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CITY OF LARAMIE, WYOMING COMPLIANCE REPORTS June 30, 2012 ---PAGE BREAK--- C O N T E N T S Page INDEPENDENT AUDITOR’S REPORT ON ADDITIONAL INFORMATION 1 Schedule of Expenditures of Federal Awards 2-3 Notes to the Schedule of Expenditures of Federal Awards 4 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 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 7-8 Schedule of Findings and Questioned Costs 9 ---PAGE BREAK--- ---PAGE BREAK--- INDEPENDENT AUDITOR’S REPORT ON ADDITIONAL INFORMATION To Honorable Mayor and Members of the City Council and City Manager City of Laramie, Wyoming Our report on our audit of the financial statements of City of Laramie, Wyoming for the year ended June 30, 2012 appears on pages 9 and 10 of their comprehensive annual financial reporting package. Our audit was performed for the purpose of forming an opinion on the financial statements taken 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 financial statements of City of Laramie, Wyoming. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole. Laramie, Wyoming December 1, 2012 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2012 U.S. Department of Agriculture Passed through the Wyoming Department of Education Special Milk Program for Children 10.556 503 $ Total U.S. Department of Agriculture 503 U.S. Department of Housing and Urban Development Office of Community Planning and Development Passed through the Wyoming Business Council Community Development Block Grants/State's Program and None-Entitlement Grants in Hawaii 14.228 15,000 $ Total U.S. Department of Housing and Urban Development 15,000 U.S. Department of the Interior National Park Service Passed through Wyoming Department of State Parks and Cultural Services Outdoor Recreation_Acquisition, Development and Planning 15.916 27,500 Total U.S. Department of the Interior 27,500 U.S. Department of Justice Office of Community Oriented Policing Services ARRA - COPS Hiring Program 16.710 17,536 Office of Juvenile Justice and Delinquency Prevention Enforcing Underage Drinking Laws Program 16.727 17,077 Total U.S. Department of Justice 34,613 U.S. Department of Transportation National Higway Traffic Safety Administration Passed through Wyoming Department of Transportation Highway Planning and Construction 20.205 140 Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 33,972 Total for Cluster 34,112 (Continued) ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 3 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2012 (Continued) National Higway Traffic Safety Administration Passed through Wyoming Department of Transportation Alcohol Open Container Requirements 20.607 32,441 Total U.S. Department of Transportation 66,553 U.S. Department of Energy ARRA - Energy Efficiency and Conservation Block Grant Program 81.128 117,500 Passed through the Wyoming Business Council ARRA - State Energy Program 81.041 740,654 Total U.S. Department of Energy 858,154 Executive Office of the President Passed through Wyoming Office of the Attorney General High Intensity Drug Trafficking Areas Program 95.001 68,430 Total Executive Office of the President 68,430 U.S. Department of Homeland Security Disaster Grants - Public Assistance 97.036 10,431 Homeland Security Grant Program 97.067 73,969 Staffing for Adequate Fire and Emergency Response (SAFER) 97.083 34,829 Total U.S. Department of Homeland Security 119,229 Total Federal Awards 1,189,982 $ ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 4 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2012 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance and federal cost-reimbursement contracts of City of Laramie, Wyoming. City of Laramie, Wyoming receives federal awards both directly from federal agencies and indirectly through pass-through entities. Federal program expenditures included in the accompanying schedule are presented on the modified accrual basis of accounting. 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. Major Programs Major programs are identified in the Summary of Auditor’s Results section of the Schedule of Findings and Questioned Costs. Pass-thru entity numbers have been provided where available. ---PAGE BREAK--- 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 Honorable Mayor, City Council and City Manager City of Laramie, Wyoming 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 City of Laramie, as of and for the year ended June 30, 2012, which collectively comprise the City of Laramie, Wyoming’s basic financial statements and have issued our report thereon dated November 30, 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 Management of City of Laramie, Wyoming is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered City of Laramie, Wyoming’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Laramie, Wyoming’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Laramie, Wyoming’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or 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. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. ---PAGE BREAK--- 6 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Laramie’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. City of Laramie, Wyoming’s response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit City of Laramie, Wyoming’s response and, accordingly, we express no opinion on it. This report is intended for the information of the audit committee, management, others within the organization, City Council, 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. Laramie, Wyoming December 1, 2012 ---PAGE BREAK--- INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 To the Honorable Mayor, City Council and City Manager City of Laramie, Wyoming Compliance We have audited the City of Laramie, Wyoming’s compliance with the types of compliance requirements described in OMB Circular A-133 Compliance Supplement that are applicable to each of its major programs for the year ended June 30, 2012. City of Laramie, Wyoming’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 City of Laramie, Wyoming’s management. Our responsibility is to express an opinion on City of Laramie, Wyoming’s compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; 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 City of Laramie, Wyoming’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of City of Laramie, Wyoming’s compliance with those requirements. In our opinion, City of Laramie, Wyoming 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, 2012. Internal Control Over Compliance Management of the City of Laramie, Wyoming is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the City of Laramie, Wyoming’s internal control ---PAGE BREAK--- 8 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 City of Laramie, Wyoming’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or material weaknesses in internal control over compliance. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended for the information of the audit committee, management, others within the organization, City Council, 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. Laramie, Wyoming December 1, 2012 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 9 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2012 PART I – SUMMARY OF INDEPENDENT AUDITORS RESULTS Financial Statement Type of auditor's report issued Unqualified Internal control over financial reporting Material weaknesses identified? No Significant deficiencies identified that are not considered to be material weakness? No Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs Material weaknesses identified? No Significant deficiencies identified that are not considered to be material weakness? No Type of auditor's report issued on compliance for major programs Unqualified 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: Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? Yes 740,654 $ Expenditures 300,000 $ CFDA Numbers Name of Federal Program or Cluster 81.041 ARRA - State Energy Program ---PAGE BREAK--- (this page intentionally left blank)