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2001 City Compliance ReportsI I I I I 1 I 1 i 0 II I 1 1 CITY OF ROSEMEAD COMPLIANCE REPORTS AND OTHER FINANCIAL INFORMATION JUNE 30, 2001 I 1 1 ,I TABLE OF CONTENTS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS I Notes to schedule of expenditures of federal awards 2 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 3 and 4 Compliance and on internal control over financial reporting based on an audit of financial statements performed in accordance with Government Auditing Standards 5 and 6 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 7 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 8 INDEPENDENT ACCOUNTANT'S REPORT ON AGREED-UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT CALCULATION 9 and 10 ' Appropriations Limit Calculation I I 1 [1 1 I 1 I ' CITY OF ROSEMEAD, CALIFORNIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ' Year Ended June 30, 2001 Catalog of ' Federal Domestic Pass-through Assistance Entity Identifying Program ' Grantor/Pass-through Grantor Program Title Number Number Expenditures U.S. Department of Housing and Urban Development ' Direct Programs: Community Development Block Grant Entitlement Program 14.218 * N/A $ 1,248,451 Home Investment Partnership Program 14.239 N/A 226,037 Total U.S. Department of Housing and Urban Development 1,474,488 ' U.S. Department of Justice Direct Programs: Narcotics Forfeiture & Seizure Unknown N/A 41,847 ' Passed through County of Los Angeles Sheriffs Department: Local Law Enforcement Block Grant 16.592 1999LBVX6098 50,175 Local Law Enforcement Block Grant 16.592 2000LBVX0861 57,087 Total Local Law Enforcement Block Grant 107,262 ' Public Safety Partnership & Community Policing Grants 16.710 * P41401 1,425 Public Safety Partnership & Community Policing Grants 16.710 * P42001 126,730 Public Safety Partnership & Community Policing Grants 16.710 * P42101 125,856 Public Safety Partnership & Community Policing Grants 16.710 * P42201 5,837 ' Total Public Safety Partnership & Community Policing Grants 259,848 Total U.S. Department of Justice 408,957 U.S. Department of Transportation Passed through State of California Business, Transportation ' and Housing Agency: Highway Planning and Construction 20.205 DBL-5358 (003) 78,010 Total Expenditures of Federal Awards $ 1,961,455 Denotes a major program I I CITY OF ROSEMEAD NOTES TO SCHEULE OF EXPENDITURES OF FEDERAL AWARDS June 30, 2001 Note 1. Basis of Presentation ' The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Rosemead (the City), California, 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 general purpose financial statements. 1 0 1 I I Note 2. Subrecipients Of the federal expenditures presented in the schedule, the City provided federal awards to Subrecipients as follows: CFDA Number Program Title Provided 14.218 Community Development Block Grant Entitlement Program Amount Expended $ 99,380 2 I I I I 1 I I L MCGLADUY& PULLEN, LL P ® 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 Members of the City Council City of Rosemead Rosemead, California Compliance RSM international We have audited the compliance of the City of Rosemead (the City), California, with the types of compliance requirements described in 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, 2001. The City'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 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 occurred that could have a direct and material effect on a major federal program. 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 each of its major federal programs for the year ended June 30, 2001. ' Internal Control over Compliance 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. ' Our consideration of internal control over compliance would not necessarily disclose all matters of 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 internal control over financial reporting and its operation that we consider to ' be material weaknesses. Schedule of Expenditures of Federal and State Awards ' We have audited the general purpose financial statements of the City as of and for the year ended June 30, 2001, and have issued our report thereon dated October 16, 2001. Our audit was performed for the ' purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying schedule of expenditures of federal and state 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 the information and use of the City Council, management and applicable governmental control agencies and is not intended to be and should not be used by anyone other than those specified parties. ' Pasadena, California October 16, 2001 '1 I McGLADREY& PULLEN, LLP ® Certified Public Accountants 1 1 1 1 1 1 RSM international INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Rosemead Rosemead, California We have audited the financial statements of the City of Rosemead (the City), California, as of and for the year ended June 30, 2001, and have issued our report thereon dated October 16, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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'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'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 internal control over financial reporting. Our consideration of internal control over financial reporting would not necessarily disclose all matters in 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 internal control over financial reporting and its operation that we consider to be material weaknesses. I This report is intended for the information and use of City Council, management and applicable governmental control agencies. However, this report is a matter of public record and its distribution is not 1 limited. ' Pasadena, California October 16, 2001 C' 1 6 I CITY OF ROSEMEAD SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30.2001 ' I. Summary of Independent Auditor's Results Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: Y X N es Material weakness(es) identified? o Reportable condition(s) identified that are not considered to be material weaknesses? Yes X None Reported ' Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major program: ' Material weakness(es) identified? Yes X No Reportable condition(s) identified that are not considered to be material weakness(es)? Yes X None Reported ' s report issued on compliance for major programs: Unqualified Type of auditor ' Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A-133? Yes X No ' ram: ro Identification of major p g CFDA Number Name of Federal Program Amount Expended ' 14.218 Community Development Block Grant Entitlement Program $1,248,451 ' 16.710 Public Safety Partnership and Community Policing Grants $259,848 Dollar threshold used to distinguish between type A and type B programs $300,000 ' Y N es Auditee qualified as low-risk auditee? X o ' II. Findings relating to the financial statement audit as required to be reported in accordance with generally accepted Government Auditing Standards ' None reported III. Findings and questioned costs for federal awards ' None reported 7 I CITY OF ROSEMEAD ' SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS Year Ended June 30, 2001 1 There were no audit findings reported during the year ended June 30, 2000. 1 0 u 1 1 McGLADREY& PULLEN, LLP RSM ® Certified Public Accountants international INDEPENDENT ACCOUNTANT'S REPORT ON AGREED-UPON PROCEDURES ' APPLIED TO APPROPRIATIONS LIMIT CALCULATION ' To the Honorable Mayor and Members of the City Council City of Rosemead ' Rosemead, California We have applied the procedures enumerated below to the accompanying Appropriations Limit Calculation of the City of Rosemead, California (the City), for the year ended June 30, 2001. These ' procedures, which were agreed to by the City and the League of California Cities as presented in their Article X111B Appropriations Limitation Uniform Guidelines, were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. ' This engagement to apply agreed-upon procedures 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: I. We obtained the completed internal computations and determined that the limit and annual ' adjustment factors were adopted by a resolution of the City of Rosemead Council, along with the annual budget. We also compared the population and inflation options included in the aforementioned calculation 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 year's limit, to line E, total adjustments, and agreed the resulting amount to line F, this year's limit. ' Finding: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriations Limit ' Calculation to the supporting calculations described in item I above. Finding: No exceptions were noted as a result of our procedures. H I 1 4. We compared and agreed the prior year Appropriations Limit presented in the accompanying Appropriations Limit Calculation to the prior year Appropriations Limit adopted by the City 1 Council during the prior year. Finding: No exceptions were noted as a result of our procedures. 1 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 of 1 Rosemead, California. 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 1 year, as defined by the League Publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines. 1 This report is intended solely for the use of the City of Rosemead, California, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. 1 Pasadena, California October 16, 2001 1 1 1 1 1 1 1 1 U 1 10 1 1 1 t 1 1 1 1 1 CITY OF ROSEMEAD APPROPRIATIONS LIMIT CALCULATION Year Ended June 30 2001 A. Last Year's Limit B. Adjustment Factors 1. Population change 2. Inflation change Total Adjustment C. Annual Adjustment D. Other Adjustments: Lost responsibility Transfer to private Transfer to fees Assumed responsibility Subtotal E. Total Adjustments F. This Year's Limit Amount Source $ 23,763,252 1.017 State Finance 1.0491 State Finance .0675 $ 1,604,020 1,604,020 $ 25,367,272 (B x A)