11-10-1993 Council Agenda - Laserfiche WebLink

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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: General Requirements: Political Activity Civil Rights Cash Management Relocation Assistance and Real Property Acquisition Allowable Costs/Cost Principles Administrative Requirements 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 December 31, 1992, the City of Little Canada, Minnesota had no major federal financial assistance programs and expended 100% of its total federal financial assistance under the Community Development Block Grant nonmajor federal financial assistance program. 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 have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for reimbursements applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these intemal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted no matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to out attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the City's ability to administer federal financial assistance programs in accordance with applicable laws and regulations. A material weakness is a reportable 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. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. Specific Requirements: Types of Services Eligibility Special Tests and Provisions Claims for Reimbursement 4 Page 20