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CITY OF GLENDALE, ARIZONA
SINGLE AUDIT ACT REPORTS
YEAR ENDED JUNE 30, 2019
CITY OF GLENDALE, ARIZONA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2019
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
FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER
COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
3
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
6
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
8
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
SUMMARY OF AUDITORS’ RESULTS
11
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
13
(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 Members of City Council
City of Glendale, Arizona
Glendale, 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 Glendale, Arizona (City), as of and for the year ended June 30, 2019, and the related
notes to the financial statements, which collectively comprise the City’s basic financial statements, and
have issued our report thereon dated January 30, 2020.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’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 City’s internal control. Accordingly, we
do not express an opinion on the effectiveness of the City’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 City’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 have not been identified. We did identify a deficiency in internal control, described in the
accompanying schedule of findings and questioned costs as item 2019-001 that we consider to be a
material weakness.
The Honorable Mayor and Members of City Council
City of Glendale, Arizona
(2)
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’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.
City of Glendale, Arizona’s Response to Findings
The City’s response to the finding identified in our audit is described in the schedule of findings and
questioned costs. The City’s response was not subjected to the auditing procedures applied in the audit
of the financial statements and, accordingly, we express no opinion on it.
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 result of that testing, and not to provide an opinion on the effectiveness of the
City’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 City’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
a
CliftonLarsonAllen LLP
Phoenix, Arizona
January 30, 2020
(3)
INDEPENDENT AUDITORS’ 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 THE UNIFORM GUIDANCE
The Honorable Mayor and Members of City Council
City of Glendale, Arizona
Glendale, Arizona
Report on Compliance for Each Major Federal Program
We have audited the City of Glendale, Arizona (City)’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’s major federal programs for the year ended June 30, 2019. The City’s major
federal programs are identified in the summary of auditors’ 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.
Auditors’ 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’s compliance.
The Honorable Mayor and Members of City Council
City of Glendale, Arizona
(4)
Opinion on Each Major Federal Program
In our opinion, the City of Glendale, Arizona 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.
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 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 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 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.
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.
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 Glendale, Arizona as of
and for the year ended June 30, 2019, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements. We issued our report thereon dated January
30, 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. 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
The Honorable Mayor and Members of City Council
City of Glendale, Arizona
(5)
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.
a
CliftonLarsonAllen LLP
Phoenix, Arizona
January 30, 2020
CITY OF GLENDALE, ARIZONA (AN ARIZONA MUNICIPALITY)
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2019
(6)
Amount
Federal Grantor Program Name
CFDA
Pass-through
Pass-through
Federal
Provided to
or Cluster Title
Number
Grantor
Number
Expenditures
Subrecipients
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
CDBG - Entitlement Grants Cluster
14.218
NA
NA
11,445
$
2,977
$
14.218
NA
NA
81,550
18,469
14.218
NA
NA
237,552
713
14.218
NA
NA
739,706
607,413
14.218
NA
NA
881,440
310,026
14.218
NA
NA
91,493
-
Total CDBG - Entitlement Grant Cluster (14.218)
2,043,186
939,598
Emergency Solutions Grant Program
14.231
NA
NA
17,189
2,863
Emergency Solutions Grant Program
14.231
NA
NA
31,372
30,264
Emergency Solutions Grant Program
14.231
NA
NA
133,136
119,700
181,697
152,827
HOME Investment Partnerships Program
14.239
Maricopa County, Arizona
M-15-DC-04-0227
45,800
45,800
HOME Investment Partnerships Program
14.239
Maricopa County, Arizona
M-16-DC-04-0227
210,240
210,240
HOME Investment Partnerships Program
14.239
Program Income
47,342
-
303,382
256,040
Office of Public and Indian Housing
Public and Indian Housing
14.850
NA
NA
598,350
-
Housing Voucher Cluster
Section 8 Housing Choice Vouchers
14.871
NA
NA
8,230,476
-
Total Housing Choice Voucher Cluster (14.871)
8,230,476
-
Public Housing Capital Fund (CFP)
14.872
NA
NA
24,277
-
Public Housing Capital Fund (CFP)
14.872
NA
NA
118,444
-
Public Housing Capital Fund (CFP)
14.872
NA
NA
54,872
-
Public Housing Capital Fund Total
197,593
-
Total U.S. Department of Housing and Urban Development
11,554,684
1,348,465
U.S. Department of Justice
Criminal Division
Joint Law Enforcement Operations (JLEO)
16.111
NA
NA
375
-
Joint Law Enforcement Operations (JLEO)
16.111
NA
NA
39,959
-
Joint Law Enforcement Operations (JLEO)
16.111
NA
NA
22,159
-
62,493
-
Office of Justice Programs
Missing Children's Assistance
16.543
City of Phoenix, Arizona Internet Crimes Against
Children Task Force
IGA # 149714-0
5,017
-
Office of Victims of Crime
Crime Victim Assistance
16.575
Arizona Department of Public Safety
State Contract #2018-216
57,690
-
Crime Victim Assistance
16.575
Arizona Department of Public Safety
State Contract #2018-216
132,834
-
Crime Victim Assistance
16.575
Arizona Department of Public Safety
State Contract #2018-217
49,877
-
Crime Victim Assistance
16.575
Arizona Department of Public Safety
State Contract #2018-217
95,201
-
335,602
-
Office of Community Oriented Policing Services
Public Safety Partnership and Community Policing Grants
16.710
NA
NA
227,885
-
Bureau of Justice Assistance
Edward Byrne Memorial Justice Assistance Grant Program
16.738
NA
NA
219
-
Edward Byrne Memorial Justice Assistance Grant Program
16.738
NA
NA
53,960
-
Edward Byrne Memorial Justice Assistance Grant Program
16.738
NA
NA
2,241
-
Edward Byrne Memorial Justice Assistance Grant Program
16.738
NA
NA
76,412
-
132,832
-
Criminal Division
Equitable Sharing Program
16.922
NA
NA
84,265
-
16.000
NA
NA
595
-
16.000
NA
NA
35,850
-
16.000
NA
NA
7,266
-
16.000
NA
NA
19,711
-
16.000
NA
NA
1,500
-
16.000
NA
NA
297
-
Total U.S. Department of Justice
913,313
-
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Task
United States Secret Service Electronic Crimes Task Force
Drug Enforcement Administration--DEA Phoenix Task Force
Drug Enforcement Administration--DEA Phoenix Task Force
Federal Bureau of Investigation--Joint Terrorism Task Force
Federal Bureau of Investigation--Joint Terrorism Task Force
Community Development Block Grants/Entitlement Grants
Community Development Block Grants/Entitlement Grants
Community Development Block Grants/Entitlement Grants
Community Development Block Grants/Entitlement Grants
Community Development Block Grants/Entitlement Grants
Community Development Block Grants/Entitlement Grants
CITY OF GLENDALE, ARIZONA (AN ARIZONA MUNICIPALITY)
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2019
(7)
Amount
Federal Grantor Program Name
CFDA
Pass-through
Pass-through
Federal
Provided to
or Cluster Title
Number
Grantor
Number
Expenditures
Subrecipients
U.S. Department of Transportation
Federal Aviation Administration (FAA)
Airport Improvement Program
20.106
NA
NA
1,386
$
-
$
Airport Improvement Program
20.106
NA
NA
1,561,842
-
1,563,228
-
Federal Highway Administration (FHWA)
Highway Planning and Construction Cluster
Highway Planning and Construction
20.205
Maricopa Association of Governments
CMAQ
515,332
-
Highway Planning and Construction
20.205
Arizona Department of Transportation
GLN-0(258)T/
T010101D 01X
30,653
-
Total Highway Planning and Construction Cluster (20.205)
545,985
-
Federal Transit Administration (FTA)
Federal Transit Cluster
Federal Transit--Formula Grants
20.507
City of Phoenix, Arizona
AZ-90-X131
167,666
-
Federal Transit--Formula Grants
20.507
City of Phoenix, Arizona
AZ-90-X137
28,000
-
Federal Transit--Formula Grants
20.507
City of Phoenix, Arizona
AZ-2019-003-00
40,359
-
Total Federal Transit Cluster (20.507)
236,025
-
Transit Services Programs Cluster
Enhanced Mobility for Seniors and Individuals with Disabilities
20.513
City of Phoenix, Arizona
AZ-2018-001-00
25,955
-
Total Transit Services Programs Cluster (20.513)
25,955
-
National Highway Traffic Safety Administration (NHTSA)
Highway Safety Cluster
State and Community Highway Safety
20.600
Arizona Governor's Office of Highway Safety
2019-PTS-019
18,550
-
State and Community Highway Safety
20.600
Arizona Governor's Office of Highway Safety
2019-AI-003
5,125
-
State and Community Highway Safety
20.600
Arizona Governor's Office of Highway Safety
2018-AL-014
34,529
-
State and Community Highway Safety
20.600
Arizona Governor's Office of Highway Safety
2018-PTS-026
13,158
-
State and Community Highway Safety
20.600
Arizona Governor's Office of Highway Safety
2018-OP-005
2,385
-
State and Community Highway Safety
20.600
Arizona Governor's Office of Highway Safety
2018-AI-005
3,767
-
Total State and Community Highway Safety (20.600)
77,514
-
20.616
Arizona Governor's Office of Highway Safety
2019-405d-018
36,042
-
20.616
Arizona Governor's Office of Highway Safety
2019-405b-004
6,321
-
20.616
Arizona Governor's Office of Highway Safety
2019-CIOT-012
6,000
-
20.616
Arizona Governor's Office of Highway Safety
2018-PB-003
29,936
-
20.616
Arizona Governor's Office of Highway Safety
2019-PB-003
9,387
-
87,686
-
Total National Priority Safety Programs (20.616)
87,686
-
Highway Safety Cluster Total
165,200
-
Total U.S. Department of Transportation
2,536,393
-
Institute of Museum and Library Services
Grants to States
45.310
Arizona State Library, Archives and Public Records
2018-0010-04
18,600
-
Grants to States
45.310
Arizona State Library, Archives and Public Records
2018-0260-09
8,074
-
Grants to States
45.310
Arizona State Library, Archives and Public Records
2018-0010-03
22,590
-
Grants to States
45.310
Arizona State Library, Archives and Public Records
No grant number
4,000
-
Grants to States
45.310
Arizona State Library, Archives and Public Records
2017-0170-07
907
-
Grants to States
45.310
Arizona State Library, Archives and Public Records
2017-0170-06
9,057
-
Grants to States
45.310
Arizona State Library, Archives and Public Records
2017-0320-01
1,730
-
Total Institute of Museum and Library Services
64,958
-
U.S. Department of Health and Human Services
Administration for Children and Families
TANF Cluster
Temporary Assistance for Needy Families
93.558
Arizona Department of Economic Security
DE111089001
150,000
-
Total TANF Cluster (93.558)
150,000
-
Low-Income Home Energy Assistance
93.568
Arizona Department of Economic Security
DE111089001
774,577
-
Community Services Block Grant
93.569
Arizona Department of Economic Security
DE111089001
148,063
-
Social Services Block Grant
93.667
Arizona Department of Economic Security
DE111089001
87,159
-
Total U.S. Department of Health and Human Services
1,159,799
-
Executive Office of the President
95.001
City of Tucson, Arizona Police Department
HT-18-2847
13,686
-
95.001
City of Tucson, Arizona Police Department
HT-17-2740
8,812
-
95.001
City of Tucson, Arizona Police Department
HT-17-2738
34,413
-
95.001
City of Tucson, Arizona Police Department
HT-18-2837
62,518
-
119,429
-
U.S. Department of Homeland Security
Homeland Security Grant Program
97.067
Arizona Department of Homeland Security
170808-01
43,330
-
Homeland Security Grant Program
97.067
Arizona Department of Homeland Security
170808-02
147
-
Homeland Security Grant Program
97.067
Arizona Department of Homeland Security
170807-03
41,735
-
Homeland Security Grant Program
97.067
Arizona Department of Homeland Security
180808-02
44,598
-
Homeland Security Grant Program
97.067
Arizona Department of Homeland Security
180808-01
2,750
-
Homeland Security Grant Program
97.067
Arizona Department of Homeland Security
180807-01
54,850
-
187,410
-
Total U.S. Department of Homeland Security
187,410
-
Total Federal Financial Assistance
16,535,986
$
1,348,465
$
High Intensity Drug Trafficking Areas Program
High Intensity Drug Trafficking Areas Program
Total Executive Office of the President
High Intensity Drug Trafficking Areas Program
High Intensity Drug Trafficking Areas Program
National Priority Safety Programs
National Priority Safety Programs
National Priority Safety Programs
National Priority Safety Programs
National Priority Safety Programs
CITY OF GLENDALE, ARIZONA (AN ARIZONA MUNICIPALITY)
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2019
(8)
NOTE 1
BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards includes the federal grant activity of the
City of Glendale, Arizona as of and for the year ended June 30, 2019. The information in this
schedule is presented in accordance with the requirements of the Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance).
Federal awards received directly from Federal agencies, as well as federal financial
assistance passed through other entities, are included on the Schedule of Expenditures of
Federal Awards and is presented on the modified accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Therefore, some amounts presented in this schedule may differ from
amounts presented in, or used in the preparation of, the financial reports.
NOTE 2
CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS
The program titles and CFDA numbers were obtained from the federal or pass-through
grantor or the 2019 Catalog of Federal Domestic Assistance.
Each program included in the CFDA is assigned a five-digit program identification number
(CFDA number), the first two digits designating federal agency and the last three digits
designating federal assistance program within the federal agency. The CFDA number is
reflected in the Schedule of Expenditures of Federal Awards (SEFA). Federal assistance
programs and awards which have not been assigned a CFDA number, but have a grant
award or agreement number, are assigned a five digit code consisting of the first two digits
indicating federal agency and the last three digits all zeros.
Cluster of Programs - Closely related programs with different CFDA numbers that share
common compliance requirements are considered a cluster of programs. The only program
clusters presented on the SEFA are those mandated by OMB in the most recent OMB
Compliance Supplement (August 2019). The SEFA is structured to present the federal
assistance information by cluster with the title of the cluster appearing in the heading.
NOTE 3
INDIRECT COST RATE
The City of Glendale, Arizona did not elect to use the 10 percent de minimis indirect cost
rate as covered in 2 CFR 200.414.
CITY OF GLENDALE, ARIZONA (AN ARIZONA MUNICIPALITY)
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2019
(9)
NOTE 4
RECONCILIATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO
STATEMENT REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
(GOVERNMENTAL FUNDS) AND STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION (PROPRIETARY FUNDS)
(Amounts expressed in thousands)
Intergovernmental Revenues:
from General Fund
65,739
$
from Nonmajor Governmental Funds
29,329
from General Obligation Debt Service Fund
505
Total from Governmental Funds
95,573
$
from Water and Sewer Fund
538
from Housing Fund - Operating Revenues and Capital Grants
9,026
Total from Proprietary Funds
9,564
Total Intergovernmental Revenues
105,137
Less Nonfederal Revenue from General Fund:
State and Local Intergovernmental Revenues
(65,739)
(65,739)
Less Nonfederal Revenue from Transportation Fund:
State LTAF revenue
(649)
Other State and Local Intergovernmental Revenues
(770)
(1,419)
Less Federal Revenue from General Obligation Debt Service Fund:
Build America Bonds Revenue (see Note 3)
(505)
(505)
Less Nonfederal Revenue from Nonmajor Governmental Funds:
State and HURF Revenues in Highway Users Gas Tax Fund
(16,844)
State and Local Grants in Other Special Revenue Funds
(3,280)
State and Local Revenues in Capital Projects Funds
(327)
(20,451)
Less Federal Revenue from Proprietary Funds:
Build America Bonds Revenue in Water and Sewer Fund (see
Note 3)
(538)
(538)
Plus (Less) Immaterial Timing Differences:
Federal Revenues in Nonmajor Governmental Funds Not
Recorded in the Current Year
(88)
Expenditures of Program Income Earned
139
51
Total Adjustments
(88,601)
16,536
$
Schedule of Expenditures of Federal Awards, Total Federal Financial
Assistance
CITY OF GLENDALE, ARIZONA (AN ARIZONA MUNICIPALITY)
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2019
(10)
NOTE 5
FEDERAL ASSISTANCE NOT INCLUDED
Expenditures related to federal assistance that is not considered Federal awards in
accordance with Uniform Guidance have not been presented in this schedule. A detail of
those expenditures are as follows:
Build America Bond Subsidies:
(in thousands)
in General Obligation Debt Service Fund
505
$
in Water and Sewer Enterprise Fund
538
1,043
$
(Remainder of this page intentionally left blank)
CITY OF GLENDALE, ARIZONA (AN ARIZONA MUNICIPALITY)
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2019
(11)
SECTION I – SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditors’ report issued:
Unmodified
Internal control over financial reporting:
Material weakness(es) identified?
X
yes
no
Significant deficiency(ies) identified?
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) identified?
yes
X
none reported
Type of auditors’ 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 Numbers
Name of Federal Program or Cluster
14.871
93.568
Section 8 Housing Choice Vouchers Cluster
Low Income Housing Energy Assistance
Program
Dollar threshold used to distinguish between
Type A and Type B programs:
$750,000
Auditee qualified as low-risk auditee?
yes
X
no
CITY OF GLENDALE, ARIZONA (AN ARIZONA MUNICIPALITY)
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2019
(12)
SECTION II – FINANCIAL STATEMENT FINDINGS
2019 – 001 Financial Reporting
Type of Finding: Material Weakness in Internal Control Over Financial Reporting
Condition/Context: Audit adjustments were proposed and subsequently recorded by management to
present capital assets in accordance with generally accepted accounting principles. An audit
adjustment was proposed and subsequently recorded by management to reclassify construction in
process (CIP) for completed projects out of CIP to its respective depreciable assets classifications.
Additionally, audit procedures identified a sales tax accrual that was double booked.
Criteria or Specific Requirement: Generally accepted accounting principles require management to
maintain internal controls over the recording and reconciling of financial information.
Effect: Audit adjustments were proposed and subsequently approved and recorded by the
management to record account balances in accordance with GAAP.
Cause: The City has not established internal controls to ensure capital assets are adjusted to their
appropriate year-end balances in accordance with GAAP. Additionally, sales tax revenue accruals were
not reconciled to the State Treasurer’s report to identify the double recorded revenue.
Repeat Finding: No.
Recommendation: We recommend the City evaluate its internal control processes to determine if
additional internal control procedures should be implemented to ensure capital assets and revenue are
recorded properly. Additionally, we recommend that the City review these adjustments and modify year-
end reconciling procedures in an effort to avoid similar adjustments next year.
View of Responsible Official: The City concurs with this recommendation.
Contact Person: Rebecca Chitwood, Controller
CITY OF GLENDALE, ARIZONA (AN ARIZONA MUNICIPALITY)
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2019
(13)
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None noted in the current year.