Navajo County June 30, 2005 Single Audit

Office Of The Auditor General

Description

A REPORTTO THEARIZONA LEGISLATUREFinancial Audit DivisionSingle AuditNavajo 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 • [phone]Additionally, many of our reports can be found in electronic format at:www.azauditor.govNavajo County Single Audit Reporting Package Year Ended June 30, 2005 Table of Contents Page Financial Statements 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 over Compliance in ...

Informations

• Publié par: Cipot
• Nombre de lectures: 78
• Langue: English

Extrait

A REPORT TO THE ARIZONA LEGISLATURE

Financial Audit Division

Single Audit

Navajo 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 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

Navajo County Single Audit Reporting Package Year Ended June 30, 2005

Table of Contents

        Financial Statements   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  

Page

1 3 6 9 10 14

19 25

          STATE OF ARIZONA   OFFICE OF THE VENPORT, CPA DEBRA   K A . UD   I D TO A R GENERAL AUDITOR GENERAL   W DE I P L U L TY I   A AU M D   IT T O H R O G M EN S E O RA N L       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 Navajo County, Arizona     We were engaged to audit the financial statements of the governmental activities, each major fund, and aggregate remaining fund information of Navajo County as of and for the year ended June 30, 2005, which collectively comprise the Countys basic financial statements, and have issued our report thereon dated October 5, 2007. Our report was modified for a disclaimer of opinion on the basic financial statements of Navajo County taken as a whole.   Internal Control over Financial Reporting   In planning the engagement, 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 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 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 05-01 through 05- 05.   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 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 items 05-01 through 05-05 to be material weaknesses.  

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

  Compliance and Other Matters   As part of the engagement to obtain 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 results of our tests disclosed instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards,which are described in the accompanying Schedule of Findings and Questioned Costs as items 05-01 and 05-05.   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.      

November 30, 2007

Dennis L. Mattheisen, CPA Financial Audit Director  

2

          STATE OF ARIZONA   OFFICE OF THE DEBRA K A . U   DI D T A OR V   E GE N NE P R O AL R   T, CPA AUDITOR GENERAL   W DE I P L UT L Y I   A AU M D   IT T O H R O G M EN S E O RA N L       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 Navajo County, Arizona     Compliance   We have audited the compliance of Navajo County with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2005. 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.   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 provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the County's compliance with those requirements.   As described in the following table, Navajo County did not comply with certain compliance requirements that are applicable to its major federal programs. Compliance with such requirements is necessary, in our opinion, for the County to comply with requirements applicable to those programs.   Program Title (CFDA No.) Compliance Requirement Finding Number     Payments in Lieu of Taxes (15.226) Single audit report submission 05-101, 05-103     Byrne Formula Grant Program (16.579) Single audit report submission 05-101, 05-103  

3 2910 NORTH 44 th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • [phone] • FAX [phone]    

Program Title (CFDA No.)   Workforce Investment ct Cluster (17.258 and 17.259)   Centers for Disease Control and Prevention Investigations and Technical Assistance (93.283)   Child Support Enforcement (93.563)

  Compliance Requirement Finding Number    Single audit report submission, 05-101, 05-102, Equipment and Real Property 05-103 Management    Single audit report submission, 05-101, 05-102, Equipment and Real Property 05-103, 05-104 Management, Activities Allowed/Unallowed, Allowable Costs/Cost Principles, Reporting    Single audit report submission, 05-101, 05-102, Equipment and Real Property 05-103, 05-105 Management, Special Tests and Provisions   In our opinion, except for the noncompliance described in the preceding table, Navajo 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, 2005.   Internal Control over Compliance   The County's management is responsible for establishing and maintaining effective internal control over compliance with the 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 noted certain matters involving internal control over compliance 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 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 05-101 through 05-   105.   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 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 through 05-105 to be material weaknesses.

4

  Schedule of Expenditures of Federal Awards   We were engaged to audit the financial statements of the governmental activities, each major fund, and aggregate remaining fund information of Navajo County as of and for the year ended June 30, 2005, which collectively comprise the Countys basic financial statements, and have issued our report thereon dated October 5, 2007. Our report was modified for a disclaimer of opinion on the basic financial statements of Navajo County taken as a whole. 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 not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it.   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   November 30, 2007, except for the Schedule of Expenditures of Federal Awards, for which the date is October 5, 2007

5

Navajo County Schedule of Expenditures of Federal Awards Year Ended June 30, 2005

Federal Grantor/Pass-Through Grantor/Program U.S. Department of Agriculture Passed through the Arizona Department of Health Services Special Supplemental Food Program for Women, Infants, and Children State Administrative Matching Grants for Food Stamp Program Passed through the Arizona State Land Department Cooperative Forestry Assistance Passed through Arizona State Treasure Schools and RoadsGrants to States Total U.S. Department of Agriculture U.S. Department of Housing and Urban Development Passed through the Arizona Department of Housing Community Development Block Grants/State's Program Home Investment Partnership Program Total U.S. Department of Housing and Urban Development U.S. Department of the Interior Payments in Lieu of Taxes National Fire PlanWildland Urban Interface Community Fire Assistance Total U.S. Department of the Interior U.S. Department of Justice RICO Funds Passed through the Arizona Governor's Division for Children Juvenile Accountability Incentive Block Grants Passed through the Arizona Department of Public Safety Crime Victim Assistance Federal Bureau of Investigations Southwest Border Patrol Initiative Passed Through the Arizona Criminal Justice Commission Byrne Formula Grant Program Passed through the Arizona Drug Enforcement Administration Public Education on Drug AbuseInformation Community Prosecution and Project Safe Neighborhoods Total U.S. Department of Justice U.S. Department of Labor Passed through Arizona Department of Economic Security Workforce Investment Act Cluste WIA Adult Program WIA Youth Activities Total U.S. Department of Labor

CFDA Number

10.557 10.561 10.664 10.665

14.228 14.239 15.226 15.228 16.unknown 16.523 16.575 16.unknown 16.unknown 16.579 16.005 16.609

17.258 17.259

See accompanying notes to schedule. 6

Pass-Through Grantor's Number

HG361082, 26107 HG361087, 261089 SFA1005 None

142-04 137-04 None

01-JAIBG-09, JBGRA02418209, JBGRA023527308 2001-VA-GX-00 04 198A-PX-C619918 None C 180-03, PC-140-03 2002-09 2002-GP-CS-0114

E5704009, E5705009 E5704009, E5705009

Expenditures

$ 239,647  54,845  13,137  25,000           332,629

 74, 50 7  172,225  246,975    845,282  28,062  873,344  207,722  13,851  110,739  7,297  87,903  411,318  7,377  39,237  885,444

 163,351  137,683  301,034        (Continued)

Navajo County Schedule of Expenditures of Federal Awards Year Ended June 30, 2005 (Continued)

Federal Grantor/Pass-Through Grantor/Program U.S. Department of Transportation Passed through the Arizona Department of Transportation Highway Planning and Construction U.S. Department of Education Passed through Arizona Department of Economic Security Special EducationGrants for Infants and Families with Disabilities Passed through Arizona State Supreme Court Title I Program for Neglected and Delinquent Children Rural Education Safe and Drug-Free Schools and CommunitiesState Grants State Grants for Innovative Programs Improving Teacher Quality State Grants Passed through Arizona State Department of Education Special EducationGrants to States Reading First State Grants Improving Teacher Quality State Grants Total U.S. Department of Education U.S. Department of Health and Human Services Passed through Arizona Department of Health Services Immunization Grants HIV Prevention ActivitiesHealth Department Based Preventive Health ServicesSexually Transmitted Diseases Control Grants Preventive Health and Health Services Block Grant Maternal and Child Health Services Block Grant to the States Centers for Disease Control and PreventionInvestigations and Technical Assistance Passed through Arizona Department of Economic Security Child Support Enforcement Total U.S. Department of Health and Human Services U.S. Department of Homeland Security Passed through State of Arizona Department of Emergency and  Military Affairs Emergency Food and Shelter National Board Program Citizen Corps Homeland Security Grant Program Total U.S. Department of Homeland Security Total Expenditures of Federal Awards

CFDA Number 20.205

84.181 84.013 84.027 84.186 84.298 84.367 84.027 84.357 84.367

93.268 93.940 93.977 93.991 93.994 93.283 93.563

97.024 97.053 97.067

See accompanying notes to schedule. 7

Pass-Through Grantor's Number AG1N00000501

E1800031, E180003 26682 26682 26682 26682 26682 H027A0030007, H027A01000 S357A020003 S367A040049

HG352200, 152045 152016, HG352259 HG354250, 052003 261109, HG354183 961125, 761108, HG361315, 9610922 252039 E7203317, E7204017, E7205017

EMF2004-GR-0401 None TE-CX-0196, 2002-TE-CX-0412

Expenditures $ 52,478

 578  26,245  7,640  1,070  997  8,486  15,102  58,034  44,863       163,015

 16,607  7,828  1,911  41,233  71,830  439,552  638,462    1,217,423

 51,849  7,500  237,825  297,174 $ 4,369,516  

Navajo County Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2005     Note 1 - Basis of Accounting  

The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Navajo County and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133,Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.

  Note 2 - Catalog of Federal Domestic Assistance (CFDA) Number   The program titles and CFDA numbers were obtained from the federal or pass-through grantor or the 2005Catalog of Federal Domestic Assistance. When no CFDA number has been assigned to a program and when there was no federal contract number, the two-digit federal agency identifier, a period, and the word unknown were used.   Note 3 - Subrecipients  

Navajo County did not have any subrecipients for the year ended June 30, 2005.

8