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HomeMy WebLinkAboutCity of Euless Single Audit Report FY2011 CITY OF EULESS, TEXAS SINGLE AUDIT REPORT YEAR ENDED SEPTEMBER 30, 2011 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 Nftle STANDARDS 1 �.. INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE AND THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE WITH OMB CIRCULAR A-133 3 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 5 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 6 �.. SCHEDULE OF PRIOR AUDIT FINDINGS 8 CORRECTIVE ACTION PLAN 9 weaver ,... 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 To the Honorable Mayor, City Council, and City Manager City of Euless, Texas We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Euless, Texas (the City) as of and for the year ended September 30, 2011, which collectively comprise the City's basic financial statements and have issued our report thereon dated January 20, 2012. We conducted our audit 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. ti.. 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. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of 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 AN INDEPENDENT WEAVER AND TIDWELL LLP 1 FORT WORTH MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 2821 W SEVENTH STREET,SUITE 700,FORT WORTH,TX 76107 INTERNATIONAL WWW.WEAVERLLP.COM P:(817)332 7905 F:(817)429 5936 To the Honorable Mayor, City Council, and City Manager City of Euless, Texas Page Two 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. This report is intended solely for the information and use of the City Council, management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. WEAVER AND TIDWELL, L.L.P. Fort Worth, Texas January 20, 2012 a.. 2 weaver INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE AND THE `- SCHEDULE OF EXPENDITURES OF FEDERAL AWRDS IN ACCORDANCE WITH OMB CIRCULAR A-133 ... To the Honorable Mayor, City Council, and City Manager City of Euless, Texas Compliance We have audited the compliance of the City of Euless, Texas (the City) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended September 30, 2011. 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. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with those requirements. In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to its major federal program for the year ended September 30, 2011. Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal �.- control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of AN INDEPENDENT WEAVER AND TIDWELL LLP 3 FORT WORTH MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 2821 W SEVENTH STREET,SUITE 700,FORT WORTH,TX 76107 INTERNATIONAL WWW.WEAVERLLP.COM P:(817)332 7905 F:(817)429 5936 To the Honorable Mayor, City Council, and City Manager City of Euless, Texas .., Page Two �.- expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect 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. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. L, Schedule of Expenditures of Federal Awards We have audited the basic financial statements of the City of Euless, Texas as of and for the year ended September 30, 2011, and have issued our report thereon dated January 20, 2012. Our audit was performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget �.. Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. �., This report is intended solely for the information and use of management, the City Council, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. .. GtJ?auPrt G GQ -Uoel- -,f Q �.. WEAVER AND TIDWELL, L.L.P. Fort Worth, Texas January 20, 2012 ti.. 4 CITY OF EULESS,TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS �.- YEAR ENDED SEPTEMBER 30,2011 Federal Grantor/ Federal Pass-Through �.. Pass-Through Grantor/ CFDA Entity Identifying Federal Program Title Number Number Expenditures U.S.DEPARTMENT OF JUSTICE �-' Passed through Tarrant County ARRA-Recovery Act-Edward Byrne Memorial Justice Assistance Grant (JAG)Program/Grants to Units of Local Government 16.804 2009-DJ-BX-1379 $ 5,815 Direct Awards Bulletproof Vest Partnership Program 16.607 8,630 Edward Byrne Memorial Justice Assistance Grant(JAG)Program/Grants to Units of Local Government 16.738 2010-DJ-BX-1299 11,055 �.. Total U.S.Department of Justice 25,500 U.S,DEPARTMENT OF HOMELAND SECURITY Emergency Management Performance Grants 97.042 TWDB-0900010916 162,276 Hazard Mitigation Grant 97.039 101,798 Total U.S.Department of Homeland Security 264,074 U.S.DEPARTMENT OF ENERGY ARRA-Energy Efficiency and Conservation Block Grant Program 81.128 SC0003243 454,200 Total U.S.Department of Energy 454,200 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 743,774 Note 1:The schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Expenditures are recognized when incurred.The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of State,Local Governments and Non-Profit Organizations. Therefore,some amounts presented in this schedule may differ from amounts presented in,or used in the preparation of,the basic financial statements. O.. r.. 5 CITY OF EULESS, TEXAS `. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2011 SECTION I — SUMMARY OF AUDITORS' RESULTS `-' Financial Statements An unqualified opinion was issued on the financial statements. Internal control over financial reporting: • Material weakness(es) identified? Yes X No • Significant deficiencies identified that are not considered to be material weakness(es)? Yes X None reported • Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: • Material weakness(es) identified? Yes X No • Significant deficiencies identified that are not considered to be material weakness(es)? Yes X None reported �., An unqualified opinion was issued on compliance for major programs. • Any audit findings disclosed that are required to be reported in accordance with section 510(a)or Circular A-133? Yes X No �.. Identification of major programs: �., 81.128 ARRA-Energy Efficiency and Conservation Block Grant Program • Dollar threshold used to distinguish between type A and type B programs? $300,000 Auditee qualified as low-risk auditee? _Yes X No 6 CITY OF EULESS, TEXAS `. SCHEDULE OF FINDINGS AND QUESTIONED COSTS-CONTINUED FOR THE YEAR ENDED SEPTEMBER 30, 2011 e.. SECTION II - FINANCIAL STATEMENT FINDINGS NONE SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS NONE • 7 a.. CITY OF EULESS, TEXAS SCHEDULE OF PRIOR AUDIT FINDINGS SEPTEMBER 30, 2011 FINANCIAL STATEMENT FINDINGS NONE 8 CITY OF EULESS, TEXAS CORRECTIVE ACTION PLAN SEPTEMBER 30, 2011 NOT APPLICABLE Nfte `s, ftme `. `., 9 Oftk weaver WEAVER AND TIDWELL LLP .� CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS WWW.WEAVERLLPCOM AN INDEPENDENT MEMBER OF BAKER TILLY INTERNATIONAL