Commonwealth of Virginia Single Audit Report for the Year ended June 30, 2005

Kvashby

Informations

• Publié par: Arza
• Nombre de lectures: 8
• Langue: English

Extrait

COMMONWEALTH OF VIRGINIA
SINGLE AUDIT REPORT
FOR THE YEAR ENDED
JUNE 30, 2005EXECUTIVE SUMMARY

The results of our single audit of the Commonwealth of Virginia for the year ended June 30, 2005, are
summarized below:

• we issued an unqualified opinion on the basic financial statements;

• we found certain matters that we consider reportable conditions; however, we do
not consider these to be material weaknesses;

• we did not identify instances of noncompliance with selected provisions of
applicable laws and regulations which could have a material effect on the basic
financial statements;

• we did not identify material weaknesses in the internal control over major
programs; however, we did find certain matters and instances of noncompliance
with selected provisions of laws and regulations related to major programs
required to be reported in accordance with OMB Circular A-133, Section .510(a);
and

• we issued an unqualified opinion on the Commonwealth’s compliance with
requirements applicable to each major program.


Our audit findings are reported in the accompanying, “Schedule of Findings and Questioned Costs.”

- T A B L E O F C O N T E N T S -
Page

EXECUTIVE SUMMARY

INTRODUCTION LETTER 1

INDEPENDENT AUDITOR’S REPORTS:

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 FINDINGS AND QUESTIONED COSTS:

Summary of Auditor’s Results 6

Financial Statement Findings 7-18

Federal Award Findings and Questioned Costs:

General Services Administration 19-21

U.S. Department of Labor 21-22

U.S. Department of Education 22-27

U.S. Department of Health and Human Services 28-34

U.S. Department of Agriculture 34-35

AUDITOR’S COMMENTS ON RESOLUTION OF PRIOR YEAR AUDIT FINDINGS 36-38

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS:

Independent Auditor’s Report on the Schedule of Expenditures of Federal Awards 39

Schedule of Expenditures of Federal Awards 40-68

Notes to the Schedule of Expenditures of Federal Awards 69-79

APPENDIX:

Acronyms of Agencies and Institutions 80

State Agency Contact List for Audit Findings 81












March 17, 2006




The Honorable Timothy M. Kaine The Honorable Lacey E. Putney
Governor of Virginia Chairman, Joint Legislative Audit
State Capitol and Review Commission
Richmond, Virginia General Assembly Building
Richmond, Virginia



We are pleased to submit the statewide Single Audit Report of the Commonwealth of Virginia for
the fiscal year ended June 30, 2005.

The Single Audit Report for the Commonwealth of Virginia discloses the Commonwealth’s
compliance with requirements applicable to major federal financial assistance programs. The statewide
Single Audit Report provides the General Assembly and agency management with a means to determine how
internal controls affect federal funds and whether agencies are complying with federal laws and regulations.

I would like to express my appreciation to the many individuals whose efforts assisted in preparing
this report. This report could not have been accomplished without the professionalism and dedication
demonstrated by the staff within this Office. We would like to recognize the agency and institution
management, and federal program and financial staffs for their cooperation and assistance in resolving single
audit issues.

We believe this report represents a significant indication of the sound fiscal operations of federal
funds in the Commonwealth. The report should greatly assist agency management in administering federal
programs and enhance their dealings with federal agencies.




AUDITOR OF PUBLIC ACCOUNTS

/kva
1











INDEPENDENT AUDITOR’S REPORTS







INDEPENDENT AUDITOR’S 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

We have audited the basic financial statements of the Commonwealth of Virginia as of and for the
year ended June 30, 2005, and have issued our report thereon dated December 14, 2005. This report relates
only to the Commonwealth and not to certain agencies and component units that were audited by other
auditors discussed in Note 1 of the “Notes to Financial Statements.”

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 in Government Auditing Standards,
issued by the Comptroller General of the United States.

Internal Control over Financial Reporting

In planning and performing our audit, we considered the Commonwealth of Virginia’s internal
control over financial reporting in order to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and not to provide an opinion on the internal control over financial
reporting. However, we noted certain matters involving the internal control over financial reporting and its
operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our
attention relating to significant deficiencies in the design or operation of the internal control over financial
reporting that, in our judgment, could adversely affect the Commonwealth’s ability to initiate, record, process,
and report financial data consistent with the assertions of management in the financial statements. Reportable
conditions are described in the accompanying “Schedule of Findings and Questioned Costs” as items 05-01
through 05-12.
A material weakness is a reportable condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that misstatements caused by
error or fraud in amounts that would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of performing their
assigned functions. Our consideration of the internal control over financial reporting would not necessarily
disclose all matters in the internal control that might be reportable conditions and, accordingly, would not
necessarily disclose all reportable conditions that are also considered to be material weaknesses. However,
we believe that none of the reportable conditions described above is a material weakness.





2 Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Commonwealth of Virginia’s financial
statements are free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grants, 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 under
Government Auditing Standards.

We noted certain additional matters involving the internal control over financial reporting and
immaterial instances of noncompliance that we have reported to the management of the individual state
agencies and institutions.

This report is intended solely for the information and use of the Governor and General Assembly of
Virginia, management, 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. However, this report is a matter of public
record and its distribution is not limited.




AUDITOR OF PUBLIC ACCOUNTS
December 14, 2005

3









REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH

MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE

IN ACCORDANCE WITH OMB CIRCULAR A-133

Compliance

We have audited the compliance of the Commonwe