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COUNTY OF ALPINE SINGLE AUDIT REPORT JUNE 30, 2011 ---PAGE BREAK--- COUNTY OF ALPINE Single Audit Report For the Year Ended June 30, 2011 Table of Contents Page 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 1-2 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133 3-5 Schedule of Expenditures of Federal Awards 6-8 Notes to Schedule of Expenditures of Federal Awards 9-10 Schedule of Findings and Questioned Costs 11-18 Summary Schedule of Prior Audit Findings 19 Supplementary Schedule of the California Emergency Management Agency Grants Expenditures 20 ---PAGE BREAK--- 1 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 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 (County), as of and for the year ended June 30, 2011, which collectively comprise the County’s financial statements and have issued our report thereon dated May 18, 2012. 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 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. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness. 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. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 11-FS-1 to be a material weakness. 925 Highland Pointe Drive, Suite 450, Roseville, CA 95678-5418 tel: [PHONE REDACTED] fax: [PHONE REDACTED] www.gallina.com ---PAGE BREAK--- 2 Board of Supervisors County of Alpine 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 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. The County’s response to the finding identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the County’s response and, accordingly, we express no opinion on the response. This report is intended solely for the information of the County 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. Roseville, California May 18, 2012 ---PAGE BREAK--- 3 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of Supervisors County of Alpine Markleeville, California Compliance We have audited the compliance of the County of Alpine (County), with the types of compliance requirements described in the U.S. Office of Management and Budget (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, 2011. 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 on the County’s compliance with those requirements. As described in items 11-SA-1 and 11-SA-2 in the accompanying schedule of findings and questioned costs the County did not comply with requirements regarding activities allowed or unallowed and allowable costs/costs principles that are applicable to its JAG Cluster Program. Compliance with such requirements is necessary, in our opinion, for the County to comply with the requirements that could have a direct and material effect on that program. 925 Highland Pointe Drive, Suite 450, Roseville, CA 95678-5418 tel: [PHONE REDACTED] fax: [PHONE REDACTED] www.gallina.com ---PAGE BREAK--- 4 Board of Supervisors County of Alpine In our opinion, except for the noncompliance described in the preceding paragraph, the County 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, 2011. Internal Control Over Compliance The management of the County 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 County’s internal control over compliance with the 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, 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. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. 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 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. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 11-SA-1 to be a material weakness. 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. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 11-SA-2 to be a significant deficiency. The County’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the County’s responses and, accordingly, we express no opinion on the responses. ---PAGE BREAK--- 5 Board of Supervisors County of Alpine 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 of Alpine as of and for the year ended June 30, 2011, and have issued our report thereon dated May 18, 2012, 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 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 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 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 information is fairly stated in all material respects in relation to the financial statements as a whole. The Supplementary Schedule of the California Emergency Management Agency has not been subjected to auditing procedures applied in the audit of the basic financial statements, and accordingly, we express no opinion on it. This report is intended solely for the information of the County 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. Roseville, California May 18, 2012 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2011 Federal Pass-Through CFDA Grantor's Disbursements/ Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures U.S. Department of Agriculture Passed through State Department of Social Services: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 38,626 $ Passed through State Controller’s Office: Secure Payments for States and Counties Containing Federal Lands 10.665 336,816 Total U.S. Department of Agriculture 375,442 $ U.S. Department of Commerce Passed through California Emergency Management Agency: FY 07 Public Safety Interoperable Communications Grant (PSIC) 11.555 2009-10 163,224 Total U.S. Department of Commerce 163,224 $ U.S. Department of the Interior Direct Program: Payments in Lieu of Taxes 15.226 110-343 143,726 Total U.S. Department of the Interior 143,726 $ U.S. Department of Justice Direct Program: ARRA - Public Safety Partnership and Community Policing Grants 16.710 2010CKWX0393 65,877 Passed through California Emergency Management Agency: Law Enforcement Assistance Narcotics and Dangerous Drugs Laboratory Analysis - Evidence-based Grant 16.001 13,307 Victim Witness Program 16.575 VW10110020 48,971 Edward Byrne Memorial Justice Assistance Grant Program - Anti-Drug Abuse Grant 16.738 DC10210020 120,345 Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government - ADA Recovery Act 16.804 DC09200020 162,728 Subtotal Pass-Through 345,351 Total U.S. Department of Justice 411,228 $ See accompanying Notes to Schedule of Expenditures of Federal Awards. 6 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2011 Federal Pass-Through CFDA Grantor's Disbursements/ Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures U.S. Department of Transportation Passed through State Department of Transportation: ARRA - FHWA/Caltrans Bridge Maintenance Program 20.205 1000020549L-N 9,180 $ ARRA - SPOA 20.205 5931(025) 15,732 ARRA - Emigrant Trail/Alpine Village Road Rehabilitation 20.205 5931(017) 136,728 Total U.S. Department of Transportation 161,640 $ U.S. Department of Health and Human Services Passed through State Department of Social Services: Family Preservation and Support Services 93.556 6,961 Child Welfare Services – State Grants 93.645 24 Foster Care – Title IV-E 93.658 143,415 Adoption Assistance Program 93.659 24,711 In Home Supportive Services 93.667 50,559 Subtotal 225,670 Temporary Assistance for Needy Families (TANF) 93.558 34,641 ARRA - Emergency Contingency Fund for Temporary Assistance for Needy Familes (TANF) State Program 93.714 65,190 Subtotal TANF Cluster 99,831 Subtotal Pass-Through 325,501 Passed through State Department of Health Care Services: Medical Assistance Programs 93.778 31,495 Maternal and Child Health Services 93.994 62,338 Children's Medical Services 93.994 30,651 Subtotal CFDA Number 93.994 92,989 Subtotal Pass-Through 124,484 Passed through State Department of Public Health: Public Health Emergency Preparedness Program 93.069 142,019 Immunization Program 93.268 10-95361 20,000 Hospital Preparedness Program 93.889 106,005 Subtotal Pass-Through 268,024 Passed through State Department of Mental Health: Substance Abuse and Mental Health Services Administration 93.958 10,305 See accompanying Notes to Schedule of Expenditures of Federal Awards. 7 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2011 Federal Pass-Through CFDA Grantor's Disbursements/ Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures U.S. Department of Health and Human Services (continued) Passed through State Department of Alcohol and Drug Abuse Programs: Block Grants for Prevention and Treatment of Substance Abuse 93.959 249,762 $ Total U.S. Department of Health and Human Services 978,076 $ U.S. Department of Homeland Security Direct Program: Staffing for Adequate Fire and Emergency Response 97.083 EMW-2006-FF-04730 48,560 Passed through State Department of Homeland Security: FY 10 Homeland Security Grant Program - SHSP 97.073 2010-0085 16,987 FY 09 Homeland Security Grant Program - SHSP 97.073 2009-0019 68,116 Subtotal CFDA Number 97.073 85,103 Passed through California Emergency Management Agency: Emergency Management Planning Grant FY10 97.042 2010-0044 125,207 Total U.S. Department of Homeland Security 258,870 $ Total Expenditures of Federal Awards 2,492,206 $ See accompanying Notes to Schedule of Expenditures of Federal Awards. 8 ---PAGE BREAK--- COUNTY OF ALPINE Notes to Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2011 9 Note 1: Reporting Entity The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the County of Alpine. The County of Alpine’s 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 in the schedule. Note 2: Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the County and is presented based on Generally Accepted Accounting Principles. 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 3: Relationship to Financial Statements The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the County’s financial statements. Federal award revenues are reported principally in the County’s financial statements as intergovernmental revenues in the General and Special Revenue funds. Note 4: Subrecipients Of the federal expenditures presented in the Schedule of Expenditures of Federal Awards, the County of Alpine provided federal awards to subrecipients as follows: Amount Federal Provided to CFDA Program Title Subrecipient 93.959 Block Grants for Prevention and Treatment of Substance Abuse $ 80,000 ---PAGE BREAK--- COUNTY OF ALPINE Notes to Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2011 10 Note 5: 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 $ 120,345 16.804 Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government – ADA Recovery Act 162,728 Total $ 283,073 Temporary Assistance for Needy Families Cluster: 93.558 Temporary Assistance for Needy Families $ 36,641 93.714 ARRA – Emergency Contingency Fund for Temporary Assistance for Needy Families (TANF) State Program 65,190 Total $ 99,831 Note 6: Pass-Through Entities’ Identifying Number When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the County either determined that no identifying number is assigned for the program or was simply unable to obtain an identifying number from the pass-through entity. ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2011 11 Section 1 Financial Statements Summary of Auditor’s Results 1. Type of auditor’s report issued: Unqualified 2. Internal controls over financial reporting: a. Material weaknesses identified? Yes b. Significant deficiencies identified not considered to be material weaknesses? None Reported 3. Noncompliance material to financial statements noted? No Federal Awards 1. Internal control over major programs: a. Material weaknesses identified? Yes b. Significant deficiencies identified not considered to be material weaknesses? Yes 2. Type of auditor’s report issued on compliance for major programs: JAG Program Cluster Qualified All Other Major Programs Unqualified 3. Any audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510(a)? Yes 4. Identification of major programs: CFDA Number 10.665 Schools and Roads – Grants to States 11.555 Public Safety Interoperable Communications Grant Program 15.226 Payments in Lieu of Taxes 16.738, 16.804 JAG Cluster Program 20.205 Highway Planning and Construction 93.959 Block Grants for Prevention and Treatment of Substance Abuse ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2011 12 Section 1 (continued) Federal Awards (continued) Summary of Auditor’s Results 5. Dollar threshold used to distinguish between Type A and Type B programs? $300,000 6. Auditee qualified as a low-risk auditee under OMB Circular A-133, Section 530? No Section 2 Financial Statement Findings Capital Assets Completeness Finding 11-FS-1 Section 3 Federal Award Findings and Questioned Costs CFDA 16.738, 16.804 Finding 11-SA-1 CFDA 16.738, 16.804 Finding 11-SA-2 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2011 Finding/Program Findings/Noncompliance 13 Finding 11-FS-1 Capital Assets Completeness Reporting Requirement: Material Weakness Criteria All expenditures incurred to construct a capital asset should be included in construction in progress in the year in which the expenditure is incurred. Upon completion of the project, the total cost to construct the capital asset should be moved from the construction in progress account to the appropriate capital asset category such as structures and improvements or infrastructure. Condition During our audit, we identified road construction costs of approximately $1 million which were not identified as additions to infrastructure at June 30, 2011. Cause During the year-end closing process, the County did not sufficiently review the project-related expenditure accounts to ensure its capital asset summary was complete. Effect of Condition The County could materially understate its capital asset accounts while overstating its expenses in the government-wide statement of activities. Over time, these misstatements could accumulate to significant proportions. Recommendation We recommend the Auditor-Controller’s Office modify its year-end closing process to include a more thorough review of accounts used to account for construction costs. Additionally, we recommend the Auditor-Controller’s Office work more closely with the transportation department during the year-end closing process to ensure the County’s construction in progress, infrastructure and structures and improvement account balances are accurate and complete. ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2011 Finding/Program Findings/Noncompliance 14 Finding 11-FS-1 (continued) Management Response Management was not aware of the threshold for capitalizing road pavement overlays. Management will work more closely with the Community Development Agency during the year end process to ensure the County’s construction in progress, infrastructure and structures and improvement account balances are accurate and complete. ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2011 Finding/Program Findings/Noncompliance 15 Finding 11-SA-1 JAG Program Cluster CFDA 16.738 Award No. N/A Year: 2010/2011 and ARRA – JAG Program Cluster CFDA 16.804 Award No. N/A Year: 2010/2011 Federal Grantor: U.S. Department of Justice Pass-Through Entity: California Emergency Management Agency Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria OMB A-87 requires that payroll charged to federal programs be supported by either personnel activity reports, which reflect an after-the-fact distribution of the actual and total activity of each employee, are prepared at least and coincide with one or more pay periods, and are signed by the employee, or an acceptable substitute system for allocating salaries and wages, which quantifiably measures employee effort on the program. OMB A-87 specifically allows for budget estimates, but provides that the budget method of posting employee time be adjusted to personnel activity reports. Individuals working on only one federal program can sign a statement every six months that they worked only on that program in lieu of preparing personnel activity reports. Condition During our audit, we noted payroll costs charged to the JAG Cluster Program were based on budgetary estimates. The budgetary estimates were not adjusted to actual personnel activity reports. Questioned Costs No costs are questioned. Cause The payroll expenditures charged to the JAG cluster were based on budgetary estimates and were not amended to reflect the time actually accounted for by personnel in their respective activity reports. ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2011 Finding/Program Findings/Noncompliance 16 Finding 11-SA-1 (continued) JAG Program Cluster CFDA 16.738 and ARRA – JAG Program Cluster CFDA 16.804 Effect of Condition Signed personnel activity reports provide evidence of actual time spent working on activities for these grants. Without these it is not possible to verify actual time spent on the program. 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. Corrective Action Plan The Sheriff’s Office disagrees with this finding in that personnel currently provide daily activity reports on all activities within the Sheriff’s Office. These “patrol logs” assure that offices account for all activity during a work shift. The Sheriff’s Office does agree that budgeting personnel by percentage of a position and budgetary estimates which can lead to an audit exception should there be insufficient work for the percentage allocated. Corrective Action Plan: o During the May 1, 2012 Board meeting the Sheriff Office pointed out issues and problems with the County payroll system, including errors in leave balances. This payroll system is cumbersome and could lead to payroll errors and miscalculations of pay. The Sheriff’s Office has requested a replacement system. o The Sheriff has requested that the County, through the budgeting process, place all positions in the Sheriff’s Office budget and identify grant funds as offsetting revenue. The appropriate positions could then charged against the grants as work activity occurs. This would be more accurate than estimating workloads and then ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2011 Finding/Program Findings/Noncompliance 17 Finding 11-SA-2 JAG Program Cluster CFDA 16.738 Award No. N/A Year: 2010/2011 and ARRA – JAG Program Cluster CFDA 16.804 Award No. N/A Year: 2010/2011 benchmarking grants to the estimated grant activity. Federal Grantor: U.S. Department of Justice Pass-Through Entity: California Emergency Management Agency Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria OMB Circular A-87 (A-87) establishes principles and standards for determining allowable direct and indirect costs for Federal awards; State/Local-Wide Central Service Costs; State/Local Department or Agency Costs (Direct and Indirect); and State Public Assistance Agency Costs. Condition During our review we noted that a meal ($830) was provided for officers on a stake-out and was charged to this grant. Questioned Costs Likely questioned costs amount to $830. Cause Staff involved in making decisions related to allowable costs were unaware that the item mentioned above was an expenditure not allowed under the grant. Effect of Condition Ensuring that only allowable costs are charged to the grant is a vital function of this Department. Failure by the Department to properly identify unallowable costs could cause the federal government to be liable for the costs through the JAG Cluster Program. Recommendation We recommend that the requirements of OMB A-87 regarding charges for allowable costs (described above) be followed. ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2011 Finding/Program Findings/Noncompliance 18 Finding 11-SA-2 (continued) JAG Program Cluster CFDA 16.738 and ARRA – JAG Program Cluster CFDA 16.804 Corrective Action Plan The Sheriff’s Office agrees with this finding, in that field lunches were provided to officers engaged in tactical drug operations for an unusual and extended length of time. This was a cost not covered under the grant these officers were working under. Corrective Action Plan: Staff that is involved in making these types of decisions has been actively attending grant management training offered by the State of California. ---PAGE BREAK--- COUNTY OF ALPINE Summary Schedule of Prior Audit Findings For the Year Ended June 30, 2011 Audit Reference Number Status of Prior Year Audit Findings 19 Finding 10-SA-1 Block Grants for Prevention and Treatment of Substance Abuse (SAPT) CFDA 93.959 Award No. N/A Year: 2009/2010 Recommendation We recommend that the requirements of OMB A-87 regarding charges for payroll (described above) be followed. This can be accomplished either by allocating payroll as reported on personnel activity reports initially or by adjusting the budgeted time to personnel activity reports on at least a quarterly basis. Status Implemented. Finding 10-SA-2 Public Health Emergency Preparedness (PHEP) CFDA 93.069 Award No. N/A Year: 2009/2010 Recommendation We recommend that the requirements of OMB A-87 regarding charges for payroll (described above) be followed. This can be accomplished either by allocating payroll as reported on personnel activity reports initially or by adjusting the budgeted time to personnel activity reports on at least a quarterly basis. Status Implemented. ---PAGE BREAK--- SUPPLEMENTARY SCHEDULE OF THE CALIFORNIA EMERGENCY MANGAGEMENT AGENCY GRANTS EXPENDITURES ---PAGE BREAK--- COUNTY OF ALPINE Supplementary Schedule of the California Emergency Management Agency Grants Expenditures For the Year Ended June 30, 2011 California Emergency Management Agency Grants Share of Expenditures Expenditures Claimed Current Year For the Period For the Year Cumulative Through Ended As of Federal State County Program June 30, 2010 June 30, 2011 June 30, 2011 Share Share Share Law Enforcement Assistance Narcotics and Dangerous Drugs Laboratory Analysis - Evidence-based Grant Operating expenses 13,307 13,307 13,307 Totals $ 13,307 $ 13,307 $ 13,307 $ $ $ VW10110020 - Victim Witness Program Personal services $ 36,815 $ 36,815 $ 36,815 $ $ $ Operating expenses 12,156 12,156 12,156 Totals $ 48,971 $ 48,971 $ 48,971 $ $ $ DC10210020 - Edward Byrne Memorial Justice Assistance Grant Program - Anti-Drug Abuse Grant Operating expenses $ 120,345 $ 120,345 $ 120,345 $ $ $ Totals $ 120,345 $ 120,345 $ 120,345 $ $ $ ZA09010020/ZM09010020 - Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government - Anti-Drug Abuse Grant Personal services $ 135,516 $ 135,516 $ 135,516 $ $ $ Operating expenses 27,212 27,212 27,212 Totals $ 162,728 $ 162,728 $ 162,728 $ $ $ VP09100020 - Vertical Prosecution Operating expenses $ 3,045 $ 3,045 $ $ 3,045 $ $ Totals $ 3,045 $ 3,045 $ $ 3,045 $ $ The following represents expenditures for California Emergency Management Agency (Cal EMA) programs for the year ended June 30, 2011. The amount reported in the Schedule of Expenditures of Federal Awards is determined by calculating the federal portion of the current year expenditures. 20