HomeMy WebLinkAbout09-30-1997
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SINGLE AUDIT REPORTS
SEPTEMBER 30p 1993
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CITY OF DEN'TON, TEXAS
TABLE OF CONTENTS
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Independent Auditors' Report on the Supplemental Schedule of Federal and State
Financial Assistance I
Supplemental Schedule of Federal and State Financial Assistance 2.4
Independent Auditors' Report on Compliance Based on the Audit of
Financial Statements 5
Independent Auditors' Report on the Internal Control ,Structure Based on the Audit
of the Financial Statements 6.7
Independent Auditors' Report on Compliance With the Cleneral
Requirements Applicable to Federal Financial Assistance g.g
Independent Auditors' Report on Compliance With Specific Requirements
Applicable to Major Federal Financial Assistance Programs 10
Independent Audilors' Report on Compliance With Requirements Applicable
to Nonmajor Fweral Financial Assistance Program Transactions I I
Schedule of Flndings and Questioner! Costs 12
Independent Auditors' Report on the Interval Control Structure Used in
Administering Federal Financial Assistance 1315
E
Deloitte &
- Touche
801 234 Street dephonur (817( 347 3300
S
y Facsimile: (617) 330.2013
Fort Wofth, -lexis 76102-6601
INDEPENDENT AUDITORS' REPORT ON THE SUPPLF,MENTAL SCHF,DULE OF FEDERAL
AND STATE FINANCIAL ASSISTANCE
' 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 Donlon, Texas (the "City") for
the year ended September 30, 1993, and have issued our report thereon dated December l7, 1993, These
general purpose financial statements are the responsibility of the City's management. Our responsibility
is to express an opinion on these general puzWse financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government
Audilin Standards, issued by the Comptroller General of the United States. Those standards requ a that
we plan and perform tie 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
supporting the amouno and disclosures in the genorai 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 presen(aIIon, We believe that our audit provldos 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. City taken as a whole. The accompanying suppletnerftal schedule of federal and state
financial assistance for the year ended September 30, 1953 which )s also the responsibility of the City's
management, is presented for purposes of additional analysis mid is no( a required part of the general
purpose financial statements, Such supplemental schedule has been subjected to the 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 In relation to the general purpose himncia) statements taken as a
whole.
December 17, 1993
D.610 teTouche
Tohmatsu
Ilttefnatiollal
.1.
CM OF DENTON, TBXAS
SUPPLEMENTAL SCHEDULE OF FEDERAL AND STAT£: MNANCIAI. ASSISTANCE _
YEAR ENDW S81r1EM1£BER 301993 -
Calslog of Fund
Fcdeml Bnlancn
Federal am tot/ Domestic Program Pund Revenues September 30,
Pass-Through Uranlor/ Grant Assistance o mount Balance _
pro~ram Title I.D. Number In Number Amount October 1, 1942 -'FecTcrwf----~an-TiOOAT- ~['enJittues 1993
1' 1 U.S. Lk{ru~tm~ant of Housing
n VeTmennl (9,7F,A
ommun vclupmua
Block Grant (1) B-85-MC-48-0036 14.218 S 677,916 $ 19,714
Community Development 557,344 (17,077) (17,07'1)
Block Grant (1) B-86-MC-48-0036 1 ".21II
Community Development (7012)
Block Grant (1) B-87•MC-48-0036 14.218 571,558 (76,212)
Community Development 72,390
BlockGrant(1) B-88-MC-48-0036 14.218 553,966 ?2139()
1,185
Community Development 1
f Block Grant (1) B•8S-MC-48-OW6 14.218 578.483 ,185
Community Development $ 1,J24 1,324
Block Grant (1) B•90•MC-48.00!6 14.218 559,134
communit Dtvel anent l1fl,734 118,734
Black Gant(1)~ B'91.MC-48.0036 14.218 617,568
Community Development 13-92-M(7-48-M6 628,337 628,337
Block Grant(113-92-M(7-48-M6 14.218 675,941
Community Development 23,491 23,491
BlockGrant(1) B•93•htC-4,4.003ti 14.218 1,05q,t)00
pasae4 Through State of Texas
Do atrnenl of Commerco: 18 308 20,067 38,375
Program Rental Rehabilitation
Program R-89-M1:-480222 14,230 116,128
Rental Rehabilitation 1x185 1,485
program (I) R-90-MC-480222 14.230 47,000
Rental RehetWitatiat 360,991 189,962 _ 350,953
Ihogom(1) 881006 14.230 232,222 - -
i Tool U.S. Department of Houslog 952,67_0 210,(129 1,162,699
and Union Development - -
U,S, De ortment of the Intarior 2 082 4,164
a ona .traik Se`rv ce 2,082 - -
Texan Hlstnrical Contmisslon 4R-92-501228019 unknown 2,600
I
(1) major protimm
-2- (Continued)
•
CTY OPDENTON, TEXAS
SUPPLEMENTAL SC[MDULE OP MDBRAL AND STATE PINANCIAL ASSISTANCP
YEARENDP.D SiIVMMBER 30, 190,1
CMM08 of
Pedoral Panuna
Pederal Grantor/ Domestic Program Fund Balance,
d
~roua-'Ih ShGrantor/ Grant Asslsinnce. or Award Balanco Revonuos 5eptemiUo
gram TS I.D. Number ID. Number Amount October 1, 1992 "Ic~etnnT ~Slato ---C x«I- !Lx pendltums 1993
U.S. Ipartment of Transportation
Federt Matron
Administration - Airport
Improvement Program (1) 348006705 20.106 1,210,000 $ 647,056 $ 71,891 $ 718,940
Pedoral Aviation
Administraflon - Airport
Improvement Program (1) 348006706 20.106 150,000 66,059 7,340 73,398
Pederai Aviation
Administration - Airport
Improvement Program (1) 348006707 20,106 110,000 156,458 17,384 173,842
Passed Through Stale Department
of Trapyepoorrutedon:
Fedend Transportation Grant (1) TX-90X246 20.507 393,919 V 237,142 $106,644 97,352 441,138
Total UX Department ofTranalwrtation 1,106,701 106644 193,970 1,407,318
U.S, Department of Rducatiun _ - _L
ec R167A20148 unknown 33,582 33,582 33,582
Reading P.nhancas Adult Life
Gram [I R167A20142 unknown 29,240 29,240 29,2411
Porelgn Language Materials
Acquisition R239A20057 unknown 15,200 - - 11,400 11,400
Total U.S. Department of P.ducatlon _ 74,222 74,22'1
r
U.SI)kc . 9=ment of Alriculturo _ _
u mu a [fir meat
T)-u an Sciv7cce
FOW _ ces ran 061.1002 N/A N/A - ` 28,806 28,806
Total Federal Prograns 2,164,484 106,644 406,031 2,677,209
Noah Central Texas Council of
overnmen s
Ouse o Used Oll Recycling Program 60U05 N/A 171511 1.1,517 _ 177517
3
CITY OF DHNTON, TEXAS
SUPPLEMENTAL SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCR
MIK ENDED S_EPTIiMBER 30, 1993
Catalog of Fund
Pkdeml Balance
Federal (ImAlor/ Domestic Program Fund Se Balance 30,
Pass-Through Orator/ Grant Assistance or Award Halance Revenues ptember
P 0 Em Title l.D. Number I,D. Number Amount Octobcr 1, 1992 e n, -S alTa - 1 oenT Expendituma 1993
State Npartment of Hlgghweys
Sol the r0- w t-Vorcemcni ,750 $15,246 5 5,082 $ 20,328
Project - Occupant protection 583XXF6032 N/A (8 25 ,083 26,023
National Maximum Speed Limit 583XXF6017 N/A 90,000
Traffto Light Synchronization
P 82•TLF•6071 N/A 37,899 25,221 4,911 30,192
rojecl • Downtown 5
Traffic LightSynchronizatlon Id,555 5,343 4,bi2 9,923
Project - Carroll Blvd. 582-TLP•6072 N/A - -
Total Stele Deppasemenl of Highways 71,923 14,605 86,528
and PublieTransportation
State of Texas C6mina4 Justice 2,282 8,729 11,011
DiTIT ,T'so eaaance SP•94.511-06661 N/A 18,437 29,882 43,652 73,504
[)tug Abuse Reaistanm SF,93.511.5446 N/A 36,188 v
Nwcolics Task Force N/A 46,7'16 13,182 4,386 17,544
Tow state, of Texas Criminal justice 45,292 56,767 102,059
Texas Parks and Wildlife atttnent 236,126 t36,126 4')2;182
O NMIZes imulk 20-00401 N/A 500,000
Texas Water Commission 17,000 17,000 34,000
emnn5frefro' n t ompvaing Project 2100000013 N/A 19,955
Texas Depsrwent of Heallh 9,?SS 9,735
Flu`nri&iioi, m8p-ram 03000933.01 N/A 20,(X4
Texas Forest Servlee
• m
Initimive n-cow Hea5Ill Tien Planting 92.03.05 NIA 6,00(1 3,373 _ 3,373
TotalSt Bit programs 400,986 324,M1v8 725,484
i
TOTAL FEL)ERALANDSTATE
FNANCW, ASSISTANCE 0 >2,164Aed $507,630 $7730,379 53,E?,,f3
Tom 0 _1 0 $
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` Lleioifte &
Touche
Sure 7-340 Teiephone! (817) 347-3300
mss: 1301 Cherry Street facsirnile; (817) 336.2013
Fort Worth, ToxaS 76102-6801
Ed
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INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON THE AUDITOF
FINANCIAL STATF,MENTS
The Honorable Mayor and Members of the City Council
City of Donlon, Texas:
We have. audited the general purpose financial statements of the City of Denton, Texas (the "City") as of
! September 30, I993, and for the year then ended and 1•ive issued our report thereon dated December 17,
1993,
We conducted our audit in accordance with generally accepted auditing slandards and Covemment
Auditing tandards, 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 the general purpose financial
statements .are free of material misstatement,
Compliance with laws, regulations, contracts and grants applicable to the City is the responsibility of the
City's management, As part of obtaining reasonable assurance about whether the general purpose
financial statements are free of material misstatemenl, we performed tests of the City's compliance with
certain provisions Maws, regulations, contracts and grants, However, our objectlve was not to provfde
3 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, the City compiled, in all material
respects, with the provisions referred to in the preceding paragraph, Wllh respect to Items not tested,
nothing came to our attention that caused us to believe that the City had not complied, In all material
J respects, with those provisions.
This report is intended for the It'ormation of the City Council, management and appropdate federal and
slate agencies. This restriction is not intended to limit the distribution of this report, which is a rntttter of
public record,
,
I1
December :17, 1993
Deleltt 1buche
Tftatsu
i~ernatlttnal s
Deluitte &
Touche
into 2340 Tolophone: (817) 347-3300
801 Cherry Street Facsimile; (8111336-2013
k;ry Fort Worth, Texas 761026801
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INDEPENDk,NT AIJDPPORS' REPORT ON TIIE INTERNAL CON'T'ROL STRUCTURE BASED
ON THE
AUDIT' OF THE FINANCIAL STATEMEN-IS
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i
Tile Honorable Mayor and Members of the City Council
City of Demon, Texas:
We have audited the general purpose financial statements of (he 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 conducted our audit in accordance with generally accepled auditing standards and Government
Auditing Standards, issued by the Comptroller Cleneral of the United States, 'T'hose 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.
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 in order to determine our auditing
procedures for the purpose of expressing our opinio,l on the general purpose financial statements and not
to provide assurance on the internal control strr,;1ure,
The management of the City is responsUe for establishing and maintaining the internal control structure,
In fulfilling this responsibility, estimates and judgments by management are required to assess the
expected benefits and totaled costs of internal control structure policies and procedures, The objectives of
an internal control structure are to provide management with rcas enable, 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 pormit the preparation of general
purposo financial statements M accordance with generally accepted accounting principles, Bemuse of
inherent limitations In any internal control stuucture, errors or irregularities may nevertheless occur and
not be detected. Also, projection of any evriuallon of the structure to future periods is subject to the risk
(fin( procedures may become Inadequate because of changes In conditions or that the efieeliveness of the
design and operation of policies and procedures may deteriorate.
For the pta•p `ds report, we have classified the significant internal control structure policies and
t procedures in Bowing categories:
1 • Blltings
• Receivables
g • Cash receipts
• Purchasing and receiving
• Accounts payable
• Cash disbursements
• Payroll
Delft Tcuche
Tchmatalt
Weir notlenal
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• Inventory control
• Property and equipment
• Oencral ledger
• Compliance with laws and regulations related to the federal and state financial assistance programs
r For all of the internal control structure categories listed above, we obtained an understaudLtg of the
design of relevant policies and procedures and whether they have been placed In operation, and we
assessed control risk,
Out consideration of the Internal control stricture would not necessarily disclose all matters in the
F 0-11 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 luw level the risk that errors or Irregularities 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
r. 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 weu"esses 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.
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 flue distribution of this report, which Is a matter of
public record.
De-ember 17, 1993
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Deloitte &
Touche
Suite 2340 7oiephone: (81 71 34 7-3300
801 Cherry Street Fecsimitw (817) 338.2013
Fort Worth, War 76102-6801
l-F
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE: WITH THE GFNERAL
t ` REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE:
t~
The Honorable Mayor and Members of the City Council
City of Denton, Texas,
We have audited the general purpose financiat 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 also audited the City's compliance applicabh; 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
• Davis-Bacon Act
• Civil rights
• Cash management
Real property acquisition
• Federal financial reports
• Allowable costs/cost principles
• Drug-Free Workplace Act
• Admitilstrative requirements
Our procedures were limited to the applicable procedures described in the Office of Management and
Budg0s Compliance Supplement for Single Audlis of State and Local Covemmerds, Our pro oures
t , were substantially less in scope t an an aodit, the o~ bjc~tf've of v;hich Is the expression of an opinion on
the City's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not
exprrss such an opinion,
With respect to the Items tested, the results of those procedures disclosed no material Instances of
t ! noncompliance with the requirements listed In the second 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,
-
Debltte7"iluche
rollmatsu
Iltternatlonal
4
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
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Deloftte &
Touche
Suite 2340 T0100011e; (817) 347-3300
rs 801 Chorry Street FN6S Mile; (8171336.2013
Fort Worth, Texas 76102-0'801
{r.
} ' INDEPENDENT AUDI'TORS' REPORT ON COMPLIANCE WITH SPECIFIC
r REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE
f PROGRAMS
The Honorable Mayor and Members of the City Council
City of Denton, Texas;
r:
j We have audited The general purpose financial statements of the City of Denton, Texas (the "Ci(y") 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 requiremen's governing types of services allowed or
unallowed; eligibility; matching level of effort; reporthii; special tests and provlslons related to the
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 that are applicable to its
major federal finarlclal assistance program, which is identified in the acconlpnnYInB schedule of federal
and state financial assistance, for the year ended September 30, 1993. The management of Hie City Is
responsible for City compliance with those requirements. Out responsibility Is to express an opinion on
compliance with those requirements based on our audit.
We conducted our audit fit accordance with generally accepted auditing standards, Governnlem Audil n
Standards, Issued by the Comptroller General of the United Stales, and Office of Management and Budget
Circular A-128, "Audits of State and Local Governments," Those standards and OMB Circular A•128
require that we plan and perform the audll to obtain reasonable assurance about whether material
noncompliance with the requirements referred to above occurred. An audit includes examining, on it lest
basis, evidence about City compliance with those requirements. We believe that our audit providcs a
reasonable basis for our opinion.
to our opinion, the City compiled, In all material respects, with the requirements governing types of
services allowed or unallowed; cligibilhy; matching level of effort; reporting; special tests and
provisions related to the Community Development Block Gratll, the Rental Rehabilitation Program Grant,
the Federal Avhllon 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 for the year ended September 30, 1993.
Tltis report is Intended for the information of the City Council, management and appropriate federal and
state agencies. This restriction is not intended to Ihnit the distribullon of this report, whfuh is a matter of
public record.
December 17, 1993
UI11aItteTouche
Tohmatso
International
10.
Deloitte &
i w - --buche
Suite 23,10
801 Cherry Street Telephone MI 347-330C)
Fort Worth, Texas 70102.680 t Facsimile: r87 71 336 2013
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INDEPENDF,NT AUDITORS' RF,PORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM
TRANSACTIONS
t
The Honorable Mayor and Members of the City Council
r;4 the City of Denton, Texas;
I
We have audited the general purpose fmtnclal statements of Ilse City of Denton, Texas (the "City") for
the year ended September 30, 1993, wid 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 lest compliance with general requirements applicable to
federal Miancial assistance programs and have issued our reports (hereon dated December 17, 1993,
In c0imcction with our audit of the 1993 general purpose financial statements of the City and with our
consideration of the City's control structure used to administer federal financial assistance ro
assessment of control risk, as required by Office of Management and Budget Circular A-128, "Audits f
Stale and Local Governments," we did not select for testing any transactions applicable to nonm9ior
federal financial assistance programs for the year ended September 30, 1993,
Nothing came 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 unallowed; 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
slate agencies. This restriction is not intended to limit the distribution of this report, which is a mutter of
public record,
December 17, 1993
Delafttebuche
Tahrnatsu
International
'lt'
I
CITY OR DENTON, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
f YEAR ENDED SEPTEMBER 30, 1993
' Questioned
Proms Flnding/Noncompllane Costs
CURRENT-YEAR
COMMENTS ;Done
STATUS OF PRIOR-
YEAR COMMENTS None
1
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Deloifte &
_------Touche
Suite 2940 Telephone', i8 1, 71347-33oo
its 801 Cherry Straat Facsimile: (8)71 336-2013
Fort Worth, -Fexas 76102-6801
P ss
1
l `i INDEPF,NDFN'P AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED
IN ADMINISTERING FEDERAL JNANCIAL ASSISTANCE
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") 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 da tcd December 17, 1993.
We conducted our audit in accordance with generally accepted auditing standards; Government Au_dit€ng
Standards, Issued by the Comptroller General of the United States; and Office of Management and -
B`udget (OMB) Circular A-128, Audits of Slate and Local Governmenis, Those standards and OMB
Circular A-128 require that we plan and perfb-nii the audit to obtain reasonable assurance alwut whether
the general purpose fhtancial statements are free of material misstatement and about whether the City
compiled with laws and regulations, noncompliance with which would be material to its ma;f,c''2deral
financial assistance program.
In planning and performing 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 of the 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 structure.
In fulfilling this respouusibilily, estimates and jadeiiients by management arc required to assess the
expected benefits and related cost- 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, 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, and that federal
financial assistance programs are manag"I in compliance with applicable laws and regulations. Because
of Inherent limitations In any internal control structure, errors, Irregularities, or instances of
noncompliance 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
deteriorate,
' ' DeloftteTouche
Tohmatsa
Internatlonaf
.l3-
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t.
E
rs
For the purpose of this report, we have classified the significant internal control structure policies and
s,v procedures used In administering federal financial assistance programs in the following categories;
e.:
Accounting Applications
E;r • Billings
• Receivables
• Cash receipts
• Purchasing and receiving
• Accounts payable
• Cash disbursements
- • Payroll
I e Inventory control
• Property and equipment
• General ledger
Controls used in Administering Federal Programs
General Requirements
• Folitical activity
• Davis-Bacon Act
• Civil rights
• Cash management
• Real property acquisition
• Federal financial reports
• Allowable costs/cost principles
• Drug Free Workplace Act i
• Administrative requirements
SMific Requirements
• Types of service
• Eligibility
• Matching, level of effort or earmarks
• Reporting
• Special requirements, if any
Claims for advances and reimbursements
Amounts claimed or used for matching
t # For all of the internal control structure categories listed above, we obtained an understanding of the
design of relevant policies and procedures and determined whether they have been placed In operatloji,
and we assessed control risk,
r During the year ended September 30, 1993, the City expended 96 percent of its total federal financial
assistance under major federal financial assistance programs. ,
c- We performed tests of controls, as required by OMB Circular A-128, to evaluate the effixtiveness of the
design and operation of internal control structure policies artd procedures that we considered relevant to
preventing or detecting mateifal noncompliance with specific requirements, pfeneral requirements, and
requirements governing claims for advances and reimbursements and amounts claimed or used for
0.0 matching that are applicable to the Gty's major federal financial artsshance program, which is identified
14.
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
i, procedures. Accordingly, we do not express such art opinion,
Our consideration of the Internal control structure policies and procedures used in adminlstering federal
I` t financial assistance would not necessarily disclose all matters 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
a 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 employees in the normal course of performing their assigned
- functions, We noted no matters involving the internal control stntcture used in administering federal
financial assistance programs and its operations that we conskler to be material weaknesses as defined
above,
I
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,
This report Is intended solely for the use of the City Council, management, and appropriate federal and
state ag:;ncles 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,
r
December 17, 1993
15
END
OF
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