Loading...
2005 City Compliance ReportsE I L City of Rosemead Compliance Reports and Other Financial Information June 30, 2005 0 McGladrey& Pullen Certified Public Accountants McGladrey & Pullen, LLP's a member firm of RSM International, an affiliation of separate and independent legal entities. ■ ■ ■ ■ ■ ■ Contents Schedule of Expenditures of Federal Awards 1 Notes to schedule of expenditures of federal awards 2 Independent Auditors Report on: Internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards 3 Compliance with requirements applicable to its major program and internal control over compliance in accordance with OMB Circular A -133 and on the schedule of expenditures of federal awards 4 and 5 Schedule of Findings and Questioned Costs 6 and 7 Summary Schedule of Prior Year Audit Findings 8 Independent Accountant's Report on Applying Agreed -upon Procedures 9 and 10 Appropriations limit calculation 11 ■ ■ City of Rosemead ■ Schedule of Expenditures of Federal Awards ■ Year Ended June 30, 2005 ■ Catalog of ■ Federal Pass - through Domestic Entity ■ Assistance Identifying Number/ Federal ■ Federal Grantor /Pass- through Grantor Program Title Number Grant Number Expenditures U.S. Department of Housing and Urban Development: ■ Direct Programs: Community Development Block Grant 14.218 B- 04 -MC -06 -0580 $ 1,438,382 ■ HOME Investment Partnership Program 14.239 M- 04 -MC -06 -0553 55,625 ■ Total U.S. Department of Housing and Urban ■ Development 1,494,007 ■ U.S. Department of Justice: Direct Programs: ■ Narcotics Forfeiture & Seizure 16.999 N/A 60,110 Pass - through County of Los Angeles Sheriffs Department: ■ Local Law Enforcement Block Grant 16.592 2001 LBBX0726 13,971 ■ Local Law Enforcement Block Grant 16.592 2002 LBBX1719 109,677 Total U.S. Department of Justice 183,758 ■ U.S. Department of Transportation: ■ Pass - through State Department of Transportation: Highway Research, Planning and Construction Program 20.205* 07 -5358 M004 1,624,255 ■ Highway Research, Planning and Construction Program 20.205* 07 -5358 M005 319,776 ■ Total U.S. Department of Transportation 1,944,031 Total federal awards expended $ 3,621,796 ■ * Denotes a major program ■ N/A —not applicable ■ ■ See Notes to Schedule of Expenditures of Federal Awards. ■ ■ ■ ■ ■ II ■ ■ City of Rosemead Notes to Schedule of Expenditures of Federal Awards Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of the City of Rosemead, California, (the City). The Schedule includes federal awards received directly from federal agencies, as well as federal awards passed through other agencies. The City's reporting entity is defined in Note 1 to the City's basic financial statements. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to, and does not, present the financial position of the City. The accompanying Schedule 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 basic financial statements. Note 2. Subrecipients Of the federal expenditures presented in the Schedule, the City provided federal awards to subrecipients as follows: Title Provided Federal Amount CFDA Number Expended Community Development Block Grant Entitlement Program 14.218 $ 150,694 2 Ll ■ McGladrey &Pullen 2 Certified Public Accountants ■ Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Mayor and Members of City Council City of Rosemead, California We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Rosemead, California, (the City) as of and for the year ended June 30, 2005, which collectively comprise the City's basic financial statements, and have issued our report thereon dated October 3, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United t States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. ■ Internal Control over Financial Reporting ■ In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to . provide assurance on the internal control 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 reportable 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 caused by error or fraud 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. • Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, 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 or other matters that are required to be reported under Government Auditing Standards. ■ This report is intended solely for the information and use of the City's management, Mayor, City Council, and 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. %2/c!6 , / / .c/ GLl� Pasadena, California ■ October 3, 2005 . McGladrey & Pullen, LLP is a member film of RSM International, an affiliation of separate and independent legal entities. ■ • McGladrey &Pullen • Certified Public Accountants • Independent Auditor's Report on Compliance with Requirements • Applicable to Its Major Program and Internal Control over Compliance in Accordance with OMB Circular A -133 and on the • Schedule of Expenditures of Federal Awards • To the Honorable Mayor and Members of City Council • City of Rosemead, California • Compliance • We have audited the compliance of the City of Rosemead, California, (the City) 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 its major federal program for the year ended June 30, 2005. The City's major • federal program is identified in the summary of the independent auditors results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and • grants applicable to its major federal program is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. • We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States • of America; 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'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's compliance with those requirements. In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to its major federal program for the year ended June 30, 2005. • Internal Control over Compliance The management of the City 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'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. • • • McGladrey & Pullen, LLP is a member firm of RSM Intemabonal, an affiliation of separate and independent legal endfies. 4 • ■ ■ ■ 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 reportable 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 a noncompliance with applicable requirements of laws, regulations, contracts and grants caused by error or fraud 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, each major fund and the aggregate remaining fund information of the City as of and for the year ended June 30, 2005, which collectively comprise the City's basic financial statements, and have issued our report thereon dated October 3, 2005. Our audit was performed for the purpose of forming opinions 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 U.S. OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, 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 for the information of the City's management, Mayor, City Council, and 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. Pasadena, California October 3, 2005 t ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ City of Rosemead Schedule of Findings and Questioned Costs Year Ended June 30, 2005 I. Summary of Independent Auditor's Results Financial Statements Type of auditors report issued: Unqualified Internal control over financial reporting: • Material weakness(es) identified? • Reportable condition(s) identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major program: • Material weakness(es) identified? • Reportable condition(s) identified that are not considered to be material weaknesses? Yes X No Yes X None Reported Yes X No Yes X No Yes X None Reported Type of auditor's report issued on compliance for major programs: Unqualified • Any audit findings disclosed that are required to be reported in accordance with Section 510(1) of OMB Circular A-133? Yes X No Identification of major program: CFDA Number Name of Federal Program 20.205 Highway Research, Planning and Construction Program Dollar threshold used to distinguish between type A and type B programs: 300,000 Auditee qualified as low -risk auditee? X Yes _ N No ■ City of Rosemead Schedule of Findings and Questioned Costs Year Ended June 30, 2005 II. Financial Statement Findings A. Reportable Conditions 7 None reported. B. Compliance Findings None reported. III. Findings and Questioned Costs for Federal Awards A. Reportable Conditions None reported. B. Compliance Findings None reported. 7 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ II City of Rosemead Summary Schedule of Prior Year Audit Findings Year Ended June 30, 2005 There were no audit findings reported for the year ended June 30, 2004. lI ■ ■ McGladrey &Pullen ■ Certified Public Accountants ■ ■ ■ Independent Accountant's Report on Applying Agreed -upon Procedures ■ To the Honorable Mayor and ■ Members of City Council City of Rosemead, California ■ We have performed the procedures enumerated below to the accompanying Appropriations Limit Calculation of the ■ City of Rosemead, Califomia, (the City) for the year ended June 30, 2005. These procedures, which were agreed to by the City and the League of California Cities (as presented in the publication entitled Agreed -upon Procedures ■ Applied to the Appropriations Limitation Prescribed by Article X111-B of the California Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIII -B of the California Constitution. The ■ City's management is responsible for the Appropriations Limit Calculation. ■ This agreed -upon procedures engagement was conducted in accordance with attestation standards established by ■ the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the . ■ procedures described below either for the purpose for which this report has been requested or for any other purpose. ■ The procedures performed and our findings were as follows: ■ 1. We obtained the completed internal calculations and compared the limit and annual adjustment factors included in those calculations to the limit and annual adjustment factors that were adopted by a resolution of ■ the City Council. We also compared the population and inflation options included in the aforementioned calculations to those that were selected by a recorded vote of the City Council. ■ Finding: No exceptions were noted as a result of our procedures. ■ 2. For the accompanying Appropriations Limit Calculation, we added line A, last years limit as revised, to line E, ■ total adjustments, and compared the resulting amount to line F, this year's limit. ■ Finding: No exceptions were noted as a result of our procedures. ■ 3. We compared the current year information presented in the accompanying Appropriations Limit Calculation to ■ the supporting calculations described in item 1 above. ■ Finding: No exceptions were noted as a result of our procedures. ■ 4. We compared the revised prior year Appropriations Limit presented in the accompanying Appropriations Limit Calculation to the revised prior year Appropriations Limit adopted by the City Council during the current year. ■ Finding: No exceptions were noted as a result of our procedures. ■ ■ ■ ■ McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ i ■ ■ ■ ■ ■ ■ ■ ■ ■ We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Calculation of the City. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIII -B of the California Constitution. This report is intended solely for the information and use of the City Council and management of the City 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. Pasadena, California October 3, 2005 fo ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ City of Rosemead Appropriations Limit Calculation Year Ended June 30, 2005 A. Last Year's Limit (as revised) B. Adjustment Factors: 1. Population change 2. Per capita income change Total adjustment C. Annual Adjustment D. Other Adjustments: 1. Lost responsibility ( -) 2. Transfer to private ( -) 3. Transfer to fees(-) 4. Assumed responsibility ( +) Subtotal E. Total Adjustments F. This Years Limit 11 Amount $ 29,058,404 1.0138 State Finance 1.0328 State Finance 0.04705264 [(B.1. x B.2.) -1.0] 1,367,274 (B x A) 1,367,274 (C + D) $ 30,425,678 (A + E)