Cochise County June 30, 2008 Report Highlights-Single Audit

Office Of The Auditor General

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• Langue: English

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Cochise County
REPORT
HIGHLIGHTS County’s Condensed
SINGLE AUDIT Financial Information
Subject
Cochise County is
responsible for preparing
Statement of Net Assets financial statements, The County’s government-wide June 30, 2008 maintaining strong internal
financial statements provide readers (In thousands) controls, and demonstrating
with a broad overview of the County’saccountability for its use of
Total public monies. As the finances in a manner similar to private-
Governmental auditors, our job is to sector businesses. These statements and
determine whether the report the financial activities of the Business-type
County has met its Activities overall government, except forresponsibilities. Current and other assets $ 82,883 fiduciary activities.
Capital assets 154,042
Our Conclusion Total assets 236,925
The tables to the right present a
Except that the Ft. Huachuca Current liabilities 12,729 summarized version of the County’s
Accommodation School Noncurrent liabilities 16,095 government-wide Statement of NetDistrict Fund had Total liabilities 28,824
Assets and Statement of Activitiesunreconcilable cash
differences with the County reported in the current year financial Net assets:
Invested in capital assets, Treasurer, the information in statements.
net of related debt 144,660 the financial statements is
Restricted net assets 25,669 fairly stated in all material The Statement of Net Assets presents Unrestricted net assets 37,772 respects, and the financial
Total net assets $208,101 information on county assets andstatements can be relied on.
liabilities, with the difference betweenAlso, overall the County
maintained adequate internal Statement of Activities the two reported as net assets. The
controls over financial For the Year Ended June 30, 2008 Statement of Activities presents
(In thousands) reporting and compliance information showing how net assets and complied with federal
changed during the most recent fiscal Total program requirements.
Governmental year. As shown in the tables, netHowever, auditors found
and weaknesses in financial assets increased by $9.7 million. This
Business-type increase was primarily due to Activities internal controls and increases in investment in capital Program revenues:
noncompliance with program Governmental activities $ 45,182 assets.requirements for three federal Business-type activities 37,886
programs, see page 2. General revenues: 57,049
Business-type activities 1,093
Total revenues 141,210
Expenses:
Governmental activities 92,728
Business-type activities 38,770
Total expenses 131,498
Change in net assets 9,712 2008
Net assets—beginning, as restated 198,389
Net assets—ending $208,101 Year Ended June 30, 2008Internal Control Weaknesses and
Instances of Noncompliance
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The County did not have adequate written The County spent over $18 million of federal
policies and procedures needed to prepare monies this past year for 60 programs. Auditors
accurate and timely financial statements and tested 6 federal programs under the
related schedules and reports. Instead, the requirements established by the Single Audit
County has relied on its finance department Act. Other auditors audited 3 of those programs
employees’ experience. However, without formal and found internal control weaknesses and
policies and procedures, the County’s financial instances of noncompliance, as summarized
statements could omit important and required below.
information or contain misstatements.
Impact Aid program administered by the Ft.
Other auditors audited portions of the County’s HHuuaacchhuuccaa AAccccoommmmooddaattiioonn SScchhooooll DDiissttrriicctt
• Noncompliance with Davis-Bacon Act wagefinancial statements and noted internal control
requirements. weaknesses and noncompliance affecting the
financial statements, as summarized below.
WIA Cluster administered by the Cochise Priivvaattee
Industry Council, Inc.Ft. Huachuca Accommodation
• Inadequate reconciliation of federal revenuesSchool District Fund and expenditures.
Lack of adequate internal controls over Section 8 Housing Choice Vouchers programm
• preparation of financial statements. administered by the Housing Authority of• performing cash reconciliations with the
Cochise CountyCounty Treasurer, causing differences that
• Inadequate procedures over performingcould not be justified or audited.
housing quality standards reinspections.• recording expenditures in the proper fiscal
year.
• reporting capital assets.
Cochise Private Industry Council, Inc.
Lack of procedures to perform adequate year-
end grant revenue and expenditure
reconciliations.
page2The County Experienced an
Overall Decrease in Federal
Award Expenditures
Overall, county expenditures of federal awards Federal Expenditures by Awarding Agency
decreased by approximately $2 million, from Totaling $18.1 Million
the $20.1 million expended during fiscal year Fiscal Year 2008
2007. The decrease was primarily the result of (In Millions)
the following:
Labor
$1.0 Interior• WIA Pilots, Demonstrations, and Research
$1.3 Projects program expenditures decreased by
$0.4 million because of decreases in federal Health and Human
funding for the program. Services
Education
$1.3
$8.8
• Education Technology State Grants program
Otherexpenditures decreased by $0.7 million
$2.5 because pass-through responsibilities for the
program were transferred to Pima County at
the end of fiscal year 2007.
Housing and
Urban
• Help America Vote Act Requirements Development
Payment program expenditures decreased $3.2
by $0.6 million because the County received
an award to purchase voting system
equipment in fiscal year 2007 and expended
$0.7 million. The program funding received
and expended in fiscal year 2008 was limited
to software maintenance and support.
• Immunization Grants program expenditures
decreased by $0.3 million because the value
of vaccines was no longer required to be
reported in the Schedule of Expenditures of
Federal Awards.
The Single Audit Fact Sheet
 Six weaknesses in financial reporting internal
controls, three of which were material
weaknesses.
 Three weaknesses in federal compliance
internal controls, one of which was a material
weakness.
 Three instances of noncompliance with federal
compliance requirements.
page3TTOO OOBBTTAAIINN
MORE INFORMATION
A copy of the full report
can be obtained by calling
(602) 553-00333
or by visiting
our Web site at:
www.azauditor.gov
Contact person for
this report:
Donna Miller
REPORT
HIGHLIGHTSCochise County
SINGLE AUDIT
Year Ended June 30, 2008
page 4