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COUNTY OF ALPINE SINGLE AUDIT REPORT JUNE 30, 2012 ---PAGE BREAK--- Table of Contents Page Schedule of Expenditures of Federal Awards 1-3 Notes to the Schedule of Expenditures of Federal Awards 4-5 Independent Auditor’s Report on Internal Control Over Financing Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 6-7 Independent Auditor’s Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program, on Internal Control Over Compliance and Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A-133 8-9 Schedule of Findings and Questioned Costs 10-11 Status of Prior Year Findings 12 Supplementary Schedule of the California Emergency Management Agency Grant Expenditures 13 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2012 Federal Agency / Federal Pass-Through Entity Federal Federal Grantor/Pass-through Grantor/Program or Cluster Title CFDA No.. Identifying Number Expenditures U.S. Department of Agriculture Passed through the State Department of Social Services: State Administrative Matching Grants for the Supplemental Nutrition Assitance Program (SNAP) 10.561 71,920 $ Passed through State Controller's Office: Secure Payments for States and Counties Containing Federal Lands 10.665 246,441 Total U.S. Department of Agriculture 318,361 U.S. Department of Commerce Passed through the California Emergency Management Agency: Public Safety Interoperable Communications Grant (PSIC) 11.555 2009-10 436,777 Total U.S. Department of Commerce 436,777 U.S. Department of the Interior Direct Federal Programs: Payments in Lieu of Taxes 15.226 110-343 147,988 Total U.S. Department of the Interior 147,988 U.S. Department of Justice Direct Federal Programs: Public Safety Partnership and Community Policing Grants 16.710 2009-RK-WX-0087 69,656 ARRA - Public Safety Partnership and Community Policing Grants 16.710 2010-CK-WX-0393 362,793 Subtotal Direct Federal Programs 432,449 Passed through the California Emergency Management Agency: Law Enforcement Assistance Narcotics and Dangerous Drugs Laboratory Analysis - Evidence-based Grant 16.001 1,180 Victim Witness Program 16.575 VW10110020 52,001 Edward Byrne Memorial Justice Assistance Grant Program - Anti-Drug Abuse Grant 16.738 DC11220020 86,663 ARRA - Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program / Grants to Units of Local Government 16.804 ZM09010020 52,465 ARRA - Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program / Grants to Units of Local Government 16.804 ZM09010020 152,488 Subtotal CFDA 16.804 204,953 Subtotal Passed through the California Emergency Management Agency 344,797 continued See accompanying Notes to Schedule of Expenditures of Federal Awards. 1 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards (continued) For the Fiscal Year Ended June 30, 2012 Federal Agency / Federal Pass-Through Entity Federal Federal Grantor/Pass-through Grantor/Program or Cluster Title CFDA No.. Identifying Number Expenditures Passed through the County of Calaveras, California: ARRA - Public Safety Partnership and Community Policing Grants 16.710 2010-CK-WX-0108 400,056 $ Total U.S. Department of Justice 1,177,302 U.S. Department of Labor Passed through Golden Sierra Job Training Agency: Workforce Investment Act (WIA) Adult 17.258 K282473-03 27,963 Workforce Investment Act (WIA) Displaced Workers 17.278 K282473-03 23,669 Workforce Investment Act (WIA) Youth 17.279 K282473-03 23,693 Total U.S. Department of Labor 75,325 U.S. Department of Transportation Passed through the State Department of Transportation: FHWA / Caltrans Bridge Maintenance Program 20.205 1000020549L-N 60,210 FHWA / Caltrans Bridge Maintenance Program 20.205 1000020606L-N 15,057 Total U.S. Department of Transportation 75,267 U.S. Department of Health and Human Services Passed through State Department of Alcohol and Drug Programs: Block Grants for Prevention and Treatment of Substance Abuse 93.959 434,408 Passed through State Department of Health Care Services: Medical Assistance Programs 93.778 38,602 Maternal and Child Health Services 93.994 63,000 Children's Medical Services 93.994 13,195 Subtotal CFDA 93.994 76,195 Subtotal Passed through State Department of Health Care Services 114,797 Passed through State Department of Mental Health: Substance Abuse and Mental Health Services Administration 93.958 10,000 Passed through State Department of Public Health: Public Health Emergency Preparedness Program 93.069 41,850 Immunization Program 93.268 10-95361 22,811 Hospital Preparedness Program 93.889 128,574 Subtotal Passed through State Department of Public Health 193,235 continued See accompanying Notes to Schedule of Expenditures of Federal Awards. 2 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards (continued) For the Fiscal Year Ended June 30, 2012 Federal Agency / Federal Pass-Through Entity Federal Federal Grantor/Pass-through Grantor/Program or Cluster Title CFDA No.. Identifying Number Expenditures Passed through State Department of Social Services: Temporary Assistance for Needy Families (TANF) 93.558 23,687 $ Community-Based Child Abuse Prevention Grants 93.590 30,000 Foster Care - Title IV-E 93.658 158,700 Adoption Assitance Program 93.659 21,472 In Home Supportive Services 93.667 119,715 Subtotal Passed through State Department of Social Services 353,574 Total U.S. Department of Health and Human Services 1,106,014 U.S. Department of Homeland Security Passed through the California Emergency Management Agency: Emergency Management Performance Grant 97.042 2011-0048 42,966 Passed through the City of San Francisco Interoperable Emergency Communication Grant Program 97.055 2009-0015 469,711 Interoperable Emergency Communication Grant Program 97.055 2010-0016 245,000 Subtotal Passed through the City of San Francisco 714,711 Passed through State Department of Homeland Security Homeland Security Grant Program - SHSP 97.073 2009-0019 9,003 Homeland Security Grant Program - SHSP 97.073 2010-0085 6,721 Subtotal Passed through State Department of Homeland Security 15,724 Total U.S. Department of Homeland Security 773,401 Total Expenditures of Federal Awards 4,110,435 $ See accompanying Notes to Schedule of Expenditures of Federal Awards. 3 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Schedule of Federal Awards Fiscal Year Ended June 30, 2012 4 Note 1: General The accompanying schedule of expenditures of federal awards (SEFA) for the fiscal year ended June 30, 2012, presents the activity of all federal award programs of the County of Alpine, California (County). The County reporting entity is defined in Note 1 to the County’s basic financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the SEFA. Note 2: Basis of Accounting The accompanying SEFA is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1 to the County’s basic financial statements. Note 3: Catalog of Federal Domestic Assistance (CFDA) Numbers The CFDA numbers included in the accompanying SEFA were determined based on the program name, review of grant contract information and the Office of Management and Budget’s Catalog of Federal Domestic Assistance. Note 4: Pass-Through Entity Identifying Numbers The County has included in the SEFA the identifying numbers for pass-through grants when such information has been provided by the pass-through entities. For grants that the County was not provided with such information by the pass-through entities, the County has indicated the pass-through identifying numbers as to disclose the information was not applicable or not available. Note 5: American Recovery and Reinvestment Act Expenditures In accordance with requirements under OMB Circular A-131, expenditures for federal awards under the American Recovery and Reinvestment Act of 2009 (ARRA) are separately identified by inclusion of the prefix “ARRA” on the SEFA. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Schedule of Federal Awards Fiscal Year Ended June 30, 2012 5 Note 6: Program Clusters Federal programs, which must be audited together as a program cluster, include the following: Federal Federal CFDA Program Title Expenditures JAG Program Cluster: 16.738 Edward Byrne Memorial Justice Assistance Grant Program – Anti-Drug Abuse Grant $ 86,663 16.804 ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program / Grants to Units of Local Government 204,953 Total $ 291,616 ---PAGE BREAK--- 6 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Supervisors County of Alpine Markleeville, California We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County of Alpine (the County) as of and for the year ended June 30, 2012, and have issued our report thereon dated March 21, 2013. 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. Internal Control Over Financial Reporting Management of the County is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the County's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management 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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting 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 financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined previously. Compliance and Other Matters As part of obtaining reasonable assurance about whether the County’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 ---PAGE BREAK--- 7 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 management, the Board of Supervisors, 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. Clovis, California March 21, 2013 ---PAGE BREAK--- 8 REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 INDEPENDENT AUDITOR’S REPORT Board of Supervisors County of Alpine Markleeville, California Compliance We have audited the County of Alpine’s (the County) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the County’s major federal programs for the year ended June 30, 2012. 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. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the County’s management. Our responsibility is to express an opinion on the County’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 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. Our audit does not provide a legal determination of the County’s compliance with those requirements. In our opinion, the County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the County’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test ---PAGE BREAK--- 9 and report on internal control over compliance in accordance with OMB Circular A-133, 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 combination 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. 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 deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County, as of and for the year ended June 30, 2012, and have issued our report thereon dated March 21, 2013, which contained unqualified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for the purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the 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 information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements 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 financial statements as a whole. This report is intended solely for the information and use of management, the Board of Supervisors, and federal and awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Clovis, California March 21, 2013 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30, 2012 10 Section 1 – Summary of Auditor’s Results Financial Statements: Type of auditor’s report issued: Unqualified Internal control over financial reporting: Material weaknesses identified? No Significant deficiencies identified that are not considered to be material weaknesses? No Noncompliance material to financial Statements noted? No Federal Awards: Internal control over major programs: Material weaknesses identified? No Significant deficiencies identified that are not considered to be material weaknesses? No Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? No Identification of major programs: Program Title CFDA Number(s) Public Safety Interoperable Communications Grant Program 11.555 ARRA - Public Safety Partnership and Community Policing Grants 16.710 Block Grants for Prevention and Treatment of Alcohol and Drug Abuse 93.959 Interoperable Emergency Communications Grant Program 97.055 Dollar threshold used to distinguish between Type A and Type B programs? $300,000 Auditee qualified as low-risk auditee? No ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30, 2012 11 Section 2 – Financial Statement Findings None Section 3 – Federal Award Findings and Questioned Costs None ---PAGE BREAK--- COUNTY OF ALPINE Status of Prior Year Findings For the Fiscal Year Ended June 30, 2012 12 Audit Reference Number Status of Prior Year Audit Findings 11-SA-1 JAG Program Cluster CFDA 16.738 Award No. N/A Year: 2010/2011 ARRA – JAG Program Cluster CFDA 16.804 Award No. N/A Year 2010/2011 Recommendation We recommend that department employees who perform any work on grant functions ensure that they account for and properly document their time spent for the period. Time studies could be routinely signed at the same time as the preparation of timecards for the payroll process. Status Implemented. 11-SA-2 JAG Program Cluster CFDA 16.738 Award No. N/A Year: 2010/2011 ARRA – JAG Program Cluster CFDA 16.804 Award No. N/A Year 2010/2011 Recommendation We recommend that the requirements of OMB A-87 regarding charges for allowable costs be followed. Status Implemented. ---PAGE BREAK--- SUPPLEMENTARY SCHEDULE OF THE CALIFORNIA EMERGENCY MANAGEMENT AGENCY GRANT EXPENDITURES ---PAGE BREAK--- COUNTY OF ALPINE Supplementary Schedule of the California Emergency Management Agency Grants Expenditures For the Year Ended June 30, 2012 The following represents the State of California Emergency Management Agency grant expenditures by grant, for the fiscal year ended June 30, 2012. Expenditures Incurred For the Fiscal Year Ended June 30, 2012 Federal State Couty Program Total Share Share Share 2009-10 - Public Safety Interoperable Communications Grant (PSIC) Personal services - $ - $ - $ - $ Operating expenses 436,777 436,777 - - Totals 436,777 $ 436,777 $ - $ - $ Law Enforcement Assistance narcotics and Dangerous Drugs Laboratory Analysis - Evidence-based Grant Operating expenses 1,180 $ 1,180 $ - $ - $ 1,180 $ 1,180 $ - $ - $ VW10110020 - Victim Witness Program Personal services 37,563 $ 37,563 $ - $ - $ Operating expenses 14,438 14,438 - - Totals 52,001 $ 52,001 $ - $ - $ DC11220020 - Edward Byrne Memorial Justice Assistance Grant Program - Anti-Drug Abuse Grant Personal services 81,842 $ 81,842 $ - $ - $ Operating expenses 4,821 4,821 - - Totals 86,663 $ 86,663 $ - $ - $ ZA09010020 - Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program / Grants to Units of Local Government Personal services 62,666 $ 62,666 $ - $ - $ Operating expenses 84,822 84,822 - - Equipment 5,000 5,000 - - Totals 152,488 $ 152,488 $ - $ - $ ZM09010020 - Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program / Grants to Units of Local Government Personal services 52,465 $ 52,465 $ - $ - $ Operating expenses - - - - Totals 52,465 $ 52,465 $ - $ - $ 2011-0048 - Emergency Management Performance Grant Personal services 32,856 $ 32,856 $ - $ - $ Operating expenses 10,110 10,110 - - Totals 42,966 $ 42,966 $ - $ - $ 13