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I + CITY OF DENTON, TEXAS
i Single Audit Reports for the
( i Year Ended September 30j'1990
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CITY OF DENTONt TEXAS
SINGLE AUDIT REPORTS
FOR THE YEAR ENDED SEPTEMBER 30, 1990
TABLL OF CONTENTS
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1 Page
Independent Auditors' Report on the Schedule
of Federal and State Financial Assistance 2
Schedule of Federal and State Financial Assistance 3-4
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E Independent Auditors' Compliance Report Based on an
I i Audit of General Purpose Financial Statements g
Independent Auditors' Report on Internal Control Structure 6-7
{ Independent Auditors' Report on Compliance With the
J General Requirements Applicable to Major Federal
Financial Assistance Programs 5
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Independent Auditors' Report on Compliance with the
[ rtj Specific Requirements Applicable to Major Federal
Financial Assistance Programs 9
Independent Auditors' Report on Compliance with
3 Requirements Applicable to Nonmajor Federal
1 Financial Assistance Program Transactions 10
Schedule of Findings and Questioned Costa 11
Independent Auditors' Report on Internal Controla
(Accounting and Administrative) 12-14
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801 Cherry Strret Suite ?3,10 Metro 18171 654-27 7 7
Fort Worth, Texas 76102.6801
Telephone, 18171347-3300
INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF FEDERAL AND STATE FINANCIAL
ASSISTANCE
I _ The Honorable Mayor and Members of the City Council
j City of Denton, Texas
We have audited the general purpose financial statements of the City of
Denton, Texas ("City") for the year ended September 30, 1990, and have issued
3 our report thereon dated December 5, 1990. These general purpose financial
f i statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these general purpose financial
statements based on our audit,
f We conducted our audit in accordance with generally accepted auditing
I i standards and Government Auditing Standards, issued by the Comptroller General
I of the United Statesohee ata ar s require that we plan and perform the
audit to obtain reasonable assurance about whether the general purpose
{ °1 financial statements are free of material misstatement. An audit includes
j { examining, on a test basis, evidence supporting the amounts and disclosures in
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J i the general purpose financial statements. An audit also includes assessing
j 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.
t °"t Our audit was made for the purpose of forming an opinion on the geueral
purpose financial statements of the City taken as a whole. The accompanying
supplemental schedule of federal and state financial assistance for the year
ended September 30, 1990, which is also the responsibility of City managemeut,
i Is presented for purpoaes of additional analysis and is not a required part of
the general purpose financial statements. Such supplemental schedule has been
1 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
respects when considered in relation to the general purpose financial
statements taken as a whole.
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801 Cherry Street, Suite 2340 Metro (817t 6b4-2177
Fort Worth, 7ex,is 76102 6801
Telephorio: (81/1347-3300
INDEPENDENT AUDITORS' COMPLIANCE REPORT EASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS
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The Honorable Mayor and Members of the City Council
City of Denton, Texass
We have audited the general purpose financial statements of the City of
Denton, Texas ("City") as of September 3L, 1990 and for the year then ended,
I and have issued our report thereon dated D,-ember 5, 1990.
I ~
3 We conducted our audit in accordance with generally accepted auditing
standards and Covernment Auditing Standards, Issued by the Comptroller General
i of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the general purpose
financial statements are free of material misstatement.
I ? Compliance with lava, regulations, contracts and grants applicable to the City
is the responsibility of the City'a management. As part of obtaining
reasonable assurance about whether the general purpose financial statements
are free of material misstatement, we performed testa of the City's compliance
( with certain provisions of laws, regulations, contracts and grants. However,
our objective was not to provide an opinion on overall compliance with such
provisions.
The results of our teats indicate that, with respect to the items tested, the
City complied, in all material respects, with the provisions referred to in
the preceding paragraph. With respect to items not tested, nothing came to
our attention that caused us to believe that the City had not complied, in all
( material res cots with those provisions.
j We report is intended for the information of the City Council, management
1 _ and appropriate federal and state agencies. This restriction is not intended
to limit the distribution of this report, which is a matter of public record.
December 5, 1990
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Delottte &
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8D1 ChorryStroof, Suite 2340
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Fort Wurlh, Texas 76102.6801 ro (811J 0,4 2777
Telephone; (81 71 34/-330L,)
INDEPE11DENT AUDITORS' REPORT ON THE YNT
ERNAL CONTROL STRUCTURE
The Honorable Mayor and Members of the City Council
j City of Deaton, Texas;
We have audited the general purpose financial statements of the City of
Denton, Texas ("City") as of and for the year ended
have issued our report thereon dated December 5, 1990eptember 309 1940 and
j
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditin Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether t
financial statements are free general ur
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of material misstatement.
In planning and performing our audit of the
' statements of the City
for the year general purpose financial
ended its internal control structure in order to5determine 3our p1990, inn
considered
1 for the purpose of expressing our opinion on the general Pposurpos
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! statement) and not to provide assurance on the internal control structure,
The management of the City is responsible for establishing and maintainin
internal control structure. In fulfilling this responsibility,
,judgments b 8 an
by mans
Bement are required to asses, the expected ben estimates and
related costs of internal control structure benefits and
I objectives of an internal control structure reitosprovidermanagement 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
i 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 nevertheless
_ occur and not be detected, Also
' structure to future l projection of any evaluation of the E
periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation of
policies and procedures may deteriorate.
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For the purpose of this report, we have classified the significant internal
control structure policies and procedures in the following categoriesi
. Billings
. Receivables
Cash receipts
Purchasing and receiving
. Accounts payable
. Cash disbursements
Payroll
Inventory control
Property and equipment
General ledger
Compliance with laws and regulations related to the federal and state
financial assistance programs
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For all of the internal control structure categories listed above, we obtained
i ! - an understanding of the design of relevant policies and procedures and whether
they have been placed in operation, and we assessed control risk.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a reportable condition in which
the design or operation of one or more of the specific internal control
structure elements does not reduce to a relatively low level the risk that
errors or irregularities in amounts that would be material in relation to the
J general purpose financial statements being audited may occur and not be
I f detected within a timely period by employees in the normal course of
i performing their assigned functions. We noted no matters involving the
internal control structure and its operation that we consider to be material
weaknesses as defined above.
Lj This report, is intended for the information of the City Council, management
_ and appropriate federal and state agencies. This restriction is not intended
if to limit the distribution of this report, which is a matter of public record.
i December 5, 1990
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Deleitte &
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601 Cherry Street Suite 234U Metro (8)7)6!i4-2777
ForI Worlh, Texas 76107.6801
Telephone' X8171347-3300
INDEPENDENT AUDITORS' REPORT ON COWLLANCE WITH THE GENERAL MuLu HBNT8
1 APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
The Honorable Mayor and Members of the City Council
-j ! City of Denton, Texas:
1
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 i•a the schedule of federal
and state financial assistance, for the year ended September 30, 1990:
Political activity
civil rights
Cash management
Federal financial reports.
Our procedures were limited to the applicable procedures described in the
Office of Management and Budget's Compliance Supplement for Single Audits of
State and Local Governments, dated April 1985. ur procedures were
substantially less in scope than an audit, the objective of which is the
expression of an opinion on City compliance with the requirements listed in
( the preceding paragraph. Accordingly, we do not express such an opinion.
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! With respect to the items tested, the results of those procedures disclosed no
material instances of noncompliance with the requirements listed in the first
i paragraph of this report. With respect to items not tested, nothing came to
our attention that caused us to believe that the City had not complied, in all
material res sets
with
1 P , those requirements.
i
This report is intonded for the information of the City Council, managemeat
and appropriate federal and state agencies. This restriction is not intended
to limit the distribution of this report, which is a matter of public record.
3
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December S, 1990
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Deloitte &
Touche
W1 Cherry Street, Swte 2340 Metro (817 (y,1.2777
fort Worth, Texas 76102-&801
Telephone.: (817) 347-3300
INDEPENDENT AUDITORS, REPORT ON COMPLIANCE WITH SPECIFIC REQUTRHME►~TS
APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE P]LOGYANS
The Honorable Mayor and Members of the city Council
City of Denton, Texas:
We have audited City of Denton, Texas ("City") compliance with the
requirements governing types of services allowed or unallowed; eligibility;
! reporting; special testa and provisions related to the Community Development
j Block Grant and Rental Rehabilitation Program; and claims for advances and
reimbursements that are applicable to each of its major federal financial
! assistance programs, which are identified in the accompanying schedule of
federal and state financial assistance, for the year ended September 30,
1990• The management of the Cit is responsible
those requirements. Our responsibility toexpress Canyapinioaaoaecomwith
pliance
with those requirements based on our audit.
We conducted our audit in accordance with
generally accepted auditing
standards, Coverni - Auditin Standards, Issued by the Comptroller General of
f 1 the United States, and Office of Management and Budget Circular A-1280 "Audits
1 of State and Local Governments." Those standards and OHS Circular A-128
1 require that we plan and perform the audit to obtain reasonable assurance
about whether material noncompliance with the requirements referred to above
occurred. An audit includes examining, on a teat basis, evidence about City
f compliance with those requirements. We believe that our audit provides a
J reasonable basis for our opinion.
1 In our opinion, the City complied, in all material respects, with the
requirements governing types of services allowed or unal.lowedy eligibility;
reporting; special tests and provisions related to Community Development
j Block Grant and Rental Rehabilitation Program; and claims for advances and
i reimbursements that are applicable to each of its major federal financial
assistance programs for the year ended September 30, 1990.
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December 5, 1990
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Ueloitte &
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6O1 Cherry Street, Suite 2340 Metro" 07) 654.27 17
Fort Worth, Texas 76107-6801
telephone: (817) 347-3300
INDEPENDENT AUDITORS' NONMAJOR FEDERAL FINANCYAL ASSISTANCE PROGRAM TRANSACTIRP~TS APPLICABLE TO
y + The Honorable Mayor and Members of the City Council
1
City Council of the City of Denton, Texast
In connection with our audit of the 1990 general
f+ of the City of Denton, Texas ("Cit purpose financial statements
with our evaluati
City internal contr,sl structures used todadministerafederaldfinancialon of
assistance programs, as required by Office of Management and Budget Circular
A-1280 "Audits of State and Local Governments," we selected certain
transactions applicable to certain nonmajor federal financial assistance
programs for the year ended September 30, 1990.
As required by OMB Circular A-128, we have
test compliance with the requirements performed auditing procedures to
' governing types of services allowed or
unallowed3 and eligibility that are applicable to those transactions. our
procedures were substantially less in scope. than an audit, the objective of
which is the expression of an opinion on City compliance with these
requirements, Accordingly, we do not express such an opinion.
i
With respect to the items tested, the results of those procedures disclosed no
{ material instances of noncompliance with the requirements listed in the
preceding paragraph. With respect to items not tested, nothing came to our
1 attention that caused us to believe that the City had not complied, in all
material respects, with those requirements. However, the results of our
1-~-. J, procedures disclosed an immaterial instance of noncompliance with those
requirements, which is described in the accompanying schedule of findings and
I questioned costs.
( This report is intended for the information of the City Co
i and appropriate federal and state agencies. This restriction us notaintended
to limit the distribution of this report, which is a matter of public record.
December 5, 1990
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CITY OF DENTON, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30 1990
PROGRAM FINDING/NONCOMPLIANCE QUESTIONED
- COSTS
CURRENT YEAR
i - COMMENTS
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Texas Historical Commission +
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Grant Number
48-89-4065.007
Fi_ ndlnRt Incomplete documentation $133
was maintained to support the
- in-kind services provided to
match the grant funds received
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{ f Recomm~on, Establish
procedures that will ensure
that adequate records
are maintained to substantiate
in-kind revenues.
I Resconse. The Planning Department
t E has revised their record keeping
procedures in order to docwlnt
all in-kind expenditures.
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STATUS OF PRIOR
YEAR COMMENTS No comments made in prior
-i year.
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Deioitte &
Touche
801 Cherry Street, suite ?340 Metro {8111 G64-7777
s. Fort Worth, Texas 761026801 t
Telephone: (817) 347.3300
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROLS (ACCOUNTING AND
ADMINISTRATIVE)
The Honorable Mayor and Members of the City Council
City of Denton, Texast
We have audited the general
Denton, Texas ("City") for the year ended cSeptember m30ta1990tandChaveofasued
our report thereon dated December 5, 1990. As
rt of our audis we de
study and evaluation of the internal control systems,Includingtapplicablea
1 internal administrative controls, used in administering federal financial
assistance programs to the extent we considered nQcessary to evaluate the
systems as required by generally accepted auditing standards, Government
3 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
and administrative controls used in administering federal financial assistance
programs in the following categories:
t
Accounting Applications
BI1lIng3
' Receceivables
Cash receipts
Purchasing and receiving
Accounts payable
Cash disbursements
I Payroll
Inventory control
Property and equipment
General ledger
Controls Used in Administering Federal Programs
General Requirements
Political activity
Civil rights
Cash management
Federal financial reports
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Specific Requirements
Types of services
Eligibility
Reporting
Cost allocation
Special requirements, if any
The management of the City is responsible for establishing and maintaining the
internal control systems used in administering federal financial assistance
programs. In fulfilling that responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
control procedures. The objectives of iuternal control systems used in
administering federal financial assistance programs are to provide management
a with reasonable, but not absolute, assurance that, with respect to federal
financial assistance programs, resource use is consistent with laws,
I regulations and policies; resources are safeguarded against waste, loss and
misuse; and reliable data are obtained, maintained and fairly disclosed in
reports.
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E Because of inherent limitations in any system of internal accounting and
administrative controls used in administering federal financial assistance
I _ programs, errors or irregularities may nevertheless occur and not be
f detected. Also, projection of any evaluation of the systems to future periods
I ; is subject to the risk that procedures may become inadequate because of
changes in conditions or that the degree of compliance with the procedures may
deteriorate.
Our study included all of the applicable control categories listed above.
I j - During the year ended September 30, 1990, the City expended 90 percent of its
total federal financial assistance under major federal financial assistance
programs. With respect to internal control systems used in administering
I major federal financial assistance programs, our study and evaluation included
considering the types of er;:are and irregularities that could occur,
I determining the internal control procedures that should prevent or detect such
errors and irregularities, determining whether the necessary procedures are
prescribed and are being followed satisfactorily, and evaluating any
weaknesses.
With respect to the internal control systems usod solely in administering the
E nonmajor federal financial assistance programs of the City, our study and
evaluation was limited to a preliminary review of the systems to obtain an
understanding of the control environment and the flow of transactions through
I the accounting system. Our study and evaluation of the internal control
systems used solely in administering the nonmajor federal financial assistance
programs of the City did not extend beyond this preliminary review phase.
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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
federal financial assistance
programs of the City.
Also, our audit, made in accordance with the standards mentioned shove, would
not necessarily disclose material weaknesses in the internal control systems
used solely in administering noamajor federal financial assistance programs.
1 However, our study and evaluation and our audit disclosed no condition that we
1 believe to be a material weakness in relation to a federal financial
assistance program of the City,
j This report is intended solely for the use of the City Council. management
appropriate federal and state agencies and should not be used for any otherand
purpose. This restriction is not intended to limit the distribution of this
report, which is a matter of public record.
4 f December 5, 1990
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