Maricopa County June 30, 2005 Single Audit
Description
A REPORTTO THEARIZONA LEGISLATUREFinancial Audit DivisionSingle AuditMaricopa CountyYear Ended June 30, 2005Debra 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.azauditor.govMaricopa County Single Audit Reporting Package Year Ended June 30, 2005 Table of Contents Page 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 with Government Auditing Standards 1 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control ...
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Extrait
A REPORT TO THE ARIZONA LEGISLATURE
Financial Audit Division
Single Audit
Maricopa County Year Ended June 30, 2005
Debra K. Davenport Auditor General
TheAuditor Generalis appointed by the Joint Legislative Audit Committee, a bipartisan committee composed of five senators and five representatives. Her mission is to provide independent and impartial information and specific recommendations to improve the operations of state and local government entities. To this end, she provides financial audits and accounting services to the State and political subdivisions, investigates possible misuse of public monies, and conducts performance audits of school districts, state agencies, and the programs they administer.
Copies of the Auditor Generals 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.azauditor.gov
Maricopa County Single Audit Reporting Package Year Ended June 30, 2005 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 GENERALAUDITOR GENERAL WDIEPLULTYI AAUMD ITTOHROGMENSEORANL 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 StandardsMembers 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, 2005, which collectively comprise the Countys basic financial statements, and have issued our report thereon dated December 18, 2006. Our report was modified for a disclaimer of opinion on the financial statements of the Maricopa Health Plan Fund, the ALTCS Fund, and the business-type activities. In addition, our report was modified to include a reference to our reliance on other auditors; as to consistency because of the implementation of Governmental Accounting Standards Board Statement (GASB) No. 40; and for an emphasis of a matter for the retroactive reporting of the Flood Control District infrastructure assets as part of the implementation of GASB Statement No. 34. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States. Other auditors audited the financial statements of the Stadium District, Medical Center, and Housing Authority of Maricopa County, as described in our report on the Countys financial statements. This report includes our consideration of the results of the other auditors testing of internal control over financial reporting and compliance and other matters that are reported on separately by those other auditors. However, this report, insofar as it relates to the results of the other auditors, is based solely on the reports of the other auditors. Internal Control over Financial Reporting In planning and performing our audit, we considered the Countys 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 other auditors noted certain matters involving 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 internal control over financial reporting that, in our judgment, could adversely affect the Countys ability to initiate, record, process, 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 05-01 and 05-02.
2910 NORTH 44thSTREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553-0333 • FAX (602) 553-0051
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 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 item 05-01 to be a material weakness. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Countys 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 results of our tests and those of the other auditors disclosed no instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards. We noted certain matters that we will report to the Countys 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 18, 2006
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STATE OF ARIZONA OFFICE OF THE DEBRA KA.U DIDTAORV EGENNPEROARLT, CPAAUDITOR GENERAL WDIEPLULTYI AAUMD ITTOHROGMENSEORANL 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 Supplementthat are applicable to each of its major federal programs for the year ended June 30, 2005, 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, 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 whose report has been furnished to us, and our opinion, insofar as it relates to the compliance of the Authority with the types of compliance requirements described in theOMB Circular A-133 Compliance Supplement, is based solely on the report of the other auditors. The Countys 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 Countys management. Our responsibility is to express an opinion on the Countys compliance based on our audit and the work of the other auditors. Maricopa Countys basic financial statements include the operations of the Maricopa County Regional School District, which expended $2,056,865 in federal awards that are not included in the Countys Schedule of Expenditures of Federal Awards for the year ended June 30, 2005. Our audit, described below, did not include the operations of the Maricopa County Regional School District because the District engaged another auditor to perform an audit in accordance with OMB Circular A-133. 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.Circular A-133 require that we plan and performThose standards and OMB 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 Countys compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit and the report of the other auditors provide a reasonable basis for our opinion. Our audit does not provide a legal determination on the Countys compliance with those requirements. 3 2910 NORTH 44thSTREET • SUITE 410 • PHOENIX, ARIZONA • (602) 553-0333 • FAX (602) 553-0051 85018
As described in the following table, Maricopa 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 HIV Prevention ActivitiesHealth Activities Allowed or Unallowed, 05-101, 05-102, Department Based (93.940) Allowable Costs/Cost Principles, 05-103 Eligibility, Level of Effort, Earmarking, Reporting, Special Tests and Provisions HIV Emergency Relief Project Allowable Costs/Cost Principles, 05-107, 05-108 Grants (93.914) Eligibility, Earmarking, Subrecipient Monitoring In our opinion, because of the effects of the noncompliance described in the preceding table for the HIV Prevention ActivitiesHealth Department Based (93.940) program, Maricopa County did not comply in all material respects, with the requirements referred to above that are applicable to that program. Also, in our opinion, based on our audit and the report of the other auditors, except for the noncompliance described in the preceding table for the HIV Emergency Relief Project Grants (93.914) program, Maricopa County complied, in all material respects, with the requirements referred to above that are applicable to each of its other major federal programs for the year ended June 30, 2005. results of our auditing procedures The and the report of the other auditors also 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 05-104, 05-105, 05-106, 05-109, and 05-110. Internal Control over Compliance The Countys 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 Countys 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 report of 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 Countys 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 05-101 through 05-111.
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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 consider items 05-101, 05-102, 05-103, 05-106, 05-107, and 05-108 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, 2005, and have issued our report thereon dated December 18, 2006. Our report was modified for a disclaimer of opinion on the financial statements of the Maricopa Health Plan Fund, the ALTCS Fund, and the business-type activities. In addition, our report was modified to include a reference to our reliance on other auditors; as to consistency because of the implementation of Governmental Accounting Standards Board Statement (GASB) No. 40; and for an emphasis of a matter for the retroactive reporting of the Flood Control District infrastructure assets as part of the implementation of GASB Statement No. 34. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the Countys 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 by us and the other auditors in the audit of the basic financial statements and, in our opinion, based on our audit and the reports 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.
March 26, 2007, except for the Schedule of Expenditures of Federal Awards, for which the date is December 18, 2006
Dennis L. Mattheisen, CPA Financial Audit Director
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Maricopa County Schedule of Expenditures of Federal Awards Year Ended June 30, 2005
CFDA Number Pass-Through (Note 2) Grantor's Number 07.I3PSAP549 01-11-M-132771-1002, 01-11-M-133327-1002 07.I4PSAP549 01-11-M-134371-1003, 01-11-M-135223-1003 07.I5PSAP549 01-11-M-136285-1004
Federal Grantor/Program Title/ Pass-Through Grantor U.S. Office of National Drug Control Policy High Intensity Drug Trafficking Areas, passed through Pima County High Intensity Drug Trafficking Areas, passed through Pima County High Intensity Drug Trafficking Areas, passed through Pima County Total U.S. Office of National Drug Control Policy U.S. Department of Agriculture Child Nutrition Cluster: School Breakfast Program, passed through the Arizona Department of Education 10.553 ED05-0001 National School Lunch Program, passed through the Arizona Department of Education 10.555 ED05-0001 Total Child Nutrition Cluste Special Supplemental Nutrition Program for Women, Infants, and Children, passed through the Arizona Department of Health Services 10.557 HG361070, HG461508 Child and Adult Care Food Program, passed through the Arizona Department of Education 10.558 C-22-05-113-2 State Administrative Matching Grants for Food Stamp Program, passed through the Arizona Department of Health Services 10.561 HG361088 Schools and RoadsGrants to States, passed through the Arizona State Treasurer 10.665 None Total U.S. Department of Agriculture U.S. Department of Housing and Urban Development Community Development Block Grants/Entitlement Grants 14.218 Emergency Shelter Grants Program 14.231 HOME Investment Partnerships Program 14.239 Public and Indian Housing 14.850 Resident Opportunity and Supportive Services Homeownership and Family 14.870 Section 8 Housing Choice Vouchers 14.871 Public Housing Capital Fund 14.872
See accompanying notes to schedule. 6
Expenditures $ 171,781 269,337 10,343 451,461
246,632 373,682 620,314 8,595,323 228,665 158,659 121,988 9,724,949 3,858,670 112,480 4,517,535 2,169,506 57,556 11,474,277 1,624,735
(Continued)
Maricopa County Schedule of Expenditures of Federal Awards Year Ended June 30, 2005 (Continued)
15.226 15.9-07-30-L0298 15.unknown None
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 104981 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 Arizona State Treasure Total U.S. Department of the Interio U.S. Department of Justice Comprehensive Approaches to Sex Offender Management Discretionary Grant (CASOM) 16.203 Juvenile Accountability Incentive Block Grants, passed through the Office of the Governor 16.523 JB-GRA-02-4182-07, JB-GRA-03-4060-00, JB-GRA-03-5273-06 Gang-Free Schools and Communities Community-Based Gang Intervention 16.544 Title VDelinquency Prevention Program, passed through the Office of the Governor 16.548 J5-CSG-04-5273-001Y1 Part EState Challenge Activities, passed through the Office of the Governor 16.549 AD030001-008Y3 National Institute of Justice Research, Evaluation, and Development Project Grants, passed through the Arizona Criminal Justice Commission 16.560 FDC-04-202, FLC-04-402, FDC-05-202, FLC-05-302 Crime Victim Assistance, passed through the Arizona Department of Public Safety 16.575 2002-193, 2003-379, 2003-380, 2003-381 Crime Victim Compensation, passed through the Arizona Criminal Justice Commission 16.576 VC-04-056, VC-05-056 Edward Byrne Memorial Formula Grant Program, passed through the Arizona Criminal Justice Commission 16.579 AC-020-04, AC-020-05, CRI-04-076, CRI-05-088, PC-020-05 Edward Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Program 16.580
See accompanying notes to schedule. 7
Expenditures $ 50,455 23,865,214
1,813,162 36,453 8,144 1,857,759
19,405 1,212,239 53,717 71,813 97,615 37,208 176,424 890,810 1,460,274 664,587 (Continued)
Maricopa County Schedule of Expenditures of Federal Awards Year Ended June 30, 2005 (Continued)
CFDA Federal Grantor/Program Title/ Number Pass-Through Pass-Through Grantor (Note 2) Grantor's Number Drug Court Discretionary Grant Program 16.585 Violence Against Women Formula Grants, passed through the Office of the Governor 16.588 AD030003-006, AD030131-008, ST-WSG-04-6031/004Y1, ST-WSG-04-6031/005Y1 Grants to Encourage Arrest Policies and Enforcement of Protection Orders, passed through the Office of the Governor 16.590 EA-GRA-04-5242-02 Local Law Enforcement Block Grants Program 16.592 Residential Substance Abuse Treatment for State Prisoners, passed through the Arizona Criminal Justice Commission 16.593 RAC-04-300, RAC-05-300, SAT-04-108, SAT-05-108 Bulletproof Vest Partnership Program 16.607 Community Prosecution and Project Safe Neighborhoods 16.609 Public Safety Partnership and Community Policing Grants 16.710 Gang Resistance Education and Training 16.737 Edward Byrne Memorial Justice Assistance Grant Program 16.738 Federal Equitable Sharing Program 16.unknown Total U.S. Department of Justice U.S. Department of Labor Welfare-to-Work Grants to States and Localities, passed through the Arizona Department of Economic Security 17.253 E5709062 Workforce Investment Act (WIA) Cluster: WIA Adult Program, passed through the Arizona Department of Economic Security 17.258 E5703007, E5704007, E5705007 WIA Youth Activities, passed through the Arizona Department of Economic Security 17.259 E5703007, E5704007, E5705007 WIA Dislocated Workers, passed through the Arizona Department of Economic Security 17.260 E5703007, E5704007, E5705007 Total WIA Cluster WIA Pilots, Demonstrations, and Research Projects 17.261 Total U.S. Department of Labo
See accompanying notes to schedule. 8
Expenditures $ 120,893 214,263 73,799 578,253 334,665 25,143 122,240 98,703 9,865 2,164 110,149 6,374,229
6,430 2,473,330 1,797,599 2,152,899 6,423,828 923,024 7,353,282 (Continued)
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