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Home My WebLink About09-30-1993 1 SINGLE AUDIT REPORTS SEPTEMBER 30t 1993 j T ,.its ! CITY OF DENTON, TEXAS ' TABLE OF CONTENTS - - I Page Independent Auditors' Report on the Supplemental Schedule if Federal and Stale Financial Assistance Supplemental Schedule of Federal and ,State Financial Assistance ` t.q Independent Auditors' Report on Compliance Based on the Audit of Financial Statements S Independent Auditors' Report on the Internal Control Structure Based on the Audit of the Financial Statements 67 Independent Audllors' Report on Compliance With the C;eneral Requirements Applicable to Federal Financial Assistance 8.9 Independent Auditors' Report on Compliance With Specific Requirements Applicable to Major Federal Financial Assistance Programs IO Independent Auditors' Report on Compliance With Requirements Applicable to Nonmajor F ;al Financial Assistance Program Transactions 11 Schedule of Findings and Questioned Costs 12 Independent Auditors' Report on the Internal Control Structure Used In Administering Federal Financial Assistance 13-IS ix t•a i ~ Deioitte ~ Thuche Swte-2340 e 801 Cherry Strool ephone (817) 347-3300 fort Worth, Texas 76102-6801 acsimiV (817) 3361.2013 1 INDMNDENT AUDITORS' REPORT ON THE SUPPLEMFNI'AL SCIIFDUI,E OF FEDERAL I" STATE FINANCIAL ASSISTANCF The Honorable Mayor and Members of the City Council City of Denton, Texas We have audited the general purpose financial statements of the city of Denton, Texas (the "City") for the year ended Sep(cmber 30, 1993, and have issued our report thereon dated December 17, 1993. These general purpose financial 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, We conducted our audit In accordance with generally accepted auditing standards and Clovemmenl Auditing Standards, Issued by the Comptroller (General of die United States, Those standards requ a that we plan and perforin the audit to obtain reasonable assurance about whether the general purpose financial statements are free of maleria) misstatement, An audit includes examining, on a lest 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 ))rovldes a reasonable basis for our opinion, Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Cliy taken as a whole. The accompanying supplemeutal schedule of federal and state financial assisturice for the year curled September 30, 1993 which is rdso die responsibility of the City's 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 subfected to Ilse auditing procedures applied in the audit of the general purpose financial statements and, In our opinion, Is fairly stated in all material respects when considered it relation to the general purpose ti hole, nanclal statements taken as a wwh December 17, 1993 OeloHtaTouche Tohmatso Intarnatlnnal 1 ..z r GTPY OP DENTON, T13XAS SUPPLEMENTAL SCHEDULE OP FEUFRAL AM) STATE FINANCIAL ASSISTANCE YEAR FNDED S6P113MBER 30, 1993 Catalog of Pedernl Pund Pedenl Grantor/ Domestic pmetum Fund Balance Paaa-Through Grantor/ Grant Assistance or Award Balance Revenues September 30, Pro~nm Title I.D. Number I.D. Number Amount October 1, 1992 e7rixl S ai To" Deal" Ex ncfllLna 1993 U.S. - ~ De arment of Hnusin-q M ran •ve o meal" Comm u' ify dove opment Block Grant (1) B-85•MC•48.0036 14.218 $ 677,918 $ 19,714 $ 19,714 Community Development Dlmk Grant (1) B-86-MC-48.0036 14.218 557,384 (17,077) (17,077) Community Development Block Gren1(1) B-87-MC-48.0036 14,218 5711559 (76,212) (76,212) Community Development Block Grant (1) 1348-MC-48-0036 14,218 553,966 72,390 72,390 Community Development Block Grant (1) B.89-MC-48.0036 14,218 57R,483 1,185 1,185 Community Development Block Grant (1) 11•90.MC-48.0036 14.218 559,134 S 1,324 $ 1,324 Community Development Block Grant (1) B-91-MC-48.0036 14,218 617,568 118,734 118,734 Community Development Black Grant(1) B-91.•MC-48-0036 14,218 675,941 628,337 628,337 Community Development Block Grant (1) B-93-MC-4"36 14.219 1,054,(0 23,491 23,491 Passed Through State of Texas Depattmenl of Comn;erco: Rental Rehabilitation Program (1) R-89•MC•480222 14.230 116,128 18,308 $ 20,067 38,315 Rental RehaNlliadon Prayam(1) R-90-MC-480222 14,230 47,000 1,485 1;485 Rental Rehabtlitatlon Program (1) 881006 14.230 232,222 160,991 189,962 350,953 Total U.S. Deparlmtnl of }lousing and Ut5an Development 952,670 1.1E 1,162,699 U'S. De mnent of the Interior a ana Y-ark-Service Toxm h'isdorical Commission 48.91-5012211019 unknown 2,600 ~ 2,082 ~y 2,082 4,164 4 - (1) Majorpntgram 2 . (Continued) CrrY OF DMNTON, TEXAS SUPPLEMP.NTAL SCHEDULE OF FEDERAL AND STATE FINANC L4,L ASSISTANCP YEAR ENDED SEVIEMEER 30, 1993 Cntalogof Federal Fund Pedem) Grantor/ Domestic Program Fund Balance Pass-Through Grantor/ Grant Assistance or Award Balance Revenues September!.0, Prot TWO I.U. Number I.U. Number Amount October 1, 1992 -lc=ernT- "-State RnT" Ex ndihues 1993 l U'SS_' Department of Transportation Vederal v ahgl Admirdmration - Airport Improvement Program(1) 348006705 20,106 1,210,(Y.)) $ 647,046 $ 71,894 6 718,940 Federal Aviation Administration • Airport ImpmvementProgram (1) 348006706 20.106 150,(X10 66,058 7,340 73,398 Federal Avingon AdmWstation • Airport Improvement Program (1) 348006707 20.116 110,000 156,458 17,384 173,842 Passed Through Slate Department of Transppororttation: FedemlTransportationGrant (1) TX•90-X246 20,507 393,918 237,142 $106,644 97,352, 441,138 Trial U.S. Department of Transportation 1,106.701 106,644 193,970 1,407,318 J U,S. Department of Education Rio ec ] R16IA20148 Unknown 33,582 33,582 33,582 Reading Enhances Adult Lire Oram11 R167A20442 urrknown 29,240 29,240 29,240 Porcip Language Materials Acquisition R239A20057 unknown 151200 ~T- 11,400 11,400 Total U.S. Department of Education 74,2_22 M_'14,222 U.S. De artmeni of Agggdcultum pp'a`~t5 n g menl iTT altfi a Frurnm rvcea rvrces ran 061.1002 N/A N/A 28,806 _ _ _28,806 Total federal Programs 2,164,434 Y106,644 406,081 2,671,209 North Central Texas Council of uveromen a _ 145b e'-IioliMsed Oil Recycling Program 60(105 N/A 17,517 - 17,517 Wr 17517 _ 3 CM OF DF.NTON, TEXAS SUPPLSA4HNTAL SCURDULS OF FEDERAL AND STA M FINANCIAL ASSISTANCE YRAR ENDED SBPMMBER 30, 1993 Catalog of lWeral Pond PederalOrontar/ Domestic Program Fund Balance Pass-Through Grantor/ Grnu11 Assislanco or Award Batance Revenues September 30, Pram 71116 I.D. Numbc_r LD. Number Amount October I, 1992 ` cJTcrnl" Sla[o - 1 ocnt gxLFdllutes 1993 State U-pportntent of HI hwas '"a`&dTru3 le Trap"-~P»1t S7er`~Ive 1'rntL+'Trcemonl I Project - Occupant Protection 583XXP6032 N/A 18,750 $ 15,246 S 5,082 $ 20,328 National Maximum Speed Limit 583XXF6017 N/A 30,000 26,083 26,083 Traffic Light Synchronization Project - Downtown 582-71.P-6071 N/A 37,899 25,28E 4,911 30,192 Traffic Light Synchronization Project - Carroll Blvd. 582.7LP-6072 N/A (4,555 rv 5,313 4,617, 9,923 Total Stare Department of Highways and Publio Transportation 71,9231 14,605 86,528 State of Texas Cominal Justice se es once - SP-94.511-(16661 N/A 18,437 2,282 8,729 t1,011 IhugAbuseResistance SP-93-St1.5446 N/A 38,185 29,852 43,652 73,5W Narc otics Task Force N/A 46,726 v13,158 4,386 17,544 Total State of Texas Criminal Justice 45,292 56,767 102,059 Texas Parks and Wildlife C artmenl Norm ea ar ` 20-00401 N/A 500,000 236,126 236,126 472,252 Texas WoW Commisslon mnnsUb a rTr onT°`T o p6s7n"g Project 21000(W13 N/A 19,935 17,000 17,000 34,000 Texas Ihvernentof Health .uF -3UaaBoITroBrem 0000933-OI N/A 20,OM 9,755 9,755 Texas Forest Service XNEI'lcA lfiIMeanufilul Tma Panting Initiative 92.03.05 N/A 6,000 W 3,373 3,373 Total StntePrograms 400,986 321,498 725,18_4 Wu_ TOTAL MORAL AND STATE FINANCLAL ASSISTANCE 0 JtA.484 $507,630 5730,579 $ 3,402,693 .4. t r Oeloit#e & Touche 1 e Suite 2340 relephone: (817) 34 7-3300 801 Cherry Street facsim4e:t817y336.2013 Fort Worth, Texas 711102.6601 f t 3~ F ! INDEFENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON TFE AUDIT OF FINANCIAL. STATEMENTS The Honorable Mayor and Members of the City Council City of Denton,'L'exas: We have audited the general purpose financial statements of the City of Denton, Texas (the "City") as of September 30, 1993, and for the year then ended and have issued our report thereon dared December 17, 1993, We conducted our audit in accordance with generally accepted auditing standards and Government l.uditing .Standards, Issued by the Comptroller General of the United States, 'T'hose standards regnL'e that we plan and perform the audit to obtain reasonable assurance about whether the general purpose. financial statements are free of material misstatement. Compliance with laws, regulations, contracts and grants applicable to the City is tie responsibility of the City's management. As part of obtaining reasonable assurance about whether the general pugiose financial statements ire free of lnateriai misstatement, we performed tests of the Clty's compliance with certain provisions of t rvrs, regulations, contracts and grants, However, our objective was nol to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests Indicate that, with respect to the items tested, tite City complied, in all material respects, with the provisions referred to in the preceding paragraph, With respect to Items not Ogled, nothing came to our attention that caused us to believe that the City had not compiled, In all material respects, with those provisions, This report is intended for the htformation of the City Council, nlauagement 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. t December 17,1993 l Uebftte'fouche Tt>lullatsu ' International . s . t t Touche Suite 2340 Telephone: (1317) 347-3300 801 cherrystroot Fucsim)lo:017)336-2013 1-; Fort Worth, Texas 76102-6801 i t+ 'NNDEPvNDF,NI' AUDITORS' REPORT ON THE INTFRNAL CONTROL STRUCTURE BASED ON THE AUDIT OF THE FINANCIAI, STATEMENTS The Honorable Mayor and Members of the City Council City of Donlon, Texas: ! We have audited the general and for the year ended Septembe 30, 1993, andthave issued our report thereon tdateda tfic December( 1'7, 1993, We conducted our audit In accordance with generally accepted auditing standards and Government Auditing Standards, Issued by the Comptroller General of the United States, Those standards R ulre that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of materlal misstatement. In ,planning and performing our audit of the general purpose financial statements of the. City for the year ended September 30, 1993, we considered Its internal control structure fit order to determine our audiihlg procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide ossurnrce on the internal conool strrr,,lure. The management of the (,'fly is respons)'Av for establishing and malnrainlug the internal control structure, In fulfilling this responsibility, estimates and judgments by management are required to assess the expected beneflis and related costs of internal control structure policies and procedures, no objectives of an internal control structure are to provide management with rga~onable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or diaposillon 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 nevertheless occur and not be detected. Also, projection of any cvtluatlon of the stnrchure to future periods is subject to the risk that procedures may become, inadequate because of changes In condltiorts or that the efiectiveness of the design and operailon of policies and procedures may deteriorate, For die pour Ihls report, we have classified the significant internal control structure policies and y procedures h Ilowing categories: • Billings • Receivables • Cash receipts • Purchasing and receiving • Accounts payable • Cash disbursements • Payroll Deloth`eTouclla Tohma>yu Irrternatlnnal 16 l; A z • Inventory control • Properly and equipment 1" • General ledger • Compliance with laws and regulations related to the federal and state financial assistcutce programs a For all of the internal control structure categories listed above, we obtained 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 Irreguiarldes In amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions, We noted no matters Involving the internal control structure and Its operation that we consider to be material weaknesses as defined above, Howevor, we noted certain rnatters Involving the internal control structure and its operation that we have reported to the City's management in a separate letter dated December 17, 1993, This report is Intended for the information of the City Council, management and appropriate federal and state agenclas, This restriction is not Intended to limit the distribution of this report, which Is a matter of public record. December 17, 1993 it t; I, t -7- 1 EVA Deloitte & Touche - t Suite 2340 Te(ephono: (8) 7) 347-3300 807 Cherry Street FacsirnHe: (817) 3362013 Fort Worth, Texas 76102-6801 l'8 MEPFNDF,NT AUDITORS' REPORT ON COMPLIANCE WITH THH GFNFRAL r REQUIREMENTS APPLICABLE TO FF.DFRAL FINANCIAL, ASSIST'ANC'E The Honorable Mayor and Members of the City Council City of Denton, Texas; We have audited the general purpose frnancial statements of the City of Denton, Texas ((he "City") for the year ended September 30, 1993, and have Issued our report thereon dated December 17, 1991, We e have also audited the City's compliance applicable to requirements of Its major federal financial assistance program and have issued our report thereon dated December 17, 1993, We have applied procedures to test the City's compliance with the following requirements applicable to each of Its federal financial assistance programs, which are identified in the schedule of federal and state financial assistance, for the year ended September 30, 1993: • Political activity • Davls-Bacon Act s Civil rights a Cash management s Real properly acquisition • Federal financial reports Allowable costs/cost principles a Drug -Free Workplace Act • Admituctrative requirements Our procechlres were limited to the applicable procedures described In the Office of Management and Budget's Compliance Sup lement for Single Audits of State and Local Govenimenis, Our pi Wilms t were substantially less in scope than an audit, the obJect ve o whjCh7s the expresslon of an opinion on the City's compliance with the requirements listed in the preceding paragraph. Accotdingly, we do not express such an opinion, With respect to the It,3ms tested, the results of those procedures disclosed no mm,t rial histances of t r noncompliance with the requirements listed in the second paragraph of this report, With respect to items not tested, nothing catn.e to our attention that caused us to believe that the City had not camplied, In all material respects, with those requirements, fr ? 1 DabRte'fouche Tohmat o jow"atlonal t5 .g. A f 1 This report is intended for the information of the City Council, management and appropriate federal and slate agencies. This restriction is not intended to limit the distribution of this report, which is a matter of public record. t December 17, 1993 1J ,.i j j r Deloitte & ,d - buche Tole hone. Suite 2340 {817! 347-3300 / - f a 801 Cherry Street Facsimile: (1317) 336-2013 Fort Worth, Texas 76102-6801 l:'3 t INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE, TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 1 t; r The Honorable Mayor and Members of the City Council City of Denton, Texas! t ' We have audited the general purpose financial statements of the City of Denton, Texas (the "City") for the year ended September 30, 1993, and have issued our report thereon dated December 17, 1993, We have audited the City's compliance with the requirements governing types of services allowed or unallowed; eligibility; matching level of effort; reporlln% special tests and provisions related to he Community Development Block Grant, the Rental Rehabilitation Program Grant, the Federal Aviation Administration Airport Improvement Program Grant, and the Federal Transportation Grant; and claims for advances and reimbursements; and amounts claimed or used for matching thal are applicable to Its major federal financial assistance program, which Is identified in the accompanying schedule of federal artd state financial assistance, for the year ended September 30, 1993, The management of the City is responsible for City compliance with those requirements, Our responsibility Is to express an opinion ou compliance with those requirements based on our audit, We conducted our audit in accordance with ,rtenerally accepted auditing standards, Government Auditing Standards, Issued by the Comptroller General of the United Stales, and Office of Management andBudget Circular A-128, "Audits of Stale and l.ocnl Oovemments," Those standards and OMB Circular A•128 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 ineNdes examining, on a test basis, evidence about City compliance with those requirements. We believe dial our audit provides a rcnsonablo basis for our opinion. Ili our opinion, the City compiled, in all material respects, with the requirements governing types of services allowed or unallowed; eligibility! rnaiclilng level of effort; reporting; special tests and provisions related to the Community Development Block Grant, the Rental Rehabiiitatior, Program Grant, the Federal Aviation Administration Airport Improvement Program Grant, and the Federal Transportation Grant; and claims for advances mid rehnbmsemeills; and mnounts claimed or used for matching that are applicable to its major federal financial assistance program for the year ended September 30, 1993, This report Is intended for the Infornladon of the City Council, management and appropriate fedemal and stale agencies. This restriction Is not iunen.ded to limit the distribution of this report, which 1s a matter of public record, December 17, 1993 ' " ~eloltte'fouche Tahmatsti Internatlonal 10. r t 08101tte & suite 2340 801 Chorry Strout Telephone: (817) 347-3300 Fort Worth, Texas 76102-6801 Facsimile. (8) 7) 336-2013 E, 1 S3 INDEPENDF,NT AUDITORS' REPORT ON COMPLIANCE WITH REQUIRF MF,N'I'S APPLICABLE TO NONMAJOR FF,DERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS ) r The Honorable Mayor and Members of the City Council r:E the City of Denton, Texas; We have audited the general purpose financial statements of the City of Denton, T'eaas (tile "City") for the year ended September 30, 1993, and have issued our report thereon dated December 17, 1993, We have also audited the City's compliance applicable to requirements of its major federal financial assistance program and applied procedures to test compliance with general requirements applicable to federal financial assistance programs and have issued our reports thereon dated December 17, 1993, In connection with our audit of the 1993 general purpe consideration of the City's control structure used to adminf ter federaltfinaucial assistCant e programs and assessment of control risk, as required by Office of Management and Budget Circular A.129, "Audits of State and Local Governments," we did not select for testing any transactions applicable to nonmajor federal financial assistance programs for the year ended September 30, 1993, Nothing carne to our attention during our audit that caused us to believe that the City had not complied, in all material respects, with the requirements governing types of services allowed or u nailowed; eligibility; and special tests and provisions related to transactions applicable to nonmajor federal financial assistance programs. This report is intended for the information of the City Council, management 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 17, 1993 1 e " Uelotttelouche Tohmatau llttetnatltma! v ll. k i { CITY OF DENTON, TEXAS 14 SCBED[JLE OF FINDINGS AND QUESTIONED COST'S y YEAR ENDED SEPTEMBER 30, 1993 Qiiestioned f"' Pro~r_nm Flndt,tg/Nancamp]lance Cosls CURRENT-YEAR COMMENTS None STATUS OF PRIOR- YEAR COMMENTS None , 12- t Debitte & Touche Suito 23,10 Telephone: (817) 341-3300 801 Cherry Streol Facsinule: (817) 336.2013 4. Fort Worth, Texas 761026801 1 I i INDF,PENDENT' AUDI'T'ORS' RF,PORT' ON THE INTERNAL CONTROL STRUC'T'URE USED W ADMINISTERING FEDERAL FINANCIAL ASSISTANCE The Honorable Mayor and Members of the City Council City of Denton, Texas; We have audlied the general purpose financial statements of the City of Denton, Texas (the "City") as of and for the year ended September 30, 1993, and have issued our report thereon dated December 17, 1993, We have also audited the City's compliance with requirements applicable to its major federal financial assistance program and have issued our report thereon dated December 17, 1993. We conducted our audit in accordance with generally accepted auditing standards; Gover,,inent Auditfr Standards, Issued by the Comptroller General of the United States; and Office of Mnagement and Budget (O..MB) Circular A-128, Audits of State and Local Clovemments. Those standards and OMB Circular A-128 require that we plan and perfornr the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatenrenl and about whether the City complied with laws and regulations, noncompliance with which would be material to its major federal financial assistance program. In planning and perfonnfng our audits for the year ended September 30, 1993, we considered the City's Internal control structure and assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinions on the City's general purpose financial statements and to report on the internal control structure In accordance with OMB Circular A-128, This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs, We have addressed Internal control structure policies and procedures relevant to our audit or Ile general purpose financial statements in a separate report dated December 17, 1993, The management of the City Is responsible for establishing and maintaining an Internal control stricture. In fulfilling this responsibility, estimates and judgments by management 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 logs from unauthorized use or disposition, that transactions are executed in accordance with management's authoriaatfon and recorded properly to permit the preparation of general purpose financial statements In accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations, Because of inherent limitations in any internal control structure, errors, lrregularftles, or instances of r,oncompllanee may nevertheless occur and not be detected, Also, projection of any evaluation of the structure to future 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 deteriorale, " Noitt buche Tehrnabu httornational 13- E t li For the purpose of this report, we have ciarsified the significant internal control structure policies and I procedures Used In administering federal financial assistance programs in the following categories: 1 Accounting Applications • Billings • Receivables • Cash receipts ' Purchasing and receiving ° • Accounts payable • Cash disbursements • Payroll f , + • Inventory control f + Property and equipment • General ledger Controls used in Administering Federal Programs General Requirements • Political activity • Davls•Bacon Act • Civil rights ' Cash management • Real property acquisition • Federal financial reports • Allowable casts/cost principles • Drug Free Workplace Act • Administrative requirements ' Specific Requirements • Types of service • Eligibility I • Matching, level of effort or earmarks • Reporting • Special requirements, if any Claims for advances and reimbursements Amounts claimed or used for matching For all of the internal control structure categories listed above, we obtained an undersUanding of the design of relevant policies and procedures and determined whether they have bean placed in operation, and we assessed control risk, During the year ended September 30, 1993, the City expended 96 percent of Its total federal financial assistance under major federal financial assistance programs, t g We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of Internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general re+uirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the City's major federal financial asssstance program, vhlch is Identified i ' k 14- 1 j In the accompanying Schedule of Federal and State Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. Our consideration of the internal control structure policies and procedures used In administering federal financial assistance would not necessarily disclose all matlern in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operations of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employoes in the normal course of performing their assigned _ functions, We noted no matters Involving the Wcmal control structure used in adminislering federal financial assistance programs and its operations that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to the City's management in a separate letter dated December 17, 1993. Ttds 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. '['his restriction is not intended to limit The distribution of this report, which is a matter of public record, December 17, 1993 i 15 t G I i I I r Lm E: i