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HomeMy WebLinkAboutFederal Financial Assistance 12/31/1998CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1998 i Page Independent Auditor's Report on Compliance and on — Internal Control over Financial Reporting 1 -2 Independent Auditor's Report on Legal Compliance 3 Schedule of Expenditures of Federal Awards 4 Notes to Schedule of Expenditures of Federal Awards 5 Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A -133 6 -7 Schedule of Findings and Questioned Costs 8 -9 is LARSON issis ALLEN WEISHAIR & CO., LLP 'II CERTIFIED PUBLIC ACCOUNTANTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council City of Lino Lakes, Minnesota We have audited the general purpose financial statements of the City of Lino Lakes, Minnesota as of and for the year ended December 31, 1998 and have issued our report thereon dated June 23, 1999. We conducted our audit in accordance with 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 City of Lino Lakes, Minnesota's 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 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 no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control over Financial Reporting In planning and performing our audit, we considered the City of Lino Lakes, Minnesota's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting 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 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 over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters involving the internal control over financial reporting, which we have reported to management in a separate letter dated June 23, 1999. (1) This report is intended solely for the use of the City of Lino Lakes, Minnesota, the Office of the state Auditor, and other state and federal awarding agencies, and is not intended to be and should not be used by anyone other than these specified parties. Austin, Minnesota June 23, 1999 (2) 2 ift,--•-, 7/Vo.044,44-- 'r.o• IL, LARSON, ALLEN, WEISHAIR & CO., LLP LARSON I'M ALLEN VWEISHAIR &CO.,LLP I I CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT ON LEGAL COMPLIANCE To the Honorable Mayor and City Council City of Lino Lakes, Minnesota We have audited the general purpose financial statements of the City of Lino Lakes, Minnesota as of and for the year ended December 31, 1998, and have issued our report thereon dated June 23, 1999. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minn. Stat. §6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested the City of Lino Lakes, Minnesota complied with the material terms and conditions of applicable legal provisions. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City of Lino Lakes, Minnesota had not complied with such legal provisions. This report is intended solely for the use of the City of Lino Lakes, Minnesota, the Office of the State Auditor, and other state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Austin, Minnesota June 23, 1999 (3) learl; f!•00:$4,4 0-4 0.; hf LARSON, ALLEN, WEISHAIR & CO., LLP CITY OF LINO LAKES, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 1998 Federal Agency or CFDA Pass - Through Number Number Expenditures FEDERAL EMERGENCY MANAGEMENT ASSOCIATION Passed through the State Department of Public Safety: Federal Disaster Assistance 83.516 003 -37322 $ 422,271 U.S. DEPARTMENT OF JUSTICE Direct Program: Cops Universal Hiring Program 16.710 N/A 88,663 U.S. DEPARTMENT OF HUD Passed through Anoka County Community Development Block Grant 14.228 N/A 25,678 Total Federal Financial Assistance Expended See accompanying Notes to Schedule of Expenditures of Federal Awards. (4) $ 536,612 CITY OF LINO LAKES, MINNESOTA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS DECEMBER 31, 1998 NOTE 1 GENERAL The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Lino Lakes, Minnesota. The City of Lino Lakes reporting entity is defined in Note 1 to the City's general purpose financial statements. All federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies is included on the schedule. NOTE 2 BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's general purpose financial statements. (5) (This page intentionally left blank) is LARSON eseis ALLEN I I WEISHAIR I & CO.,LLP CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 To the Honorable Mayor and City Council City of Lino Lakes, Minnesota Compliance We have audited the compliance of the City of Lino Lakes, Minnesota 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 December 31, 1998. The City of Lino Lakes, Minnesota's major federal programs are identified in the summary of the auditor's 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 City of Lino Lakes, Minnesota's management. Our responsibility is to express an opinion on the City of Lino Lakes, Minnesota's compliance based on our audit. We conducted our audit of compliance in accordance with 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 City of Lino Lakes, Minnesota'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 City of Lino Lakes, Minnesota's compliance with those requirements. In our opinion, the City of Lino Lakes, Minnesota complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal financial assistance programs for the year ended December 31, 1998. (6) Internal Control Over Compliance The management of the City of Lino Lakes, Minnesota 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 City of Lino Lakes, Minnesota'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. Our consideration of the internal control over compliance would not necessarily disclose all matters in the 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 general purpose financial statements of the City of Lino Lakes, Minnesota as of and for the year ended December 31, 1998, and have issued our report thereon dated June 23, 1999. Our audit was performed for the purpose of forming and opinion on the general purpose 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 general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. This report is intended solely for use of the City of Lino Lakes, Minnesota, the Office of the State Auditor, and other state and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified parties. Austin, Minnesota June 23, 1999 (7) wAto,01**; 114/00:14e; 41‘ec LARSON, ALLEN, WEISHAIR & CO., LLP ■■• CITY OF LINO LAKES MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS DECEMBER 31, 1998 Part I: Summary of the Independent Auditor's Results (a) An unqualified opinion was issued on the financial statements. (b) No reportable conditions in internal control over financial reporting were disclosed by the audit of the financial statements. (c) The audit did not disclose any noncompliance which is material to the financial statements. (d) The audit did not disclose any reportable conditions in internal control over major programs. (e) An unqualified opinion was issued on compliance with requirements applicable to each major program. (f) The audit did not disclose any findings that were required to be reported in accordance with Office of Management and Budget Circular A-133, Section .510(a). (g) Major programs were as follows: - CFDA Number 83.516 — Federal Emergency Management Agency- Federal Disaster Assistance (h) The dollar threshold used to distinguish between Type A and Type B programs was $300,000. 0 The City of Lino Lakes, Minnesota did not qualify as a low-risk auditee. (8) CITY OF LINO LAKES MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS DECEMBER 31, 1998 Part II: Findings Related to the General Purpose Financial Statements: REPORTABLE CONDITIONS No findings were disclosed. Part III: Findings and Questioned Costs for Federal Awards: No findings were disclosed.