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McLean County, Illinois Compliance Report December 31, 2012 ---PAGE BREAK--- Contents 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 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 3 – 4 Schedule of expenditures of federal awards 5 – 8 Notes to schedule of expenditures of federal awards 9 Summary schedule of prior audit findings 10 Schedule of findings and questioned costs 11 – 12 Corrective action plan 13 ---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 To the County Board of McLean County, Illinois Bloomington, Illinois 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, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of McLean County, Illinois, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise McLean County, Illinois basic financial statements, and have issued our report thereon dated May 22, 2013. Our report includes a reference to other auditors who audited the financial statements of the Public Building Commission of McLean County, Illinois, as described in our report on McLean County, Illinois’ financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered McLean County, Illinois’ 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 McLean County, Illinois’ internal control. Accordingly, we do not express an opinion on the effectiveness of McLean County, Illinois’ 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 entity’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. ---PAGE BREAK--- 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether McLean County, Illinois’ 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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. We noted certain matters that we reported to management of McLean County, Illinois in a separate letter dated May 22, 2013. Davenport, Iowa May 22, 2013 ---PAGE BREAK--- 3 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 To the County Board of McLean County, Illinois Bloomington, Illinois Report on Compliance for Each Major Federal Program We have audited McLean County, Illinois’ 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 McLean County, Illinois’ major federal programs for the year ended December 31, 2012. McLean County, Illinois’ 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 McLean County, Illinois’ 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 Government, 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 McLean County, Illinois’ 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 McLean County, Illinois’ compliance. Opinion on Each Major Federal Program In our opinion, McLean County, Illinois complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2012. Report on Internal Control Over Compliance Management of McLean County, Illinois 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 McLean County, Illinois’ 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 McLean County, Illinois’ internal control over compliance. ---PAGE BREAK--- 4 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 indentify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A- 133. Accordingly, this report is not suitable for any other purpose. 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, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of McLean County, Illinois as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise McLean County, Illinois’ basic financial statements. We issued our report thereon dated May 22, 2013, which contained an unmodified opinion on those financial statements. We did not audit the financial statements of the discretely presented component unit, Public Building Commission of McLean County, Illinois, whose statements reflected no expenditures of federal awards for the year ended December 31, 2012. Those financial statements were audited by other independent auditors whose report thereon has been furnished to us, and our opinion on the basic financial statements, insofar as it relates to the amounts included for the component unit, is based solely upon the report of the other independent auditors. 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 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 expenditure of federal awards is fairly stated in all material respects in relation to the financial statements as a whole. Davenport, Iowa May 22, 2013 ---PAGE BREAK--- 5 McLean County, Illinois Schedule of Expenditures of Federal Awards Year Ended December 31, 2012 Federal Grantor's Federal Grantor/ CFDA Identifying Federal Pass-Through Grantor/Program Title Number Number Expenditures U.S. Department of Transportation: (Passed through Illinois Department of Transportation): Section 5311 Operating Assistance Grant 20.509 IL-18-X027 502,343 $ Section 5311 Rolling Stock 20.509 CAP12-999-FED 195,998 Total 20.509 698,341 Job Access and Reverse Commute Grant 20.516 IL-37-X061 Contract #4059 20,906 Job Access and Reverse Commute Grant 20.516 CAP12-999-FED 97,999 Total 20.516 118,905 New Freedom Operating & Assistance Grant 20.521 IL-57-X017-00 10,117 New Freedom Operating & Assistance Grant 20.521 IL-57-X017-00 3,331 Total 20.521 13,448 2012 Holiday Mobilization Plus 20.600 MM-12-535 1,350 Total passed through Illinois Department of Transportation 832,044 (Passed through Illinois Emergency Management Agency): Hazardous Materials Emergency Preparedness (HEMP) Grant 20.703 McLean County (LEPC) 2,393 Total U.S. Department of Transportation 834,437 U.S. Department of Justice: Direct awards: Drug Court Discretionary Grant Program 16.585 2008-DD-BX-0424 98,427 Recovery Court Grant 16.812 2010-RW-BX-0070 275,270 Safe Havens for Children Grant 16.527 2010-CW-AX-K006 184,742 State Criminal Alien Assistance Program (SCAAP) 16.606 N/A 6,161 Total direct awards 564,600 (Passed through Illinois Criminal Justice Information Authority): Edward Byrne Memorial Justice Assistance: Multi Jurisdictional Narcotics Unit (Task Force 6) 16.738 409020 44,106 Multi Jurisdictional Narcotics Unit (Task Force 6) 16.738 411020 20,000 Multi Jurisdictional Narcotics Units Radio Maintenance Grant 16.738 408720 1,193 State's Attorney Appellate Prosecutor Salary Reimbursement 16.738 408720 23,333 Total 16.738 88,632 ARRA - Adult Redeploy Illinois 16.803 809051.02 80,689 Juvenile Mental Health Program (JABG) 16.523 2010-JB-FX-0075 4,700 Law Enforcement Prosecutor Based Victim Assistance 16.575 211036 17,957 Law Enforcement Prosecutor Based Victim Assistance 16.575 212036 20,667 Child Advocacy Center Services 16.575 211207 24,172 Child Advocacy Center Services 16.575 212207 12,085 Child Advocacy Child Abuse 16.575 211049 55,445 Child Advocacy Child Abuse 16.575 212049 27,724 Total 16.575 158,050 (Continued) ---PAGE BREAK--- 6 McLean County, Illinois Schedule of Expenditures of Federal Awards (Continued) Year Ended December 31, 2012 Federal Grantor's Federal Grantor/ CFDA Identifying Federal Pass-Through Grantor/Program Title Number Number Expenditures U.S. Department of Justice (Continued): (Passed through Illinois Criminal Justice Information Authority) (Continued): Domestic Violence Multi-Disciplinary Team 16.588 610070 50,943 Domestic Violence Multi-Disciplinary Team 16.588 608070 22,658 Domestic Violence Multi-Disciplinary Team 16.588 609371 89,665 Domestic Violence Multi-Disciplinary Team 16.588 610371 34,168 Domestic Violence Multi-Disciplinary Team 16.588 609074 31,473 Domestic Violence Multi-Disciplinary Team 16.588 610074 9,284 Total 16.588 238,191 Total passed through Illinois Criminal Justice Information Authority 570,262 Total U.S. Department of Justice 1,134,862 U.S. Department of Agriculture: (Passed through Illinois Department of Human Services): Special Supplemental Nutrition Program for Women, Infants, and Children (Noncash) 10.557 N/A 1,269,789 Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 11GQ01227 215,011 Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 FCSRE01064 217,241 Total 10.557 1,702,041 WIC/Farmer's Market - Admin 10.572 N/A 1,000 Total passed through Illinois Department of Human 1,703,041 Services (Passed through Illinois State Board of Education): National School Lunch Program 10.555 2012-4210-00-17064-030P-00 8,784 National School Lunch Program 10.555 2013-4210-00-17064-030P-00 3,462 Commodities (Noncash) 10.555 ISBE Lanter Commodities 1,556 Total 10.555 13,802 School Breakfast Program 10.553 2012-4220-00-17064-030P-00 5,614 School Breakfast Program 10.553 2013-4220-00-17064-030P-00 2,161 Total 10.553 7,775 Total passed through Illinois State Board of Education 21,577 (Passed through Illinois Department of Public Health): Summer Food Facilities Inspections 10.559 35282031A 800 Total U.S. Department of Agriculture 1,725,418 (Continued) ---PAGE BREAK--- 7 McLean County, Illinois Schedule of Expenditures of Federal Awards (Continued) Year Ended December 31, 2012 Federal Grantor's Federal Grantor/ CFDA Identifying Federal Pass-Through Grantor/Program Title Number Number Expenditures U.S. Department of Health and Human Services: Direct awards: Substance Abuse and Mental Health Services Administration 93.243 1H79TI023631-01 205,633 (Passed through Illinois Department of Healthcare and Family Services): Child Support Enforcement - Title IV - D 93.563 2011-55-008-K2 10,890 Child Support Enforcement - Title IV - D 93.563 2011-55-008-K3 10,890 Child Support Enforcement - Title IV - D 93.563 2011-55-013-K2K 95,619 Child Support Enforcement - Title IV - D 93.563 2011-55-013-K3K 76,613 Child Support Enforcement - Title IV - D 93.563 2011-55-007-K2G 11,616 Child Support Enforcement - Title IV - D 93.563 2011-55-007-K3G 12,217 Total 93.563 217,845 Federal Financial Participation - Medicaid Match 93.778 Fund 0109 233,333 Total passed through Illinois Department of Healthcare and Family Services 451,178 (Passed through Illinois Supreme Court): State Court Improvements - Child Protection Data Courts Project 93.586 CIP Data-G-1102 14,141 State Court Improvements - Child Protection Data Courts Project 93.586 CIP Data-G-1202 7,808 Total 93.586 21,949 (Passed through Illinois Department of Public Health): Dental Sealant 93.994 23480130 1,712 Dental Sealant 93.994 33480129A 2,826 Total 93.994 4,538 Pandemic Influenza Outreach 93.268 N/A 387,217 Bioterrorism Training and Curriculum Development Program 93.069 27180061 71,638 Bioterrorism Training and Curriculum Development Program 93.069 37180061A 41,461 Total 93.069 113,099 Community Transformation Grant 93.531 N/A 84,315 Chronic Disease - Asthma Program Grant 93.283 23283006 2,492 Chronic Disease - Asthma Program Grant 93.283 33283006 623 Total 93.283 3,115 Total passed through Illinois Department of Public Health 592,284 (Passed through Champaign-Urbana County Public Health District): HIV Prevention Activities - Health Dept. Based 93.[PHONE REDACTED] 16,776 HIV/Acquired Immunodeficiency Virus (AIDS) Survelliance 93.944 13-75-03 14,339 Total passed through Champaign-Urbana County Public Health District 31,115 (Continued) ---PAGE BREAK--- 8 McLean County, Illinois Schedule of Expenditures of Federal Awards (Continued) Year Ended December 31, 2012 Federal Grantor's Federal Grantor/ CFDA Identifying Federal Pass-Through Grantor/Program Title Number Number Expenditures U.S. Department of Health and Human Services (Continued): (Passed through Illinois Department of Human Services): Child Care Services 93.575 Q11GQ01550 27,649 Child Care Services 93.575 FCSRI01763 33,237 Total 93.575 60,886 Title XX 93.667 FCSRE01576 10,100 Total passed through Illinois Department of Human Services 70,986 (Passed through National Association of County and City Health Officials): Medical Reserve Corp Grant 93.008 N/A 9,348 (Passed through Illinois State Board of Elections): VAID III 93.617 N/A 6,629 Total U.S. Department of Health and Human Services 1,389,122 Elections Assistance Commission (Passed through Illinois State Board of Elections), HAVA Grant Phase II 90.401 N/A 22,581 U.S. Environmental Protection Agency (Passed through the Illinois Department of Public Health), Noncommunity Water Grant 66.605 N/A 1,538 Department of Homeland Security (Passed through Illinois Emergency Management Agency): Emergency Management State and Local Assistance 97.042 11EMAMCLEA 59,381 U.S. Department of Energy (Passed through Illinois Association of Regional Councils), ARRA - Health Building Retro-fit Light Fixtures 81.128 10-451001-009-004 23,472 Total Expenditures of Federal Awards 5,190,811 $ See Notes to Schedule of Expenditures of Federal Awards. ---PAGE BREAK--- McLean County, Illinois Notes to Schedule of Expenditures of Federal Awards Year Ended December 31, 2012 9 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of McLean County, Illinois and its discretely presented component unit, the Emergency Telephone Systems Board, and is presented on the modified accrual basis of accounting. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other governmental agencies expended during the year, is included in the schedule. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments and Nonprofit Organizations. Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Note 2. Significant Accounting Policies Revenue from federal awards is recognized when the County has done everything necessary to establish its right to revenue and the revenue met the availability criteria. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and approved for reimbursement. Note 3. Subrecipients Of the federal expenditures presented in the schedule, the County provided federal awards to subrecipients as follows: Note 4. Noncash Assistance As reported on the schedule of expenditures of federal awards, McLean County, Illinois, distributed noncash assistance as follows: The above amounts were included in the determination of federal awards expended for the year. Amount Federal CFDA Provided to Program Title Number Subrecipients Section 5311 Operating Assistance Grant 20.509 502,343 $ Section 5311 Rolling Stock 20.509 195,998 Job Access and Reverse Commute Grant 20.516 118,905 New Freedom Operating and Assistance Grant 20.521 13,448 Safe Havens for Children Grant 16.527 184,742 Multi Jurisdictional Narcotics Unit 16.738 44,106 Multi Jurisdictional Narcotics Units Radio Maintenance Grant 16.738 21,193 Domestic Violence Multi-Disciplinary Team 16.588 72,004 Food coupons 1,269,789 $ Immunizations 387,217 Food commodities 1,556 ---PAGE BREAK--- 10 McLean County, Illinois Summary Schedule of Prior Audit Findings Year Ended December 31, 2012 Corrective Action Plan Current or Other Number Comment Status Explanation None Reported ---PAGE BREAK--- 11 McLean County, Illinois Schedule of Findings and Questioned Costs Year Ended December 31, 2012 I. Summary of the Auditor's Results Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: . Material weakness(es) identified? Yes No . Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes None Reported . Noncompliance material to financial statements noted? Yes No Federal Awards Internal control over major programs: . Material weakness(es) identified? Yes No . Significant deficiency(ies) identified that are not considered to be material weaknesses? 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 Section 510(a) of Circular A-133? Yes No Identification of major program: CFDA Number Name of Federal Program or Cluster 10.557 Special Supplemental Nutrition Program for Women, Infants and Children 20.509 Section 5311 Operating Assistance Grant (ShowBus pass-thru) and Section 5311 Rolling Stock (ShowBus pass-thru) 93.268 Pandemic Immunization Outreach Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? Yes No (Continued) ---PAGE BREAK--- McLean County, Illinois Schedule of Findings and Questioned Costs (Continued) Year Ended December 31, 2012 12 II. Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance With Generally Accepted Government Auditing Standards A. Internal Control None reported B. Instance of Noncompliance None reported III. Findings and Questioned Costs for Federal Awards A. Internal Control None reported B. Instances of Noncompliance None reported ---PAGE BREAK--- 13 McLean County, Illinois Corrective Action Plan Year Ended December 31, 2012 Anticipated Current Corrective Date of Contact Number Comment Action Plan Completion Person None reported