CITY OF ORLANDO, FLORIDA

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1 CITY OF ORLANDO, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For the Year Ended September 30, 2014

2 C O N T E N T S Page Independent Auditor s Report on Compliance for Each Major Federal Program and Major State Project and on Internal Control over Compliance and Report on Schedule of Expenditures of Federal Awards and State Financial Assistance Required by OMB Circular A-133 and Chapter , Rules of the Auditor General 1 Schedule of Expenditures of Federal Awards and State Financial Assistance 4 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 9 Schedule of Findings and Questioned Costs 10 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 12

3 INDEPENDENT AUDITOR S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND MAJOR STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE REQUIRED BY OMB CIRCULAR A-133 AND CHAPTER , RULES OF THE AUDITOR GENERAL Honorable Mayor and Members of the City Council City of Orlando, Florida Report on Compliance for Each Major Federal Program and Major State Project We have audited the compliance of the City of Orlando, Florida (the City ) with the types of compliance requirements described in the U.S. Office of Management and Budget ( OMB ) Circular A-133 Compliance Supplement and Department of Financial Services State Compliance Supplement that could have a direct and material effect on each of the City s major federal programs and major state projects for the year ended September 30, The City s major federal programs and major state projects are identified in the summary of auditor s results section of the accompanying schedule of findings and questioned costs. Management Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditor s Responsibility Our responsibility is to express an opinion on the City 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; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter , Rules of the Auditor General. Those standards, OMB Circular A-133, and Chapter , Rules of the Auditor General, 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 or major state project identified in the accompanying schedule of findings and questioned costs 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 and major state project. However, our audit does not provide a legal determination of the City s compliance. Opinion on Each Major Federal Program and Major State Project In our opinion, the City complied, in all material respects, with the types compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and major state projects for the year ended September 30,

4 The Honorable Mayor and Members of the City Council City of Orlando, Florida Report on Internal Control over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of requirements referred to above. 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 each major federal program or major state project 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 major state project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter , Rules of the Auditor General, 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 or state project 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 or state project 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 or state project 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 OMB Circular A-133 and Chapter , Rules of the Auditor General. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards and State Financial Assistance Required by OMB Circular A-133 and Chapter , Rules of the Auditor General We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City s basic financial statements. We have issued our report thereon dated April 24, 2015, 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 and state financial assistance is presented for the purposes of additional analysis, as required by OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter , Rules of the Auditor General, and is not a required part of the basic financial statements. 2

5 The Honorable Mayor and Members of the City Council City of Orlando, Florida Report on Schedule of Expenditures of Federal Awards and State Financial Assistance Required by OMB Circular A-133 and Chapter , Rules of the Auditor General (Cont.) 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 basic 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 and state financial assistance is fairly stated, in all material respects, in relation to the basic financial statements as a whole. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida April 24,

6 City of Orlando, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance For the Year Ended September 30, 2014 FEDERAL AWARDS Grantor/Federal Program Title/Pass-Through Grantor Identification CFDA Federal Expenditures U.S. Department of Agriculture Afterschool Nutrition Program FY 13/ $ 299,866 U.S. Department of Housing and Urban Development: Community Development Block Grants/Entitlement Grants (Amount paid to subrecipients $984,094) FY 10/11 B-10-MC ,816 FY 12/13 B-12-MC ,862 FY 13/14 B-13-MC ,282,765 1,487,443 Neighborhood Stabilization Program FY 08/09 (Amount paid to subrecipients $143,139) B-08-MN ,367 Neighborhood Stabilization Program - 3 FY 10/11 (Amount paid to subrecipients $361,944) B-11-MN , ,311 2,008,754 Emergency Shelter Grants Program (amount paid to subrecipients $106,720) FY 11/12 S-11-MC ,000 FY 12/13 E-12-MC ,387 FY 13/14 E-13-MC , ,417 HOME Investment Partnerships Program (Amount paid to subrecipients $398,655) FY 09/10 M-09-MC ,894 FY 11/12 M-11-MC ,088 FY 12/13 M-12-MC ,115 1,107,097 Housing Opportunities for Persons with AIDS (Amount paid to subrecipients $3,195,783) FY 13/14 FLH13F ,279,890 Sustainable Communities Regional Planning Grant Passed through East Central Florida Regional Planning Council Cooperative Agreement - LYNX Central Station Area Plan FLRIP ,487 6,981,645 4

7 City of Orlando, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance For the Year Ended September 30, 2014 FEDERAL AWARDS (continued) Grantor/Federal Program Title/Pass-Through Grantor Identification CFDA Federal Expenditures U.S. Department of Justice: Joint Law Enforcement Operations (JLEO) Regional Fugitive Task Force JLEO $ 124,901 ATF Task Force FY ,642 Organized Crime Drug Enforcement Task Forces FC/FLM / ,694 Organized Crime Drug Enforcement Task Forces FC/FLM / , ,863 Violence Against Women Formula Grants Passed through Florida Coalition Against Domestic Violence Harbor House of Central Florida, Inc LE-INV ,223 STOP Violence Against Women LE-INV , ,394 Edward Byrne Memorial Justice Assistance Grant Program (JAG) FY 13/14 Local Solicitation - Radios 2013-DJ-BX ,710 Passed through Florida Department of Law Enforcement FY 13/14 OSCO JAG In-Car Cameras 2014-JAG-ORAN-3-E , ,702 Economic High-Tech and Cyber Crime Prevention FY 11/ DG-BX , ,606 U.S. Department of Transportation: Highway Planning and Construction Passed through Florida Department of Transportation Construction of Congestion Mgmt Improvements, International ,819,345 Drive Downtown Orlando ITS Project Phase ,318 Semoran Sidewalk and Streetscape Improvements ,462 Church Street Improvements East Phase ,766,129 Church Street Improvements West Phase ,384,667 Shingle Creek Oakridge to Sand Lake ,511 Primary Bicycle Route Plan Study ,041 8,484,473 State Bicycle/Pedestrian Safety Program Passed through Florida Department of Transportation High Visibility Enforcement Contract BVD ,363 Alcohol Impaired Driving Countermeasures Incentive Grants Passed through Florida Department of Transportation FY 13/14 DUI Enforcement K ,000 8,631,836 U.S. Department of Treasury: Federal Equitable Sharing Agreement FY 13/14 FY 13/ ,106,966 5

8 City of Orlando, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance For the Year Ended September 30, 2014 FEDERAL AWARDS (continued) Grantor/Federal Program Title/Pass-Through Grantor Identification CFDA Federal Expenditures U.S. Equal Employment Opportunity Commission: Employment Discrimination - State and Local Fair Employment Practices Agency Contracts FY 12/13 EECCN100093, Mod. No $ 26,400 U.S. Environmental Protection Agency: Capitalization Grants for Clean Water State Revolving Funds Passed through Florida Department of Environmental Protection Orlando Treatment Facilities (Aeration Process Improvements at the Conserv II WWTF) WW (140131) ,251,042 Lift Stations 29, 65 & 78 WW (140131) ,999,783 Lift Stations 18, 35, 48, 68 WW (140131) ,232,486 Lift Stations 16, 17, 52, 57 WW (140131) ,610 ERRWDS Ph II Trans-Cont. 1B, 1C WW (140131) ,167,373 9,044,294 Nonpoint Source Implementation Grants (Section 319) Passed through Florida Department of Environmental Protection Orlando Wet Pond Expansion and Exfiltration G0321/C ,800 Brownfields Assessment and Cleanup Cooperative Creative Village Assessment BF ,603 FY 13/14 Brownfields Clean Up BF-00D ,024 9,508,118 Corporation for National and Community Services: O-Pass Governor and City Volunteer Florida AmeriCorps Project ACHFL ,372 Executive Office of the President: High Intensity Drug Trafficking Areas Program (HIDTA) FY 12/13 G13CF0012A ,884 FY 13/14 G14CF0012A , ,010 U.S. Department of Homeland Security: Homeland Security Grant Program Assistance to Firefighters Grant DHS-13-GPD ,668 Passed through State of Florida State Homeland Security Grant Program (SHSGP) / Issue 3 & 9 12-DS ,010 State Homeland Security Grant Program (SHSGP) / FY2012 USAR and HazMat 13-DS ,601 6

9 City of Orlando, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance For the Year Ended September 30, 2014 FEDERAL AWARDS (continued) Grantor/Federal Program Title/Pass-Through Grantor Identification CFDA Federal Expenditures U.S. Department of Homeland Security: (continued) Passed through Orange County, Florida Sheriff's Office FY 09/10 Urban Area Security Initiatives OFD - Warehouse 11-DS-A $ 26,505 Non-cash assistance, receipt of equipment FY 12/13 Urban Area Security Indicatives, OPD 14-DS-C ,942 FY 13/14 Urban Area Security Indicatives, OPD 14-DS-L , ,927 Staffing for Adequate Fire and Emergency Response (SAFER) FY 11/12 EMW-2012-FH ,671,747 2,839,342 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 30,461,161 7

10 City of Orlando, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance For the Year Ended September 30, 2014 STATE FINANCIAL ASSISTANCE Grantor/State Project Title/Pass-Through Grantor Identification CSFA State Expenditures Florida Department of State, Division of Cultural Affairs: General Program Support FY 13/14 Harry P. Leu Gardens $ 21,361 FY 14/15 Harry P. Leu Gardens ,429 30,790 Florida Housing Finance Corporation: State Housing Initiatives Partnership Program (SHIP) FY 11/12 FY 11/ ,588 FY 12/13 FY 12/ ,007 FY 13/14 FY 13/ , ,118 Florida Department of Revenue: Facilities for New Professional Sports, Retained Professional Sports, or Retained Spring Training Franchise Passed through Florida Office of Tourism, Trade, and Economic Development Retained Orlando Magic FY 13/ ,000,004 TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE $ 2,169,912 See accompanying notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 8

11 CITY OF ORLANDO, FLORIDA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE YEAR ENDED SEPTEMBER 30, Basis of Presentation This schedule summarizes the expenditures incurred under all federal programs and state projects by the City of Orlando, Florida (the City) for the fiscal year ended September 30, For purposes of this schedule, federal programs and state projects include all grants and contracts entered into directly between the City and agencies and departments of the federal or state government with expenditures during the fiscal year ended September 30, Federal programs and state projects passed through to other governmental agencies, if any, are also included in the schedule. Expenditures for federal programs and state projects are recognized on the modified accrual basis of accounting. 2. Payments to Subrecipients Amounts remitted to subrecipients are shown parenthetically under the program title. 3. Contingency The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by a grantor agency as result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the City. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations. 9

12 CITY OF ORLANDO, FLORIDA Schedule of Findings and Questioned Costs For The Year Ended September 30, 2014 Section I - Summary of Independent Auditor s Results Financial Statements Type of Auditor s Report Issued: Unmodified Opinion Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards and State Financial Assistance Internal control over major federal programs and major state projects: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified? Yes X None reported Type of report issued on compliance for major federal programs and major state projects: Unmodified Opinion Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133 or Chapter , Rules of the Auditor General? Yes X No Identification of Major Federal Programs and Major State Projects: CFDA s Name of Federal Programs Community Development Block Grants/Entitlement Grants Home Investment Partnerships Program Housing Opportunities for Persons with AIDS Federal Equitable Sharing Agreement Capitalization Grants for Clean Water State Revolving Funds Staffing for Adequate Fire and Emergency Response (SAFER) CSFA s Name of State Project Facilities for New Professional Sports, Retained Professional Sports, or Retained Spring Training Franchise Dollar threshold used to distinguish between Type A and Type B programs: Federal: $913,835 State: $300,000 Auditee qualified as low-risk auditee? Yes X No 10

13 CITY OF ORLANDO, FLORIDA Schedule of Findings and Questioned Costs (Continued) For The Year Ended September 30, 2014 Section II - Financial Statement Findings None Reported. Section III - Federal Award and State Financial Assistance Findings and Questioned Costs Section None Reported. Section IV - Prior Year Audit Findings None Reported. 11

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

14 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 The Honorable Mayor and Members of the City Council City of Orlando, Florida We have audited, 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, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Orlando, Florida (the City ) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City s basic financial statements, and have issued our report thereon dated April 24, We have also audited the financial statements of the City s Firefighters Pension Fund, the Police Pension Fund, and the General Employees Pension Fund as of and for the year ended September 30, 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 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 over financial reporting 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. 12

15 The Honorable Mayor and Members of the City Council City of Orlando, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the City s basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, grant agreements and contracts, 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. We noted certain matters that we reported to management of the City in a separate letter dated April 24, 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. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida April 24,

Honorable Mayor and Members of City Council City of Orlando. Compliance

Honorable Mayor and Members of City Council City of Orlando. Compliance Ernst & Young LLP Suite 1700 390 North Orange Avenue Orlando, FL 32801-1671 Tel: +1 407 872 6600 Fax: +1 407 872 6626 www.ey.com Report of Independent Certified Public Accountants on Compliance With Requirements