HomeMy WebLinkAbout09-30-1996
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1 CITY OF DENTON, TEXAS
Single Audit Reports for the
3 7 Year Ended September 30p.1490
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CITY OF DENTONs TEXAS
SINGLE AUDIT REPORTS
FOR THE YEAR ENDED SEPTEMBER 300 1990
! TABLE OF CONTENTS
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Page
Independent Auditors' Report on the Schedule 1
- of Federal and State Financial Assistance 2
Schedule of Federal and State Financial Assistance 3-4
Independent Auditors' Compliance Report Based on an
j Audit of General Purpose Financial Statements g ;
E Independent Auditors' Report on Internal Control Structure 6-7
Independent Auditors' Report on Compliance with the
r - General Requirements Applicable to Major Federal
Financial Assistance Programs g
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Independent Auditors' Report on Compliance with the
Specific Requirements Applicable to Major Federal
{ Financial Assistance Programs 9
[ I
{ Independent Auditors' Report on Compliance with
3 3 Requirements Applicable to Nonmajor Federal
Financial Assistance Program Transactions 10
Schedule of Findings and Questioned Coate 11
Li I Independent Auditors' Report on Internal Controls
(Accounting and Administrative) 12-14
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De O& &
- Touche
801 Cherry Street, Suite 2340 Metro (8171 664.2777
Fart Worth, Texas 76102-6801 _
Telephone; (8171 347-330()
INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF FEDERAL AND STATE FINANCIAL
ASSISTANCE
The Honorable Mayor and Members of the city council
i
City of Denton, Texas
I We have audited the
general purpose financial statements of the City of
Denton, Texas ("City") for the year ended September 30, 19900 and have issued
i our report thereon dated December 5, 1990. These general purpos
{ statements are the responsibility of the City's managementq Oure financial
responsibility is to
it express
an
o ini
statements based on our audit. P on on these general purpose financial
We conducted our audit in accordance with generally accepted auditing
standards and Government: Auditin Standards, issued by the Comptroller General
I of the United States. These atan 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 misstatement. An audit Includes
{ examining, on a test basis, evidence su n
the general purpose financial statements, An audit alseonIncludesiassessins in
the accounting principles used and significant estimates made by management,
J as well as evaluating the overall financial statement present
ativn. We
j~ believe that our audit provides a reasonable basis for our opinion.
1 1
Our audit was made for the purpose of forming an opinion on the geueral
purpose financial statements of the City taken as a whole.
{ supplemental schedule of federal and state financial assistancThe e forothe~year
ended September 30, .1990, which is also the responsibility of City managemeut,
Is presented for purposes of additional analysis And in 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
respects, when considered in relation to the general
statemo.6nts taken as a whole. Purpose financial
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Deloitte &
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801 Cheny Street Sidle 2340 Metro {8171 G54 2:'7'1
Fort Worth, Texas 76102-6801
Telephore, (817) 347-3300
INDEPENDENT AUDITORS' COMPLIANCE REPORT ]LASED ON AN AUDIT OF GENERAL PURPOSE
r FINANCIAL STATEMENTS
The Honorable Mayor and Members of the City Council
City of Denton, Texas:
f
We have audited the general purpose financial statements of the City of
Denton, Texas ("City") as of September 3t, 1990 and for the year then ended,
and have issued our report thereon dated December 5, 1990s
j
We conducted our audit in accordance with generally accepted auditing
I' standards and Government Auditing Standards, issued by the Comptroller General
( of the United States. Those standards require that we plan and perform the
s audit to obtain reasonable assurance about whether the general purpose
financial statements are free of materiel misstatement.
I
I Compliance with laws, regulations, contracts and
grants applicable to the City
is the responsibility of the City's management, As part of obtaining
f reasonable assurance about whether the general purpose financial statements
are free of material misstatement, we performed testa of the City's compliance
f I with certain provisions of laws, regulations, contracts and grants. However,
1 our objective was not to provide an opinion on overall compliance with such
provisions.
The results of our tests indicate that, with respect to the items tested, the
I City complied, iu all material respects, with the provisione 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 respects, with those provisions.
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.
I
December 5, 1990
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Delaitte &
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801 Cherry Street, Surte 2340 Metro (817) 064-2777
I-ort Worth, Texas 76102.6801
_ Telephone {8171347.3300
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INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE
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The Honorable Mayor and Members of the City Council
City of Denton, Texast
I
We have audited the general purpose financial statements of the City of
Denton, Texas ("City") as of and for the year ended September 30, 1990 and
have issued our report thereon. dated
December
S
i ) 1990.
j f 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 ~ require that we
plan lan
( it to obtain reasonable assurance about whether the and perform the
general purpose
financial statements are free of material misstatement.
In planning and performing our audit of the
statements of the City for the general purpose financial
i year ended September 30, 1990, we considered
its internal control structure In order to determine our auditing procedures
i for the purpose of expressing our opinion on the general purpose financial
II statements and not to provide assurance on the internal control structure,
The management of the City is responsible for establishing and maintaining an
internal control structure. In fulfilling this rea xpectee.. , estimates and
j judgments by management are required to assess the expectec. benefits and
I related coats of internal control structure policies and procedures. The
objectives of an internal control structure are to provide management with
j reasonable, but not absolute, assurance that assets are safeguarded against
i loss from unauthorized use or dispoaition, and that transactions are executed
in ac.%.ordance with management's authorization and recorded properly to permit
the preparation of general purpose financial statements In accordance with
j generally accepted accounting
II any internal control structure, errors or Irregularities maynneverthelesss in
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 effectivenoss of the
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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
~LL Compliance with laws and regulations related to the federal and state
financial assistance programs
f
For all of the internal control structure categories listed above, we obtained
an understanding of the design of relevant policies and procedures and whether
f they have been placed in operation, and we assessed control risk.
Our consideration of the Internal control structure would not necessarily
i disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American institute of Certified
j °ublic Accountants. A material weakness is a reportable condition in which
the design or operation of one or more of the specific internal control
I structure elements does not reduce to a relatively low level the risk that
errors or irregularities in amounts that would be material is relation to the
j 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
f i weaknesses as defined above.
j , This report is intended for the information of the City Council, management
f ( and appropriate federal and state agencies. This restriction is not intended
E\1,JJ f! to limit the distribution of this report, which is a matter of public record.
December 5, 1990
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Deloitte &
buche
801 Cherry Streel, Suite 2340 Metro 1817) 654-2777
Fort Worth, lexas 76102.6801
telephone: 1817) 3473300
INDEPENDENT AUDITORS' REPORT ON C010'LIANCE WITH THE CURIAL R.P.QUnmENTS
APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
The Honorable Mayor and Members of the City Council
{ City of Denton, Texas:
j 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 iu the schedule of federal
I and state financial assistance, for the year ended September 30, 1990:
i i
Political activity
Civil rights
i Cash management
Federal financial reports.
Our procedures were limited to the applicable procedures described in the
Office of Management and Budget's Compliance Su lement for Single Audits of
State and Local Governments, dated pr 1 5. r 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.
With respect to the items tested, the results of those procedures disclosed no
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 had not complied, in all
material respects, with those requirements.
f
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.
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December 5, 1990
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aelcitte &
buche
801 Chaffy Street. Swte 23,10 Metro (817)664-2777
f orl Worth, Texas 76102-6801
Telephone: (81/134 7-33UO
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC RBQUIR.EMEWS
APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
+ 11te Honorable Mayor and Members of the City Council
City of Denton, Texas,
We have audited City of Denton, Texas ("City") compliance with the
raouirementa governing types of services allowed or unallowed; eligibility] JJ
( reporting; special testa and provisions related to the Community Development I
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
r I federal and state financial assistance, for the year ended September 30,
f 1990. The management of the City is responsible for City compliance with
those requirements, Our responsibility is to express an opinion on compliance
with those requirements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller General of
i_ the United States, and Office of Management and Budget Circular A-128, "Audits
of State and Local Governments." Those standards and OMB Circular A-128
S require that we plan and perform the audit to obtain reasonable assurance
about whether material noncompliance with the requirements referred to above
I occurred. An audit includes examining, on a test basis, evidence about City
. compliance with those requirements. We believe that our audit provides a
t
reasonable basis for our opinion.
In our opinion, the City complied, in all material respects, with the
requirements governing types of services allowed or unallowed; eligibility;
f reporting; special testa and provisions related to Community Development
1 Block Grant and Rental Rehabilitation Program; and claims for advances and
reimbursements that are applicable to each of its major federal financial
assistance programs for the year ended September 30, 1990.
December 5, 1990
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NO& &
1'ouche
801 Cherry Slreel, Swte 2340 Metro f8f )1 654.2
771
s Fort Worth, Texas 76102-6801
Telephone: (817) 347-3300
INDEPENDENT AUDITORS' REPORT ON COMPLIMCE WITH REQUIREMENTS APPLIWI,E TO
NONMAJOR FEDERAL FIHANCLAL ASSISTANCE PROGRAM TRANSACTIONS
' The Honorable Mayor and Members of the City Council
City Council of the City of Denton, Texas:
In connection with our audit of the 1990 general purpose financial statements
of the City of Denton, Texas ("City") and with our study and evaluation of
City internal control structures used to administer federal financial
f assistance programs, as required by Office of Management and Budget Circular
I A-128, "Audits of State and Local Governments," we selected certain
transactions applicable to certain noamajor federal financial assistance
- programs for the year ended September 30, 1990.
I As required by OMB Circular A-128, we have performed auditing
procedures to
teat compliance with the requirements governing types of services allowed
unallowedl and eligibility that are applicable to those transactionso Ouror
i procedures were substantially less in scope than an audit, the objective of
which is the expression of an opinion on City compliance with these
r requirements. Accordingly, we do not express such an opinion.
4 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
J attention that caused us to believe that the City had not complied, in all
material respects, with those requirements. However, the results of our
procedures disclosed an immaterial instance of noncompliance with those
i requirements, which Is described in the accompanying schedule of findings and
queationed costs.
r
This report is intended for the information of the City Council, management
i 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:..~
i 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 QUESTIONED
t FINDING/NONCOMPLIANCE COSTS
CURRENT YEAR
COMMENTS
4 Texas Historical Commission
_ Grant Number
4889-4065.007 Findingt Incomplete documentation
1133
~ was maintained to support the
in-kind services provided to
match the grant funds received
Recommeuda"ont Establish
F procedures that will ensure
that adequate records
are maintained to substantiate
in-kind
revenues.
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Response: The Planning Department
i has revised their record keeping
procedures in order to documint
all in-kind expenditures.
STATUS OF PRIOR ~
# YEAR COMMENTS No comments made in prior !
-F year.
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Deloitte &
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801 Cherry Street, Suite 23,10 Metro 1817) 6;4-7.777
Fort Worth, Texas 76102-6801
Telephone (817) 347-3300
INDEPENDENT AUDITORS, REPORT ON INTERNAL CONTROLS (ACCOUNTING AND
( ADMINISTRATIVE)
j 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 ("City") for the year ended September 30, 1990 and have issued
our report thereon dated December 5, 1990. As part of our audit, we made a
study and evaluation of the internal control systems, including applicable
internal administrative controls, used in administering federal financial
C assistance programs to the extent we considered necessary to evaluate the
systems as required by generally accepted auditing standards, Government
Audi tin Standards) issued by the Comptroller General of the United States,
the Single Audit Act of 1984 and the provisions of Office of Management and
I 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:
Accounting Applications
Billingn
Receivables
j Cash receipts
Purchasing and receiving
I' Accounts payable
( Cash disbursements
Payroll
Inventory control
I 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
Coat 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 coats of
control procedures. The objectives of iuternal control systems used in
administering federal financial assistance programs are to provide management
j with reasonable, but not absolute, assurance that, with respect to federal
financial assistance programs, resource use is consistent with laws,
j regulations and policies; resources are safeguarded against waste, loss and
misuse; and reliable data are obtained, maintained and fairly disclosed in
reports.
I .
Because of inherent limitations in any system of internal accounting and
administrative controls used in administering federal financial assistance
programs, errors or irregularities may nevertheless occur and not be
detected. Also, projection of any evaluation of the systems to future periods
Is subject to the risk that procedures may become inadequate because of i
j € changes in conditions or that the degree of compliance with the procedures may
f i deteriorate.
E Our study included all of the applicable control categories listed above.
i
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
major federal financial assistance programs, our study and evaluation included
considering the types of errors and irregularities that could occur,
if 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.
_.i
With respect to the internal control systems used solely in administering the
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
the accounting system. Our study and evaluation of the internal control
i 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 federal
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an opinion on the internal control systems used in administering the feder
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 nonaajor 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
' j 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.
December 5, 1990
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