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CITY OF EL MIRAGE, ARIZONA
SINGLE AUDIT REPORTING PACKAGE
Year Ended June 30, 2022
Financial Reports
CITY OF EL MIRAGE, ARIZONA
SINGLE AUDIT REPORTING PACKAGE
Year Ended June 30, 2022
CONTENTS
Page
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
1
Independent Auditors’ Report on Compliance for Each Major Program
and on Internal Control Over Compliance Required by the Uniform Guidance
3
Schedule of Expenditures of Federal Awards
7
Notes to the Schedule of Expenditures of Federal Awards
8
Schedule of Findings and Questioned Costs
9
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
To the Honorable Mayor and City Council
City of 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 the City of El Mirage, Arizona, as of and for the year
ended June 30, 2022, 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 November 23, 2022.
Report on 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 the 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. 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 or significant deficiencies may exist that have not been
identified.
Tempe • Scottsdale • Casa Grande www.hhcpa.com
Report on 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.
Tempe, Arizona
November 23, 2022
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM
GUIDANCE
To the Honorable Mayor and City Council
City of El Mirage, Arizona
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of El Mirage, Arizona’s 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 City of El Mirage, Arizona’s major federal programs for the year
ended June 30, 2022. The City of El Mirage, Arizona’s major federal program is identified in the
summary of auditors’ results section of the accompanying schedule of findings and questioned
costs.
In our opinion, the City of El Mirage, Arizona, complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on its
major federal program for the year ended June 30, 2022.
Basis for Opinion on Each Major Federal Program
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). Our responsibilities under those standards and the Uniform Guidance are
further described in the Auditors’ Responsibilities for the Audit of Compliance section of our
report.
We are required to be independent of City of El Mirage and to meet our other ethical
responsibilities, in accordance with relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion on compliance for each major federal program. Our audit does not provide a
legal determination of City of El Mirage’s compliance with the compliance requirements referred
to above.
Tempe • Scottsdale • Casa Grande www.hhcpa.com
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules, and provisions of contracts or grant
agreements applicable to City of El Mirage’s federal programs.
Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with
the compliance requirements referred to above occurred, whether due to fraud or error, and
express an opinion on City of El Mirage’s compliance based on our audit. Reasonable
assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with generally accepted auditing standards,
Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from
fraud is higher than for that resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Noncompliance
with the compliance requirements referred to above is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made
by a reasonable user of the report on compliance about City of El Mirage’s compliance with the
requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government
Auditing Standards, and the Uniform Guidance, we:
•
Exercise professional judgment and maintain professional skepticism throughout the
audit.
•
Identify and assess the risks of material noncompliance, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding City of El Mirage’s compliance
with the compliance requirements referred to above and performing such other
procedures as we considered necessary in the circumstances.
•
Obtain an understanding of City of El Mirage’s internal control over compliance relevant
to the audit in order to design audit procedures that are appropriate in the circumstances
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 City of El Mirage’s internal control over compliance. Accordingly, no such opinion is
expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material
weaknesses in internal control over compliance that we identified during the audit.
Report on 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.
Our consideration of internal control over compliance was for the limited purpose described in
the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed
to identify all deficiencies in internal control over compliance that might be material weaknesses
or significant deficiencies in internal control over compliance. Given these limitations, during our
audit we did not identify any deficiencies in internal control over compliance that we consider to
be material weaknesses, as defined above. However, material weaknesses or significant
deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, no such opinion is expressed.
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, 2022, and the related notes to the
financial statements, which collectively comprise the City of El Mirage, Arizona’s basic financial
statements. We issued our report thereon dated November 23, 2022, 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. 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 expenditures of federal awards is 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.
Tempe, Arizona
November 23, 2022
CITY OF EL MIRAGE, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2022
Assistance
Listing
Grantor's
Number
Number
Expenditures
U.S. Department of Housing and Urban Developments
Passed through Maricopa County
CDBG - Entitlement Grants Cluster
Community Development Block Grants
14.218
C-22-19-005-3-00
459,374
$
Total U.S. Department of Housing and Urban Development Cluster
459,374
U.S. Department of Justice
Direct Grant
Corrections Research and Evaluation and Policy Formulation
16.601
AZ0070700
13,793
Bulletproof Vest Partnership Program
16.607
n/a
3,902
Passed through Arizona Criminal Justice
National Criminal History Improvement Program (NCHIP)
16.554
NCHIP-21-23-004
2,857
Passed through Arizona Department of Public Safety
Crime Victim Assistance
16.575
2016-VA-GX-0046
102,612
Total U.S. Department of Justice
123,164
U.S. Department of Transportation
Passed through Governor's Office of Highway Safety
Highway Safety Cluster
State and Community Highway Safety
20.600
2021 OP-008
1,147
State and Community Highway Safety
20.600
2022-AL-014
29,313
State and Community Highway Safety
20.600
2022-PTS-022
15,783
State and Community Highway Safety
20.600
2021-PTS-019
15,860
Total State and Community Highway Safety
62,103
National Priority Safety Programs
20.616
2022-CIOT-008
1,599
National Priority Safety Programs
20.616
2021 405d-012
7,772
National Priority Safety Programs
20.616
2021-CIOT-008
2,461
Total National Priority Safety Programs
11,832
Total Highway Safety Cluster
73,935
Total U.S. Department of Transportation
73,935
U.S. Department of Treasury
Passed through State of Arizona Office of the Governor
COVID-19 - Coronavirus State and Local Relief Fund
21.027
n/a
1,487,715
*
Total U.S. Department of Treasury
1,487,715
Total Expenditures of Federal Awards
2,144,188
$
* Denotes major program
Pass-Through Grantor / Cluster Name / Program Title
Federal Grantor /
7
See accompanying notes to the schedule of expenditures of federal awards
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2022
NOTE 1
BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant
activity of the City of El Mirage under programs of the federal government for the year ended
June 30, 2022. The information in this schedule is presented in accordance with 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). Because the
Schedule presents only a selected portion of the operations of the City of El Mirage, it is not
intended to and does not present the financial position, changes in net position, or cash flows of
the City of El Mirage.
NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform
Guidance and/or OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments, wherein certain types of expenditures are not allowable or are limited as
to reimbursement.
B) The City of El Mirage has elected not to use the 10 percent de minimis indirect cost rate
as allowed under the Uniform Guidance.
8
CITY OF EL MIRAGE, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2022
SECTION I – SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditors’ report issued:
Unmodified
Internal control over financial reporting:
•
Material weakness(es) identified?
__
yes __X _no
•
Significant deficiency(ies) identified that are
not considered to be a material weakness(es)?
__ _ yes __X_ none reported
Noncompliance material to financial statements noted?
yes __X_ no
Federal Awards
Internal control over major programs:
•
Material weakness(es) identified?
____ yes __X_ no
•
Significant deficiency(ies) indentified that are
not considered to be a material weakness(es)?
__ _ yes __X_ none reported
Type of auditors’ report issued on compliance for each
major program listed below
Unmodified
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR section 200.516(a)?
____ yes __X_ no
Identification of major programs:
CFDA Numbers
Name of Federal Program or Cluster
21.027
COVID-19 - Coronavirus State and Local Fiscal
Recovery Funds (American Rescue Plan)
Dollar threshold used to distinguish between Type A and
Type B programs:
$750,000
Auditee qualified as low-risk auditee?
__X_ yes ____ no
9
CITY OF EL MIRAGE, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
Year Ended June 30, 2022
SECTION II – FINDINGS RELATED TO FINANCIAL STATEMENTS REPORTED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
None Noted
SECTION III – FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS
None Noted
10