A REPORTTO THEARIZONA LEGISLATUREFinancial Audit DivisionSingle AuditState of ArizonaJune 30, 2002Debra K. DavenportAuditor GeneralThe Auditor General is appointed by the Joint Legislative Audit Committee, a bipartisan committee composed of fivesenators and five representatives. Her mission is to provide independent and impartial information and specificrecommendations to improve the operations of state and local government entities. To this end, she provides financialaudits and accounting services to the State and political subdivisions, investigates possible misuse of public monies, andconducts performance audits of school districts, state agencies, and the programs they administer.Copies of the Auditor General’s reports are free.You may request them by contacting us at:Office of the Auditor General2910 N. 44th Street, Suite 410 • Phoenix, AZ 85018 • (602) 553-0333Additionally, many of our reports can be found in electronic format at:www.auditorgen.state.az.us (This Page Intentionally Left Blank) State of Arizona Single Audit Reporting Package June 30, 2002 Table of Contents Page Comprehensive Annual Financial Report Issued separately Reports on Compliance and Internal Control Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Basic Financial Statements Performed in A ccordance with Government Auditing Standards 1 Report on Compliance with ...
Copies of the Auditor General’s reports are free. You may request them by contacting us at: Office of the Auditor General 2910 N. 44th Street, Suite 410 • Phoenix, AZ 85018 • (602) 553-0333 Additionally, many of our reports can be found in electronic format at: www.auditorgen.state.az.us
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Stateof Arizona Single Audit Reporting Package June30,2020
Table of ContentsComprehensive Annual Financial Report Issuedseparately Reports on Compliance and Internal Control Report on Compliance and on Internal Control over Financial Reporting Based ondorccmrofrePAnideanudAncialStatementstiofaBisciFanancewithGovernment Auditing StandardsReport on Compliance with Requirements Applicable to Each Major Program andonInternalControloverComplianceinAccordancewithOMB-C1ir3c3ular ASchedule of Expenditures of Federal AwardsScheduleof Findings and Questioned CostsSummary of Auditors’ ResultsFinancial Statement FiingdsFederal AwarFdindings and Questioned CostsAppendix State of Arizona Agency CodesStateCorrective Action PlanStateSummarySchedulePoriforAuditFindings
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STATE OF ARIZONA OFFICE OF THE DEBRAAKU.DIDTAORVGEENNEPROALRT, CPAAUDITOR GENERALWDIEPLULTIYAAUMDITTOHROGEMNESROALNIndependent Auditors’ Report on Compliance and on Internal Control over FinancialReportingBasedonanAudBitasoifcFinancial Statements Performed in Accordance wGitohvernment Auditing Standards The HonorablJeanet NapolitanoG,overnor State of Arizona The HonorablKeen Benne,ttPresident Arizona State Senate TheHonorableFranklinL.“JakeF,lSapkeaker Arizona House of Representatives TheHonorableCharlesE.Jo,neCshiefJustice Arizona Supreme Court WehaveauditedhetbasicfinancialstatementsoftheStateofArizoonfaaansdfortheyearendedJune30,2020,andhaveissuedourreportthereondFeatberduary1,12003,whichwasmodifieadsto consistency because of the implementation of GASB StatemenBtaNsioc.F3in4a,andntsiclanetemSat Management’sDiscussionandAnalfyosrisStateandLocalGovernmaenntdsGASB Statement No. 35, BasicFinancialStatemenatsndManagement’sDiscussionandAnalfyosrisPublicCollegesandUniversitieasnddue to our reliance onefokrowuarehtoarstodiriscdeshtreebdW.theinconducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicabl financial audits containedG ionvernment Auditing Stand,airsdsserllroptalerenGybdeumoCehtofhte United States. Compliance AspartofobtainingreasonableassuranceaboutwhetherthbeasSitcafiten’asncialstatementsarefreeofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regula contracts,andgrants,noncompliancewithwhichcouldhaveadirectandmaterialeffectondeterminationobfasicfinancialstatementamo.uHntoswever,providinganopiniononcompliancewiththoseprovisionswasnotanobjectiveofourauditand,alyc,cowredindgonotexpresssuchanop.inion Theresultsofourtestsandwthorekof the other auditors disclosed no instances of noncompliance that are required to be reported unGdoevrernment Auditing Stand.aHrodwsever, we noted certain immaterial instancesof noncompliance that we will report to various state agencies’ management in separate lett 2910 NORTH 44thSTREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553 -0333 • FAX (602) 553 -0051
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Internal Control over Financial Reporting In planning and performing our audit, we considered the State’s internal control over financial repo orderotdetermineourauditingproceduresforthepurposeofexpressingouropinbioansiconthefinancialstatementsandnottoprovideassuranceoninternalcontroloverfina.ncHioalwreevpeor,rtiwnegnoted one matter involving internal control overlrfienpaonrctinag and its operation that we consider to be areportablecondit.ioRneportableconditionsinvolvematterscomingtoourattentionrelatingtosignifi deficienciesinthedesignoroperationofinternalcontroloverfinancialreporotuirngjutdhgatm,eint, could adversely affect the State’s ability to record, process, summarize, and report financial consistentwiththeassertionsofmanagementbiansicthfienancialstateme.nTtshisreportableconditionisdescribedintheaccompanyinhgeSdculeofiFndingsandQuestionedoCstsasitem20-01.A material weakness is a condition in which the design or operation of one or more of the internal componentsdoesnotreducetoarelativelylowleveltheriskthatmisstatementhsaitnwaomulodunbtest materialinrelationtobtahseicfinancialstatementsbeingauditedmayoccurandnotbedetectedwithintimelyperiodbyemployeesinthenormalcourseofperformingtheirassign.eOdurfucnocntsiiodnesrationofinternalcontrolovernfciinal reporting would not necessarily disclose all such internal control matt that might be reportable conditions and, accordingly, would not necessarily disclose all repor conditionsthatarealsoconsideredtobematerialwe.akHnoewsseevser,wbeelievethatthereportableconditiondescribedaboveisnotamaterialwe.akWneesaslsonotedothermattersinvolvinginternalcontrol over financial reporting that we will report to various state agencies’ management in se letters. This reportiisntended solely for your information and that of the Chairperson and Vice Chairperson o JointLegislativeAuditCommittee,federalawardingagencies,-atnhrdoupgahssentitiesandisnotintendedtobeandshouldnotbeusedbyanyoneothertehsapnetchifeisedparti.eHsowever,thisreportisamatterofpublicrec,oarndditsdistributionisnotlimited. Debbie Davenport Auditor General February 11, 2003 2