REPORT TO COUNCIL
SUBJECT
Title
Single Audit Report for Fiscal Year 2016/17
Report
BACKGROUND
The City's annual financial statement audit also includes the federally mandated "Single Audit" which is designed to meet the special reporting requirements of federal granting agencies, specifically Office of Management and Budget (OMB) Uniform Guidance 2.CFR.200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (formerly OMB A-133). The standards governing Single Audit engagements require that agencies expending more than $750,000 in federal monies in a fiscal year have an independent audit not only on the fair presentation of the financial statements, but also on internal controls for compliance with the administrative requirements of federal awards. The Single Audit was performed by the City's financial statement auditor, Maze & Associates.
DISCUSSION
Based on their audit, Maze & Associates issued an unmodified opinion with regard to the fair presentation of the financial statements and that the City was in compliance with internal control over financial reporting. However, as part of the audit, one finding was reported related to monitoring HOME Investment Partnership Program (HOME) activities for compliance with HOME program rules and regulations. The finding related to the City committing and expending funds prior to the execution of a promissory note for a particular project. As a result, the City was required to return funds to the grantor, the Department of Housing and Urban Development (HUD), in the amount of $82,102, and de-obligate the remaining activity funding of $15,463. In response, staff re-evaluated all other HOME funded promissory notes and implemented a corrective plan. As part of the review of all other HOME funded promissory notes, staff found an additional $9,820 of ineligible costs. These were also returned to HUD for a total return of grant funds of $91,922 during fiscal year 2016-17. In...
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