Mohave County, Arizona single audit: year ended June 30,...

              MOHAVE COUNTY, ARIZONA
SINGLE AUDIT REPORTING PACKAGE
FOR THE YEAR ENDED JUNE 30, 2003
MOHAVE COUNTY, ARIZONA
SINGLE AUDIT REPORTING PACKAGE
FOR THE YEAR ENDED JUNE 30, 2003
CONTENTS Page
Annual Financial Report
Issued separately
Reports on Compliance and Internal Control
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 1
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 3
Schedule of Expenditures of Federal Awards 5
Notes to Schedule of Expenditures of Federal Awards 9
Schedule of Findings and Questioned Costs:
Section I - Summary of Auditors’ Results 10
Section II - Financial Statement Findings 11
Section III - Federal Award Findings and Questioned Costs 11
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
The Auditor General of the State of Arizona
The Board of Supervisors of
Mohave County, Arizona
We have audited the financial statements of the governmental activities, business-type activities,
each major fund, and aggregate remaining fund information of Mohave County as of and for the year
ended June 30, 2003, which collectively comprise the County’s basic financial statements, and have
issued our report thereon dated February 20, 2004, which was modified as to consistency because of
the implementation of Governmental Accounting Standards Board Statement No. 34 and was
modified as the County reclassified certain special revenue funds as proprietary funds, which
constitutes a change in the reporting entity. 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 disclosed instances of noncompliance that are
required to be reported under Government Auditing Standards, which are described in the
accompanying Schedule of Findings and Questioned Costs as items 03-1 and 03-2. We also noted
certain immaterial instances of noncompliance, which we have reported to management of the
County in a separate letter dated February 20, 2004.
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 opinions
on the basic financial statements and not to provide assurance on the internal control over financial
reporting. However, we noted certain matters involving the internal control over financial reporting
and its operation that we consider to be a reportable condition. Reportable conditions involve
matters coming to our attention relating to significant deficiencies in the design or operation of the
internal control over financial reporting that, in our judgment, could adversely affect the County’s
ability to record, process, summarize and report financial data consistent with the assertions of
management in the basic financial statements. The reportable conditions are described in the
accompanying Schedule of Findings and Questioned Costs as items 03-1 and 03-2.
Page 2
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. Our consideration of the internal control over financial reporting would not necessarily
disclose all matters in internal control that might be reportable conditions and, accordingly, would
not necessarily disclose all reportable conditions that are also considered to be material weaknesses.
However, we believe the reportable conditions described above are not material weaknesses. We
also noted other matters involving the internal control over financial reporting, which we have
reported to management of the County in a separate letter dated February 20, 2004.
This report is intended solely for the information and use of the members of the Arizona State
Legislature, the Auditor General of the State of Arizona, the Board of Supervisors, 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.
HEINFELD, MEECH & CO., P.C.
Certified Public Accountants
February 20, 2004
Page 3
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
The Auditor General of the State of Arizona
The Board of Supervisors of
Mohave County, Arizona
Compliance
We have audited the compliance of Mohave 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, 2003. 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 of the County’s
compliance with those requirements.
In our opinion, Mohave 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, 2003.
Page 4
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 the internal control over compliance in accordance with OMB
Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters
in internal control 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 the internal control over compliance and its
operation that we consider to be material weaknesses.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, business-type activities,
each major fund, and aggregated remaining fund information of Mohave County as of and for the
year ended June 30, 2003, and have issued our report thereon dated February 20, 2004, which was
modified as to consistency because of the implementation of Governmental Accounting Standards
Board Statement No. 34 and was modified as the County reclassified certain special revenue funds
as proprietary funds, which constituted a change in the reporting entity. Our audit was performed
for the purpose of forming opinions on the financial statements that collectively comprise Mohave
County’s basic financial statements. 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, 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 the members of the Arizona State
Legislature, the Auditor General of the State of Arizona, the Board of Supervisors, 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.
HEINFELD, MEECH & CO., P.C.
Certified Public Accountants
February 20, 2004
Pass-Through
Federal Grantor/Pass-Through CFDA Grantor's
Grantor/Program Title Number Number Expenditures
U.S. Department of Agriculture
Passed through Arizona Department of Education:
National School Lunch Program 10.555 KR 10358 $ 39,838
Passed through Arizona Department of Health Services:
Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 HG361076 377,523
Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 261058 208,421
Subtotal CFDA 10.557 585,944
Commodity Supplemental Food Program 10.565 HG361102 11,018
Commodity Supplemental Food Program 10.565 261065 1,979
Subtotal CFDA 10.565 12,997
Building Better Bones 10.561 261154 7,887
Passed through Western Arizona Council of Governments:
Nutrition Program for the Elderly (Commodities) 10.570 E6209004-204-03 82,827
Direct: U.S. Department of Agriculture - Forest Service:
National Forest Fees 10.666 N/A 1,099
Passed-through Arizona Department of Emergency and Military Affairs:
Emergency Food Assistance Program 10.568 None 653
Total U.S. Department of Agriculture 731,245
U.S. Department of Housing and Urban Development
Direct: U.S. Department of Housing and Urban Development:
Section 8 Rental Voucher Program 14.856 N/A 1,509,012
Passed through Arizona Department of Commerce:
Community Development Block Grants/States Program 14.228 016-01 14,871
Community Development Block Grants/States Program 14.228 017-01 79,666
Community Development Block Grants/States Program 14.228 IGA 114-03 7,189
Subtotal CFDA 14.228 101,726
Supportive Housing Program 14.235 260-00 7,069
Supportive Housing Program 14.235 H189-02 68,270
Subtotal CFDA 14.235 75,339
HOME Investment Partnerships Program 14.239 263-00 4,960
HOME Investment Partnerships Program 14.239 146-02 147,918
Subtotal CFDA 14.239 152,878
Passed through City of Las Vegas, Nevada:
Housing Opportunities for Persons with AIDS 14.241 None 61,732
Total U.S. Department of Housing and Urban Development 1,900,687
U.S. Department of the Interior:
Direct U.S. Department of the Interior:
Payments in Lieu of Taxes: Fish & Wildlife 15.226 N/A 1,324
Payments in Lieu of Taxes: Bureau of Land Management 15.226 N/A 1,584,701
Payments in Lieu of Taxes: Bureau of Reclamation 15.226 N/A 100,000
Subtotal CFDA 15.226 1,686,025
Total U.S. Department of the Interior 1,686,025
MOHAVE COUNTY, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2003
Page 5 See accompanying notes to schedule.
Pass-Through
Federal Grantor/Pass-Through CFDA Grantor's
Grantor/Program Title Number Number Expenditures
U.S. Department of Justice
Direct U.S. Department of Justice:
Local Law Enforcement Block Grants Program 16.592 N/A 31,680
Community Gun Violence Prosecution Grant 16.609 N/A 38,331
COPS in Schools Grant 16.710 N/A 48,173
Passed-through Arizona Department of Public Safety:
Crime Victim Assistance 16.575 2000-918 39,245
Crime Victim Assistance 16.575 2000-VA-GX-0004 531
Subtotal CFDA 16.575 39,776
Passed-through Arizona Criminal Justice Commission:
Crime Victim Compensation 16.576 2000-960 38,048
Crime Victim Compensation 16.576 VC-03-057 16,827
Subtotal CFDA 16.576 54,875
Byrne Formula Grant Program 16.579 PC-100-03 227,526
Passed-through Arizona Governors Community Policy Office:
Juvenile Accountability Incentive Block Grants 16.523 00JAIBG-08 78,772
Juvenile Accountability Incentive Block Grants 16.523 01JAIBG-24 12,489
Subtotal CFDA 16.523 91,261
Passed-through Arizona Supreme Court-Juvenile Justice Services Division:
Title I State Project for IASA 16.540 IGA 3,523
Total U.S. Department of Justice 535,145
U.S. Department of Labor
Passed-through Arizona Department of Economic Security:
Senior Community Service Employment Program 17.235 E6202052 58,605
Welfare-to-Work Grants to States and Localities 17.253 E5709051 562
Workforce Investment Act Cluster:
WIA IA Program 17.258 E5703008 302,056
WIA IA Program 17.258 E5702008 102,500
WIA IC Program 17.259 E5701014 34,325
WIA IC Program 17.259 E5702008 135,633
WIA IC Program 17.259 E5703008 368,617
Passed-through Gila County, Arizona:
Employment and Training Assistance - Dislocated Workers 17.246 E5701014 11,883
Total U.S. Department of Labor 1,014,181
U.S. Department of Transportation
Passed-through Arizona Department of Emergency and Military Affairs:
Interagency Hazardous Materials Public Sector Training and Planning Grant 20.703 LEPC99 10,529
Total U.S. Department of Transportation 10,529
MOHAVE COUNTY, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2003
(CONTINUED)
Page 6 See accompanying notes to schedule.
Pass-Through
Federal Grantor/Pass-Through CFDA Grantor's
Grantor/Program Title Number Number Expenditures
U.S. Environmental Protection Agency
Passed-through Arizona Department of Environmental Quality:
Water Quality Cooperative Agreements 66.463 EV 01-0065 2,711
Water Quality Cooperative Agreements 66.463 EV 01-0066 3,000
Water Quality Cooperative Agreements 66.463 TA-CW-010-2002 25,000
Subtotal CFDA 66.463 30,711
Total U.S. Environmental Protection Agency 30,711
U.S. Federal Emergency Management Agency
Passed-through Arizona Department of Emergency and Military Affairs:
Emergency Management - State and Local Assistance 83.534 SLA99 12,593
Passed-through Arizona Department of Emergency Management:
Domestic Terrorism Preparedness 16.007 None 69,074
CERT Grant 83.564 None 6,146
Total U.S. Federal Emergency Management Agency 87,813
U.S. Department of Education
Passed-through Arizona Supreme Court, Administrative Office of the Courts:
Title I Grants to Local Education Agencies 84.010 99MOHAVE 9,407
Total U.S. Department of Education 9,407
U.S. Department of Health and Human Services
Passed-through Arizona Department of Health Services:
Maternal and Child Health Federal Consolidated Programs 93.110 4-H25-MC 00015-04-01 426
Immunization Program 93.268 152044 203,110
Immunization Program 93.268 HG352194 157,122
Subtotal CFDA 93.268 360,232
Public Health Preparedness and Response for Bioterrorism 93.283 252038 271,303
HIV Prevention Activities - Health Department Based 93.940 852010 75
Preventive Health Services - Sexually Transmitted Diseases Control Grants 93.977 05-2007 2,889
Preventive Health Services - Sexually Transmitted Diseases Control Grants 93.977 HG354253 6,385
Subtotal CFDA 93.977 9,274
Preventive Health and Health Services Block Grant 93.991 HG354182 26,988
Preventive Health and Health Services Block Grant 93.991 HG352236 30,155
Preventive Health and Health Services Block Grant 93.991 261118 54,159
Preventive Health and Health Services Block Grant 93.991 152015 29,385
Preventive Health and Health Services Block Grant 93.991 E3H82326 1,644
Subtotal CFDA 93.991 142,331
Maternal and Child Health Services Block Grant to the States 93.994 261194 9,267
Maternal and Child Health Services Block Grant to the States 93.994 761107 44,180
Maternal and Child Health Services Block Grant to the States 93.994 961124 2,425
Maternal and Child Health Services Block Grant to the States 93.994 HG361141 47,812
Subtotal CFDA 93.994 103,684
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2003
(CONTINUED)
MOHAVE COUNTY, ARIZONA
Page 7 See accompanying notes to schedule.
Pass-Through
Federal Grantor/Pass-Through CFDA Grantor's
Grantor/Program Title Number Number Expenditures
U.S. Department of Health and Human Services (concluded)
Passed-through Western Arizona Council of Governments:
Aging Cluster:
Special Programs for the Aging - Title III, Part B -
Grants for Supportive Services and Senior Centers 93.044 E6209004-204-03 67,390
Special Programs for the Aging - Title III, Part C -
Nutrition Services 93.045 E6209004-204-03 266,454
Social Services Block Grant (Senior Programs) 93.667 E6209004-204-03 29,344
Passed-through Arizona Department of Economic Security:
Employment & Training Program 93.558 E5900079 9,580
Passed-through Clark County, Nevada:
HIV Emergency Relief Project Grants 93.914 None 138,353
Total U.S. Department of Health and Human Services 1,398,446
Office of National Drug Control Policy
Passed-through Pima County Sheriff's Office:
HIDTA XI 07.XXX 12PSAP549 243,515
Total Office of National Drug Control Policy 243,515
Total Schedule of Expenditures of Federal Awards $ 7,647,704
MOHAVE COUNTY, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2003
(CONCLUDED)
Page 8 See accompanying notes to schedule.
MOHAVE COUNTY, ARIZONA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2003
Page 9
NOTE 1 - BASIS OF ACCOUNTING
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant
activity of Mohave 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 2003 Catalog of Federal Domestic Assistance. When no CFDA number has been
assigned to a program, the two-digit federal identifier was used.
MOHAVE COUNTY, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2003
Page 10
SECTION I - SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditors’ report issued: Unqualified
Internal control over financial reporting:
Material weakness(es) identified? yes X no
Reportable condition(s) identified not considered to be a
material weakness(es)? X yes 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
Reportable condition(s) identified not considered to be a
material weakness(es)? yes 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)? yes X no
Identification of major programs:
CFDA Numbers Name of Federal Program or Cluster
10.557 Special Supplemental Nutrition Program for Women, Infants, and
Children
15.226 Payments in Lieu of Taxes
93.268 Immunization Program
93.044, 93.045 Aging Cluster
Dollar threshold used to distinguish between Type A and Type B
programs: $300,000
Auditee qualified as low-risk auditee? X yes no
Other Matters
Auditee’s Summary Schedule of Prior Audit Findings required to be
reported in accordance with Circular A-133 (Section .315 [b])? yes X no
MOHAVE COUNTY, ARIZONA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2003
Page 11
SECTION II - FINANCIAL STATEMENT FINDINGS
03-1 The County School Superintendent’s (CSS) Office did not properly reconcile to the County
Treasurer’s Office leaving several school districts with unreconciled differences at
June 30, 2003.
According to the Uniform Accounting Manual for Arizona County School Superintendents
(UAMACSS), the CSS should perform a monthly reconciliation of its records of school
district fund cash balances to the county treasurer’s monthly report of school district ending
account balances. The monthly reconciliation is also necessary for the CSS to determine
whether sufficient cash is available in school district accounts before issuing warrants from
them. Any unreconciled differences must be investigated and promptly resolved.
Corrective Action Planned
The County School Superintendent’s Office will strive to ensure any unreconciled
differences are promptly resolved.
03-2 According to the special investigative report issued by the Auditor General dated March
2004, the Mohave Educational Services Cooperative (MESC), a component unit of Mohave
County, may have improperly conducted procurement, accepted gratuities, and unfairly
charged certain fees to its members. The findings are grouped as follows:
􀂃􈍍 MESC has not followed procurement statutes and rules.
􀂃􈍍 MESC does not provide an economic value for its members.
􀂃􈍍 MESC charges its members inequitably.
􀂃􈍍 MESC’s financial practices violate rules and regulations.
􀂃􈍏 Other MESC operations are improper.
To ensure proper practices are followed, Mohave County should ensure that their
component units follow all applicable rules and regulations.
Corrective Action Planned
Mohave County will strive to ensure that all component units follow all applicable rules and
regulations.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
We noted no reportable conditions, material weaknesses or instances of noncompliance related to the
audit of major federal programs as required to be reported by OMB Circular A-133.