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COUNTY OF ALPINE SINGLE AUDIT REPORT JUNE 30, 2014 ---PAGE BREAK--- Table of Contents Page Schedule of Expenditures of Federal Awards 1-3 Notes to the Schedule of Expenditures of Federal Awards 4 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 5-6 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 7-8 Schedule of Findings and Questioned Costs 9-10 Status of Prior Year Findings 11 Supplementary Schedule of the California Emergency Management Agency Grant Expenditures 12 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2014 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 Public Health: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (SNAP) - Education 10.561 13-20105 3,319 $ Passed through the State Department of Social Services: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (SNAP) 10.561 67,150 Subtotal 10.561 70,469 Passed through State Controller's Office: Secure Payments for States and Counties Containing Federal Lands 10.665 212,116 Direct Federal Programs: Secure Payments for States and Counties Containing Federal Lands 10.665 8,225 Subtotal 10.665 220,341 Total U.S. Department of Agriculture 290,810 U.S. Department of the Interior Direct Federal Programs: Payments in Lieu of Taxes 15.226 110-343 159,634 Total U.S. Department of the Interior 159,634 U.S. Department of Justice Passed through the California Emergency Management Agency: Victim/Witness Assistance Program 16.575 VW10110020 43,095 Total U.S. Department of Justice 43,095 U.S. Department of Labor Passed through Golden Sierra Job Training Agency: Workforce Investment Act (WIA) Adult 17.258 K282473-03 4,820 Workforce Investment Act (WIA) Adult 17.258 K386295-02 10,332 Workforce Investment Act (WIA) Displaced Workers 17.278 K282473-03 12,774 Workforce Investment Act (WIA) Displaced Workers 17.278 K386295-02 13,418 Workforce Investment Act (WIA) Youth 17.279 K282473-03 5,793 Workforce Investment Act (WIA) Youth 17.279 K386295-02 5,629 Workforce Investment Act (WIA) Rapid Response 17.279 K282473-03 5,122 Workforce Investment Act (WIA) Rapid Response 17.279 K386295-02 4,719 Total U.S. Department of Labor 62,607 continued See accompanying notes to schedule of expenditures of federal awards and the independent auditor's report on compliance for each major program and on internal control over compliance required by OMB Circular A-133. 1 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards (continued) For the Year Ended June 30, 2014 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 Transportation Passed through the State Department of Transportation: FHWA / Caltrans Bridge Maintenance Program 20.205 1000020549L-N 27,349 $ FHWA / Caltrans Bridge Maintenance Program 20.205 1000020549L-N 76,792 FTA 5311 Formula Grants for Other Than Urbanized Areas 20.509 35,542 Total U.S. Department of Transportation 139,683 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 93.959 239,266 Passed through State Department of Health Care Services: Medical Assistance Programs 93.778 24,018 Child Health & Disability Prevention Program 93.778 20,306 Maternal and Child Health Services 93.994 201202 10,991 Maternal and Child Health Services 93.994 201302 47,749 Subtotal Passed through State Department of Health Care Services 103,064 Passed through State Department of Mental Health: Substance Abuse and Mental Health Services Administration 93.958 11,023 Passed through State Department of Public Health: Public Health Emergency Preparedness Program 93.069 EPO 13-02 139,070 Immunization Program 93.268 10-95361 24,600 Hospital Preparedness Program 93.889 EPO 13-02 105,293 Subtotal Passed through State Department of Public Health 268,963 Passed through State Department of Social Services: Temporary Assistance for Needy Families (TANF) 93.558 49,548 Community-Based Child Abuse Prevention Grants 93.590 31,659 Foster Care - Title IV-E 93.658 141,709 Adoption Assitance Program 93.659 13,355 Social Services Block Grant 93.667 85,360 Subtotal Passed through State Department of Social Services 321,631 Total U.S. Department of Health and Human Services 943,947 U.S. Department of Homeland Security Passed through the California Emergency Management Agency: Emergency Management Performance Grant 97.042 2012-0027 108,503 Emergency Management Performance Grant 97.042 2013-0047 88,313 Subtotal Passed through California Emergency Management Agency 196,816 continued See accompanying notes to schedule of expenditures of federal awards and the independent auditor's report on compliance for each major program and on internal control over compliance required by OMB Circular A-133. 2 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards (continued) For the Year Ended June 30, 2014 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 Homeland Security Homeland Security Grant Program - SHSP 97.073 2011-0077 73,040 $ Homeland Security Grant Program - SHSP 97.073 2012-00123 50,894 Subtotal Passed through State Department of Homeland Security 123,934 Total U.S. Department of Homeland Security 320,750 Total Expenditures of Federal Awards 1,960,526 $ See accompanying notes to schedule of expenditures of federal awards and the independent auditor's report on compliance for each major program and on internal control over compliance required by OMB Circular A-133. 3 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Schedule of Federal Awards For the Year Ended June 30, 2014 4 Note 1: General The accompanying schedule of expenditures of federal awards (SEFA) for the fiscal year ended June 30, 2014, 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: Program Clusters Federal programs, which must be audited together as a program cluster, include the following: Federal Federal CFDA Program Title Expenditures Workforce Investment Act (WIA) Program Cluster: 17.258 WIA Adult $ 15,152 17.278 WIA Displaced Workers 26,192 17.279 WIA Youth 11,422 17.279 WIA Rapid Response 9,841 Total $ 62,607 ---PAGE BREAK--- 5 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Supervisors County of Alpine Markleeville, California 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 activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County of Alpine, California (the County), as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated March 23, 2015. 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 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 a combination of deficiencies, 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 material 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 weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 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 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. ---PAGE BREAK--- 6 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance 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 County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Clovis, California March 23, 2015 ---PAGE BREAK--- 7 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 To the Board of Supervisors County of Alpine Markleeville, California Report on Compliance for Each Major Federal Program 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, 2014. 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 the requirements of laws, regulations, contracts, and grants 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 programs 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 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 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 of Alpine, California 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 June 30, 2014. ---PAGE BREAK--- 8 Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the 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 requirements 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 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. 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 compliance, 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. Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 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, California, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements. We issued our report thereon dated March 23, 2015, 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 OMB Circular A-133 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 basic 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 basic financial statements or to the basic 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 basic financial statements as a whole. 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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Clovis, California March 23, 2015 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2014 9 Section 1 – 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 that are not considered to be material weaknesses? None reported 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 Type of auditor’s report issued on compliance for major programs Unmodified 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) Secure Payments for States and Counties Containing Federal Lands 10.665 Payments in Lieu of Taxes 15.226 Foster Care – Title IV-E 93.658 Dollar threshold used to distinguish between Type A and Type B programs? $300,000 Auditee qualified as low-risk auditee? Yes ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2014 10 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 Year Ended June 30, 2014 11 Audit Reference Number Status of Prior Year Audit Findings There were no audit findings in the prior year. ---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, 2014 The following represents the State of California Emergency Management Agency grant expenditures by grant, for the fiscal year ended June 30, 2014 Expenditures Incurred For the Year Ended June 30, 2014 Federal State Couty Program Total Share Share Share VW10110020 - Victim Witness Program Personal services 31,075 $ 31,075 $ - $ - $ Operating expenditures 12,020 12,020 - - Totals 43,095 $ 43,095 $ - $ - $ 2012-0027 - Emergency Management Performance Grant Equipment 108,503 $ 108,503 $ - $ - $ Totals 108,503 $ 108,503 $ - $ - $ 2013-047 - Emergency Management Performance Grant Personal services 13,420 $ 13,420 $ - $ - $ Equipment 74,893 74,893 - - Totals 88,313 $ 88,313 $ - $ - $ 12