Federal Financial Assistance 12/31/1996

Home Search

Vow 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: Federal Assistance Programs: Accounting Applications: General Requirements: Specific Requirements: Cash Disbursements Political Activity Types of Service Payroll Civil Rights Allowed or Unallowed Cash Management Federal Financial Reports Allowable Costs/Cost Principles Drug -Free Workplace Administrative Requirements For all of the internal control structure categories listed in the preceding paragraph, 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, 1996, the City of Lino Lakes, Minnesota had no major federal financial assistance programs and expended 96.79% of its total federal financial assistance under the following nonmajor programs: Community Development Block Grant Program, COPS FAST. 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 programs. Our procedures were less 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 policies and procedures used in administering federal financial assistance programs, 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.