, Michigans internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Midland, Michigans internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of City of Midland, Michigans internal control over financial reporting.Back
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness.
A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entitys ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entitys financial statements that is more than inconsequential will not be prevented or detected by the entitys internal controls. We consider the control deficiency described in the accompanying schedule of findings and questioned costs as item 2008-1 to be a significant deficiency in internal control over financial reporting.
2
To the Honorable Mayor and City Council City of Midland, Michigan A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entitys internal control. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. We believe the significant deficiency item 2008-1, described above, is a material weakness. Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Midland, Michigans financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported undernmenoverGtAuditing Standards.Back
City of Midland, Michigans response to the material weakness identified in our audit and described in the accompanying schedule of findings and questioned costs has not been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
This report is intended solely for the information and use of management, the City Council, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
December 8, 2008
3
Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133
To the Honorable Mayor and City Council City of Midland, Michigan
ComplianceWe have audited the compliance of City of Midland, Michigan with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2008. The major federal programs of City of Midland, Michigan are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of City of Midland, Michigans management. Our responsibility is to express an opinion on City of Midland, Michigans compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standardsthe Comptroller General of the United States; and, issued by OMB Circular A-133,Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Midland, Michigans compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Midland, Michigans compliance with those requirements.
In our opinion, the City of Midland, Michigan complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2008. However, the results of our auditing procedures disclosed an instance of noncompliance with those requirements that is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying schedule of findings and questioned costs as item 2008-2.
4
To the Honorable Mayor and City Council City of Midland, Michigan Internal Control Over Compliance
The management of City of Midland, Michigan is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered City of Midland, Michigans internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the entitys internal control over compliance.
Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the entitys internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified a certain deficiency in internal control over compliance that we consider to be a material weakness.
A control deficiency in an entitys internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entitys ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entitys internal controls. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2008-2 to be a significant deficiency.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entitys internal control. We believe the above significant deficiency is also a material weakness.
City of Midland, Michigans response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit City of Midland, Michigans response and, accordingly, we express no opinion on it.
This report is intended solely for the information and use of management, the City Council, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
December 8, 2008
5
City of Midland, Michigan
Schedule of Expenditures of Federal Awards Year Ended June 30, 2008
Federal Agency/Pass-through Agency/Program Title
U.S. Department of Housing and Urban Development -Community Development Block Grant: B-05-MC-26-0037 B-06-MC-26-0037 B-07-MC-26-0037
Total U.S. Department of Housing and Urban Development
U.S. Department of Transportation - Passed through Michigan Department of Transportation: Section 5311 (formerly Section 18) Program Grants: 2007-259/Z1 (10/06 - 9/07) -2007-259/Z2 - (10/07 - 9/08)
Section 5309 Capital Grants: 2002-0068/Z7
2002-0068/Z10
Total U.S. Department of Transportation
U.S. Department of Justice - Office of Justice Programs -Bullet-proof Vest Program - MI State Police: Grant ID #04021594 (2004) Grant ID #05026423 (2005)
Total U.S. Department of Justice
Federal Emergency Management Authority - Fire Operations and Firefighter Safety - EMW-2006-FG-17122
Total federal awards
See Notes to Schedule of Expenditures of Federal Awards.
6
CFDA Number
14.218 14.218 14.218
20.509 20.509
20.500 20.500
16.607 16.607
97.044
ApprovedAward Amount
$ 286,373 256,468 254,052
251,840 260,972
121,472 362,340
7,862 1,800
82,682
Expenditures
$ 165,776 267,868 89,183
522,827
61,612 210,856
2,963 338,081
613,512
202 -
202
37,400
$1,173,941
City of Midland, Michigan
Reconciliation of Basic Financial Statements Federal Revenue with Schedule of Expenditures of Federal Awards Year Ended June 30, 2008
Federal revenue per financial statements (includes all funds)
Add program income classified as federal expenditures
Close out of prior year grants
Add expenditures in the current period where revenue is deferred in accordance with GASB No. 33
Federal expenditures per the schedule of expenditures of federal awards
7
$ 1,091,510
79,333
(11,061)
14,159
$ 1,173,941
Community Development Block Grant
8
CFDA Number
Amount Provided to Subrecipients
14.218
$ 165,358
Of the federal expenditures presented in the schedule, federal awards were provided to subrecipients as follows:
Federal Program
Note 1 - Significant Accounting Policies
nditures of Federal Awards Year Ended June 30, 2008
Note 2 - Subrecipient Awards
The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of Midland, Michigan and is presented on the same basis of accounting as the basic financial statements. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133,Audits of States, Local Governments, and Non-Profit Organizations some amounts. Therefore, presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Notes to Schedule of Expe
City of Midland, Michigan
City of Midland, Michigan
Schedule of Findings and Questioned Costs Year Ended June 30, 2008
Section I - Summary of Auditor's Results
Financial Statements
Type of auditors report issued: Unqualified
Internal control over financial reporting:
•
Material weakness(es) identified?
X Yes
• Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes
Noncompliance material to financial statements noted?
Federal Awards
Internal control over major program(s):
• Material weakness(es) identified?
Yes
No
X None reported
X No
X Yes No
• Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None reported
Type of auditors report issued on compliance for major program(s): Unqualified
Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133?
Identification of major programs:
CFDA Numbers
14.218 20.500
X Yes
No
Name of Federal Program or Cluster
Community Development Block Grant Department of Transportation Section 5309 Grant
Dollar threshold used to distinguish between type A and type B programs: $300,000
Auditee qualified as low-risk auditee?
Yes
9
X No
© 2010-2024 YouScribe