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STATE BOARD OF ACCOUNTS 302 West Washington Street Room E418 INDIANAPOLIS, INDIANA 46204-2769 FEDERAL SINGLE AUDIT REPORT OF ALLEN COUNTY, INDIANA January 1, 2015 to December 31, 2015 B47078 FILED 10/26/2016 ---PAGE BREAK--- ---PAGE BREAK--- TABLE OF CONTENTS Description Page Schedule of Officials 2 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 3-4 Independent Auditor's Report on Compliance for Each Major Federal Program; on Internal Control over Compliance; and on the Schedule of Expenditures of Federal Awards Required by Uniform Guidance 5-7 Schedule of Expenditures of Federal Awards and Accompanying Notes: Schedule of Expenditures of Federal Awards 10-11 Notes to Schedule of Expenditures of Federal Awards 12 Schedule of Findings and Questioned Costs 13 Auditee-Prepared Schedule: Summary Schedule of Prior Audit Findings 16-17 Other Reports 18 ---PAGE BREAK--- SCHEDULE OF OFFICIALS Office Official Term County Auditor Tera K. Klutz 01-01-15 to 12-31-18 County Treasurer Susan L. Orth 01-01-13 to 12-31-16 Clerk of the Circuit Court Lisbeth A. Borgmann 01-01-15 to 12-31-18 County Sheriff David J. Gladieux 01-01-15 to 12-31-18 County Recorder Anita A. Mather 01-01-15 to 12-31-18 County Prosecuting Attorney Karen E. Richards 01-01-15 to 12-31-18 Circuit Court Judge Honorable Thomas J. Felts 01-01-15 to 12-31-20 President of the Board of County Commissioners F. Nelson Peters 01-01-15 to 12-31-16 President of the County Council Thomas A. Harris 01-01-15 to 12-31-15 Roy A. Buskirk 01-01-16 to 12-31-16 ---PAGE BREAK--- STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 INDIANAPOLIS, INDIANA 46204-2769 Telephone: (317) 232-2513 Fax: (317) 232-4711 Web Site: www.in.gov/sboa 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 OFFICIALS OF ALLEN COUNTY, INDIANA We have audited, in accordance with the 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, the financial statements of the governmental activ- ities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Allen County (County), as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the County's basic financial statements and have issued our report thereon dated August 25, 2016. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. A deficiency in internal control exists when the design or operation of a control does not allow man- agement or employees, in the normal course of performing their assigned functions to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficien- cies, in internal control such that there is a reasonable possibility that a material misstatement of the County's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a mate- rial weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weak- nesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficien- cies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. ---PAGE BREAK--- 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 (Continued) Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from 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 pro- visions 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. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compli- ance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communica- tion is not suitable for any other purpose. Paul D. Joyce, CPA State Examiner August 25, 2016 ---PAGE BREAK--- STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 INDIANAPOLIS, INDIANA 46204-2769 Telephone: (317) 232-2513 Fax: (317) 232-4711 Web Site: www.in.gov/sboa INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; ON INTERNAL CONTROL OVER COMPLIANCE; AND ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY UNIFORM GUIDANCE TO: THE OFFICIALS OF ALLEN COUNTY, INDIANA Report on Compliance for Each Major Federal Program We have audited Allen County's (County) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2015. The County's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Management's Responsibility Management is responsible for compliance with Federal statues, regulations and the terms and con- ditions of its Federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the County's major federal pro- grams based on our audit of the types of compliance requirements referred to above. 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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 County'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 on compliance for each major federal program. However, our audit does not provide a legal determination of the County's compliance. Opinion on Each Major Federal Program In our opinion, the County complied in all material respects with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2015. ---PAGE BREAK--- INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; ON INTERNAL CONTROL OVER COMPLIANCE; AND ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY UNIFORM GUIDANCE (Continued) Report on Internal Control over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of require- ments that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or com- bination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over com- pliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by Uniform Guidance We have audited the financial statements of governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund informa- tion of the County, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the County's basic financial statements. We issued our report thereon dated August 25, 2016, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The infor- mation has been subjected to the auditing procedures applied in the audit of the financial statements and cer- tain additional procedures, including comparing and reconciling such information directly to the underlying ---PAGE BREAK--- INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; ON INTERNAL CONTROL OVER COMPLIANCE; AND ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY UNIFORM GUIDANCE (Continued) accounting and other records used to prepare the basic financial statements or to the basic financial state- ments themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Paul D. Joyce, CPA State Examiner August 25, 2016 ---PAGE BREAK--- (This page intentionally left blank.) ---PAGE BREAK--- SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND ACCOMPANYING NOTES The Schedule of Expenditures of Federal Awards and accompanying notes presented were prepared by management of the County. The schedule and notes are presented as intended by the County. ---PAGE BREAK--- ALLEN COUNTY SCHEDULE OF EXPENDITURS OF FEDERAL AWARDS For The Year Ended December 31, 2015 Pass-Through Federal Entity (or Other) Total Federal Grantor Agency CFDA Identifying Pass-Through Federal Awards Cluster Title/Program Title/Project Title Pass-Through Entity or Direct Grant Number Number To Subrecipient Expended Department of Agriculture Child Nutrition Cluster Indiana Department of Education School Breakfast Program 10.553 FY 2015 - $ 58,441 $ National School Lunch Program 10.555 FY 2015 - 104,592 Total - Child Nutrition Cluster - 163,033 Total - Department of Agriculture - 163,033 Department of Justice State Criminal Alien Assistance Program Direct Grant 16.606 Criminal Alien Assist Grant 2015-AP-BX-0568 - 6,107 Bulletproof Vest Partnership Program Direct Grant 16.607 109918 - 842 Juvenile Accountability Block Grants Indiana Criminal Justice Institute 16.523 JAIBG Grant 3760-1a - 4,622 Violence Against Women Formula Grants Indiana Criminal Justice Institute 16.588 Domestic Violence 2014-WF-AX-0005 - 18,422 Edward Byrne Memorial Justice Assistance Grant Program Indiana Criminal Justice Institute 16.738 Air Service Pilot Fund 2014-DJ-BX-1191 - 136,780 Sheriff Drug Task Force 2013-DJ-BX-0039 - 7,618 Indiana Enforcement Assistance Grant City of Fort Wayne 2015-DJ-BX-0562 - 30,907 Total - Edward Byrne Memorial Justice Assistance Grant Program - 175,305 Total - Department of Justice - 205,298 Department of Transportation Highway Planning and Construction Cluster Highway Planning and Construction Indiana Department of Transportation NIRCC 20.205 15804457 FY 2014 - 132,538 NIRCC 15809170 FY 2014 - 8,083 NIRCC 15810638 FY 2014 - 47,757 NIRCC 15804457 FY 2015 - 590,893 NIRCC 15809170 FY 2015 - 1,941 NIRCC 15809173 FY 2015 - 8,573 NIRCC 15810638 FY 2015 - 13,108 NIRCC 12813192 FY 2015 - 50,875 NIRCC 16800647 FY 2015 - 168,667 NIRCC 16803029 FY 2015 - 9,500 NIRCC 16802949 FY 2015 - 21,976 NIRCC 16802753 FY 2015 - 15,209 Construction Engineering Des. 400582 - 33,968 Preliminary Engineering Des. 400582 - 126,300 Construction Engineering Des. 400583 - 241,084 Preliminary Engineering Des. 400583 - 38,444 Construction Engineering Des. 400584 - 76,914 Right of Way Des. 400584 - 1,180 Construction Engineering Des. 500982 - 18,821 Construction Engineering Des. 710075 - 16,279 Construction Engineering Des. 710077 - 10,655 Right of Way Des. 902238 - 2,514 Preliminary Engineering Des. 1005320 - 13,710 Right of Way Des. 1005320 - 6,408 Construction Engineering Des. 1005320 - 84,725 Preliminary Engineering Des. 1297238 - 80,750 Construction Engineering Des. 1297753 - 75 Preliminary Engineering Des. 1382100 - 63,507 Right of Way Des. 1382493 - 20,347 Preliminary Engineering Des. 1382497 - 44,854 Preliminary Engineering Des. 1382818 - 132,341 Right of Way Des. 1592356 - 84,961 Total - Highway Planning and Construction Cluster - 2,166,957 The accompanying notes are an integral part of the Schedule of Expenditures of Federal Awards. -10- ---PAGE BREAK--- ALLEN COUNTY SCHEDULE OF EXPENDITURS OF FEDERAL AWARDS For The Year Ended December 31, 2015 Pass-Through Federal Entity (or Other) Total Federal Grantor Agency CFDA Identifying Pass-Through Federal Awards Cluster Title/Program Title/Project Title Pass-Through Entity or Direct Grant Number Number To Subrecipient Expended Department of Transportation (continued) Highway Safety Cluster State and Community Highway Safety City of Fort Wayne 20.600 D3-15-8902 - 41,981 D3-15-9953 - 2,175 Total - State and Community Highway Safety - 44,156 Alcohol Impaired Driving Countermeasures Incentive Grants l City of Fort Wayne 20.601 D3-15-8999 - 608 Total - Highway Safety Cluster - 44,764 Total - Department of Transportation - 2,211,721 Department of the Treasury Equitable Sharing Program Direct Grant 21.000 Asset Seizure - Sheriff FY 2015 - 70,476 Total - Department of the Treasury - 70,476 Environmental Protection Agency State Indoor Radon Grants Indiana Department of Health 66.032 A70-5-154012 - 3,000 Total - Environmental Protection Agency - 3,000 Department of Health and Human Services Immunization Cooperative Agreements Indiana Department of Health 93.268 A70-5-073158 - 242,904 A70-5-073152(IP) - 44,419 Total - Immunization Cooperative Agreements - 287,323 Child Support Enforcement Indiana Department of Child Services 93.563 Child Support Enforcement FY 2015 - 2,655,324 Refugee and Entrant Assistance-State Administered Programs Indiana Family and Social Services Administration 93.566 Refugee Health Screens F1-4-02-14-R5-1004 - 54,691 State Court Improvement Program Indiana Supreme Court 93.586 Court Improvement Allen-CIP-2014BT - 18,760 HIV Prevention Activities-Health Department Based Indiana Department of Health 93.940 HIV/AIDS Program A70-5-112385 - 31,800 Total - Department of Health and Human Services - 3,047,898 Department of Homeland Security Emergency Management Performance Grants Indiana Department of Homeland Security 97.042 C44P-5-695B - 90,645 C44P-5-430B - 15,000 C44P-6-010B - 20,000 C44P-5-458B - 8,485 Total - Emergency Management Performance Grants - 134,130 State Homeland Security Program (SHSP) 97.073 C44P-5-567B - 2,597 Total - Department of Homeland Security - 136,727 Total federal awards expended - $ 5,838,153 $ The accompanying notes are an integral part of the Schedule of Expenditures of Federal Awards. (Continued) -11- ---PAGE BREAK--- ALLEN COUNTY NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of the County under programs of the federal government for the year ended December 31, 2015. The information in the SEFA is presented in accordance with the requirements of the Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a select portion of the operations of the County, it is not intended to and does not present the financial position of the County. Note 2. Summary of Significant Accounting Policies Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-133, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as to reimbursement. When federal grants are received on a reimbursement basis, the federal awards are considered expended when the reimbursement is received. The County has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. -12- ---PAGE BREAK--- -13- ALLEN COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS Section I - Summary of Auditor's Results Financial Statements: Type of auditor's report issued: Unmodified Internal control over financial reporting: Material weaknesses identified? no Significant deficiencies identified? none reported Noncompliance material to financial statements noted? no Federal Awards: Internal control over major programs: Material weaknesses identified? no Significant deficiencies identified? none reported Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? no Identification of Major Programs and type of auditor's report issued on compliance for each: CFDA Number Name of Federal Program or Cluster Opinion Issued 93.268 Immunization Cooperative Agreement Unmodified 93.563 Child Support Enforcement Unmodified Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? no Section II - Financial Statement Findings No matters are reportable. Section III - Federal Award Findings and Questioned Costs No matters are reportable. ---PAGE BREAK--- -14- (This page intentionally left blank.) ---PAGE BREAK--- -15- AUDITEE-PREPARED SCHEDULE The subsequent schedule was provided by management of the County. The schedule is presented as intended by the County. ---PAGE BREAK--- Allen County Circuit Court Thirty-Ei ghth Judicial Circuit Allen County f:onrthouse 715 South Calhoun Room 30ll F0rl Wryne, 468!2-lti97 'T clephonc; 260.4.19.7602 Fax: 260,449.1652 THOMAS J. FELTS Judge SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 2014-001 Fiscal year in which ihe finding initially occurred: Pass-Through Entity or Federal Grantor Agency: Contact Person Responsible for Corrective Action: Contact Phone Number: 2074 lndiana Depaftment of Child Services Terri Berry [PHONE REDACTED] Status of Audit Finding: The Allen Circuit lV-D Court has complied with the Correction Action Plan by having lV-D employees complete a Semi-Annual lV-D Time and Effort Certification. (Note to Officials: To determine what audit findings are required to be reported in the Summary Sched!le of Prior Audit Findings, please see U.S. Office of Management and Eudget {OMg), Circular A-133, Subpart C, section .315(b) for audit periods beginning before December 26, 2014. For audit periods beginning after December 26, 2014, please see 2 CFR 5200.511(b).) Dir August 9, 2016 -16- ---PAGE BREAK--- -17- ---PAGE BREAK--- -18- OTHER REPORTS In addition to this report, other reports may have been issued for the County. All reports can be found on the Indiana State Board of Accounts' website: http://www.in.gov/sboa/.