HomeMy WebLinkAboutAGENDA REPORT 2018 0418 CCSA REG ITEM 10G CITY OF MOORPARK, CALIFORNIA
City of Moorpark
of Apnl 18, 2018 Item: 10.G.
ACTION Approved staff
recommendation
By M. Benson
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director
DATE: April 2, 2018 (City Council Meeting of April 18, 2018)
SUBJECT: Consider Single Audit Report on Federal Awards for Year Ended
June 30, 2017
BACKGROUND
The Single Audit Report on Federal Awards (Single Audit) for Year Ended June 30,
2017, is submitted for City Council approval The deadline for the Single Audit is March
31 , 2018 The Single Audit was posted to the Federal Audit Clearinghouse on
Thursday, March 29, 2018 The Single Audit was posted to the State of California, State
Controller's Office on Thursday, March 29, 2018
DISCUSSION
The City was required to conduct a single audit this year because the City did meet the
$750,000 federal grant expenditure threshold The Single Audit is specifically designed
to meet the needs of all federal grantor agencies from which the City receives funds
Total federal assistance amounted to $795,109 for the fiscal year ended June 30, 2017
The one major program was $500,000 for the Arroyo Vista Trail Project The $500,000
grant is from the United States Department of the Interior, National Park Service,
passed through the California Department of Parks and Recreation The independent
auditors noted no findings in this report for the year ended June 30, 2017
FISCAL IMPACT
None
STAFF RECOMMENDATION
Accept the Single Audit report and receive and file this report
Attachment Single Audit Report on Federal Awards for Year Ended June 30, 2017
289
City of Moorpark
Moorpark, California
Single Audit Report on Federal Awards
Year Ended June 30, 2017
290
City of Moorpark
Single Audit Report on Federal Awards
Table of Contents
Page
Report on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 1
Report on Compliance for Each Major Federal Program; Report on Internal Control Over
Compliance; and Report on the Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance ..................................................................................................... 3
Schedule of Expenditures of Federal Awards ............................................................................................ 6
Notes to the Schedule of Expenditures of Federal Awards ....................................................................... 7
Schedule of Findings and Questioned Costs ............................................................................................. 8
Summary Schedule of Prior Audit Findings ............................................................................................. 10
291
735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Brenda l. Odle, CPA, MST
Terry P. Shea, CPA
Kirk A Franks, CPA
Scott W. Manno, CPA, CGMA
Leena Shanbhag, CPA. MST, CGMA
Bradferd A Welebir, CPA, MBA, CGMA
Jay H. Zercher, CPA (Partner Emeritus)
Phillip H. Waller, CPA (Partner Emeritus)
MANAGERS I STAFF
Jenny Liu, CPA, MST
Seong-Hyea Lee, CPA, MBA
Charles De Simoni, CPA
Gardenya Duran, CPA
Brianna Schultz, CPA
Lisa Dongxue Guo, CPA. MSA
MEMBERS
American Institute of
Certified Public Accountants
PCPS The A/CPA Alliance
for CPA Firms
Governmental Audit
Quality Center
California Society of
Certified Public Accountants
ROGERS, ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Independent Auditor's Report
To the Honorable City Council
City of Moorpark, California
We have audited, in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States, the financial statements of
the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Moorpark (the City) as of and for
the year ended June 30, 2017, and the related notes to the financial
statements, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated December 11,
2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we
considered the City's internal control over financial reporting (internal
control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, we do not express
an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a
control does not allow management or employees in the normal course of
performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or
a combination of deficiencies, in internal control, such that there is a
reasonable possibility that a material misstatement of the entity's financial
statements will not be prevented, or detected and corrected on a timely
basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material
weakness, yet important enough to merit attention by those charged with
governance.
STABILITY. ACCURACY. TRUST.
292
2
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies
in internal control over financial reporting that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances
of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the City’s internal control or on compliance. This report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering the City’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
San Bernardino, California
December 11, 2017
293
735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Brenda l. Odle, CPA, MST
Terry P. Shea. CPA
Kirk A. Franks. CPA
Scott W. Manno, CPA. CGMA
Leena Shanbhag, CPA. MST, CGMA
Bradferd A. Welebir, CPA. MBA, CGMA
Jay H. Zercher, CPA (Partner Emeritus)
Phillip H. Waller, CPA (Partner Emeritus)
MANAGERS I STAFF
Jenny Liu, CPA, MST
Seong-Hyea Lee, CPA, MBA
Charles De Simoni, CPA
Gardenya Duran, CPA
Brianna Schultz, CPA
Lisa Dongxue Guo, CPA, MSA
MEMBERS
American Institute of
Certified Public Accountants
PCPS The A/CPA A/110nce
for CPA Firms
Governmental Audit
Quality Center
California Society of
Certified Public Accountants
ROGERS. ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE;
AND REPORT ON THE SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
Independent Auditor's Report
To the Honorable City Council
City of Moorpark, California
Report on Compliance for Each Major Federal Program
We have audited the City of Moorpark's (the City) compliance with the
types of compliance requirements described in the U.S. Office of
Management and Budget (OMB) Compliance Supplement that could
have a direct and material effect on each of the City's major federal
programs for the year ended June 30, 2017. The City's major federal
program is identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes,
regulations, and the terms and conditions of its federal awards applicable
to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the
City's major federal programs based on our audit of the types of
compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in
the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and the audit requirements of Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Those standards and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining,
on a test basis, evidence about the City's compliance with those
requirements and performing such other procedures as we considered
necessary in the circumstances.
3
STABILITY. ACCURACY. TRUST.
294
4
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of the City’s
compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal program for the year ended June 30, 2017.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the City’s internal control over compliance
with the types of requirements that could have a direct and material effect on each major federal
program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not for
the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a federal program will not be prevented, or detected and corrected
on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that were not identified.
295
5
Report on Schedule of Expenditures of Federal Awards Required by the Uniform
Guidance
We have audited the financial statements of the governmental activities, each major fund, and
the aggregate remaining fund information of the City, as of and for the year ended June 30,
2017, and the related notes to the financial statements, which collectively comprise the City’s
basic financial statements. We have issued our report thereon dated December 11, 2017, which
contained an unmodified opinion on those financial statements. Our audit was conducted for the
purpose of forming an opinion on the basic financial statements as a whole. The accompanying
schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by the Uniform Guidance and is not a required part of the financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all
material respects, in relation to the financial statements as a whole.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
San Bernardino, California
March 29, 2018 (except for our report on the Schedule of Expenditures of Federal Awards, for
which the date is December 11, 2017)
296
City of Moorpark
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2017
See accompanying notes to the schedule of expenditures of federal awards.
6
Federal Grantor / Pass-Through Grantor / Federal Program Title
Federal
Domestic
Assistance
Catalog
Number
Program
Identification
Number
Federal
Expenditures
Amount
Provided to
Subrecipients
U.S. Department of the Interior
Passed through the State of California
Outdoor Recreation Acquisition, Development and Planning 15.916* 500,000$ -$
Total U.S. Department of the Interior 500,000 -
U.S. Department of Transportation
Passed through the Ventura County Transportation Commission
Federal Transit Formula Grants 20.507 CA-90-Z151 6,224 -
CA-95-X196 20,076 -
CA-2016-060 162,975 -
CA-FY16-17 73,671 -
Total U.S. Department of Transportation 262,946 -
U.S. Department of Health and Human Services
Passed through the Ventura County Area Agency on Aging
Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 16,636 -
Total U.S. Department of Health and Human Services 16,636 -
U.S. Department of Homeland Security
Passed through the Ventura County Sheriff Office of Emergency Services
Emergency Management Performance Grants 97.042 15,527 -
Total U.S. Department of Homeland Security 15,527 -
Total Expenditures of Federal Awards 795,109$ -$
* Major Program
297
City of Moorpark
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2017
7
Note 1: Basic Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) presents
the expenditures for all federal award programs received by the City of Moorpark (the City)
for the year ended June 30, 2017. The information in this Schedule is presented in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Because the Schedule presents only a selected
portion of the operations of the City, it is not intended to and does not present the financial
position, changes in net position, or cash flows of the City.
Note 2: Basis of Accounting and Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of
accounting. Such expenditures are recognized following the cost principles contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are
limited as to reimbursement. The City has elected not to use the 10-percent de minimis
indirect cost rate allowed under the Uniform Guidance.
298
City of Moorpark
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
8
Section I. Summary of Auditor’s Results
Financial Statements
unmodified
Internal control over financial reporting:
Material weaknesses identified? Yes x No
Significant deficiencies identified? Yes x None Reported
Noncompliance material to financial
statements noted? Yes x No
Federal Awards
Internal control over major programs:
Material weaknesses identified? Yes x No
Significant deficiencies identified? Yes x None Reported
unmodified
Any audit findings disclosed that
are required to be reported in
accordance with 2 CFR 200.516(a)? Yes x No
Identification of major federal programs:
CFDA Number
15.916
Dollar threshold used to distinguish
between type A and type B programs:
Auditee qualified as low-risk auditee? Yes x No
$750,000
Type of report the auditor issued on whether the financial
statements audited were prepared in accordance with GAAP:
Name of Federal Program
Outdoor Recreation Acquisition, Development and Planning
Type of auditor's report issued on compliance for
major federal programs:
299
City of Moorpark
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
9
Section II. Financial Statement Findings
No findings to be reported.
Section III. Federal Award Findings and Questioned Costs
No findings to be reported.
300
City of Moorpark
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2017
10
Financial Statement Findings
No prior year findings reported.
Federal Award Findings and Questioned Costs
No prior year findings reported.
301