Pinal County, Arizona single audit reporting package year ended...

              Single Audit
A REPORT
TO THE
ARIZONA LEGISLATURE
Pinal County
June 30, 2002
Financial Audit Division
Debra K. Davenport
Auditor General
The Auditor General is appointed by the Joint Legislative Audit Committee, a bipartisan committee composed of five
senators and five representatives. Her mission is to provide independent and impartial information and specific
recommendations to improve the operations of state and local government entities. To this end, she provides financial
audits and accounting services to the State and political subdivisions, investigates possible misuse of public monies, and
conducts performance audits of school districts, state agencies, and the programs they administer.
Copies of the Auditor General’s reports are free.
You may request them by contacting us at:
Office of the Auditor General
2910 N. 44th Street, Suite 410 • Phoenix, AZ 85018 • (602) 553-0333
Additionally, many of our reports can be found in electronic format at:
www.auditorgen.state.az.us
Pinal County, Arizona
Single Audit Reporting Package
June 30, 2002
Table of Contents Page
Comprehensive Annual Financial Report
Issued separately
Reports on Compliance and Internal Control
Report on Compliance and on Internal Control over Financial Reporting
Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 1
Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control over Compliance in Accordance with
OMB Circular A-133 3
Schedule of Expenditures of Federal Awards 5
Schedule of Findings and Questioned Costs
Summary of Auditors’ Results 10
2910 NORTH 44th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553 -0333 • FAX (602) 553-0051
DEBRA K. DAVENPORT, CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL WILLIAM THOMSON
DEPUTY AUDITOR GENERAL
Independent Auditors’ Report on Compliance and on Internal Control over
Financial Reporting Based on an Audit of Basic Financial Statements
Performed in Accordance with Government Auditing Standards
Members of the Arizona State Legislature
The Board of Supervisors of
Pinal County, Arizona
We have audited the basic financial statements of Pinal County as of and for the year ended June 30,
2002, and have issued our report thereon dated January 31, 2003, which was modified as to consistency
because of the implementation of GASB Statement No. 34, Basic Financial Statements—and
Management’s Discussion and Analysis—for State and Local Governments and due to our reliance on the
work of other auditors as described therein. We conducted our audit in accordance with U.S. generally
accepted auditing standards and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the County’s basic financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, noncompliance with which could have a direct and material effect on the
determination of basic 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 and the work of the other auditors disclosed no instances of noncompliance that
are required to be reported under Government Auditing Standards. However, we noted certain immaterial
instances of noncompliance that we will report to the County’s management in a separate letter.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the County’s internal control over financial reporting
in order to determine our auditing procedures for the purpose of expressing our opinion on the basic
financial statements and not to provide assurance on internal control over financial reporting. Our
consideration of internal control over financial reporting would not necessarily disclose all such internal
control matters that might be material weaknesses. A material weakness is a condition in which the design
or operation of one or more of the internal control components does not reduce to a relatively low level the
risk that misstatements in amounts that would be material in relation to the basic 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 and the work of the other auditors noted no matters involving
internal control over financial reporting and its operation that we and the other auditors consider to be
material weaknesses. However, we noted other matters involving internal control over financial reporting
that we will report to the County’s management in a separate letter.
2
This report is intended solely for the information and use of the members of the Arizona State Legislature,
the Governing Board, 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. However, this report is a matter of public
record, and its distribution is not limited.
Dennis L. Mattheisen, CPA
Financial Audit Director
January 31, 2003
2910 NORTH 44th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553 -0333 • FAX (602) 553-0051
DEBRA K. DAVENPORT, CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL WILLIAM THOMSON
DEPUTY AUDITOR GENERAL
Independent Auditors’ Report on Compliance with Requirements
Applicable to Each Major Program and on Internal Control over Compliance in
Accordance with OMB Circular A-133
Members of the Arizona State Legislature
The Board of Supervisors of
Pinal County, Arizona
Compliance
We have audited the compliance of Pinal County 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 June 30, 2002. The County’s major
federal programs are identified in the Summary of Auditors’ 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 County’s
management. Our responsibility is to express an opinion on the County’s compliance based on our audit.
We conducted our audit of compliance in accordance with U.S. generally accepted auditing standards;
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 County’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 on the County’s compliance with those requirements.
In our opinion, Pinal County complied, in all material respects, with the requirements referred to above that
are applicable to each of its major federal programs for the year ended June 30, 2002.
Internal Control over Compliance
The County’s management is responsible for establishing and maintaining effective internal control over
compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs.
In planning and performing our audit, we considered the County’s internal control over compliance with
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 expressing our opinion on compliance and to test and report
on internal control over compliance in accordance with OMB Circular A-133.
3
4
Our consideration of internal control over compliance would not necessarily disclose all such internal
control matters that might be material weaknesses. A material weakness is a condition in which the design
or operation of one or more of the internal control components does not reduce to a relatively low level the
risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants that
would be material in relation to a major federal program 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 internal control over compliance and its operation that we consider to be material
weaknesses.
Schedule of Expenditures of Federal Awards
We have audited the County’s basic financial statements as of and for the year ended June 30, 2002, and
have issued our report thereon dated January 31, 2003, which was modified as to consistency because of
the implementation of GASB Statement No. 34, Basic Financial Statements—and Management’s
Discussion and Analysis—for State and Local Governments and due to our reliance on the work of other
auditors as described therein. Our audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying Schedule of Expenditures of Federal Awards is
presented for purposes of additional analysis as required by OMB Circular A-133 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, based on our audit and the work
of the other auditors, is fairly stated, in all material respects, in relation to the basic financial statements
taken as a whole.
This report is intended solely for your information and that of the Chairperson and Vice Chairperson of the
Joint Legislative Audit Committee, 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. However, this report
is a matter of public record, and its distribution is not limited.
Dennis L. Mattheisen, CPA
Financial Audit Director
April 29, 2003, except for the
Schedule of Expenditures of Federal
Awards, for which the date is January 31, 2003
Pinal County
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2002
CFDA/Federal
Identification Pass-Through
Federal Grantor/Pass-Through Number Grantor's
Grantor/Program Title (Note 2) Number Expenditures
U.S. Office of National Drug Control Policy
Passed through Pima County:
High Intensity Drug Trafficking Areas 07.I1PSAP549 01-11-O-128876-1000 $ 156,840
High Intensity Drug Trafficking Areas 07.I2PSAP549 01-11-P-130674-1001 39,300
Total U.S. Office of National Drug Control Policy 196,140
U.S. Department of Agriculture
Direct Grants:
Watershed Protection and Flood Prevention 10.904 10,051
Passed through:
Arizona Department of Education
Child Nutrition Cluster
School Breakfast Program 10.553 KR 10358 26,902
National School Lunch Program 10.555 KR 10358 49,311
Total Child Nutrition Cluster 76,213
Child and Adult Care Food Program 10.558 11-01 6,357
Arizona Department of Health Services
Special Supplemental Nutrition Program for
Women, Infants, and Children 10.557 261071 815,676
State Administrative Matching Grants for Food
Stamp Program 10.561 261090 34,021
Commodity Supplemental Food Program 10.565 261067 27,745
Total U.S. Department of Agriculture 970,063
U.S. Department of Housing and Urban
Development
Direct Grants:
Public and Indian Housing 14.850 835,428
Public and Indian Housing Drug Elimination
Program 14.854 42,777
Section 8 Housing Choice Vouchers 14.871 2,751,168
Public Housing Capital Fund 14.872 307,024
Passed through the Arizona Department of Commerce:
Community Development Block Grants/State's
Program 14.228 036-02, 124-00
023-01 215,352
Total U.S. Department of Housing and
Urban Development 4,151,749
U.S. Department of the Interior
Direct Grants:
Payment in Lieu of Taxes 15.226 568,264
Distribution of Receipts to State and Local 46,497
Governments 15.227
Total U.S. Department of the Interior 614,761
(Continued)
See accompanying notes to schedule.
5
Pinal County
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2002
(Continued)
CFDA/Federal
Identification Pass-Through
Federal Grantor/Pass-Through Number Grantor's
Grantor/Program Title (Note 2) Number Expenditures
U.S. Department of Justice
Direct Grants:
Local Law Enforcement Block Grants Program 16.592 $ 62,911
State Criminal Alien Assistance Program 16.606 146,989
Bulletproof Vest Partnership Program 16.607 2,772
DEA—Domestic Cannabis Eradication and
Suppression Program 16.unknown 31,938
Passed through:
Arizona Department of Emergency and Military
Affairs
State Domestic Preparedness Equipment Support
Program 16.007 None 2,389
Arizona Supreme Court
Juvenile Accountability Incentive Block Grants 16.523 None 5,823
Governor's Community Policy Office
Juvenile Accountability Incentive Block Grants 16.523 00JAIBG-11, 01JAIBG-11, 106,158
Title V—Delinquency Prevention Program 16.548 JF 99-02 6,428
Arizona Criminal Justice Commission
Crime Victim Compensation 16.576 VC-02-060 27,042
Byrne Formula Grant Program 16.579 AC-100-02, PC-070-02,
CRI-01-040, CRI-02-049 401,155
Total U.S. Department of Justice 793,605
U.S. Department of Transportation
Passed through:
Arizona Department of Transportation
Highway Planning and Construction 20.205 JPA 96-169, JPA 98-32, 538,574
JPA 01-54
Governor's Office of Highway Safety
State and Community Highway Safety 20.600 2001-PT-004 10,665
Arizona Emergency Response Commission
Interagency Hazardous Materials Public Sector
Training and Planning Grants 20.703 None 2,550
Total U.S. Department of Transportation 551,789
National Foundation on the Arts and the
Humanities
Passed through the Arizona Department of
Library, Archives and Public Records:
State Library Program 45.310 211-1-2(01) 12,459
(Continued)
See accompanying notes to schedule.
6
Pinal County
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2002
(Continued)
CFDA/Federal
Identification Pass-Through
Federal Grantor/Pass-Through Number Grantor's
Grantor/Program Title (Note 2) Number Expenditures
Environmental Protection Agency
Passed through the Arizona Department of
Environmental Quality:
Air Pollution Control Program Support 66.001 99-0182 $ 51,000
U.S. Federal Emergency Management Agency
Passed through the Arizona Department of
Emergency and Military Affairs:
Public Assistance Grants 83.544 1347DRAZ021-99021-00 385,517
Hazard Mitigation Grant 83.548 977-16 6,489
Emergency Management Performance Grants 83.552 GA107 39,942
Total U.S. Federal Emergency Management Agency 431,948
U.S. Department of Education
Passed through:
Arizona Department of Education
Title I Grants to Local Educational Agencies 84.010 02FASTT1-
260979-08A 61,651
Special Education—Grants to States 84.027 02FESPPT-
27033-01A,
02FESCBG-
260979-04A 41,674
Special Education—Preschool Grants 84.173 02FESCBP-
260979-05A 519
Safe and Drug-Free Schools and
Communities—State Grants 84.186 02FSSIVB-
270733-02A 34,217
Tech-Prep Education 84.243 02FVEDTP-
270734-02A 20,000
Eisenhower Professional Development State
Grants 84.281 02FASJSP-
270734-04C,
02FASTII-
260979-07A 57,935
Innovative Education Program Strategies 84.298 02FASTVI-
270734-01A,
02FASTVI-
260979-06A 93,234
Technology Literacy Challenge Fund Grants 84.318 02FADTLC-
260979-01A 37,500
Arizona Department of Economic Security
Special Education—Grants for Infants and
Families with Disabilities 84.181 E1800030 211,459
Total U.S. Department of Education 558,189
(Continued)
See accompanying notes to schedule.
7
Pinal County
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2002
(Continued)
CFDA/Federal
Identification Pass-Through
Federal Grantor/Pass-Through Number Grantor's
Grantor/Program Title (Note 2) Number Expenditures
U.S. Department of Health and Human Services
Passed through:
Arizona Family Planning Council
Family Planning—Services 93.217 None $ 214,817
Sun Life Family Health Center
Community Health Centers 93.224 None 813
Arizona Department of Health Services
Immunization Grants 93.268 152047 66,674
Centers for Disease Control and Prevention—
Investigations and Technical Assistance 93.283 252035 5,134
Cooperative Agreements for State-Based
Comprehensive Breast and Cervical Cancer
Early Detection Programs 93.919 050314 167,451
HIV Prevention Activities—Health Department
Based 93.940 152017 47,389
Preventive Health Services—Sexually
Transmitted Diseases Control Grants 93.977 05-2001 8,885
Preventive Health and Health Services Block Grant 93.991 261113,
E1H73209 70,945
Maternal and Child Health Services Block Grant
to the States 93.994 961117 60,882
Arizona Department of Economic Security
Child Support Enforcement 93.563 E7201021
E7202021 1,840,667
Grants to States for Access and Visitation
Programs 93.597 E7209321,
E7202321 6,927
Pinal/Gila Council for Senior Citizens
Social Services Block Grant 93.667 9900-308 129,789
Gila River Indian Community
Rural Health Outreach and Rural Network None 90
Development Program 93.912
Maricopa County Department of Public Health
HIV Emergency Relief Project Grants 93.914 2002-01-PIN,
2003-01-PIN 130,749
Total U.S. Department of Health and
Human Services 2,751,212
Total Expenditures of Federal Awards $ 11,082,915
See accompanying notes to schedule.
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Pinal County
Notes to Schedule of Expenditures of Federal Awards
Year Ended June 30, 2002
Note 1 -Basis of Accounting
The accompanying schedule of expenditures of federal awards includes the federal grant
activity of Pinal County and is presented on the modified accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements of OMB Circular
A-133, Audits of States, 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 financial statements.
Note 2 -Catalog of Federal Domestic Assistance (CFDA) Numbers
The program titles and CFDA numbers were obtained from the federal or pass-through grantor
or the 2002 Catalog of Federal Domestic Assistance. When the CFDA number was nonexistent
or unknown, the first two digits applicable to the federal agency were used followed by the
federal contract number to identify the program. If the federal contract number was also
unknown, the identifying number was composed of the first two digits applicable to the federal
agency followed by the word “unknown.”
Note 3 -Subrecipients
The County did not provide federal awards to subrecipients during the year ended June 30,
2002.
Pinal County
Schedule of Findings and Questioned Costs
Year Ended June 30, 2002
10
Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued: Unqualified
YES NO
Material weaknesses identified in internal control over financial reporting? X
Reportable conditions identified not considered to be material weaknesses? X
(none reported)
Noncompliance material to the financial statements noted? X
Federal Awards
Material weakness identified in internal control over major programs? X
Reportable conditions identified not considered to be material weaknesses? X
(none reported)
Type of auditors’ report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are required to be reported in accordance with
Circular A-133 (section .510[a])? X
Identification of major programs:
CFDA Number/Federal
Identification Number Name of Federal Program or Cluster
10.557 Special Supplemental Nutrition Program for
Women, Infants, and Children
14.872 Public Housing Capital Fund
15.226 Payment in Lieu of Taxes
16.579 Byrne Formula Grant Program
20.205 Highway Planning and Construction
83.544 Public Assistance Grants
Dollar threshold used to distinguish between Type A and Type B programs: $332,487
Auditee qualified as low-risk auditee? X
Other Matters
Auditee’s summary schedule of prior audit findings required to be reported in
accordance with Circular A-133 (section .315[b])? X