HomeMy WebLinkAbout1990
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CJTV OI DENTON / 215 E. McKrnney / Denton, 'texas 76201
I~ MEMORANDUM
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DATE: February 21, 1990
Nelson, Executive Director of Utilities
T0. Bob
FhUM: John F. McGrane, Executive Director of Finance
SUBJECT: SALES TAX AUDIT OCTOBER 1985 'fHRU APRIL 1989 1
1 ` Attached is a letter from the Comptroller of Public Accounts
notifying the City of Denton of a clean bill of- Originally the health for the
ril $al . The
'f audit period October 1985 through Ap fo
State indicated a finding against the City
Finance Department has successfully negotiated the assessment to
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no additional taxes being due.
further information is needed in this E
Please contact me if any
Issue.
TI nV~c rane
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JFM/ljw o
C.C. Lloyd Harrell n.`-• - i
V FES l~
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C MAF AGERS OF I
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COMP"rROJ LER OF PUBLIC ACCOUNTS 1
STATE OF TEXAS
AUSTIN, 78774 ,
February 121 1990
ECompvolN ! C
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MR. JOHN NC CRANE
EXECUTIVE DIRECTOR OF FINANCE
CITY OF DENTON MCY.INNEY IU 1`~r~ 1
DIRECTOR OF FINANCE, 215 E.
DENTON, T?: 76201
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Dear Mr. Mc cranes
les, Excise and Use y
} YOU hat °UrtLimited SaOctober, 1985 through
1 am pleased to tell Y
firm, covering es are due.
Tax audit of, Your additional tax
April, 1909' has shown that no to i
commend You for your diligent and succesUUhave efforts
manner in which Yo in Paying
Let me laws each
Comply he tax dollar go further
with the tax . The state government.
ycur 01 li9at!ons er s vi mceakse provided by
far th3 essential and courtesy
I also want to thank You for your cooperation
d
e:.tended to Michelle Schniers uringthe audit.
~ replace any Previous
s audit do not rescind os' balances for
standing i
new k
the results of thhi have received regarding out l
ou may period, Also, aw changes or
notices Y the audit in future audits'
report Periods within of service. i
rulings might result in different findings iwe s can be
to feel free call on
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SincerelY,
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COMPSROtLER OF PUbUC ACCOUNTS
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hxpaYCr numbs/, 1-75'6000514-6 t
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Form 00-33911.881
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CITY of DENTON, TEXAS
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CIFYNC* o21 the Mayor, Ray Stephens (B) 568.8417
February 1. 1990
James Hogan. Manager
Single Audit Clearinghouse
Governments Division
V. S. Bureau of the Census
1201 East Tenth Street
Jeffersonville, IN 47132
Dear Mr. Ilogan:
At your [squeal I am enclosing a copy of the City 1f8enton's
Single Audit Rec00 t For The Year E~Qed Seotembe[ 30.
The City's Finance Department advises me that this report was
Merchdl6,ndi989at (CopYsofr by an a in your ecertiti d returnereceipt enclosed.) on
It this report does not provide the information to u indicate
would apprbiiate your calling me directly
specifically the information you need so that we can comply
with these requirements in a timely fashion. I appre:iate your
working with us to get this matter resolved. If I can be of 4
further assistance, please let me know.
I
very truly yours,
h
Ra sphens
Mayor
RS:nb
4873H
xc: Lloyd Harrell, City Manager
John McGrane, Executive Director of Finance
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UNITED STATES DEPARTMENT of COMMERCE
~usl~ r 9ursau of the Census
r r?f l~ wIINA04n. D C 20233
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/fit SINGLE AUDIT NOTICE JAN 2 p
JAN
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Dear Public Official:
The U. S. Office of Management and Budget IOM81 Is rMlred to provide an annual rspart to Conoreis on
State and local government compliance with the Single Audit Act of 1984 (P -MI5021. A signHkant
component of this report Is a list of gowmments which have not yet submitted an enrdh report to the
appropriate Federal granting agency or to the National Clearinghouse for Single Audit Aso".
Our records indicate that we have D~tt received a Single Audit Report for your government for the fiscal
year that ended on any date ~ 1988.)
records uAN1N take thassistance to ri d the nforrmtation on t of rive arso side opf this and the letter and in}am us of any
factors that may have affected reporting, Specific •wamples of such factors are:
N 1 your single audit re port has been submitted; ,
121 your government did not receive the specified amount of Federal old;
(3) your government is on a bisnnW reporting period;
141 your government received on extension from a Fedora I granting agency.
It would be especially helpful If you could complets the enclosed information sheet and return h within
tea neat 30 days,
If you need furthsr information, posts call 13011763-7582 or 13011783-7548.
Thank you for your cooperation,
Sincerely,
JAMES MOGAN, Manager
(single Audit Clearinghouse
Oovernmam Division
Bureau of the Census
Enclosura
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KEY PROVISIONS
OF THE
SINGLE AUDIT ACT OF 1964
The Single Audit Act of 1984 (Public Law 98-502) will reduce the number of grant-by-grant
mud'' • pjrii4tad on federally funded programs and replace them with a single, uniform audit
df 42:h government entity that receives specifi6d amounts of Federal assistance.
Specifically, the Act establishes uniform auditing requirements for Fcdersl finrncial assistance
to State and local governments. The Act requires State and local governments that receive a
total of 3100,000 or more in Federal funding in a fiscal year to obtain an annual, organization-
wide audit of its financial operations.
Governments receiving less than f 100,000 a year but more then 4 25,000 from the Federal
for each Federal assistance a single mudit or complying with the existing audit
government have the option of
Those government entitles that receive less than 125,000 in Federal aid are generally exempt
from single audit requirements.
Federal financial assistance includes grants, contracts, cooperative agreements, loans, scan
guerant"$, property, Interest subsidies, insurance and direct appropriations. It includes
assistance received directly from Federal agencies c r indirectly through other units of State
and local governments.
The Act requires en audit to be submitted to each Federal agency which provlo:d funding
within 30 dove of Issuance but not later than one year after the and of the government's fiscal
year. In addition, if a government receives 1100,000 or more in f64erallassistance, OMB 28
a co Clearingh u11 se it located with in t Censu Burreau at 1201 Eonal ast Tenth gStreet The
Jeffersonville, IN 47132.
Policies, procedures and guidelines to implement the Act are contained in the Office of
Publi atior is Office on ants."
Copies of the Cris ulBudget arr canl be obtaiinedlfrom OMB by calling of its State
Copi
12021395-7332.
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Al - Affix below CM9 No 0607.0518: Approves Exo,rrx 12,31 9t
`oysAAC•1(D1
002 6 an U.S.OEPARTMENT
0 1
01 BUREAU or n"t~i MEACE
MAYOR NATIONAL CLEARINGHOUSE
215 E MC KINNET
0EVT0N r x SINGLE AUDIT REPORTS
x 76201 SINGLE AUDIT FOLLOWUP
INFORMATION DOCUMlNT
lPlrw!eomctmvrnainnrme, eednrr, Ond 111P Ca
Name
Title NeHorep C
~ jNww~oftlNMoeta for
calms
raisphone Arm tow Numeer Extension 9:01 octet Tends strew
1MfrrseRrNN, IN 4713a
R8PORTINO PIAIOD - Kseo In mind that the Information
redere"W refs" to your fiscal year which ended in 1980.
Report that matte- dote hers. Month 0ey Yost
t. Mark IV the 9 ° 1908
r opWOprlete items.
IN RESPONSE TO OUR RECENT F,~_UP FOR THE SINGLE AUDIT CLEARINGHOUSE, AN I
ETURNED THAT DID NOT INCLUDE THE NECESSARY SINGLE AUDIT
COMPONENT(S), PLEASE FORWARD ANOTHER AUDIT REPORT THAT INCLUDES THE SINGLE F
AUDIT C MPONENT(S) OR A COPY OF THE SINGLE AUDIT COtPONENT(S) TO INSERT WITH
THE AFORDIENTIONED RECEIPT.
f
a 0 We have recoNsd an extension hem our co9Neera/overaight Federal agency,
Specify the name of rM aaerrey...
J
a ❑ Our single audit report was completed, - Plee» forward e copy sb^q with this report
tG Other - Specify J
Per attached recei ts, an Audit and a Single Audit were mailed to you
September 11, 1989 and March 16, 1989, I am enclosing one copy of
car Single Audit for year ended September 30, 1988.
ETTWh14 that It will take from I to 13 minutes to compl
ete this form, with 8 mi
tme to reed or Mar inatructlons, dev « nutto being tits ins and• tns,
meiae~oo~t asNmble meatneyrial. conduct ta m. o+gaN» and review
pect of this whey, and M,,rm to the Assoclin you reotta fa Memo N. Pork or
olm 0807-0818, Room 2027, !crew of the CW on, OC 20233, and to eM OMee of
and ~+dgat, POW*" Reduction hoieot 0807-0818, Non, OC 20603.
OMB No. 0607-0518: Approval Expires 12r31/9
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A. Identification label -Affix below - FORM SAC-116}
i6-ralso
U.S.DEP~ARRATvMENTToFCOMMERCE
44 2 051 002 6 nc 01 0930
DENTON CITY NATIONAL CLEARINGHOUSE
MAYOR
215 E '1C K1hNEY FOR SINGLE AUDIT REPORTS
DENTON Tx 76201 SINOLEAUDIT FOLLOWUP
,
INFORMATION DOCUMENT
Name
John F. McGrane Nadarwclaariomhouaafor
Title Executive Director of Finance u.t swraAwoff~tmus
1301 leas Torrth ICrisis
e
Area Code Number Extension
telephone 817 566-8320 dofhrn"VINS, IN 47132
RIPORTINJ PNRIOD - Keep in mind that the Information any day belwaon
` requested reform to your floral Veer Which ended on -
Jeewary 1, 1908 end Atelwt 31,18!8
S. Mork fXl the oppropdara hems.
r Month Dey Yur
1 ❑ Our single audit report Is in proease. We expect release by
' I 3 ❑ We are exempted as a College or hospital.
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3 ❑ We did not receive 1100,000 or more of Federal assistance during this period,
s ❑ We are on a biennial audit cycle. Out next single audit will Moneh Oey Year
cover the floral V*or ending
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e ❑ We have received an extension from our cognitanttoversight Federal agency,
Spochy the name of the agency,
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e ❑ Our single audit report was completed, - Phew forward a copy along with this report.
7UOthor - Specify
Per attached copy of return receipt, a copy of our Annual Audit for year
ending 9-30-88 was mailed and received. I am enclosing an additional
i
We estimate that it will take from I to 12 minutas to complete this form, with 8 mints being the ava 090 time.
This includes time to read or hear Inetructions, dove lop or Ream She materiel, conduct lost, orgstill a and rev low
the Information, and maintain end report the in formstlon, if you have any comments regarding thse• •etimstes or
any other aspect oI this survey, send them to the Aasociato 01r$clor for Management Services, Paperwork
Reductlon Project 0807-0818, Room 2027, Burasu of the Census, Washington, OC 20233; and to the Office of
Management and Budget, Paperwork Reduction Project 0607-0518, Washington, OC 20503.
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7a SENN I Corripleto hoot 1, 2, 2 and A.
UNDER: Co"swo ham 1,2,0 and4. hl your odoiew In the "M L TURN TO"w«e an ino
Your addroq to the "R ETV IIN TO" epera on tM rovlne silo, FNlwe to do We wA1 pwMt MU sod from
put
pallure to do We will prevent this eerd from ~ Del Ou et the t{to 1000 to ydu. ~l+aturn roeoktt
revert two. It prpvide
none t the eon defiv«W le andtM tote al
r UelrOp rawlned to you. 21•e terS1n /rekt IN will prpr~ f EaNly rFo e.+dieidnciew
ei fees 1"41 Ollpwinp WVfar are
nom I the er{am Oe1Ir«ati to end One dale a' ` eraiiaole, Consult feplm ester fat for and tAKe bealrt
EANl.arr' a eoolt onN ar ON now n9 a«rkM«e i[ forservkdet ritchIseted.
erailoW a. Consult pp{an aeO«fa for eM CRKA yealMl
tot "Mice4st coquetted. 1. f]t s"w to whom, dais and eddroa of "Wory.
the
1. fAaw !O whom,d«oart M&*W of derlrery. 2, ❑ RrtrktW Derir«Y,
2. O It rtrk Iad DN1 Y.
i Article AddreaeeA lot
2. AnkleAaaroeeedlo: Al Clearinghouse for Single Audits
!!ational Clearinghouse for Bureau of Census Single Audit 1201 E. 10th St Ft
1201 East Tenth Street Jeffersonville, Indiana 47133 l
Jeffersonville. IN 47132 4. 1 Y04ofswvk4: AnIcle Number
\ 4. Type of fervtoe: - AniNe Nwmber ❑ Rtgi,ttred U Immod p 556 182 936,
~cCertified coo
Rapetered Inwred P556 182 913 Q Eaww Mail, (Single Audit)
Certified coo l
EaWewMAudit FY/88} AI T opt'inlgnstoreofaddresses gtapentand
Afww, obtain signature of addr t Repent and
DATE DELIVEttEO. `r f. Upnaiure Adarewo
•I f. Yp ure - Addrew x
x d. fipMfun - A9MP ~
f, ftpaan -A gent x i
T, one Olaf,
x w« AR 1 X989'
11 oil
1. oil f. Aesrw..'t Aaa.r ivptpwm,rng f" pool
E. AAdrettw'e Aar~aw +tquat f dpt
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Delcitte
Haskins4ells
CITY OF DENTON, TEXAS
Single Audit Reports For The
Year Ended September 309 1988
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wN.4 UNITED STATES DEPARTMENT OF COMMERCE
SAW-U- Bureau of the Carious
iHal ~ s ~t wasrwnston, O C. 20233 1
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SINGLE AUDIT NOTICE JAN 2 2 Jg~
r~ SAN
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Dear Public Official:
The V.S. Office of Management And Budget i0M81 is required to Provide an ennuN r to Congress on
\ State end local government compliance with the Single Audh Act of PL-91-5021. eignificant
s prooos s Foderel grre ting lime goat torte temvonil Clsv*4house for Single AAud~it R*W to the
Our records Indicate that we have received a Single Audit Reoort lot your govern""M for the fiscal
year that "ad on any date ii t 9~
I am requesting your auisto In dsartnining"statue of your sudlt report and the sa wacy of our
have affected mpor*V SWft axemplu of such factors am, ~ferm see of any e time to read ft Information on the reversal sido of this letter and I
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records. factors that may take
11 I Vow elngie vjdh report hag been submitted;
(Z) your govemm 4 did net rsahre the specified amount of Federel aid; ,
IS) Vow government Is an a his - lei reporting Period:
141 your government received an etrtarnlon from s Federal granting sgeneir.
it would be especially helpful If you could complete the enclosed knfotmetloh ~ and return it within
the nest 30 days.
If you need furew Informadon, place cap 1301) 763-7662 or 13011763-7660.
Thsnk you for Your eooWedon.
Since~ryelly,
V u
JAMES HOOAN, Manager
IQ ingla Audit Clearinghouea
dovemments Division
Bureau of the consul
Enclosure
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SINGLE AUDIT ACT OF 1984
The Single Audit Act of 1994 (Public Law 98.502) will reduce the number of grant•bvgrent
olfrdeits govt meat entity federally that raw vprogri fled mounts of Federisheeai~tinoi~~f°rm audit
Specifically, the Act establishes uniform auditing requirements for Federal financial assistance
to State sad local governments. The Act requires State and local governments that receive a
total of 41 g00lu~n nail In atonafederal funding in a fiscal year to obtain an annual, organization-
wide
gov audit
em~haveethe opletion o1 sellecttiing a single audit or comoyl 9 w~ fe existthe ing audit
requirements for each Federal assisunce program
\ Those government entities that receive less than 126,000 In Federal aid are generally exempt
from single audit requirements.
Federal finsncial assistance Includes giants, contracts, cooperative aagg~reeeemeats, loans, loan
units
guarani props IV, Interest subsidies, Insutence and direct spproprlstione. It Buts
assistance received dirsi from Foideral agencies or indirectly through other and local govemmr nts.
The Act re4uiras an audit to be submitted to each Federal agency which provided fundin
hio of if a government but not later then $100,9 or mate in Federsl assistan~OMSiacN
wifar. In thin 30 days
yro a A-112e requires reoeiws
Circular house govloc a ropy ~t~sw "w at 120e1 EiK Tenth SUMO
Clearinghouse Is located w ~
Jeffare iNe, IN 47132.
Policies, procedures and guidelines impiennom the Act are contained in the Office of
Copiers of the Ci cusli ccaangbbe obtained ffrrom OQ by callft Its Publiccations Officemon ments."
12021395-7332.
Mkta i&tfM
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OP AS No. 0607-011 a: Aporov rl E+D,rN 121 ] 1 91 1
A. identification I obal - AHix below - 1411sSAC-1181
U. S. DEF8wft"Qfr4C MlRC!
44 2 061 012 6 all 01
DENTON CITY NATIONAL CLEARINGHOUSE
MAY ait FOR SINGLE AUDIT REPORTS
215 E MC KINNEY
DENTON T% 76201 SINGLE AUOIT FOLLOWUP
INFORMATION DOCUMENT
(Preaq caner sty 00 00 in nsms. Wd#va, erb 91.0 Codel
a for
Nome =AC
Sh4k ~M omm
eM
We7191
Ate cods
Talaphone I
RIFORTINO FIRIOD - K"0 km mind thattM Information Manes 11" Ysee
R ~ ~ fiscal year which mdse In 11/S. 09 30 1IIt here.
A. Mark fXJ the apptopnata item. Me
y r mh Dev Yar
1 Our single audit report Is In txoaee- We expect tMae4 by -
a ❑ We at* exempted as a Coaegs or hospNel.
3 ❑ We did not receive 1100.000 or mac of Federal assistance during this period.
Memh Oey Yssr ~
4 13 We are on a blannial audit cycle. Out next ak" audit WA
covw the no" vet ending
a O We have received m extenalon from our cogs ssWoversight Federal sgsney. !
SpadHy the name of the agumoy. -
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a ❑ Our single audit reW was nengMad. - Phim fawnd a copy Mom/ with " MOW.
7'a Oder - occov
Per attached receipts, an audit and a Single Audit were mailed to you
September 11, 1989 and March 16, 1989. 1 am enclosing one copy of
our Single Audit for year ended September 30, 1988. '
W~ aatknet that k w11 tau f rem 1 to t 1 mMwtea to compk+ta rile farm. with I mtnutM being the average time.
This Inek" time to reed or her Instructions, a aaMmbM mstAal, cendud tat, orgenia and twiew
the k Fool is w". and maintaw and tepett tta if yw have rry oemrnma thew M 'norm of
Redueaan Roller 0407-051 ~ game ~ toowwaMM the Cm Wfa MmpaeOC„20nd tothe Office of
Mrlparnant and /udgaA PON work Reductlcn Preheat 0407-0111. = OC 20809.
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OMB No. 0607-0616: ApprovelExOr" 12131191
1 A. tdandncadonlabel - Affix below - so~+r SAC-11.1
lFt 7-aN
U.S. DE/ =M~EMEcom MERCE
44 2 061 002 6 on 01 0930
DENTON CITY NATIONAL CLEARINGHOUSE
MAYOR FOR SINGLE AUDIT REPORTS
215 E 4C K INN EY Tx 76 201 SINGLE AUDIT FOLLOWUP
D ENTON INFORMATION DOCUMENT
Name John F. McGrane National C1,MaRip .A"I" Ors
Tide Executive Director of Finance U.S.IBusewufdwConoa
1201 hst Terrdr Sued
usa coda Number ExUMion dellonow M. IN 17152
Telephone 817 566-8320
REPORTING reffir rmi to our flacKeep al vow mind at ded an edon jasn w 1* 1~ seas r+nra Awwt 31.1$04 1J
0. Mark fX) the appropriate lteme.
Mends Dsy Yea
E
t ❑ Our e{ngie audN sport ie in process. We expect reissas by
3 ❑ We we exempted as a college Of hospital.
3 ❑ We did not receive 1100.000 or more of Federal assistance during this period.
a ❑ We me on a blennial audit cycle. Out next Single MAN Will Momh DaY ria
Cover the flecal Volt ending
a~Yro our cogniziintloversight Federal agency.
a ❑ SAM e ~ 0/ Via extension
e ❑ Our Single audit report was completed. -Rosso, forward a copy along with thlr~1-
7 1
Other - Spaelfy
Per attached copy of return receipt, a copy of our Annual Audit for year
r ending 9-30-88 was mailed and received. I am enclosing an additional
cony.
We estimate that It will talcs from i to 12 minutes to complete this form, with 6 minutes boN the wuape time.
This kuiudes time to reed or hear ina~tpfpurctdons, develop or assemble material, conduct tests, organlu and review
the information, and maintain and teponm the Information. if D you hove fa ManaOement Berv
any otheraspectof this survey, as tit kae, Pif +ak ee or fleduction project 0607-0619, Room 1017. Butasu of the Census, Washington, DC 10233; and to the Office
of
Management and Budget, Paperwork Reductlon project 0607-0619, Washington, DC 20503.
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a . FENDERI Compteahertwl,7.iar+d<.
7
N wte Name 1. 2, i ww41- ►ut YoUr oddrne In the "AI TURN To"DPWso"
SENDER: ('ortp 1M
put Y NDIER r w in tM •'AET V A N T O" Specs on the rooms Oda. f dlur• to de thte wllt pent th¢C nd from
Ualnq •atutMd to YOU, Thor •r.t n rteA and at
o1
re.erw aide, failure 10 00 this "l pMnt JOIN Cord from oY 1M tlemW-1-:1231 een ONFvMd to and the ha data of
0% "1wv See"
r oatngrelut d to You. ThUM111"U"L f wig oa1WarY• of low the 011
~w tM name or the 'r'oll oNWr•d le and the date of w HOW Caoeult poetmager la too and chock 0oe4eel
w
r aNIY.r~, wy1• wlowng wvk•C kn fa Nnk.IC11r+WwtW.
aeaHeae• Coneute oottmener la fees W ehocR tbeletl r
to, eenvkelel requested. ■ 1. Ekshow to whom. date end•ddnr of de(WaY.
. date and ed*ft of datlrerlr• a
ro wham, _
1. ~ Clow i. C) Rentrktad DeliwY. re.
2. 0 RwtrktM CNIY. '
/ \l .3. Artkla AddretW to:
i, AnkleAadrwedte: + Clearinghouse for Single Audits
National Clearinghquse for Bureau of Census J
a Single Audit 1201 E. 10th St
1201 East Tenth Street deffersonvillel Indiana 4NI32
Jeffersonville, IN 47132 Tops of SavlCo: Article Numoet
f. Type of swvkr. Ankle NumlMt Repttered O COD P SS6 182 936
RCE rr.ed O COO (Single Audit)
Q ertified 1nwrW P5 6 u 182 913 apReN1eil .y"
C
7SaarII"° coo Adit FY/88)
O Enpreee Mel AIYTrt oEt'y uEAE0uia of oddRMAIL60nt Md
Al*oyl Win ugn.turf 0.1 O re l~•RL•q•^+•^d '
DATEDE►WEFE2 `Z t.glra+ur•-Adaor..
.l q. fii. falufe~ Addresses x
x q, flgneture - Agene
q. ilgnehlre - AgMt x 1~
x . nat. of DelWerq a AR 16
74 a y MR 7. ~td b~fel Mre fll Nple
I. Addreee•e'I Morel& MQYAf f fee PAW 2
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UNITED STATES DEPARTMENT OF COMMERCE
SAC-1142 funtu of the Census
wooshom1m. 0 C, 20233
G ~ . v
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SINGLE AUDIT NOTICE JAN 2 2p
1
JAN
Dear Public Official,
The U. S. ONkca of Manopamant and Bud" ZOMBI Is rtlq~u~ to pro vide an arxhual repon to Congress on Wod
Act of
SingM
lance
MwWk k ctommpon WA ofthi report sl a list qov we mwts which have not Vat t aiu d an audio rOW tot et
spproprim Fedaral grenting epencv w to the National Cl WW4'ouse for SWOO Audit PAPW%-
Our reowds Indicate that we have received a Sinpb Audit Awn for your government for the fiscal
year that ended on any date 'I!-, 9ea )
I am most" vow essirwoos k%dowmininp the statue of youraudit Man and the securerj of our
records. Please take the time to feed the kMorrnatlon on the fewfae side of this MW and info m us of any
factors that may haw affaeted repo"- Soscift examplae of such festers errs:
111 vow sinole audit ropon has Dews submitted;
(2) your govamment did not receive the speeifled amount of federal aid;
131 your govomwnant Is on a bWMW rspooting WWd;
(4) vow povemmeM molved an extension from a Federal grantinq agencY-
It would be esoeclsNy helpful if you could complete the enclosed Infonnatlan shat and return it within
the next 30 days.
If you need further informa0m, Please cal 130117M3-7662 or 13011763-7866,
Thank you for your coopereton.
Sincerely, .
C.1'yJ~fu Nf'~~
JAMES HOGAN, MsnWr
dW40 Audit CleaAnghou"
Govemmem ON181on
Bureau of the Caneus
Enoktaurs
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KEY PROVISIONS
OF THE
81111111011.1111 AUDIT ACT OF 1954
The Single Audit Act of 1984 (Public Law 98.6021 will reduce the number of grant-by-grant
audits performed on federally funded programs and replace them with a single, uniform audit
of each government entity that receivso specified amounts of Federal assistance.
Specifically, the Act establishes uniform auditing requirements for Federal financial assistance
to State and local governments. The Act requires State and local governments that receive a
total of 1100,000 or more in federal funding in a fiscal year to obtain an annual, organi:ation-
wsde audit of its financial operations,
Governments receiving lose than $100,000 a year but more than $26,000 from the Federal
govemment have the option of selecting a single audit or complying with the existing audit
requirements for each Federal assistance program.
li Those government entities that receive lass then $26,000 In Federal aid are generally exempt
from single audit requirements.
l Federal flnaneiN aaietance includes grants, contracts, eooperstlive egreen»nu. bane, ban
hf guaantese, property, interest subsidies, Insurance and direct appropriations. It includes
assistance received directly from Federal agenelee or indirectly through other units of State
and local governments.
The Act requires an audit to be submitted to each Federal agency which provided fundsn0
within 30 days of issuance but not later than one vow after the end of the governmom'a flocai
year. In addition, if a government receives $100,000 or mom in Federal assistance, OMB
Circular A. 128 requires a copy of the audit be cent to a National Clearinghouse. The
Clearinghouse is located within the Census Bureau at 1201 fast Tenth Street,
Jeffersonville, IN 47132.
E Policies, procedures end guidelines to Impiement th o Act are contained in the Office of
Management end Budget ZOMBI Circular A-120, "Audits of State and Local Governments."
Copies of the Circular can be obtakwd from OMB by calling its Publications Office on
12021 396-7332.
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a Ma No. 0607OS IS Accrov•iExcre•1241,91
FOAM SAC•1ig)
A. Idetaiioition i$bel - ANix below -
U 5. DVrs~7v~EN7~Of~COMMERCt
44 2 061 002 6 so 01 y
DENZON ttTT NASIOWLL CLIARINOHOUSE
MAYOR FOR SINGLE AUDIT REPORTS
215 E MC KINNET TX 76201 SINGLE AUDIT POLLOWUP
DENTON INPOIIMATION "CUL4111411T
11i
Imam ewnw env .nor in none. odMU. end rrI ead•1 1
Name /lsuemlCleww*M e f
ui swe"of#4C~
Title 1201 Rat Taah scree!
Am bee Number Exteroiam ~ellMeerwlMe, IN 47121
Tslephene
ItfMIlTlt14 PRIIIOO -Kee In mind that the intormetlon Ma,d, Dw rw
MWAsted refers to Your fiKA year which ended In 1911!. p a 3 0 team
Repart OW wWBq deb item.
S. AN * (Xi tM apwbmfere nema.
r Moron Ow Y•M ~
-
is In proves. We 4xped relee by
t3 Out einpN eudk repbR
3 C3 We are exempted e a cape or heepital.
3 C2 We did 1141 receive 1100.000 Of mare of Federal eesieanve during We period.
March Ow year +
4OWO tfw Neese by q~ Out next single wdk wiM
t
s ❑ we have revived on axteeien honor out e0013evover012lst federal agency. 1
9peeiy the name of dw apenvy, -
ft m forward a copy sWV with dW report.
a ❑ Out einpN strd{t report wee ver„plead. -
743 Other - Specify -1
Per attached receipts, an Audit and a Sin le Audit were mailed to you i
September 11, 1989 and March 16, 1989. 1 am enclosing one copy of
our Single Audit for year ended September 30, 1988.
tale tares, wilt a mirwte 1a1n9 tM war tlrt+e.
T irocko to the N to re talus or flow 1 to 12 ntirx,tee to oempMa =w i ww*iol~ rr fted NN of how d+i to en and ffa tim vw rspert k~nv+eliaod~art
arttr e
oI
~w~rey send *Am to ft Aaavci i e< tar MMteOan~ 20222: end io er OMce
W" WW Now
10p~07Iplp'eollymit202MAuet"Prola t074611. 60OCaoW!.
P
DWI 0007.05, 8: Ap9mv @I Expires 12131+91
~ raew t3AC•1181 ~
r ,ersan
A. identification label - AtAx belew - U.S. DEFWMtW OF COMMERCE
VAI y 7111 toms
r t4 2 06f 0002 6 no 01 0930
NATIONAL CLEARINQHOIiSE
DENTON 0111 FOR SINGLE AUDIT REPORTS
MAYOR SINOLt AUDIT FOLLOWUP
215 E 9C KiNNEY Tx 76201
INFORMATION DOCUMENT
DENTON
for
madoliall
N•m•
John F. McGrane VA** AO
1 U.S. t,ro~ts of the Cartwa
~w 1301 teal Ta O~33
Executive Director of Finance Extension"f0"'
Arq tOM Number N
TeleOWA 817 566-8320
slarelp ,1 ftEi
i 1,1gN mw Au N~r 31
NipNT1Nd ~tR10e -1r;ae0 M mind that tho informstlon JJWOA"
I~ rygwKed refers to Vow fiscal year which ended On -
t, Marc fXl the approosto items. Month DsV Year I
11
1 Q Ocr single audit repo" 111 "oes" Ws.'prat rrleau by
`k sd a a College or horpitd.
Q We are ercempt .
2 Q We did not teceivs 1100,000 of more of Federal assistance during thla period
Month OsY Ysw
♦ owe are on a bienMal wd t cycb.0ut next single audit
cover will
er the fiscal Year ondin0
e Q We have teceh ed an extension loom our cogrttsantloveroight Federal opsncY• 11
SPOI the name of ohs 690"1 7
J
a" whh this fepwt.
0 Our 811 111 r sport w ea Completed. - ?ferea forward a Copy
s
:`-'arowof our Annual Audit for year i
Per attached copy Of return receipt, a copy an addit?onal
ending 9.30-88 was mailed and received. 1 am enclosing I
1
ppee
eview
e this loom, wkh 6 Minute iiti nK9 niiiuu+d r time.
We estimate that It will take from 1 to 12 minutes top I cu haw a e0 ^ r r S iii, pigerwork w
This ttrM to read of hoer instructions, develO w ueamble mNere0o Coed ,
the Information, and main" end n the infoornat pC 20295: and to ef+e Office of
of this ourveY, r them to the Auociste Dkeetot fw Magama^t
odw slow I h het 0607-001 O, Poorn 2017 ~r Po! 0607-061 a s 9ton, OC 20603.
Management and 11041044. Paperwork Aeducti
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~ SENDERt ComDlataHeme1,7,3and4.
1~.SENDER: (:OmDlNt items 1, 2,31 and 4. { Pat I YglraddM l ntM"AETVAN TO"Mean On Me ,
rav4M N de. F Nlu n to do M It will prawmt M l l Card from
" MK a pot' s
Fu I Your addreu In Ma "RETURN TO
rereM Nde. iNlwe to do this vtlll ptw"l Ml/ cud from btlnp rahrntd to YOU. Tha renrrn rKNnl faa will prpvlda
TOU tM name of tM Oerton dallvelad 10 and IM eta 01
Al painpratumMta YOU, TorHVrn rR•IoefN will o&OA A "IVN for Wdi flan'NM eha WfOwInO Wrku an
Op oatt}y name o}tM OKtoodolivuad to and the data 01 Waailjoll. COnWlj DOCtmaatu loo lase and check OOaIMI k
delivery For addition"/aN SOa~0110winp WvkN a*a fat ewkafal loquatted.
/ availaaa. Consult DottmYlK loo few and chock be■ INI . ,
lOr eerrkelal m"u"ted, 1. ikshow to whom, data and addrata of dellruY. }
t. )0 Show to whom, date and addreea of delivery. p, Annkted palivKY. j
p. AaatrklW O'iy"Y. Article-Addyecaad to:
Clearing}rouse for Single Audits
Article Addrecraato:
National Clearinghouse for Bureau of census r1
Single Audit j 1201 E. 10th St
1201 East Tenth Street Jeffersonville, Indiana 47132
Jeffersonville, IN 47132 4. TV De of Sarrlaat Article Number p
=CzVf1ifi1dB ticle Number ❑ Repbtaad Inwred . P 556 182 936
DE~wellAal COD (Single Audit)
S$6
Audit 182 FY/ 9136'
Alwlri obtain 1*1111raol I lMrooleeaLapenlaed
DATE DELWERED,
Altverl oblaln a 9natunol addrdtNyia7nt end
PATE DELIVERED, !'~y:ahra- AOYaeeN
.1 S, 616nehn-Aedauae x
X to. Siptatura - Alant S
6. Elpnahre - Apam 9 7. Data at DNlrar
x LIAR 161989' 4
y II ~ 6. AaOrwaa'e AdOreq MQlltaft ~ N jtP
2 6, Addrewaa i Addrata ' ItQltgJt o et jto I + 9
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CITY Or hENSON
STATUS Or 1986 COMENT9
STAS114
RECOMMEND N In process Not leo,~d
089ER TION irPleunt~d -
reannts and maintain a cospleta file of laua laal x
A rosplete [lie Of last* al and paysentlaaortlsation 141, ks and use ,
ft) e erly record principal reductions
and In .prop elpenaa or capita less* peYoante.
ent asortla eante are not always tt+sr top P 1
taus Me
feet
hot so ahnad and p Y
recorded properly.
2. filed r
Th* ¢°recoaelladdto the ~aneeast ral idjer, thead as sat rec ris ords should vt f aelle to
Loe reduei athi k o4 wnrecotded t xedla ~atsr x
Are
transactions.
1, Cash AoPei coeds eeranee bo do received for
The court dePettaant data not ealntato an The court de partoant should saintbaln a detail
record of all Cash apP p ihl the end the tseoCd should De Tha a record t41~
aculd x
adequate record of outstautatandlnl eesh fund of forfeitures. h
appaaranta bond e, p
preparation of a detail of tM related re
vaysble and revenue aecounts at any liven tt sly basise to the lensrai Ldpr bn i
to
Iepteaent procedures to ensure that all
A. outtalk Actountie 01 tot of a routine
re shave been
_ accountlnl ant x
lewral aceountlnlpanttles e! a reutlne
rprlse recorded.
nat Reid usatadep the is on routine
!nods) rata not recorded.
x j
S. I@& panes of Call, Racalpta looks
All dl
issued to the Isr laUed rayuontially nuebeted Cash racatpta x
Cash receipts books era not ra eabyrthaneuhtethln order toeProperllly a
eaahesr0'epottiee~ or the library by the sonitot all cash trsnssctions.
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CITY OF DENTON
S"ATU9 OF 1986 COMM 9
019ERYATION PECOWENDAVON STATUS
6. Remtttence of Cash Receipts Implemented In Proceed Not 1MV1166*nto
The parka and recreation and enimet control Adopt and enforce a formal cash remtttence
departments have no forest ppolicy to`arding policy for each department within the City.
the remittance of rash receipts to the
Coahter,s office. x
1. State Tames end roes
Payeents such a eslom taxis, m[med drink Requeet the State to deposit or vtre such f
taxes, bingo taxes and frenchlsa fees are amounts directly into ona of the City's bank j
remitted to the senior accountant to be accounts.
opened, recorded and deposited. x
8. toyestmat Policy
The City has not adopted a formal To onmure that the City's fund are invented in
investment policy. a afe manner approved by I.ha Council and to
ensues that the City vlll be able to comply
With anticipated disclosure requirements
(CASE the City should adopt a formal
i invaatment policy. x
9. Utility Rate Chance
The City council revised the utility rate Implementation of Counelt•ap roved ordinances
structure effective December 1, 1955. should ben clooely monitored B nanegenent to
Rovover, the new rates were not implemented ensure atnely end proptr compliance.
until January 1, 1986, x
10. Internal Audit II]
An internal eudtt funetloa would provide Tho CltT should conofdor aotebliahlog an
an additional control level and stablleh Internet Audit function.
a system which would better ■onttor N '
orations and the accounting system of
o city. x
It. budsot Officf r
The City has not designated to one The City should ror,sider establishing a f
Individual the responsibility to review budget review function by either designating
and invuttgate compliance br all city a department or individual with the oversight
departments with the annual budget. responsibility of budgetary compliance. x
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CITY OP DENTON
STATUS OF 1986 COMMENTS
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08SE,VATION RECOMMENDATION
STATUS
17. Microcomputer Ateuteitton PJIIc
X Implemented In Process Not Implemented
The microcomputer policy dose not have The City should document the specific cost
veil documented d coat justification justification requirements for microcomputer
requirements and requires the purchase acquisitions. Additionally, the City should
of IOM $270 microcomputers instead of Invastfgate other teas expensive gamed of
lees expensive microcomputers . toterfieeno with the ealntrsee (e, r, u u i
microcomputers with standard eedems or use I
third party terminal emulation equipment. X
11. Steering Comittee/Use[ PIenning Croup
i
There Is an Crecutive OF Steering Committee; A charter with policies should be developed
i however, tM to Is no charter for the group for the Executive DP Stettintt Committee and
and no poliated exist to direct its for User Planning Croups. A quarterly
j activities. There is no documented meettn at the Steering Committee and a
►eoaduss fcr muting on a regularly forealited reportin6 structure pf the User
ached uled lusts. Plan nln Croup to the Steering Committa•
should ~e lotsbllahed. x
1/. 9trntutc Plag
The DP strategic plan is six years old A strategic pianntn`` psou a should be
and say no lungar be relevant to the undertaken to edenttfy and prioritize
t
City 'I needs. projects, att. X
1S, Password Protection Polielse
Thera is no pollcrr for changing passwords Document and enforce a policy for password
on a regularly atA@doted basis. whin an maintenance which required mandatory change
employem loves, the redpenalbllity tar of pusworde after a period of time and
tntarming DP to remove the password ehsnge passwords when en employe is transferred.
reatdos with the user manager. X I
16. fieenc a Saporeln, Conurns ! p
The City Council is provided line graphs City Council should be provided with a monthly If
depicting budget etatug and a weekly mrrxttve focusing on funds with adverse budget j
nwalatter from the City Managed providing variances, rather than lint graphs. I
a nsrrativs of the events from the
preceding week. _ _
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CITY Or DENTON
STATUS OF 1986 CONVENTS '
OBSERVATION
+ AECOWENDATION
~ - STAi'U9 i
11. The Detall Llating of obligations vs. Isosemooted In proceed Not temteanted
Budget Import and the Trial Balance report buntouldaproduce in extra
` Accounting of the report,
aecounting for
arm produced approximately ten days after distribution (one copy to department mane ere
the close of t a aont%, distributed to
i lccountlgg to be bursted and dtstributed a use done to the pear and the additional
to department managers. The dePitt eat copy to division managers),
manegsrs then distribute reports to each j
divlalo n.
1B, There it no Automated report in at lost A It
i ar•to-date lnforra tloq, Thla owould be An Automated repotting of last Year-to-dots
helpful !n detarmining if budget eeeepttom ptoduced,year-to•Aeta information should be j
to actual exeeptlone or emuasd by
seasonal fluctuations.
I
19. It to difficult to perform analysis of A i f
aecounta. Detall tranaetionaar° not t&onth-and, merge ya -to•ditetQ~ttile~ x
Computer d om-line beceuee Of dtak and
the computer owrhad requlresenta• detail transacts ns. the Proceess would
create a new year-to•dete tope which could be
20 used to report account detail on rsqueet.
{ , Currently, no protect reporting for the Requlramsn aAshould be forallad before x
Uetlfefea Department nlatr.
purchaetng ny Ioft 4 package.
2" rtnaneial etstiattea from LM reports Users should be trained to us$ the report writer x
are being Input into Wang word practising function or other report writing system
or Lotus spread ehee b to allow for ad hoc should
,
I repottin~ and number malputat[on. The bas eonstdered
f AM LCf report writer [unetlon to not
being uttllead by user departments as it to
` pereoivod to be complicated to us* and as
ueety have not bean properly trained,
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CITY Or DENTON
STATUS Or 1986 CONNINTS
STATUS
i OBSERVATION RICONNENDATION
teeleasnted In proce s Not laaleuente_d_ j
single Audit Act Lack tp lone
} 22. hderal Revenue Sharing A report vas NIA I
oot plead to the narepapper tndLcatlnt E
public x
the Audit Report was Wailsble for
inspection.
} NIA
21. CDSO - punch ware oblt`ated for expenditure R
before the approved release of funds. i
NIA 1
2A. CDLO -perforeanee reports did not X
reconetto with the general led6er in the j I
specific perforeanee period. {
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Deloitte &
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CITY OF DENTON, TEXAS
II Report to Management for the
Year Ended September 300 1990
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QATlnternational
VIA
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Deloitte &
Touche
801 Cherry Street, Suite 2340 Metro (8171 6042777
Fort Worth Teas 76102 68 01
Telephone 1817! 347-3300
December 51 1990 i
The Honorable Mayor and City Council
and City Manager
IS City of Denton
215 E. McKinney
Denton, Texas 76201
I
Dear Mayor, Council Membsrs and City Manageri
In planning and performing our audit of the general purpose financial 1
t statements of the City of Denton, Texas ("City") for the year ended
September 300 1990, we considered its internal control structure in order to
to determine our auditing procedures for the purpose of expressing an opinion on
i+! the general purpose financial statements and not to provide assurance on the
internal control structure. Our consideration would not necessarily disclose
~g all matters in the internal control structure that might be material
A weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
f~ to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the general purpose financial statements
s
being audited may occur and not be detected within a timely period by
11 employees is the normal course of performing their assigned functions.
j However, we noted no matters involving the internal control structure and its
operation that we consider to be material weaknesses as defined above. `
j A description of the responsibility of management for establishing and
maintaining the internal control structure, and the objectives of and inherent
lisitations in such a structure, is set forth in the attached Appendix, and
a! should be read in conjunction with this letter.
We did note other matters related to the internal control structure and
certain administrative and operatitg matters. These recommendations resulted
from our observations made in conae_tion with our audit of the City'a general
purpose financial statements for the year ended September 30, 1990.
to
This report in intended solely for the use of the City Council and management
and should not be used for any other purpose. We will be pleased to discuss
these recommendations with you further and to assist you in implesenting them.
ins Yours truly,
160 DRI tntemat onal
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TABLE OF CONTENTS
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UTILITY FUND
e Sanitation Operations 3
ACCOUNTING PROCEDURES AND ISSUES' Control Procedures 3
s ! Documentation of Internal Accounting 4
Notification of Employee Terminations 4
Federal and State Grants 4 j
Filed Aeaets Inventory +
INTERNAL AUDIT {
} APPENDIX
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UTILIFUND
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Sanitation Operations
Obeeri~n= A review of the operating results for sanitation operations or
This loss
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the 1990 fiscal year reveals a net loss for the year of $1940900.
rs increased the deficit in retained earnings by 93% to 1404,500 for the Sanitation appea Fund from September O►thegCityls costsrsinthatdeliverythe do
not adequately Y reflect to cover
(x Recommeadationt Ccuiuct a study to determine the rates necessary
operating d_he nono;etating
o,,ierations. The et~by mi mig
ya sanitation
private entities as i means to deliver economical services.
I
ACCOUNTING PROCEDURES AND ISSUES
S Documentation Lion of Internal Accounting Control Procedures
does not maintain d cumtntation ofuinternalaaccounting
Observation, The City
While it appear that are #
ate s, would provide additional "
14
!i contra o- °tedurures.
ane that of these p, with timely upd would also
hat all procedures are being followed. Documentation would also
d assurance t ed ree
} assist is delegating acLhoseirespeasibilitieslea and detailing the necessary
procedures for meeting licies and procedures
Recommendf Clops Consider preparing an accounting po
' The manual would document internal accounting control procedures and
is the
manual. Depart[ ent. ning the Personnel manual and
assign responsibilities; within the Accounting
N'I Department should be given responsibility for maintai
,
providing for periodic updatee
Notification of Employee Termer ~0°
M
lacy related to employee resignations (Policyieore
i Observations The current policy
No Procedures t1ist
( No. 112.01) resubmit the £ormetoothe Perso termination to their sups~
y ay form. Such
who, in a turns th rs roll or receive
to ensure that the supervisors actually submit the termination
eallow xtended employes t r etain Onttheeffectivedate of their `
situation could
~ rt benefits
resignation.
Rec i in addition to informing their supervisors of their
re ectly to
oation
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` resignations employees should submit the required termination form dir
the Personnel Department.
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Federal and State Grants
OLservatioo: During the year a federal grant awarded to a City department was
not reported to the Accounti-,g Department in a timely renaer. The grant I
allowed the City to match f nds with in-land services and donations. However,
incomplete documentation was maintained to support the in-kind services
fi+ provided to match the grant funds received.
Recommendation: Develop procedures for monitoring the preparation and
submission of grant applicatons as well as documentation requirement necessary
!i to comply with grant conditions. The review process would ensure
consideration of any cost-benefit evaluation and timely notification of the
Accounting Department to maintain adequate accounting records.
Fixed Assets Inventory
Observation: The City has performed periodic physical inventories of fixed
assets purchased with federal funds. However, a complete physical inventory
has not been performed iu several years for all City fixed assets.
Recommendations Perform a complete City-wide fixed asset physical inventory
to ensure that fixed assets continue to be accurately reflected in the
financial statements. Periodic physical inventories establish additional
s control over the City's fixed assets and assist in evaluating the City's
insurance needs.
i~ INTERNAL AUDIT +
<< Observations Currently, the City relies on its system of internal accounting +I
control and the annual independent audit to provide assurance that the 1
financial statements are fairly presented. While this reliance is adequate,
} an internal audit function would provide an additional control level and
} establish a system which would better monitor operations. sad the accounting
system of the City.
r,y Recommendation: Consider establishing an internal audit function. Internal
auditors' duties sad responsibilities vary widely among cities. Frequently,
LJ Z internal auditors are involved with operational reviews and sp.cial projects
as contrasted with the traditional role of financial auditing.
s The internal auditor should have no authority over nor responsibility for the
activities examined. In order for objectivity to be maintained, we suggest '
F~ that the individual performing this function report directly to the City
w manager and report semiannually to the Audit Committee of the City Council,
This type of arrangement should provide a level of internal control through
segregation of responsibility and give the internal auditor the authority
required to operate across departmental lines to best perform the job.
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APPENDIX
MANAGEMENT'S RESPONSIBILITY FOR, AND THE OBJECTIVES
AND LIMITATIONS OF THE INTERNAL CONTROL STRUCTURE
ement's responsibility for internal V1
h The following comments concerning meaag
and h inherent limitations in g sys
ofcitternal theconobjective3 Of lare excerpts from Statements ants,
Institute of Certified pubic Accountaats.
can
ps Standards of the Merl
Management's Responedblli Y
g Management is r='1,nsinlfulfillingbthisireepons bilityaiaetlmateaeaadfjudgments i
accounting coat
by management are required to assess the expected benefits and related costs of ,
N control procedures.
Ob ectdves
The objectives
surance chat assets are safeguarded against lose from unauthorited
absolute, ee
use or disposition,i and tbaandrrecordednproperlyetotpermit atherpreparation of ~
management's ,
j~ financial statements in accordance with generally accepted accounting
principles.
Limitations errors I Because of inherent limitations in any system of detected control, o ecti n of
f irregularities nevertheless may occur and not be disesubject to the risk that
any evaluation
t procedures es may become inadequate because of changes in conditions or that the r
! degree of compliance with the procedures may deteriorate. 1
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Deloitte &
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{ r CITY OF Dp,KTOIi TEXAS '
{ to Single Audit Reports for the
year Ended September 30, 1990
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CITY OF DENTON, TEXAS
SINGLE AUDIT REPORTS
FOR THE YEAR ENDED SEPTEMBER 30, 1990
Y JAL1,
Page ~
Independent Auditors' Report on the Schedule 2
of Federal and State Financial Assistance
i 1(
Schedule of Federal and State Financial Assistance 3-4
Independent Auditors' Compliance Report Based on an
i
Audit of General Purpose Financial Statements 5
Independent Auditors' Report on Internal Control Structure 6-7
Independent Auditors' Report On Compliance with the
General Requirements Applicable to Major Federal g III'
;i Financial Assistance Programs
Independent Auditors' Report on Compliance with the
E Specific Requirements Applicable to Major Federal 9
Financial Assistance Programs
E i Independent Auditors' Report on Compliance with
Y ~
Requirements Applicable to Nonmajor Federal 30
Financial Assistance Program Transactions
11 S
Schedule of Findings and Questioned Coats
,
Independent Auditors' Report on Internal Controls 12-14 j 01
(Accounting and Administrative)
k~
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Deloitte &
Touche
891 Cherry Street, Sete 2340 Melro ,8171654 2777
Fort Worth, Texas 76102 6601
I ( Telephone 1817!347-3300
INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF FEDERAL AND STATE FINANCIAL
ASSISTANCE
t The Honorable Mayor and Members of the City Council
City of Denton, Texas
k We have audited the general purpose financial statements of the City of
p~ Denton, Texas ("City") for the year ended September 30, 1990, and have issued
~i our report thereon dated December 51 1990. These general purpose financial
statements are the responsibility of the City's management. Our
t responsibility is to express an opinion on these general purpose financial
statements based on our audit.
~ rw We conducted our audit in accordance with generally accepted auditing
I w
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those stan ar a require that we plan and perform the
audit to obtain reasonable assurance about whether the general purpose
financial statements are free of material miestatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the general purpose financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, "
{ as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
3 Our audit was made for the purpose of forming an opinion on the geueral
purpose financial statements of the City taken as a wbole. The accompanying
w supplemental schedule of federal and state financial assistance for the year
ended September 30, 1990, which to also the responsibility of City management,
is presented for purposes of additional analysis and is not a required part of
the general purpose financial statements. Such supplemental schedule has been
subject to the auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion, is fairly presented in all material
respeeta when considered in relation to the general purpose financial
statements taken as a whole.
~ December 5, 1990
v ti''
"u iii International - 2 -
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1
CITY Of DENTON. TEKAS 1
a J
SCHEDULE Of FEDERAL AND STATE FINANCIAL ASSISTANCE
FOR THE TEAR INOED SEPTEMBER 30, 1990
CATALOG Of
FEDERAL ym
FEDERAL GRANTOR/ DOMESTIC PROGRAM FUND 6AIANCE
PASS-THROUGH GRANTOR/ GRANT ASSISTANCE OR AWARD BALANCE REVENUES Si;41MBSR 30, 1
PROGRAM TITLE I.D. NUMBER I.D. NUMBER AMOUNT OCTOBER 1. 1989 FEDERAL STATE LOCAL EXPENDITURES 1990
U. S. De re; of Housin
a Ue m Development
Coomimun ty LICTCACPSOUt Block
Crant 6-84-MC-48-0036 14.218 $614,000 { 7,511 ( .571 ,
Community Development block
Grant 5-85-MC-48-0036 14,228 677,918 19,714 1 ,714
Community Development Block
Grant 5-86-MC-48-0036 14.218 557,384 (17,077) (17,877)
Community Development Block
Craot 5-87-MC-48-0036 14.218 571,558 (76,212) { 26,159 28,159 (76,712)
Community Development Block
Grant S-68-MC-48-0036 14.218 553,966 72,390 67,851 { 85 570936 72,39R5
Community Development Block
Grant 5-89-MC-48-0036 14.218 578,483 1,186 368,686 16,178 384,864 11166
Community Development Block
Grant 5-90-MC-48-0036 14.218 553,090 15,651 1,011 16,868
Commualty Development Block
Croat R-88-MC-48-0222 11.216 77,000 73,000 60,403 133,403
Community Development Block
Great 1-89-MC-48-0122 14.218 50,000 39,438 39,438 78,676
Passed Through State of Tessa
Department of Commarcet
Rental lehabilitation
16 T 1
Program R-87004 14.230 597,891 162 158 262 M 324 316
U. S. l4 rtsent of the Interior
at ooa ar service
Tessa Historical Commission 46-8940063.007 unknove 6,745 6,745 6,745 13,490 l
U. 9. 110 rtmen of Tress ortatiot
Y {
essl vateoa
Adednbtratfoa -
Airport Improvement
Program 87/34800670386 20.106 300,000 16,889 16,889
Paced Through State
Department of Highways
and Public Traoaportattool
` Driver Behavior Selective #
Program 89 O1-bl-et unknown 12,200 10,161 10,161 I
27,050 21.050
3
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point PON am 21Wo ••1• Ittltl. .amg rwm .r.
pan" am" CITY Of DEMTOM, ?,MW
SCHEDULE Of .E AL AND STATE PINWEAL ASSISTANCE (Continued) r
OE THE YEAR ENDED 3P?1'E!Cl711 10 1990
i
10470
CATALOG OF
FEDERAL 1ALARCE
DOMYSTIC PROGRAM MD IEYENUES BEPTe"n 30,
nDBEAL CRANTORI ASSISTANCE OR AWARD LALANCE ERPSKDItURE9 1990 '
PASS-TaKO CRANTORI GRANT OCT0IER 1.1989 PLDtML STATE 7AL -
PROGRAM fi1'LE l.D._ NIM3Plt 1.1). NVWA AWM
111 U. 8. Oe rtaeot of Education
Li t caul chit o e:a■
Llbrat► and AreANa i 24,041
Corlutoat .4,041 46 554
Project Road 000375153 ueknoro 22,213 46 SSA 7 ,S9S
315.7 unknom 49,479 7-~ ; -
D1ea2eaetaRe population
!59,533 306 024 L16S.S31 7 572
Total Federal 1Seanelal 7,572 -
Assistance
I
State of Texan Criminal = 38,053 0,183 40,336
chat n SP-90-Ct4-3006 MIA 44,364 2,050 0,936
C 980
us j mme Resistance .91-014-4009 NIA 37,075 Al 432 ~.7,, ~39~7 45 845
3.35 9,670 , 61
brut ug Ribches Iar AAu EResistance atioeeµtlon U-91-C14-4009 ST-90-103-3137 NIA 50,173
i
77,460 77.460
Tessa De rtaena of
n t a n NIA 82,300
C'm ssu r8eacr 3lalter Great 42310
state of Tessa lamb cad 1,604
1.287 1
a rtneai 20-90128 MIA 115,000 '
atoe et eat ark
161.132 12•.80 171.312
Total iota tlaeetlmi
Assistance ~ jZaSTl
TOTAL PROERAL A" STATE 1.a~ keseuuaakll ka~ 1111,104
i
►IMANOtAL A61117kKOE i
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1114 Deloltte &
601 CheiiY StieeL Sw.e 2340 p~elro 181A 6~~
Touche , 2771
f 0rt Workh j81 , 3a 76102 0660'
Te~ep
N
AUD1T OP GENERAL YUMSE
INDBPEtiDENT AUDITORS' COMPLWCE REPORT i{ASED OH
M
y FINANCIn STATEHMS
Council
r YChe gcnorable Mayerastd Members of the City
City of Denton,
financial statements of the City O ,
purpose
We hay's audited ~C iyg) aseneral of September 30, 1990 and for 1490. the year than ended,
and have ort thereon dated December 5# 1990.
Denton, Texas
issued our rep
auditing
issued by the Comptroller General
Stendarda, and perform the
We conducted our eunmentaAuditinaace wire uire that we Plaa ] urpose
standards and Gov se standards 4 the - t•, of the United States. Those
audit to obtain real gLel free Assofamat_,is, misstatement gene licable to the City
financial stateme rants o
regulations$ contra eme4`. As part of obtaining
Compliance with laws, of the City's mnag ur ose financial statements
4 a nsibility eneral p P is compliance
d ;s the reepo srformed tests of the Cil
reasonable assurance about whether the a coatrects sad grants. H xith owever,
1 ee of material misstatement, w ulatione,
with certain provisions ofrovide an opinion on overall compliance such
are our fr objective Was not to p
provisions. with respect to the items tested, the
to in
with the provisions referr
The results d I la our all testa mat indierialcate tect' respects, to items not tested, nothing it all "
City complied ecame to
the preceding paragraPr' With reel
our attention that caused us to believe that the C ty had not uncil, complied,
with those provisions.
a
ement
material respects, managnot emented
Lct.orj is
This report is intended for the i state agen iea, -Let of publi.: record.
Y and appropriate federal Anofthie reports
the distributiOlm to ]unit
December S, 1990
S
` v'S inlernat~anai
1 -
Detente &
'
Touche
_ 801 Cherry Street. Sete 2310 Metro 18' 71 654 227
Fort Worth, Texas 76102 ($01
~ W Telephones 181713,47-3300
M
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE
The Honorable Mayor and Members of the City Council
1 City of Denton, Texas!
Sze hae audited the general purpose financial statemento of the City of
v
have is sued our report thereon dated December 5,d1994epteaber 300 1990 and
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditin Standards, issued by the Comptroller General we plan a
rposem he
of the udit to n obtain States. general dpuperf
financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial
statements of the City for the year ended September 30, 1990, we considered
o educes
its internal control structure in order to determine our auditing p
for the purpose o2 expressing our opinion on the general purpose financial
statements and not to provide assurance on the internal control structure.
The management of the City is responsible for establishing and maiC ainingean
internal control stricture. In fulfilling this responsibility,
judgments by manage,.ent are required to assess the expected benefits and
related costs of internal control structure policies and procedures. The
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded against
loss from unauthorized use or disposition, and that transactions are executed
in accordance with management's authorization and recorded properly to permit
the preparation of general purpose financial statements in accordance with
generally accepted accounting principles. Because of inherent limitations in
any internal control structure, errors or irregularities may ne a rtheless
occur and not be detected. Also, projection risk that procedures may bstructure ecome changessinuconditio e h or that the effectiveness ofthee
design and operation of policies and procedures may deteriorate.
.:nom -6-
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reports we have classified the significant internal
control structure e policies an07
rocedures in the following categories:
d the purpose this d 4
Billings
Receivables
cash receipts
Purchasing and receiving
is Accounts payable
}e cash disbursements
payroll
1`t Inventory control
s Property and equipment
General ledger
Ea compliance with laws and regulations related to the federal and state
rograms
financial assistance p we obtained
For all of the internal control structure categories listed above, and an understanding of the desii of relevant policies ed controlcriskea and :+hether
ation, and we they have been placed in ope
i tx Our consideration of the internal control structure would not necessarily . that material
r disc'.ose l under matters standarda eesinternal tablished byr the structure institute tofeCertified
weaknesses rtable condition in which
Public Accountants. A material weakness is a repo
n ; the design or operation of one or more of the rspecific inteal elatively low level the risk that
structure elements does not reuuce to a relatively
errors or irregularities in amounts that would be material occurnandlnotobeto the
f" general purpose imely financial period by statements bpeingeeaudited maormal course of
,.a de' :ted within a t
pe,orming their assigned functions. we noted no matters involving the f
internal control structure and its operation that we consider to be materiel 1
weaknesses as defined above.
Council, management
This report is intended for the information of the Citq
and appropriate federal and state agencies. This t eeamaeteroofipublicirecord.
to limit the distribution of this report, which is a
December 5, 1990
a.
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Fi
Deloitte&
Touche
801 Cherry Street, 3uile 2340 Metro 1817) 654 2777
Fort Wurth Texas 76102-6801
r \ Telephone 181 71 347-3300
,a
I
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE C AEBAL REQUIEEKMTS
APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
I
The Honorable Mayor and Members of the City Council
City of Denton, Texas:
We have applied procedures to test City of Denton, Texas ("City") compliance
with the following requirements applicable to each of its major federal
financial assistance programs, which are identified in the schedule of federal
and state financial assistance, for the year ended September 301 1990:
Political activity
Civil rights
Cash management
r Federal financial reports.
Otir procedures were limited to the applicable procedures described in the i
Office of Management and Budget's Com Hance Su lemeat for Sin le Audits of
E ' State and Local Governments, dated pr r prose urea were
substantially less in scope than an audit, the objective of which is the
t ezpressioa of an opinion on City compliance with the requirements listed in
the preceding paragraph. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no r
material instances of noncompliance with the requirements listed in the first
paragraph of this report. With respect to items not tested, nothing came to
our attention that caused us to believe that the City bad not complied, in all
material respects, with those requirements.
This report is intended for the information of the City Council, management
public intended
and appropriate
the distribution n of state tt-ts reports whih i is restriction a matter of is not
to limit record.
~o tit, + T►wc.QA~
December 5, 1990
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fr\ p Deloitte &
E.b Touche
807 Cherry Street, Sulte 2340 Mvira t817)654 2777
1a Fort Worth, Texas 76102 6801
1 e Telephone' 161 71 347-3300
P
r7
REpORT
COMPLIANCE Dp~ ADEN TO DDITOR PEDIItALFINANCIAI ASSISTANCESPS IIFYAMS REQUIREMENTS
r, The Honorable Mayor and Members of the City Council
City of Denton, Texas: Texas ("City") cO
l unallowedh teligibility;
We have audited City of Denoof services allowed or
requirements governing types
reportingk special tests and provisions related to the Commu~ity Development
Rehabilitation program; and claims fir advances and
Block Grant and Rental
assistanceeprograms,awhich areaidentt ea it ifiedhinfthesaccompanyingascheduleiof
federal and state financial assio!teace, for the year ended September 30,
1990, The management of the City is responsible for City compliance with
those with those requirements hreap on i our i audit. to express an opinion on compliance
wit
We conducted our audit in accordance with generally accepted auditing
arG1
standards, GaBLenme(nd Office g of tMaadards, agme tseaddBudgeCeCircular1Ae128,n"Audits
the United SC i State had Local Those standards and OMB Circular A-128
re n and me
require that we plan and perform the audit to obtain reasonable assurance
about whether material noncompliance with requst basis,tevidenceeaboutaCity
occurred. An audit includes examining,
compliance with those requirements. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the City complied, in all material respects, with the
requirements governing and provisions rele ed to CommunityjDevelopmenttyi
reporting; rting!
special
Block Grant and Rental Rehabilitation Program; and claims for advances and ~
reimbursements for the year applicable ended September .
December 5, 1990
Z02T Irternabonal
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P" Delcitte &
Metro 16171659 277
Touche
801 Cherry Street SUQe 2340
Fort Worth, Texas 76102 6601
r,. Telephone (817! 347-3300
INDEPENDENT AUDITORS REPORT ON COMPLIANCE WITH REQUMMaS APPLICABLE TO
NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
- The Honorable Mayor and Members of the City Council
City Council of the City of Denton,
and aevaluatioe ofnts
audit exas (f Cithe ty") 9 and general a our purpose
In connection with out T
of the City ister federal City internal control structured used to Office oinManagement andfBudgetaCircular
assistance programs, as required by by
rtain
Goverentsfederalo" we
trans "Audits of State and Local
transactions applicable to certain
for the year ended September 30, 1990.
As required by OMB Circular A-128, we have performed auditing procedures to
teat compliance with the requirements governing type, ^f pervices allowed or
unallowed; and eligibility that are applicable to those transactions. Our rocedur
opinion on CityhcompliancetwithetheSective of
sco which Isesthewereexpressionsubstantiaoflaly less in
requirements. Accordingly, we do not express such an opinion. procedure With respect to aitems
noncompliancehwithsthesrequirements listedsinitheoaed no
material ial instances of to out
preceding paragraph. With respect to items not tested, nothing came coupli attention that caused us to believe that the FCiity had tnot he resuiteofin
all our
material respects, with those requirements.
procedures disclosed an immaterial instance of noncompliance with those
requirements, which is described In the accompanying schedule of findings and
questioned costs. l ma ent
This report is intended for the information of therCitrictioniis no nagemended
and appropriate federal and state agencies. This to limit the distribution of this reports which is a matter of public record.
?J - t
December 5, 1990
l
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►.T1
Y 116 Intentional
I
p CITY OF TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30 1990
QUESTIONED
FINDING/NONCOMPLIANCE COSTS
PROGRAM
II
CURRENT YEAR
1 6 OMNNT S
r~ Teas Historical Commission
Grant Number 112Ls Incomplete documentation $133
48-89-4065.007 was maintained to support the
in-kind services provided to
match the grant funds received
r
ptocem- d`are's that will ensure
' that adequate records
are maintained to substantiate
in-kind revenues-
it Reepoae?s The Planning Department
rt. has revised their record keeping 4
procedures in order to document
all in-kind expenditures. r
STATUS OF PRIOR No comments made in prior
YE.R COMMENTS year.
_ a
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i
so Deloitte &
buche -
801 Cherry Street, Suite 2340 Metro 18171654 277
i Fort Worth, Texas 76102-6801
i lelephore (617) 3473300
I
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROLS (ACCOUNTING AND
ADMINISTRATIVE)
The Honorable Mayor and Members of the City Council
City of Denton, Texas:
R We have audited the general purpose financial statements of the City of
made issued
of, 1990
December year ended September
Denton,
report thereon t dated for the
our
study and evaluation of the internal control systems, including applicable
internal administrative controls, used in administering federal financial
assistance programs to the extent we considered necessary to evaluate the
;ystema as required by generally accepted auditing standards, Government
Auditing Standards, issued by the Comptroller General of the United States,
the Single Audit Act of 1984 and the provisions of Office of Management and
Budget Circular A-128, "Audits of State and Local Governments." For the
purpose of this report, we have classified the significant internal accounting
j and administrative controls used in administering federal financial assistance
programs in the following categories:
Accounting Applications
a Billings P
. Receivables
Cash receipts
Purchasing and receiving
Accounts payable
Cash disbursements
Payroll '
Inventory control
Property and equipment
General ledger
Controls Used in Administering Federal Programs
General Requirements 11
. Political activity
. Civil rights
Cash management
Federal financial reports
I
4t, Iit 4
1i 12
International
M1 .t
Specific Requirements
Types of services
N • Eligibility
~e . Reporting
Cost allocation if any
~y • Special requirements, and maintaining the
it is responsible for establishing
The management of the City federal financial assistance
ster n8
benefits aand judgments by
internal control systems used that r in admini esponsibi lity, expected estimates
d related Costs
n
programs, In fulfilling
The objectives of internal control systems used in
19 management are required to assess the provide managemeat
control procedures. ro rags are to p federal
federal financial assistance P g with respect de
1~ administering fbu[ not absolute, assurance that,
reasonable, rams, resource use is consistent with laws, loss and
with
financial assistance Drog resources are safeguarded against wa8laclosed in
, maintained and fairly
regulations and policies;
misuse; and reliable data are obtained
' and
reports.
system of internal accounting
Because of inherent limitations in any
administrative controls used in administering federal financial assistance
nevertheless occur and not be rinds
evaluation of the systems to future periods
errors °=o iectionaOftany may become inadequate because of
programs, j
4 r, detected. Also, pro risk that procedures may
changes ocedures may
is subject to the
In conditions or that the degree of compliance with the pr
deteriorate.
90aperceutvof its
Our study included all of the applicable control categories
September 30, 1990, the City exile j financial total federal financial assistance under er major federal and evaluations
During the year ended included
programs. awith l f respect to internal control syeteme used in administering
' errors and irregularities that could occur,
major federal financial a control pr cedutes,that should prevent or detect such
considering the types of procedures are
determining the interne] c determining whether the necessary p
, and evaluating any
errors and irregularities, k
prescribed and are being followed satisfactorily
weaknesses. in administering the
our study and
programs of the City,
With respect to the into control Eprograe e to obtain an
noamnjor federal financial assistance reliminary of the systems
asst tans
evaluation was limited to a P and the understanding of theconour study and e evaluation theofinternaltransactionscontrol
the stance
accounting statem the nonmajor federal fi=an le pha6e
systems used solely in administering
programs ligningry review
of the City did not extend beyond this pre
.
- 13 -
N
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r Our study and evaluation was more limited than would be necessary to express
an opinion on the internal control systems used in administering the federal
financial assistance programs of the City. Accordingly, we do not express an
opinion on the internal control systems used in administering the federal
financial assistance programs of the City. Further, we do not express an
opinion on the internal control systems used in administering the major
f p federal financial assistance programs of the City.
Also, our audit, made in accordance with the standards mentioned above, would
not necessarily disclose material weaknesses in the internal control systems §
used solely in administering nonmajor federal financial assistance programs.
However, our study and evaluation and our audit disclosed no condition that we ,
believe to be a material weakness in relation to a federal financial
assistance program of the City.
This report is intended solely for the use of the City Council, management and
appropriate federal and state agencies and should not be used for any other
purpose. This restriction is not intended to limit the distribution of this
report, which is a matter of public record.
j ~
December S, 1990
_ 16
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