COUNTY OF MERCED SINGLE AUDIT REPORTS (OMB CIRCULAR A-133) FOR THE FISCAL YEAR ENDED JUNE 30, 2013

Transcription

1 SINGLE AUDIT REPORTS (OMB CIRCULAR A-133) FOR THE FISCAL YEAR ENDED JUNE 30, 2013

2 SINGLE AUDIT REPORTS (OMB CIRCULAR A-133) FOR THE FISCAL YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS Page Reports Independent Auditor s 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 Auditor s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program, Internal Control Over Compliance, and the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A Financial Statements Schedule of Expenditures of Federal Awards... 5 Notes to the Schedule of Expenditures of Federal Awards Findings and Questioned Costs Schedule of Findings and Questioned Costs Status of Prior Year Findings and Questioned Costs i

3 REPORTS

4 INDEPENDENT AUDITOR S 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 Honorable Board of Supervisors of the County of Merced 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 County of Merced, California (the County), as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the County s basic financial statements, and have issued our report thereon dated March 5, Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County 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 County s internal control. Accordingly, we do not express an opinion on the effectiveness of the County 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 may exist that have not been identified. 1

5 Compliance and Other Matters As part of obtaining reasonable assurance about whether the County 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. 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 County 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 County s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California March 5,

6 INDEPENDENT AUDITOR S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM, INTERNAL CONTROL OVER COMPLIANCE, AND THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE WITH OMB CIRCULAR A-133 Honorable Board of Supervisors of the County of Merced Report on Compliance for Each Major Federal Program We have audited County of Merced s (the County) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of the County s major federal programs for the year ended June 30, The County 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 the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor s Responsibility Our responsibility is to express an opinion on compliance for each of the County 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 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 County 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 County s compliance. Opinion on Each Major Federal Program In our opinion, the County 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,

7 Report on Internal Control over Compliance Management of the County 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 County 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 OMB Circular A-133, 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 County 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 OMB Circular A-133 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 County, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise County s basic financial statements. We issued our report thereon dated March 5, 2014, 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 OMB Circular A-133 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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California March 5,

8 FINANCIAL STATEMENTS

9 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 FEDERAL GRANTOR Federal Contract Total Pass-through Grantor C.F.D.A. or Program Federal Program Title Number Number Expenditures U.S. DEPARTMENT OF AGRICULTURE Direct Programs ARRA - Community Facilities Loans and Grants $ 56,425 Passed Through California Department of Food and Agriculture Plant and Animal Disease, Pest Control, and Animal Care SF/ ,924 Plant and Animal Disease, Pest Control, and Animal Care SF/ ,666 Plant and Animal Disease, Pest Control, and Animal Care SF/ ,901 Plant and Animal Disease, Pest Control, and Animal Care SF/ ,539 Plant and Animal Disease, Pest Control, and Animal Care / ,367 Plant and Animal Disease, Pest Control, and Animal Care / ,155 Plant and Animal Disease, Pest Control, and Animal Care / ,940 Plant and Animal Disease, Pest Control, and Animal Care SF-1/ ,589 Plant and Animal Disease, Pest Control, and Animal Care SF/ ,158 Subtotal 272,239 Senior Farmers Market Nutrition Program AP ,000 Inspection Grading and Standardization SF/ ,362 Inspection Grading and Standardization SF/ ,771 Subtotal 7,133 Passed Through California Department of Education School Breakfast Program SN-24-R 46,764 National School Lunch Program SN-24-R 72,613 Subtotal - Child Nutrition Cluster 119,377 Passed Through California Department of Public Health State Administrative Matching Grants for Supplemental Nutrition Assistance ,435 State Administrative Matching Grants for Supplemental Nutrition Assistance ,703 Passed Through California Department of Social Services State Administrative Matching Grants for Supplemental Nutrition Assistance Merced (County 24) 8,062,289 Subtotal 8,491,427 Total U.S. Department of Agriculture 8,956,601 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Direct Programs Supportive Housing Program CA 0780B9T ,461 Supportive Housing Program CA0984B9T ,954 Subtotal 195,415 Community Development Block Grants/State's Program B-11-UN ,627 Community Development Block Grants/State's Program Program Income 239,336 Passed Through California Department of Housing and Community Development Community Development Block Grants/State's Program Program Income 15,613 Community Development Block Grants/State's Program STBG ,810 Subtotal 891,386 HOME Investment Partnerships Program HOME ,490 HOME Investment Partnerships Program Program Income 49,456 Subtotal 225,946 Total U.S. Department of Housing and Urban Development 1,312,747 * Major Program (Continued) 5

10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2013 FEDERAL GRANTOR Federal Contract Total Pass-through Grantor C.F.D.A. or Program Federal Program Title Number Number Expenditures U.S. DEPARTMENT OF JUSTICE Direct Programs DEA Cannabis Eradication 16.XXX LOA ,241 State Criminal Alien Assistance Program AP-BX ,087 Public Safety Partnership and Community Policing Grants UMWX ,860 Passed Through the County of Sacramento High Intensity Drug Traffic Area Grant 16.XXX I8CUP 502Z 131,007 Passed Through California Corrections Standards Authority Juvenile Accountability Block Grants CSA ,664 Passed Through California Emergency Management Agency Crime Victim Assistance VW ,833 Crime Victim Assistance UV ,244 Crime Victim Assistance UV ,519 Crime Victim Assistance AT ,546 Crime Victim Assistance AT ,482 Subtotal 381,624 Direct Programs Edward Byrne Memorial Justice Assistance Grant Program DJ-BX ,955 Passed Through California Board of State and Community Corrections Edward Byrne Memorial Justice Assistance Grant Program BSCC ,928 Passed Through California Emergency Management Agency ARRA-Edward Byrne Memorial Justice Assistance Grant ZP ,464 Subtotal - JAG Program Cluster 501,347 Total U.S. Department of Justice 1,666,830 U.S. DEPARTMENT OF LABOR Passed Through California Employment Development Department WIA Adult Program K ,011,031 WIA Adult Program K ,931 WIA Adult Program K ,559 Passed Through Stanislaus County WIA Adult Program ,094 Subtotal 1,661,615 Passed Through California Employment Development Department WIA Youth Program K ,401 WIA Youth Program K ,743 Subtotal 1,165,144 Passed Through South Bay Workforce Investment Board WIA National Emergency Grants ,198 * Major Program (Continued) 6

11 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2013 FEDERAL GRANTOR Federal Contract Total Pass-through Grantor C.F.D.A. or Program Federal Program Title Number Number Expenditures U.S. DEPARTMENT OF LABOR (Continued) Passed Through Tulare County WIA Dislocated Worker Formula Grants ,835 Passed Through Stanislaus County ARRA WIA Dislocated Worker Formula Grants ,220 Passed Through California Employment Development Department ARRA WIA Dislocated Worker Formula Grants K ,874 WIA Dislocated Worker Formula Grants K ,252,141 WIA Dislocated Worker Formula Grants K ,914 WIA Dislocated Worker Formula Grants K ,359 Subtotal 2,408,343 Subtotal - WIA Cluster 5,239,300 Total U.S. Department of Labor 5,239,300 U.S. DEPARTMENT OF TRANSPORTATION Direct Programs Airport Improvement Program ,976 Airport Improvement Program ,030 Subtotal 86,006 Passed Through California Department of Transportation Highway Planning and Construction BRLOZB 5939 (048) 118,241 Highway Planning and Construction CML (086) 60,133 Highway Planning and Construction RPHP21L (001) 65,296 Highway Planning and Construction HPLU (003) 20,638 Highway Planning and Construction HPLU (004) 4,114 Highway Planning and Construction BRLS (070) 28,596 Highway Planning and Construction BRLO (077) 29,622 Highway Planning and Construction BRLS (078) 140,095 Highway Planning and Construction BRLO (081) 117,033 Highway Planning and Construction BRLO (082) 35,951 Highway Planning and Construction BRLO (083) 71,202 Highway Planning and Construction BRLO (084) 62,991 Highway Planning and Construction HRRRL (068) 483,740 Subtotal 1,237,652 Total U.S. Department of Transportation 1,323,658 U.S. NATIONAL ENDOWMENT FOR THE HUMANITIES Passed Through California State Library Grants to States Merced (County 24) 1,765 Total U.S. National Endowment for the Humanities 1,765 NATIONAL SCIENCE FOUNDATION Passed Through Califa Group Education and Human Resources Merced (County 24) 2,500 Total National Science Foundation 2,500 U.S. DEPARTMENT OF EDUCATION Passed Through California Department of Rehabilitation Rehabilitation Services - Vocational Rehabilitation Grants to States ,868 Total U.S. Department of Education 50,868 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed Through California Department of Aging Title VII, Programs for Prevention of Elder Abuse, Neglect, and Exploitation AP ,098 Title VII, Long-Term Care Ombudsman Services for Older Individuals AP ,392 Title III, Part D, Disease Prevention and Health Promotion Services AP ,820 * Major Program (Continued) 7

12 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2013 FEDERAL GRANTOR Federal Contract Total Pass-through Grantor C.F.D.A. or Program Federal Program Title Number Number Expenditures U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (Continued) Passed Through California Department of Aging (Continued) Title III, Part B - Grants for Supportive Services and Senior Centers AP ,782 Title III, Part C - Nutrition Services AP ,350 Nutrition Services Incentive Program AP ,248 Subtotal - Aging Cluster 698,380 National Family Caregiver Support - Title III, Part E AP ,314 Medical Assistance Program * ,997 Passed Through California Department of Social Services Medical Assistance Program * Merced (County 24) 1,224,559 Medical Assistance Program * Merced (County 24) 371,524 Medical Assistance Program * Merced (County 24) 11,114,679 Medical Assistance Program * Merced (County 24) 784,700 Medical Assistance Program * Merced (County 24) 762,916 Passed Through California Department of Health Services Medical Assistance Program * Merced (County 24) 303,732 Medical Assistance Program * Merced (County 24) 114,535 Passed Through California Department of Alcohol and Drug Programs Medical Assistance Program * 10-NNA24 888,957 Passed Through California Department of Health Care Services Medical Assistance Program * Merced (County 24) 685,557 Passed Through California Department of Mental Health Medical Assistance Program * Merced (County 24) 837,605 Passed Through California Department of Public Health Medical Assistance Program * ,434 Subtotal 17,902,195 Passed Through California Department of Aging Centers For Medicare and Medicaid Services HI ,480 Passed Through California Department of Alcohol and Drug Programs Block Grants for Prevention and Treatment of Substance Abuse NNA24 275,853 Block Grants for Prevention and Treatment of Substance Abuse NNA24 7,024 Block Grants for Prevention and Treatment of Substance Abuse NNA24 2,000 Block Grants for Prevention and Treatment of Substance Abuse NNA24 87,360 Block Grants for Prevention and Treatment of Substance Abuse NNA24 11,444 Block Grants for Prevention and Treatment of Substance Abuse NNA24 25,888 Block Grants for Prevention and Treatment of Substance Abuse NNA24 299,166 Block Grants for Prevention and Treatment of Substance Abuse NNA24 7,024 Block Grants for Prevention and Treatment of Substance Abuse NNA24 2,000 Block Grants for Prevention and Treatment of Substance Abuse NNA24 87,363 Block Grants for Prevention and Treatment of Substance Abuse NNA24 19,054 Block Grants for Prevention and Treatment of Substance Abuse NNA24 25,890 Subtotal 850,066 Passed Through California Department of Child Support Services Child Support Enforcement Merced (County 24) 5,367,921 * Major Program (Continued) 8

13 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2013 FEDERAL GRANTOR Federal Contract Total Pass-through Grantor C.F.D.A. or Program Federal Program Title Number Number Expenditures U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (Continued) Passed Through California Department of Health Care Services Children's Health Insurance Program Merced (County 24) 126,574 Passed Through California Department of Mental Health Projects for Assistance in Transition from Homelessness (PATH) Merced (County 24) 97,649 Block Grants For Community Mental Health Services Merced (County 24) 906,598 Passed Through California Department of Public Health Public Health Emergency Preparedness EPO ,235 Project Grants and Cooperative Agreements for Tuberculosis Merced (County 24) 15,822 Immunization Cooperative Agreements ,022 Pregnancy Assistance Fund Program ,183 Affordable Care Act - Maternal, Infant, and Early Childhood Home Visiting Program ,203 National Bioterrorism Hospital Preparedness Program EPO ,382 HIV Care Formula Grants ,355 Preventive Health Services - Sexually Transmitted Disease Control Grants Maternal and Child Health Services Block Grant to the States ,853 Passed Through California Department of Social Services Guardianship Assistance Merced (County 24) 48,849 Promoting Safe and Stable Families Merced (County 24) 304,082 Temporary Assistance for Needy Families * Merced (County 24) 1,023,198 Temporary Assistance for Needy Families * Merced (County 24) 6,880,034 Temporary Assistance for Needy Families * Merced (County 24) 10,096,411 Temporary Assistance for Needy Families * Merced (County 24) 2,092,461 Temporary Assistance for Needy Families * Merced (County 24) 349,550 Temporary Assistance for Needy Families * Merced (County 24) 35,809,540 Temporary Assistance for Needy Families * Merced (County 24) 72,440 Temporary Assistance for Needy Families * Merced (County 24) 379,803 Subtotal 56,703,437 Community - Based Child Abuse Prevention Grants Merced (County 24) 21,451 Child Welfare Services - Programs Merced (County 24) 258,530 * Major Program (Continued) 9

14 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2013 FEDERAL GRANTOR Federal Contract Total Pass-through Grantor C.F.D.A. or Program Federal Program Title Number Number Expenditures U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (Continued) Passed Through California Department of Social Services (Continued) Foster Care - Title IV-E Merced (County 24) 1,314,412 Foster Care - Title IV-E Merced (County 24) 191,996 Foster Care - Title IV-E Merced (County 24) 26,461 Foster Care - Title IV-E Merced (County 24) 2,215 Foster Care - Title IV-E Merced (County 24) 49,255 Foster Care - Title IV-E Merced (County 24) 1,919 Foster Care - Title IV-E Merced (County 24) 118,954 Foster Care - Title IV-E Merced (County 24) 3,904,723 Foster Care - Title IV-E Merced (County 24) 3,088,761 Foster Care - Title IV-E Merced (County 24) 632,642 Foster Care - Title IV-E Merced (County 24) 82,811 Subtotal 9,414,149 Adoption Assistance Merced (County 24) 127,915 Adoption Assistance Merced (County 24) 405,531 Adoption Assistance Merced (County 24) 2,313,198 Adoption Assistance Merced (County 24) 76,422 Subtotal 2,923,066 Chafee Foster Care Independence Program Merced (County 24) 131,029 Passed Through California Department of Secretary of State Voting Access for Individuals with Disabilities-Grants to States G ,999 Passed Through Public Health Institute Community Transformation Grants and National Dissemination and Support for Community Transformation Grants ,558 Total U.S. Department of Health and Human Services 97,598,792 U.S. DEPARTMENT OF HOMELAND SECURITY Direct Programs Assistance to Firefighters Grants EMW-2010-FO ,327 Assistance to Firefighters Grants EMW-2011-FO ,172 Subtotal 682,499 Passed Through California Emergency Management Agency Emergency Management Performance Grants ,890 Emergency Management Performance Grants ,654 Subtotal 580,544 Homeland Security Grant Program ,486 Homeland Security Grant Program SS ,591 Homeland Security Grant Program SS ,583 Subtotal 468,660 Total U.S. Department of Homeland Security 1,731,703 Total Expenditures of Federal Awards $ 117,884,764 * Major Program 10

15 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 NOTE 1 GENERAL The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Comprehensive Annual Financial Report. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA. NOTE 2 BASIS OF ACCOUNTING The accompanying SEFA is presented using the cash basis of accounting with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the Comprehensive Annual Financial Report (CAFR), the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements. NOTE 3 AMOUNT PROVIDED TO SUBRECIPIENTS The County has provided federal awards to various organizations. The amounts provided to subrecipients from each federal program are summarized as follows: Federal Contract Amount FEDERAL GRANTOR OR C.F.D.A. or Provided to Pass-Through Grantor Federal Program # Subrecipient Program Number Subrecipients California Department of Alcohol and Drug Drug Medi-Cal Aegis Medical Systems Inc. 10-NNA24 $ 461,196 State Employment Development Department WIA Youth Activities MCOE K282484/K I 335,444 State Employment Development Department WIA Youth Activities MCOE K282484/K II 356,410 State Employment Development Department WIA Youth Activities MCOE K282484/K III 150,000 $ 1,303,050 11

16 NOTE 4 CALIFORNIA DEPARTMENT OF AGING GRANT PROGRAMS The SEFA is normally a presentation of federal awards expended. However, the terms and conditions of agency contracts with California Department of Aging require agencies to display state-funded expenditures discretely along with the related federal expenditures in the SEFA. The following is a listing of the grant programs administered by California Department of Aging. CONTRACT OR PROGRAM FEDERAL STATE LOCAL PROGRAM TITLE PROGRAM C.F.D.A. # NUMBER EXPENDITURES EXPENDITURES HICAP State Contract (12/13) HICAP HI $ 105,480 $ 163,280 Title III/VII State Contract (12/13) Nutrition Services AP ,350 33,260 Title III/VII State Contract (12/13) NSIP AP ,248 - Title III/VII State Contract (12/13) Family Caregiver Support IIIE AP ,314 - Title III/VII State Contract (12/13) Elder Abuse Title VII AP ,098 - Title III/VII State Contract (12/13) Ombudsman Title VII AP ,392 - Title III/VII State Contract (12/13) Disease Prev. & Promo. Svcs Title IIID AP ,820 - Title III/VII State Contract (12/13) Supp Sacs & Sr, Ctrs Title IIIB AP ,782 - Title III/VII State Contract (12/13) Sr, Farmers Market AP ,000 - Title III/VII State Contract (12/13) Ombudsman Special Deposit Fund (SDF) State only AP ,560 Title III/VII State Contract (12/13) Ombudsman Skilled Nursing Facility Quality & Accountability Fund (SNFQAF) State only AP ,178 $ 959,484 $ 212,278 NOTE 5 LOANS OUTSTANDING The County participates in certain federal award programs that sponsor revolving loan programs, which are administered by the County. These programs maintain servicing and trust arrangements with the County to collect loan repayments. The funds are returned to the programs upon repayment of the principal and interest. The federal government has imposed no continuing compliance requirements with respect to the loans rendered under the programs other than to repay the loans. The following is a summary of the loan programs maintained by the County and their balances at June 30, 2013: New Loans June 30, 2013 Issued During C.F.D.A. Amount Fiscal Year Ended Number Outstanding June 30, 2013 Economic Adjustment Assistance $ 405,999 $ - Community Development Block Grants/State's Programs ,724, ,931 HOME Investment Partnership Program ,559, ,389 $ 7,689,890 $ 440,320 12

17 FINDINGS AND QUESTIONED COSTS

18 SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Section I Summary of Auditor s Results Financial Statements Type of auditor s report issued: Unmodified Internal control over financial reporting: Material weakness identified? Yes X No Significant deficiencies 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 federal programs: Material weakness identified? Yes X No Significant deficiencies identified that are not considered to be material weaknesses? Yes X None reported Type of auditor s report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A-133? Yes X No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster Temporary Assistance for Needy Families Medical Assistance Program Dollar threshold used to distinguish between type A and type B programs: $3,000,000 Auditee qualified as low-risk auditee? X Yes No 13

19 Section II Financial Statement Findings None. Section III Federal Award Findings and Questioned Costs None. 14

20 STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 None. 15