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CITY OF EL MIRAGE, ARIZONA
SINGLE AUDIT ACT REPORT
FISCAL YEAR ENDED JUNE 30, 2021
CITY OF EL MIRAGE, ARIZONA
Table of Contents
PAGE
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
Report on Compliance for Each Major Program and on Internal Control
Over Compliance Required by the Uniform Guidance ................................................................... 3
Schedule of Findings and Questioned costs:
Summary of Auditors’ Results ............................................................................................ 5
Financial Statement Findings .............................................................................................. 6
Federal Award Findings and Questioned Costs .................................................................. 6
Schedule of Expenditures of Federal Awards ................................................................................. 7
Notes to the Schedule of Expenditures of Federal Awards.............................................................. 8
1
Independent Auditors’ 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
The Honorable Mayor and
City Council
El Mirage, Arizona
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 City of El Mirage,
Arizona, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which
collectively comprise the City of El Mirage, Arizona’s basic financial statements and have issued our report
thereon dated October 14, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of El Mirage,
Arizona’s internal control over financial reporting (internal control) as a basis for designing 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 City of El Mirage,
Arizona’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of El
Mirage, Arizona’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 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 and therefore, material weaknesses or significant deficiencies may exist that were
not identified. 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.
2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of El Mirage, Arizona’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 financial statements. 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 entity’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.
HintonBurdick, PLLC
Gilbert, Arizona
October 14, 2021
3
Independent Auditors’ Report on Compliance for
Each Major Program and on Internal Control Over
Compliance Required by the Uniform Guidance
Honorable Mayor & City Council
City of El Mirage
El Mirage, Arizona
Report on Compliance for Each Major Program
We have audited the City of El Mirage, Arizona’s (the City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have direct and material effect on each
of the City of El Mirage, Arizona’s major federal programs for the year ended June 30, 2021. The City’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 City’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 City’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 City of El Mirage, Arizona’s
compliance.
Opinion on Each Major Federal Program
In our opinion, the City 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 fiscal year
ended June 30, 2021.
Report on Internal Control Over Compliance
Management of the City 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 City’s internal control over compliance with the types of requirements
that could have a direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance
4
for each 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 City’s internal
control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility
that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type
of compliance requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may exist
that have not been identified.
Report on Schedule of Expenditures of Federal Awards Required by 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 City of El Mirage, Arizona, as of and for the
year ended June 30, 2021, and have issued our report thereon dated October 14, 2021, which contained an
unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming
opinions on the financial statements as a whole. The accompanying schedule of expenditures of federal
awards is presented for the purposes of additional analysis as required by Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards, 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 expenditures of federal awards is fairly stated in all material respects in relation to the 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.
HintonBurdick, PLLC
Gilbert, Arizona
October 14, 2021
CITY OF EL MIRAGE, ARIZONA
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2021
5
Section I - Summary of Auditors’ Results
Financial Statements
Type of auditor’s report issued:
Unmodified
Internal control over financial reporting:
x
Material weakness (es) identified?
yes X no
x
Significant deficiency (ies) 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:
x
Material weakness (es) identified?
yes X no
x
Significant deficiency (ies) identified that are not
considered to be material weaknesses?
yes X 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 2 CFR 200.516(a)?
yes X no
Identification of major programs.
CFDA Number(s) Name of Federal Program or Cluster
21.019
Coronavirus Relief Fund
Dollar threshold used to distinguish between type
A and type B programs:
$ 750,000
Auditee qualified as low-risk auditee?
X yes no
CITY OF EL MIRAGE, ARIZONA
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2021
6
Section II - Financial Statement Findings
Current Year Findings and Recommendations:
Material Weaknesses:
None noted
Significant Deficiencies:
None noted
Prior Year Findings and Recommendations, Reworded (if necessary) and Reissued:
Material Weaknesses
None noted
Significant Deficiencies:
None noted
Section III - Federal Award Findings and Questioned Costs
No significant matters were noted.
CITY OF EL MIRAGE, ARIZONA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2021
7
Grantor Agency
Federal
CFDA
Number
Pass Through
Grantor's
Number
Expenditures
U.S. Department of Housing and Urban Development:
(Passed through Maricopa County, Arizona)
Community Development Block Grant
14.218
C-22-19-005-3-00
422,633
$
Total U.S. Department of Housing and Urban Development
422,633
U.S. Department of Justice:
Corrections Training and Staff Development
16.601
24,948
Bulletproof Vest Partnership
16.607
1,541
(Passed through Arizona Criminal Justice)
National Criminal History Improvement Program (NCHIP)
16.554
NCP-18-20-010
13,587
(Passed through Arizona Department of Public Safety)
Crime Victim Assistance
16.575
2016-VA-GX-0046
103,854
Total U.S. Department of Justice
143,930
U.S. Department of Transportation:
(Passed through Governor's Office of Highway Safety)
Highway Safety Cluster:
State & Community Highway Safety
20.600
2021 OP-008
4,705
State & Community Highway Safety
20.600
2020 OP-007
1,764
State & Community Highway Safety
20.600
2021-PTS-019
9,980
Total 20.600
16,449
National Priority Safety Programs
20.616
2021 405d-012
27,815
National Priority Safety Programs
20.616
220-CIOT-008
2,987
National Priority Safety Programs
20.616
2020 405d-012
5,963
National Priority Safety Programs
20.616
2020-405d-059
94,995
Total 20.616
131,760
Total Highway Safety Cluster
148,209
Total U.S. Department of Transportation
148,209
U.S. Department of Treasury:
(Passed through State of Arizona Office of the Governor)
Coronavirus Relief Fund - COVID-19
21.019
ERMT-20-034
1,481,083
Total U.S. Department of Treasury
1,481,083
US Department of Homeland Security:
Federal Emergency Management Agency (FEMA)
(Passed through Arizona Department of Emergency and Military Affairs)
COVID-19 Disaster Grants - Public Assistance (Presidentially
Declared Disasters)
97.036
ERMT-EP-20-001
10,253
Total U.S. Department of Homeland Security
10,253
Total expenditures of federal awards
2,206,108
$
CITY OF EL MIRAGE, ARIZONA
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2021
8
Reporting Entity:
The accompanying schedule of expenditures of federal awards presents the activity or expenditure of all
federal awards programs of the City of El Mirage, Arizona for the year ended June 30, 2021. The City’s
reporting entity is defined in Note 1 of the basic financial statements. All expenditure of federal awards
received directly from federal agencies as well as federal awards passed through other government agencies
are included in the schedule.
Basis of Accounting:
This accompanying schedule of expenditures of federal awards has been prepared on the modified accrual
basis of accounting. The information in this schedule is presented in accordance with the requirements of Title
2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards.
Subrecipients:
There are no subrecipients.
Indirect Cost Rate:
The City did not elect to use the 10% de Minimis indirect cost rate for fiscal year 2021. There were no
indirect cost allocations made to any of the federal grants as listed in the accompanying schedule of
expenditures of federal awards.
Federal Loans Outstanding:
There are no outstanding balances for federal loan or loan guarantee programs with continuing compliance
requirements at June 30, 2021.