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HomeMy WebLinkAboutFY 1996 Financial Assistance and Additional ReportsCITY OF EULESS, TEXAS REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE AND ADDITIONAL REPORTS REQUIRED BY GOVERNMENT AUDITING STANDARDS SEPTEMBER 30, 1996 FEDERAL FINANCIAL ASSISTANCE WEAVER TIDWELL l..1.. P. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 307 0 si Sereu/b Street Salle 1500 Furl Winvb. 7i•xa.s 76102 817.332.7905 F 817.429.5956 DALLAS OFFICE 12221 ,Wei, l)rit'r Suite 1700 !)allay. Texas 7525 / WORLDWIDE AFFILIATIONS THROUGH SUMMIT INTERNATIONAL ASSOCIATES. INC. INDEPENDENT AUDITOR'S REPORT ON THE SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE To the Honorable Mayor, City Council, and City Manager City of Euless, Texas We have audited the general purpose financial statements of City of Euless, Texas as of and for the year ended September 30, 1996, and have issued our report thereon dated December 6, 1996. These general purpose financial statements are the responsibility of City of Euless, Texas'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 Government Audit Standards, 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. An audit includes examining, on a test 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 provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion of the general purpose financial statements of City of Euless, Texas, taken as a whole. The accompanying schedule of federal financial assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected 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 in relation to the general purpose financial statements taken as a whole. WEAVER AND TIDWELL, L.L.P. Fort Worth, Texas December 6, 1996 THE CITY OF EULESS, TEXAS SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED SEPTEMBER 30, 1996 Pass Federal and State Grantor/ Federal Through Pass -Through Grantor/ CFDA Grantor's Proaram Title Number Number Expenditures U.S. Department of Justice COPS FAST 16.710 95CFWX1681 $50,788 WEAVER TIDWELL CERTIFIED PUBLIC l ACCOUNTANTS AND CONSULTANTS .307 Gil Sere,,i/, Spree/ Seize 1500 Fort Gills. Texas 76102 817.3 32.7905 P 817.429.5936 DALLAS OFFICE 12221 Merit Drive Sidle 1700 Dallas. Texas 75251 WORLDWIDE AFFILIATIONS THROUGH SUMMIT INTERNATIONAL ASSOCIATES. INC. INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL CONTROL STRUCTURE To the Honorable Mayor, City Council, and City Manager City of Euless, Texas We have audited the general purpose financial statements of City of Euless, Texas as of and for the year ended September 30, 1996, and have issued our report thereon dated December 6, 1996. 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 and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of City of Euless, Texas is responsible for establishing and maintaining an internal control structure. 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 loss from unauthorized use or disposition 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 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. In planning and performing our audit of the general purpose financial statements of the City for the year ended September 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, 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 in order to determine our auditing procedures for the purpose of expressing our opinion on the To the Honorable Mayor, City Council, and City Manager City of Euless, Texas general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 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 condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be material 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 operations that we consider to be material weaknesses as defined above. However, we noted other matters involving the internal control structure and its operation that we have reported to the management of the City, in a separate letter dated December 6, 1996. This report is intended for the information of the City Council, management, and the federal agency listed in the Schedule of Federal Financial Assistance. However, this report is a matter of public record and its distribution is not limited. et%- 4-kd J.,4-a j off• eee WEAVER AND TIDWELL, L.L.P. Fort Worth, Texas December 6, 1996 I I WEAVER TIDWELL CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 3(17 Wilt Seventh Sheet Suite 150(1 Prat % ra ). Texn. 76102 817.332.7905 l S/7.429.5936 DALLAS OFFICE 12221 2Uerit Drive Salle 1700 Ddl(d . Te.'.rn 75251 WORLDWIDE AFFILIATIONS THROUGH SU1IlIlT INTERNATIONAL ASSOCIATES. INC. INDEPENDENT AUDITOR'S COMPLIANCE REPORT BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS To the Honorable Mayor, City Council, and City Manager City of Euless, Texas We have audited the general purpose financial statements of City of Euless, Texas as of and for the year ended September 30, 1996, and have issued our report thereon dated December 6, 1996. 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 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 City of Euless, Texas 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 misstatement, we performed tests of City of Euless, Texas' compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. This report is intended for the information of the City Council, management, and the federal agency listed in the Schedule of Federal Financial Assistance. However, this report is a matter of public record and its distribution is not limited. 60. A- 44a , or. e WEAVER AND TIDWELL, L.L.P. Fort Worth, Texas December 6, 1996 WEAVER TIDWELL CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 307 \V'e t Serruth Si reel Suite 1500 Fort Ifin.11). Tex,i 76102 817.332.7905 h 817.429.5936 DALLAS OFFICE /222/ Merl/ Drive Suite 1700 D,//a.. "li.ka , 75251 WORLDWIDE AFFILIATIONS THROUGH SUMMIT INTERNATIONAL ASSOCIATES. INC. SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS To the Honorable Mayor, City Council, and City Manager City of Euless, Texas We have audited the general purpose financial statements of City of Euless, Texas, for the year ended September 30, 1996, and have issued our report thereon dated December 6, 1996. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 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 for the year ended September 30, 1996, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements of the City 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 policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated December 6, 1996. The management of City of Euless, Texas is responsible for establishing and maintaining an internal control structure. 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 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 managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control To the Honorable Mayor, City Council, and City Manager City of Euless, Texas 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 the procedures may become inadequate because of changes in conditions or that the effectiveness of the design or operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: Accounting Applications Cash disbursements Payroll General Requirements Political activity Davis -Bacon Act Civil rights Cash management Federal financial reports Drug free workplace Allowable costs/cost principles Administrative requirements Specific Requirements Types of services Reporting Claims for Advance and Reimbursements 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 operation, and we assessed control risk. During the year ended September 30, 1996, City of Euless, Texas, had no major federal financial assistance programs and expended 100% of its total federal financial assistance under the following nonmajor federal financial assistance program: COPS Fast Grant. To the Honorable Mayor, City Council, and City Manager City of Euless, Texas 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 requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the aforementioned nonmajor program. Our procedures were Tess 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 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 operation 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 employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure 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 management of City of Euless, Texas in a separate letter dated December 6, 1996. This report is intended for the information of the City Council, management, and the federal agency listed in the Schedule of Federal Financial Assistance. However, this report is a matter of public record and its distribution is not limited. WEAVER AND TIDWELL, L.L.P. Fort Worth, Texas December 6, 1996 WEAVER TI DW ELL L.L.P. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 3117 ❑est Seventh Street Suite 1500 Pent Wiiwrtb. Texas 76102 817.332.7905 P 817.429.5936 DALLAS OFFICE 12221 Merit Drive Suite 1700 Dalla.e. Texas 75251 WORLDWIDE AFFILIATIONS THROUGH SUMMIT INTERNATIONAL ASSOCIATES. INC. INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS To the Honorable Mayor, City Council, and City Manager City of Euless, Texas We have audited the general purpose financial statements of City of Euless, Texas as of and for the year ended September 30, 1996 and have issued our report thereon dated December 6, 1996. We have applied procedures to test the City of Euless, Texas' compliance with the following requirements applicable to its financial assistance program, which is identified in the schedule of federal financial assistance for the year ended September 30, 1996. • Political Activity • Davis -Bacon Act • Civil Rights • Cash Management • Federal Financial Reports • Drug Free Workplace • Allowable costs/cost principles • Administrative requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments." Our procedures were substantially Tess in scope than an audit, the objective of which is the expression of an opinion on the City of Euless, Texas 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 second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Euless, Texas has not complied, in all material respects, with those requirements. To the Honorable Mayor, City Council, and City Manager City of Euless, Texas This report is intended for the information of the City Council, management, and the federal agency listed in the Schedule of Federal Financial Assistance. However, this report is a matter of public record and its distribution is not limited. WEAVER AND TIDWELL, L.L.P. Fort Worth, Texas December 6, 1996 i WEAVER TIDWELL 1.. l.. F. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 307 Gs, Seventh S/reel Suite 1500 !vu'/ Iva'/b. Texas 76 IO2 817.332.7905 F 817.429.5936 DALLAS OFFICE 12221 iWeri/ Drive Snile 1700 '['e.cne 75251 WORLDWIDE AFFILIATIONS THROUGH SUMMIT INTERNATIONAL ASSOCIATES, INC. INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS To the Honorable Mayor, City Council, and City Manager City of Euless, Texas We have audited the general purpose financial statements of City of Euless, Texas as of and for the year ended September 30, 1996 and have issued our report thereon dated December 6, 1996. In connection with our audit of the general purpose financial statements of City of Euless, Texas, and with our consideration of the City's control structure used to administer federal financial assistance programs, as required by OMB Circular A-128, "Audits of State and Local Governments," we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended September 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed, and eligibility that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items test, 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 attention that caused us to believe that City of Euless, Texas had not complied, in all material respects, with those requirements. This report is intended for the information of the City Council, management, and the federal agency listed in the Schedule of Federal Financial Assistance. However, this report is a matter of public record and its distribution is not limited. WEAVER AND TIDWELL, L.L.P. Fort Worth, Texas December 6, 1996