Maricopa County June 30, 2004 Single Audit

Office Of The Auditor General

Description

A REPORTTO THEARIZONA LEGISLATUREFinancial Audit DivisionSingle AuditMaricopa CountyYear Ended June 30, 2004Debra 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 • [phone]Additionally, many of our reports can be found in electronic format at:www.azauditor.gov Maricopa County Single Audit Reporting Package Year Ended June 30, 2004 Table of Contents Page Comprehensive Annual Financial Report Issued separately Single Audit Section Report on Internal Controlover Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards 1 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control ...

Informations

• Publié par: Thoem
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• Langue: English

Extrait

A REPORT TO THE ARIZONA LEGISLATURE

Financial Audit Division

Single Audit

Maricopa County Year Ended June 30, 2004

Debra K. Davenport Auditor General

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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 • [phone] Additionally, many of our reports can be found in electronic format at: www.azauditor.gov

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Maricopa County Single Audit Reporting Package Year Ended June 30, 2004   Table of Contents  Comprehensive Annual Financial Report  Issued separately  Single Audit Section  Report on Internal Control over Financial Reporting and on Compliance  and Other Matters Based on an Audit of Basic Financial Statements  Performed in Accordance withGovernment Auditing Standards   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 Awards   Schedule of Findings and Questioned Costs   Summary of Auditors Results   Financial Statement Findings   Federal Award Findings and Questioned Costs   County Responses   Corrective Action Plan   Summary Schedule of Prior Audit Findings  

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     STATE OF ARIZONA  OFFICE OF THE DEBRA K. DAVENPORT, CPA AUDITOR GENERAL AUDITOR GENERAL  W D I EP L U L T I Y A AU M D  IT T O H R O GE M NE S R O AL N    Independent Auditors Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance withGovernment Auditing Standards    Members of the Arizona State Legislature  The Board of Supervisors of Maricopa County, Arizona   We have audited the financial statements of the governmental activities, business-type activities, the discretely presented component unit, each major fund, and aggregate remaining fund information of Maricopa County as of and for the year ended June 30, 2004, which collectively comprise the Countys basic financial statements, and have issued our report thereon dated December 1, 2005. Our report was modified for a disclaimer of opinion on the financial statements of the Maricopa Health Plan Fund, the ALTCS Fund, the Non-AHCCCS Health Plans Fund, and the business-type activities; a change in reporting entity for the Housing Authority of Maricopa County being reported as a discretely presented component unit; and due to our reliance on the report of other auditors. We conducted our audit in accordance with U.S. generally accepted auditing standards 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 Countys internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the basic financial statements and not to provide an opinion on internal control over financial reporting. However, we and the work of the other auditors noted certain matters involving internal control over financial reporting and its operation that we and the other auditors consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of internal control over financial reporting that, in our judgment, could adversely affect the Countys ability to record, process, summarize, and report financial data consistent with the assertions of management in the basic financial statements. Reportable conditions are described in the accompanying Schedule of Findings and Questioned Costs as items 04-01, 04-02, and 04-03.  

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2910 NORTH 44 th STREET  SUITE 410  PHOENIX, ARIZONA 85018  [phone]  FAX [phone] 

 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 basic 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, of the reportable conditions described above, we consider items 04-01 and 04-02 to be material weaknesses. We also noted other matters involving internal control over financial reporting that we will report to the Countys management in a separate letter at a future date.  Compliance and Other Matters  As part of obtaining reasonable assurance about whether the Countys basic 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 work of the other auditors disclosed an instance of noncompliance that is required to be reported under Government Auditing Standards, and which is described in the accompanying Schedule of Findings and Questioned Costs as item 04-02. We also noted certain immaterial instances of noncompliance or other matters that we will report to the Countys management in a separate letter at a future date.  This report is intended solely for the information and use of the members of the Arizona State Legislature, the Board of Supervisors, 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.    Dennis L. Mattheisen, CPA Financial Audit Director

 December 1, 2005 

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     STATE OF ARIZONA  OFFICE OF THE DEBRA A K U . DI D T A OR V G E E N NE P R O AL R  T, CPA AUDITOR GENERALWILLIAM IT T O H R O GE M NE S R O AL N   DEPUTY AUD  Independent Auditors Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133   Members of the Arizona State Legislature  The Board of Supervisors of Maricopa County, Arizona   Compliance  We have audited the compliance of Maricopa County with the types of compliance requirements described in theU.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, 2004, except for that portion of the federal programs administered by the Housing Authority of Maricopa County, which includes the following programs: Public and Indian Housing, Public and Indian Housing Drug Elimination Program, Resident Opportunity and Supportive Services, Section 8 Housing Choice Vouchers, and Public Housing Capital Fund. The Housing Authority of Maricopa County was audited by other auditors, and our opinion, insofar as it relates to the compliance of the Authority with the types of compliance requirements described in the Circular A-133 Compliance Supplement OMB, is based solely on the work of the other auditors. The Countys major federal programs are identified in the Summary of Auditors 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 the Countys management. Our responsibility is to express an opinion on the Countys compliance based on our audit and the work of the other auditors.  We conducted our audit of compliance in accordance with U.S. generally accepted auditing standards; the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States; and 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 the Countys compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit and the work of the other auditors provide a reasonable basis for our opinion. Our audit does not provide a legal determination on the Countys compliance with those requirements.    3 2910 NORTH 44 th STREET  SUITE 410  PHOENIX, ARIZONA 85018  [phone]  FAX [phone]  

 As described in the following table, the County did not comply with certain compliance requirements that are applicable to the following major federal programs. Compliance with such requirements is necessary, in our opinion, for the County to comply with the requirements applicable to those programs.  Program Title (CFDA Number) Compliance Requirement Finding Number Public Housing and Indian Housing Eligibility, Special Tests and 04-101 (14.850) Provisions  Section 8 Housing Choice Allowable Costs/Cost Principles, 04-101, 04-103, 04-105 Vouchers (14.871) Eligibility, Special Tests and Provisions  Centers for Disease Control and Activities Allowed or Unallowed, 04-109 PreventionInvestigations and Allowable Costs/Cost Technical Assistance (93.283) Principles, Reporting  HIV Emergency Relief Project Subrecipient Monitoring, 04-110 Grants (93.914) Earmarking  In our opinion, based on our audit and the work of the other auditors, except for the noncompliance described in the preceding table, Maricopa County 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, 2004.the work of the other auditors also results of our auditing procedures and  The disclosed other instances of noncompliance with those requirements that are required to be reported in accordance with OMB Circular A-133 and are described in the accompanying Schedule of Findings and Questioned Costs as items 04-106, 04-107, and 04-108.  Internal Control over Compliance  The Countys management is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the Countys internal control over compliance with 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 and to test and report on internal control over compliance in accordance with OMB Circular A-133.  We and the other auditors noted certain matters involving internal control over compliance and its operation that we and the other auditors consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of internal control over compliance that, in our judgment, could adversely affect the Countys ability to administer a major federal program in accordance with the applicable requirements of laws, regulations, contracts, and grants. Reportable conditions are described in the accompanying Schedule of Findings and Questioned Costs as items 04-101 through 04-110.

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 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 noncompliance with the applicable requirements of laws, regulations, contracts, and grants caused by error or fraud that would be material in relation to a major federal program 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 internal control over compliance would not necessarily disclose all matters in 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, of the reportable conditions described above, we and the other auditors consider items 04-101, 04-103, 04-105, 04-109, and 04-110 to be material weaknesses.  Schedule of Expenditures of Federal Awards  We have audited the financial statements of the governmental activities, business-type activities, the discretely presented component unit, each major fund, and aggregate remaining fund information of Maricopa County as of and for the year ended June 30, 2004, and have issued our report thereon dated December 1, 2005. Our report was modified for a disclaimer of opinion on the financial statements of the Maricopa Health Plan Fund, the ALTCS Fund, the Non-AHCCCS Health Plans Fund, and the business- type activities; a change in reporting entity for the Housing Authority of Maricopa County being reported as a discretely presented component unit; and due to our reliance on the report of other auditors. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the Countys basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, based on our audit and the work of the other auditors, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.  This report is intended solely for the information and use of the members of the Arizona State Legislature, the Board of Supervisors, 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.  

 December 1, 2005

 Dennis L. Mattheisen, CPA Financial Audit Director 

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Maricopa County Schedule of Expenditures of Federal Awards Year Ended June 30, 2004

Federal Grantor/Program Title/ Pass-Through Grantor U.S. Office of National Drug Control Policy High Intensity Drug Trafficking Areas, passed through Pima Count High Intensity Drug Trafficking Areas, passed through Pima Count Total U.S. Office of National Drug Control Polic U.S. Department of Agriculture Food Donation,  passed through the Arizona Department of Education Child Nutrition Cluster: School Breakfast Program, passed through th Arizona Department of Education National School Lunch Program, passed throug the Arizona Department of Education Total Child Nutrition Cluste Special Supplemental Nutrition Program for Women Infants, and Children, passed through the Arizona Department of Health Service Child and Adult Care Food Program, passed through the Arizona Department of Educatio State Administrative Matching Grants for Food Stamp Program, passed through the Arizona Department of Health Service Schools and RoadsGrants to States, passed through the Arizona State Treasure Total U.S. Department of Agricultur U.S. Department of Housing and Urban Development Community Development Block Grants/Entitlement Grant Emergency Shelter Grants Program HOME Investment Partnerships Program Public and Indian Housing Public and Indian Housing Drug Elimination Program Resident Opportunity and Supportive Service Section 8 Housing Choice Vouchers Public Housing Capital Fund

CFDA Number Pass-Through  (Note 2) Grantor's Number 07.I2PSAP549 01-11-M-130692-1001, 01-11-M-131372-1001 07.I3PSAP549 01-11-M-132771-1002, 01-11-M-134371-1003

10.550 10.553 10.555 10.557 10.558 10.561 10.665 14.218 14.231 14.239 14.850 14.854 14.870 14.871 14.872

See accompanying notes to schedule. 6

KR-10358 KR-10358 KR-10358 HG361070 09CH7096 HG361068 None

Expenditures $ 145,325  286,287  431,612

 12,957  233,554  370,659  604,213  7,356,313  178,373  122,292  141,673  8,415,821  4,118,059  119,721  5,463,691  1,928,226  32,015  34,806  11,694,085  823,529 (Continued)

Maricopa County Schedule of Expenditures of Federal Awards Year Ended June 30, 2004 (Continued)

15.226 15.9-07-30-L0298 15.unknown None

Expenditures $ 82,465  24,296,597

 1,775,295  195,252  6,534  1,977,081

CFDA Federal Grantor/Program Title/ Number Pass-Through Pass-Through Grantor (Note 2) Grantor's Number Lead-Based Paint Hazard Control in Privately-Owned Housing, passed through the City of Phoenix  14.900 92269, 81732 Total U.S. Department of Housing and Urban Development U.S. Department of the Interior Payments in Lieu of Taxes Reclamation Projects Taylor Grazing Act, passed through the Arizon State Treasure Total U.S. Department of the Interio U.S. Department of Justice Juvenile Accountability Incentive Block Grants, passed through John C. Lincoln Hospital 16.523 None 40,412 Juvenile Accountability Incentive Block Grants, passed through the Office of the Governo 16.523 JAIBG-07, JB-GRA-02-4182-07, JB-GRA-03-4060-00 1,646,794 Total Juvenile Accountability Incentive Block Grants 1,687,206 Juvenile Justice and Delinquency PreventionAllocation to States, passed through the Office of the Governo 16.540 AD030001-008 17,408 Title VDelinquency Prevention Program 16.548 47,384 Part EState Challenge Activities, passed through the Office of the Governo 16.549 JC-GRA-01-3273-00 77,948 National Institute of Justice Research, Evaluation, and Development Project Grants, passed through the Arizona Criminal Justice Commission 16.560 FDC-04-202 2,100 Crime Laboratory ImprovementCombined Offender DNA Index System Backlog Reduction, passed through the Arizona Criminal Justice Commission 16.564 FLC-04-303 5,215 Crime Victim Assistance, passed through the Arizona Department of Public Safet 16.575 2001-VA-GX-0004, 2002-VA-GX-0004 165,732 Crime Victim Compensation, passed through the Arizona Criminal Justice Commission 16.576 VC-02-056, VC-03-056, VC-04-056 47,650 (Continued)

See accompanying notes to schedule. 7

Maricopa County Schedule of Expenditures of Federal Awards Year Ended June 30, 2004 (Continued)

Federal Grantor/Program Title/ Pass-Through Grantor Byrne Formula Grant Program, passed through the Arizona Criminal Justice Commission Edward Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Progra Drug Court Discretionary Grant Progra Violence Against Women Formula Grants, passed through the Office of the Governo Grants to Encourage Arrest Policies and Enforcemen of Protection Orders, passed through the Office of the Governo Local Law Enforcement Block Grants Progra Residential Substance Abuse Treatment for State Prisoners, passed through the Arizona Criminal Justice Commission State Criminal Alien Assistance Program Bulletproof Vest Partnership Progra Community Prosecution and Project Safe Neighborhood Public Safety Partnership and Community Policing Grant Enforcing Underage Drinking Laws Program, passed through the Governor's Office of Highway Safet Federal Equitable Sharing Program Total U.S. Department of Justic U.S. Department of Labor Welfare-to-Work Grants to States and Localities, passed through the Arizona Department of Economic Securit WIA Cluster: WIA Adult Program, passed through the Arizon Department of Economic Securit WIA Youth Activities, passed through the Arizona Department of Economic Securit WIA Dislocated Workers, passed through the Arizona Department of Economic Securit Total WIA Cluster

CFDA Number Pass-Through  (Note 2) Grantor's Number 16.579 AC-020-03, AC-020-04, CRI-04-076, PC-020-04 16.580 16.585 16.588 D010270-005, AD030003-006, AD030131-00 16.590 2003-WB-BX-0051 16.592 16.593 RAC-04-300, SAT-04-108 16.606 16.607 16.609 .7 16.727 2002-OJJDP-003 16.unknown

17.253 E5709062 17.258 E5702007, E5703007, E5704007 17.259 E5702007, E5703007, E5704007 17.260 E5702007, E5703007, E5704007

See accompanying notes to schedule. 8

Expenditures $ 1,422,244  454,712  158,096  219,911  12,608  552,431  374,946  2,127,525  7,361  226,169  ,  14,948  86,494  7,860,011

 7,160  2,259,612  1,411,134  2,569,853  6,240,599 (Continued)