Pima County June 30, 2007 Report Highlights-Single Audit

Office Of The Auditor General

Description

Pima CountyREPORT The County Experienced anHIGHLIGHTSSINGLE AUDIT Overall Decrease inExpenditures of Federal AwardsSubjectPima County spent $45million of federal monies andadditional required matching Overall expenditures of federalmonies this past year for 107 Federal Expenditures by Awarding Agencyawards decreased byprograms. The largest federal Totaling $45 Millionapproximately $10.9 million. Thegrants were for job training, Fiscal Year 2007 decrease was the result of thehousing, drug trafficking, and (In Millions)health and human services. In following:return, the County must be Transportation$2.7 accountable for its use of • $4.6 million decrease in Office Health and Human Justiceboth federal and local Servicesof National Drug Control Policy$3.6 $12.2 monies, maintain strong programs related to a reduction Office of National internal controls, and complyDrug Control Policyin High Intensity Drug Traffickingwith federal program $3.7Areas monies that were passedrequirements. As the auditors,through to other lawour job is to determine Laborenforcement agencies. $5.9 whether the County has met• $2.5 million decrease in U.S.its responsibilities. Housing and Urban OtherDevelopmentDepartment of Transportation $10.9 $6.0 Our Conclusion programs related to a decreasein Highway Planning andThe County maintained Significant Changes in ExpendituresConstruction Program monies.adequate internal controls of Federal Monies by• $2.1 million decrease in ...

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• Publié par: Ustue
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• Langue: English

Extrait

Pima County

REPORT The County Experienced an HIGHLIGHTS Overall Decrease in SINGLE AUDIT Subject Expenditures of Federal Awards Pima County spent $45 million of federal monies and additional required matching Overall expenditures of federal monies this past year for 107 Federal Expenditures by Awarding Agency awards decreased by programs. The largest federal Totaling $45 Million approximately $10.9 million. The grants were for job training, Fiscal Year 2007 housing, drug trafficking, and decrease was the result of the (In Millions) health and human services. In following: return, the County must be Transportation accountable for its use of $2.7  $4.6million decrease in Office Health and Human both federal and local Justice Services of National Drug Control Policy $3.6 monies, maintain strong $12.2 programs related to a reduction Office of National internal controls, and comply in High Intensity Drug Trafficking Drug Control Policy with federal program $3.7 Areas monies that were passed requirements. As the auditors, through to other law our job is to determine Labor whether the County has met enforcement agencies. $5.9 its responsibilities.  $2.5million decrease in U.S. Housing and Urban Other Department of Transportation Development $10.9 $6.0 Our Conclusion programs related to a decrease in Highway Planning and The County maintained Significant Changes in Expenditures Construction Program monies. adequate internal controls of Federal Monies by  $2.1million decrease in Election Awarding Agency over financial reporting. Assistance Commission funding Fiscal Years 2006 and 2007 However, auditors found one related to Help America Vote weakness in those internal $35 $32.9 controls as summarized on Act Requirements Payments. $32.6 page 2. Additionally, for two  $1.4million decrease in U.S. $30 federal programs tested, Department of Housing and $25 auditors found that the County Urban Development programs did not maintain adequate $20 related primarily to a decrease internal controls or comply in funds for the HOME $15 with one or more of the Investment Partnerships $10 compliance requirements $8.3 Program and Community $7.4 $6.0 applicable to these programs. $5.2 $5 Development Block Grants. $3.7 $2.7 See page 2 for further $2.1 $0.0  $0.3million net decrease in $0 information. various other federal programs. Transportation ElectionsOffice of NationalOtherHousing and Drug ControlAssistance Urban Policy CommissionDevelopment 2006 2007 2007 Year Ended June 30, 2007

The County Should Strengthen Controls over Investment Activities

A separately issued report on Internal Control and Compliance dated December 19, 2007, included one deficiency over financial reporting internal controls.

To fulfill the responsibility of managing more than $775 million in public monies, the County Treasurer’s Office should have strong internal controls to safeguard

public monies and ensure compliance with investment laws and regulations. However, at June 30, 2007, we noted that the County Treasurer’s Office lacked adequate written investment policies and procedures. Also, the Treasurer’s Office subjected some of the County’s securities to custodial risk because those securities were not held by an independent trust in the County’s name.

The County Did Not Always Comply with Federal Program Requirements

Auditors identified and tested seven federal programs (includes one program cluster) under the guidelines established by the Single Audit Act. Audit tests included evaluating the County’s compliance with each program’s federal regulations generally related to expending, monitoring, matching, and reporting federal awards. Auditors found material weaknesses in internal controls and material instances of noncompliance in

the Highway Planning and Construction federal program relating to the allowability of the costs for which the County received federal reimbursement, accuracy of the financial information reported, and compliance with ensuring the County's project subcontractors paid the prevailing wage to workers. The table below identifies the audit findings reported by program and type of compliance requirement.

 Typeof Compliance Requirement Program CostsReport DavisBaconAct Highway Planning and ConstructionX XX Homeland Security Grant Program ClusterX Costs: Certainprogram expenses were unallowable based on federal requirements. Report: Financialinformation reported to the federal grantor or passthrough agency was not accurate. DavisBacon Act:Noncompliance with federal prevailing wage requirements.

TheSingleAuditFactSheet

z One weakness in financial reporting internal controls reported in a separately issued Report on Internal Control and Compliance over financial reporting. z Three weaknesses in federal compliance internal controls that resulted in material violations of federal compliance requirements for the Highway Planning and Construction Program. z One weakness in federal compliance internal controls that resulted in immaterial violations of federal compliance requirements. z Program costs totaling $734,748 were questioned as a result of our audit.

TOOBTAIN MOREINFORMATION

A copy of the full report can be obtained by calling [phone]

or by visiting our Web site at: www.azauditor.gov

Contact person for this report: Donna Miller

REPORT HIGHLIGHTS SINGLE AUDIT

Year Ended June 30, 2007

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