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COUNTY OF ALPINE SINGLE AUDIT REPORT JUNE 30, 2019 ---PAGE BREAK--- ---PAGE BREAK--- Table of Contents Page Schedule of Expenditures of Federal Awards 1-2 Notes to the Schedule of Expenditures of Federal Awards 3 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 5-6 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance and Schedule of Expenditures of Federal Awards Required by the Uniform Guidance Report and Supplemental Schedule of the California Office of Emergency Services (CalOES) Grant Expenditures 7-8 Schedule of Findings and Questioned Costs 9-11 Summary Schedule of Prior Audit Findings 12 Corrective Action Plan 13 Supplemental Schedule of the California Office of Emergency Services (CalOES) Grant Expenditures 17 ---PAGE BREAK--- ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2019 See the accompanying notes to the 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 the Uniform Guidance. 1 Federal Agency / Federal Pass-Through Entity Passed through to Federal Federal Grantor/Pass-through Grantor/Program or Cluster Title CFDA No. Identifying Number Subrecipients Expenditures U.S. Department of Agriculture Passed through the State Department of Social Services: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (SNAP) 10.561 - $ 65,568 $ Passed through State Controller's Office: Secure Payments for States and Counties Containing Federal Lands 10.665 PL 114-10 - 145,705 Total U.S. Department of Agriculture - 211,273 U.S. Department of the Interior Direct Federal Programs: Payments in Lieu of Taxes 15.226 115-31 - 167,740 Total U.S. Department of the Interior - 167,740 U.S. Department of Justice Passed through the California Office of Emergency Services (CalOES): Victim/Witness Assistance Program 16.575 VW17180020 - 55,117 Total U.S. Department of Justice - 55,117 U.S. Department of Transportation Passed through the State Department of Transportation: FHWA / Caltrans Bridge Maintenance Program 20.205 1000020549L-N - 18,051 FTA 5311 Formula Grants for Other Than Urbanized Areas 20.509 - 48,000 Total U.S. Department of Transportation - 66,051 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 - 286,261 Subtotal Passed through State Department of Alcohol and Drug Abuse - 286,261 Passed through State Department of Health Care Services: Medical Assistance Programs 93.778 - 9,965 Child Health & Disability Prevention Program 93.778 - 42,727 California Children's Services 93.778 - 13,706 Maternal and Child Health Services 93.994 201602 - 76,789 Subtotal Passed through State Department of Health Care Services - 143,187 Passed through State Department of Public Health: Immunization Program 93.268 15-10411 - 30,845 Public Health Emergency Preparedness Program 93.069 17-10143 - 90,701 Public Health Emergency Preparedness Program 93.069 17-10143 - 182,624 Subtotal Passed through State Department of Public Health - 304,170 continued ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Expenditures of Federal Awards (continued) For the Year Ended June 30, 2019 See the accompanying notes to the 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 the Uniform Guidance. 2 Federal Agency / Federal Pass-Through Entity Passed through to Federal Federal Grantor/Pass-through Grantor/Program or Cluster Title CFDA No. Identifying Number Subrecipients Expenditures U.S. Department of Health and Human Services (Continued) Passed through State Department of Social Services: Temporary Assistance for Needy Families (TANF) 93.558 - 31,740 Community-Based Child Abuse Prevention Grants 93.590 30,030 30,030 Foster Care - Title IV-E 93.658 - 148,054 Adoption Assistance Program 93.659 2,569 Stephanie Tubbs Jones Child Welfare 93.645 - 6,432 In-Home Supportive Services (Social Services Block Grant) 93.667 - 104,119 CWS Title XX (Social Services Block Grant) 93.667 - 8,418 Subtotal Passed through State Department of Social Services 30,030 331,362 Total U.S. Department of Health and Human Services 30,030 1,064,980 U.S. Department of Homeland Security Passed through the California Office of Emergency Services (CalOES): Emergency Management Performance Grant 97.042 2017-0007 - 125,233 Subtotal Passed through California Office of Emergency Services (CalOES) - 125,233 Passed through State Department of Homeland Security: Homeland Security Grant Program - SHSP 97.067 2016-0102 3,990 Homeland Security Grant Program - SHSP 97.067 2017-0083 - 76,150 Subtotal Passed through Department of Homeland Security - 80,140 Total U.S. Department of Homeland Security - 205,373 Total Expenditures of Federal Awards 30,030 $ 1,770,534 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Schedule of Federal Awards For the Year Ended 30, 2019 3 Note 1: Reporting Entity The accompanying Schedule of Expenditures of Federal Awards, (SEFA) for the fiscal year ended June 30, 2019, presents the activity of all federal award programs of the County of Alpine, California (the “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 governmental agencies, are included on the SEFA. The County has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Note 2: Basis of Accounting Basis of accounting refers to when expenditures or expenses are recognized and reported on the SEFA. 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: Relationship to Financial Statements The amounts reported in the accompanying SEFA agree, in all material respects, to amounts reported within the County’s basic financial statements. Federal award revenues are reported principally in the County’s financial statements as intergovernmental revenues in the General, Special Revenue and Enterprise funds. Federal award expenditures are principally reported based on the function to which they relate. Note 4: 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 5: 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 indicted the pass-through identifying numbers as to disclose the information was not applicable or not available. ---PAGE BREAK--- 4 THIS PAGE IS LEFT BLANK INTENTIONALLY. ---PAGE BREAK--- 5 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 Board of Supervisors of the 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, 2019, 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 31, 2020. 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 controls that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. ---PAGE BREAK--- 6 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. 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 31, 2020 ---PAGE BREAK--- 7 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE AND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE AND SUPPLEMENTAL SCHEDULE OF THE CALIFORNIA OFFICE OF EMERGENCY SERVICES (CALOES) GRANT EXPENDITURES To the Board of Supervisors of the County of Alpine Markleeville, California Report on Compliance for Each Major Federal Program We have audited the County of Alpine, California’s (the “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 the County’s major federal programs for the year ended June 30, 2019. 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 statutes, regulations, and the terms and conditions 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 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 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 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, 2019. ---PAGE BREAK--- 8 Report on Internal Control over Compliance Management of the County of Alpine, California, 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 the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the 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 a 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. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2019-001 to be a significant deficiency. 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 the Uniform Guidance 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, 2019, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements. We issued our report thereon dated March 31, 2020, 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. The accompanying Supplemental Schedule of the California Office of Emergency Services (CalOES) Grant Expenditures is presented for purposes of additional analysis as required by CalOES 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 Expenditure of Federal Awards and Supplemental Schedule of the California Office of Emergency Services (CalOES) Grant Expenditures are 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Clovis, California March 31, 2020 ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2019 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? Yes X No Significant deficiencies identified that are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards: Internal control over major programs: Material weaknesses identified? Yes X No Significant deficiencies identified that are not considered to be material weaknesses? X Yes None reported 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 2CFR section 200.516(a)? X Yes No Identification of major programs: CFDA Number Name of Federal Program or Cluster 15.226 Payment in Lieu of Taxes 93.069 Public Health Emergency Preparedness Program 93.959 Block Grants for Prevention and Treatment of Substance Abuse Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? Yes X No ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2019 10 Section 2 - Financial Statement Findings None reportable. Section 3 - Federal Awards Findings and Questioned Costs 2019-001 (Significant Deficiency) Program: Block Grants for the Prevention and Treatment of Substance Abuse CFDA Number: 93.959 Federal Agency: Department of Health and Human Services Passed-Through: State Department of Health Care Services Award Number: 17-94143 Passed-Through: State Department of Health Care Services Award Year: FY 2018 Compliance Requirement: Reporting Questioned Costs: Unknown Criteria: In accordance with 2 CFR §200.303(a), a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Per the program grant award agreement, the County shall submit the Quarterly Federal Financial Management Report and a quarterly general ledger detail 60 days after quarter-end. Conditions Found: We found the following exceptions during our review of the reporting requirement: The quarters ending September 2018 and December 2018 did not have adequate supporting documentation for both payroll and non-payroll related charges that support the amounts listed by Category on the The quarters ending September 2018, December 2018, March 2019, and June 2019 did not have adequate supporting documentation for payroll related charges that support the amounts listed by Category on the Cause: The County’s Behavioral Health Department did not have adequate documentation or systems in place to support how this requirement was being met. The Department also had internal personnel changes which also caused this issue as there was no documentation available for how these requirements were being tracked. Effect: As this is a requirement noted in the program grant award agreement, the County could potentially delay or lose funding from this program if not supported or reported correctly. In addition, not having support or documentation for the will create issues when preparing the subsequent versions of those reports for the next fiscal year. ---PAGE BREAK--- COUNTY OF ALPINE Schedule of Findings and Questioned Costs For the Year Ended June 30, 2019 11 Recommendation: We recommend the Behavioral Health Department use the general ledger as a basis for the amounts reported on the and begin developing a reconciling worksheet to assist in the preparation of the every quarter. Views of Responsible Officials and Planned Corrective Actions: The County concurs – see Corrective Action Plan. ---PAGE BREAK--- COUNTY OF ALPINE Summary Schedule of Prior Audit Findings For the Year Ended June 30, 2019 12 FINANCIAL STATEMENT FINDINGS None reportable. FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS None reportable. ---PAGE BREAK--- 13 ---PAGE BREAK--- 14 THIS PAGE IS LEFT BLANK INTENTIONALLY. ---PAGE BREAK--- 15 SUPPLEMENTAL SCHEDULE OF THE CALIFORNIA OFFICE OF EMERGENCY SERVICES (CALOES) GRANT EXPENDITURES ---PAGE BREAK--- 16 THIS PAGE IS LEFT BLANK INTENTIONALLY. ---PAGE BREAK--- COUNTY OF ALPINE Supplemental Schedule of the California Office of Emergency Services (CalOES) Grant Expenditures For the Fiscal Year Ended June 30, 2019 17 The following represents the State of California Office of Emergency Services (CalOES) grant expenditures by grant, for the fiscal year ended June 30, 2019. Expenditures Incurred For the Year Ended June 30, 2019 Federal State County Program Total Share Share Share VW17180020 - Victim Witness Program Personal services 7,227 $ 5,787 $ 1,440 $ - $ Operating expenditures 8,565 8,565 - - Totals 15,792 $ 14,352 $ 1,440 $ - $ VW18190020 - Victim Witness Program Personal services 28,822 $ 14,049 $ 14,773 $ - $ Operating expenditures 26,716 26,716 - - Totals 55,538 $ 40,765 $ 14,773 $ - $ 2018-0070 - Emergency Management Performance Grant Personal services 73,817 $ 36,228 $ - $ 37,589 $ Operating expenditures 18,192 10,242 - 7,950 Equipment 158,457 78,763 - 79,694 Totals 250,466 $ 125,233 $ - $ 125,233 $