HomeMy WebLinkAboutSupplt Info - Rcvd after 3/19/10 CITY OF PALM DESERT,CALIFORNIA
SINGLE AUDIT OF FEDERALLY
ASSISTED GRANT PROGRAMS
JUNE 30,2009
CITY OF PALM DESERT, CALIFORNIA
TABLE OF CONTENTS
June 30, 2009
Page
Number
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 _2
Independent Auditors'Report on Compliance with Requirements
Applicable to Each Major Program and on Internal Control Over
Compliance inAccordance with OMB CircularA-133 and on
Supplementary Schedule of Expenditures of Federal Awards 3 -4
Schedule of Expenditures of Federal Awards and Schedule of
Findings and Questioned Costs:
Schedule of Expenditures of Federal Awards 5
Notes to Schedule of Expenditures of Federal Awards 6 - 7
Schedule of Findings and Questioned Costs 8 - 10
DIEHL, EVANS � COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS 6t CONSUL7'ANiS
MICHAEL R.WDIN,CPA
A PARTNERSHIP INC�UDING ACCOUNTANCY CORPORATIONS CRAIG W.SPRAKER,CPA
NII'IN P.PA'fEL,CPA
� ROBERT 1 CALLANAN,CPA
S CORPORATE PARK,SUITE�OO •PHILIP H.HOLTKAMR CPA
•THOMAS M.PERLOWSKI,CPA
IRVINE,CALIFORNIA 926O6-SiC)S *HARVEY J.SCHROHDER,CPA
(949)399-0600•FAX(949)399-0610 KFNNEr�R.AMEs,crn
www.diehlevans.com WILC lAM C PENTZ,CPA
`A PROFESSIONAL.CORPOItA'fION
November 18, 2009
INDEPENDENT AUDITORS'REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED 1N
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable City Council
City of Palm Desert
Palm Desert, California
We have audited the financial statements of the governmental activities, the business-type activities,
the discretely presented component unit, each major fund and the aggregate remaining fund
information of the City of Palm Desert, California as of and for the year ended June 30, 2009, and have
issued our report thereon dated November 18, 2009. 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 Reportin�
In planning and performing our audit,we considered the City'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 the City's
internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over financial reporting.
A control deficiency 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
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the City's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such that
there is more than a remote likelihood that a misstatement of the City's financial statements that is
more than inconsequential will not be prevented or detected by the City's internal control.
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OTHER OFF[CES Ar: 2965 ROOSEVELT STREET 613 W.VALLEY PARKWAY,SUITE 330
CARLSBAD,CALIFORNIA 92008-2389 ESCONDIDq CALIFORNIA 92025-2598
(760)729-2343•FAX(760)729-2234 (760)741-3141•FAX(760)74L9890
Internal Control Over Financial Reportin�Continued�
A material weakness is a significant deficiency, or combination of significant deficiencies, that results
in more than a remote likelihood that a material misstatement of the fmancial statements will not be
prevented or detected by the City's internal control.
Our consideration of internal control over fmancial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be 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.
Compliance and Other 1�4atters
As part of obtaining reasonable assurance about whether the City of Palm Desert, California'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 fmancial 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 and
other matters that are required to be reported under Government Auditin� Standards.
This report is intended solely for the information and use of the City Council, management of the City
of Palm Desert, California and others within the City, and is not intended to be and should not be used
by anyone other than these specified parties.
I���cil.� �v�,,.v, r,�..�.cl , �t�
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DIEHL, EVANS � COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS 6t CONSULTANiS
MICHAEL R.LUDIN,CFA
A PARTNHRSH�INCLUD[NG ACCOUNTANCY CORPORATIONS CRAIG W.SPRAKER,CPA
N[i'IN P.PATEL,CPA
ROBERTJ.CALLANAN,CPA
S CORPORATE PARK,SUITE�OO •PHILIP H.HOLTKAAtP,CPA
tTHOMAS M.PERLOWSKI,CPA
IRVINE,CALIFORNIA 92C>OC)-S1 C$ *HARVEY J.SCHROEDER,CPA
(949)399-0600•FAX(949)399-0610 KeNxETH a.aMss,cPn
www.diehlevans.com WILLIAM C.PENTZ,CPA
'A PAOFrSS10NAl CORPORATION
INDEPENDENT AUDITORS'REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND ON
SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The Honorable City Council
City of Palm Desert
Palm Desert, California
Compliance
We have audited the compliance of the City of Palm Desert, California with the types of compliance
requirements described in the U.S. Office of Mana�ement and Budget �OMB) Circular A-133
Compliance Supplement that are applicable to its major federal program for the year ended
June 30, 2009. The City's major federal program is identified in the summary of auditors' results
section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to its major federal program is the
responsibility of the City of Palm Desert, California's management. Our responsibility is to express an
opinion on the City of Palm Desert, California's compliance based on our audit.
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 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 the City of Palm Desert, California's compliance with those requirements and
perforxning 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
on the City of Palm Desert, California's compliance with those requirements.
In our opinion, the City of Palm Desert, California complied, in all material respects, with the
requirements referred to above that are applicable to its major federal program for the year ended
June 30, 2009.
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O LHER OFFICES A C: 2965 ROOSEVELT STREET 6l3 l�%.VALLEY PARKWAY,SUITE 330
CARLSBAD,CALIFORNIA 92008-2389 ESCONDIDO,CALIFORNIA 92025-2598
(760)929-2343•FAY(760)729-2234 (760)741-3141•FAX(760)741-9890
Internal Control Over Compliance
The management of the City is responsible for establishing and maintaining effective internal control
over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs. In planning and performing our audit, we considered the City's internal control over
compliance with the requirements that could have a direct and material effect on a major federal
program in order to determixie our auditing procedures for the purpose of expressing our opinion on
compliance, 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 control deficiency in the City's internal control over compliance 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 noncompliance with a type of compliance requirement of a
federal program on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the City's ability to administer a federal program such that
there is more than a remote likelihood that noncompliance with a type of compliance requirement of a
federal program that is more than inconsequential will not be prevented or detected by the City's
internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results
in more than a remote likelihood that material noncompliance with a type of compliance requirement
of a federal program will not be prevented or detected by the City's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business-type activities,
the discretely presented component unit, each major fund and the aggregate remaining fund
information of the City of Palm Desert, California as of and for the year ended June 30, 2009, and
have issued our report thereon dated November 18, 2009. Our audit was performed for the purpose of
forming opinions on the financial statements that collectively comprise the City of Palm Desert,
California's 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 basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in
all material respects, in relation to the basic financial statements taken as a whole.
This report is intended solely for the inforniation and use of management, City Council, others within
the City 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.
I cJ I�1.I�-� �✓c�.� u.v�.tl � L L�
February 17, 2010, except to the date for the Schedule of Expenditures of Federal Awards, to which the
date is November 18, 2009.
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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CITY OF PALM DESERT, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended June 30,2009
Catalog of
Federal Expenditures
Federal Grantor/ Domestic Program of Disbursements
Pass-Through Grantor/ Assistance Identification Federal to
Program Title Number Number Awards Subrecipients
U.S.Department of Housine and Urban Development
Direct Program:
Community Development Block Grant 14.218 B-O�-MC-06-0594
B-08-MC-06-0594 $ 4]0,076 $ 246,2]4
U.S.Deuartment of Justice
Direct Prograzn:
Edward Byme Memorial Justice Assistance
GrantProgram 16.738 2007-DJ-BX-0173 1,128 -
U.S.Denartment of Transvortation
Passed through the State of Califomia
Office of Traffic Safety:
State and Community Highway Safety Programs 20.600 AL0971 70,639 -
Passed through the Universiry of Califomia,Berkeley
Traffic 3afety Center:
State and Community Highway Safety Programs 20.600 CT09302
SC09302
SC08302 37,069 -
Total U.S.Departinent of Transportation 107,708 -
TOTAL DISBURSEMENTS
TO SUBRECIPIENTS $ 246,214
TOTAL EXPENDITURES
OF FEDERAL AWARDS $ 518,912
See Independent Auditors'Report on Compliance with Requirements Applicable to Each Major Program
and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and on Supplementar;
Schedule of Expenditures of Federal Awards(pages 3 and 4)and Notes to Schedule of Expenditures of
Federal Awards(pages 6 and 7).
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CITY OF PALM DESERT,CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
June 30, 2009
1. GENERAL:
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal
financial assistance programs of the City of Palm Desert (the City). The City's reporting entity is
defined in note 1 of the notes to the City's financial statements. All financial assistance received
directly from federal agencies as well as federal financial assistance passed through other
government agencies to the City is included in the accompanying schedule.
2. BASIS OF ACCOUNTING:
The accompanying Schedule of Expenditures of Federal Awards is presented using the modified
accrual basis of accounting for governmental funds and the accrual basis for proprietary funds,
which is described in the Note 1 of the notes to the City's financial statements.
3. RELATIONSHIP TO COMPREHENSIVE ANN UAL FINANCIAL REPORT:
Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree to
amounts reported within the City's Comprehensive Annual Financial Report (CAFR), except for
Communiry Development Block Grant (CDBG) Program. Amount reported for the CDBG in the
accompanying schedule of expenditures of federal awards is $34,718 less than the amount reported
with the City's CAFR. This is due to timing differences in reporting of payroll expenditures.
4. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS:
Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree with
amounts reported in federal financial reports.
See Independent Auditors' Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and on
Supplementary Schedule of Expenditures of Federal Awards (pages 3 and 4) and Schedule of
Expenditures of Federal Awards (pages 5).
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CITY OF PALM DESERT, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(CONTINUED)
June 30,2009
5. 5UBRECIPIENTS:
During the fiscal year ended June 30, 2009, the City disbursed federal funds to the following
subrecipients under the Community Development Block Grant program(CFDA#14.218):
Amount
Disbursed
ABC Recovery Center $ 106,812
Act for MS 5,000
ArtYuitis Foundation 5,000
Fair Housing Council of Riverside County 23,001
Family YMCA 13,000
John F. Kennedy Memorial Fund 10,000
Martha's Village&Kitchen 13,355
Ranch Recovery Center,Inc. 65,046
The Smile Factory 5,000
Total disbursed to subrecipients � 246_214
6. DEFERRED LOANS RECEIVABLE:
The CDBG balance of deferred loans receivable at June 30, 2009 was$17,010.
7. CONTINGENCIES:
Under the terms of federal and state grants, additional audits may be requested by the grantor
agencies and certain costs may be questioned as not being appropriate expenditures under the terms
of the grant. Such audits could lead to a request for reimbursement to the grantor agencies.
See Independent Auditors' Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and on
Supplementary Schedule of Expenditures of Federal Awards (pages 3 and 4) and Schedule of
Expenditures of Federal Awards (pages 5).
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CITY OF PALM DESERT, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended June 30, 2009
1. SUMMARY OF AUDITORS'RESLTLTS:
a. The auditors' report expresses an unqualified opinion on the financial statements of the City of
Palm Desert.
b. No significant deficiencies relating to the audit of the financial statements are reported.
c. No instances of noncompliance material to fmancial statements of the City of Palm Desert were
disclosed during the audit.
d. No significant deficiencies relating to the audit of the major federal award programs are
reported.
e. The auditors' report on compliance for the major federal award programs for the City of Palm
Desert expresses an unqualified opinion on all major federal programs.
f. No audit findings that are required to be reported in accordance with Section 510(a) of
OMB CircularA-133 are reported in this Schedule.
g. The threshold used far distinguishing between type A and type B programs was$300,000.
h. The program tested as a major program was:
Community Development Block Grant CFDA# 14.218
i. The City of Palm Desert did not qualify as low-risk auditee.
2. FINDINGS - FINANCIAL STATEMENT AUDIT:
There were no significant deficiencies or noncompliance material to the financial statements which
were disclosed by the audit of the financial statements of the City of Palm Desert for the year
ended June 30, 2009.
See 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 Auditin� Standards and Independent Auditors' Report on Compliance with Requirements
Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with
OMB CircularA-133 and on Supplementary Schedule of Expenditures of Federal Awards (pages 1
through 4).
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CITY OF PALM DESERT, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(CONTINUED)
For the year ended June 30, 2009
3. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT:
None
See 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 and Independent Auditors' Report on Compliance with Requirements
Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with
OMB Circular A-133 and on Supplementary Schedule of Expenditures of Federal Awards (pages 1
through 4).
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CITY OF PALM DESERT, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(CONTINUED)
For the year ended June 30,2009
SUMMARY OF PRIOR AUDIT FINDINGS:
Not Applicable-The City was not required to perform a single audit for fiscal year 2007-2008.
See 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 Auditin� Standards and Independent Auditors' Report on Compliance with Requirements
Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with
OMB CircularA-133 and on Supplementary Schedule of Expenditures of Federal Awards (pages 1
through 4).
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