Government Auditing Standards Report

Government Auditing Standards Report 197

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REPORT OF INDEPENDENT AUDITORS 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 Board of County Commissioners Lane County, Oregon 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, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Lane County, Oregon (the County) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the County s basic financial statements, and have issued our report thereon dated December 5, 2014. Our report includes a reference to other auditors who audited the financial statements of the Housing and Community Services Agency of Lane County, as described in our report on the County s financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. 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. 199

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 result 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. Eugene, Oregon December 5, 2014 200

OMB Circular A-133 (Single Audit) Report 201

REPORT OF INDEPENDENT AUDITORS ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A 133 The Board of County Commissioners Lane County, Oregon Report on Compliance for Each Major Federal Program We have audited Lane County s (the County ) compliance with the types of compliance requirements described in the 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, 2014. 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. The County s basic financial statements include the operations of the Housing and Community Services Agency of Lane County ( HACSA ), a discretely presented component unit of the County, which received $31,495,433 in federal awards which is not included in the schedule during the year ended June 30, 2014. Our audit, described below, did not include the operations of HACSA because the entity engaged other auditors to perform an audit in accordance with OMB Circular A 133. 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 the 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, 2014. 202

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 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 OMB Circular A 133. Accordingly, this report is not suitable for any other purpose. Eugene, Oregon December 5, 2014 203

Lane County, Oregon Schedule for Expenditures of Federal Awards For Fiscal Year ended June 30, 2014 Federal Grantor and Program Title CFDA Number Expenditures US Department of Agriculture Direct: Schools and Roads Grants to States-Youth Services US Forest Maint. 10.665 $ 129,841 Passed through Oregon Department of Administrative Services: Schools and Roads Grants to States 10.665 10,378,044 Passed through Oregon Department of Education: School Breakfast Program 10.553 18,686 School Lunch Program 10.555 34,010 School Lunch Program - Commodities 10.555 4,815 Passed through Oregon Health Department: Special Supplemental Nutrition Program for Women, Infants and Children 10.557 1,255,184 US Department of Agriculture Total 11,820,580 US Department of Defense Passed through Oregon Department of Administrative Services: Federal Flood Control Lease 12.112 3,029 US Department of Defense Total 3,029 US Department of Energy Passed through Oregon Housing & Community Services: Weatherization Assistance for Low-Income Persons 81.042 594,552 US Department of Energy Total 594,552 US Environmental Protection Agency Passed through Oregon Department of Human Services: State Public Water System Supervision 66.432 34,986 Capitalization Grants for Drinking Water State Revolving Funds 66.468 30,571 US Environmental Protection Agency Total 65,557 US Department of Health & Human Services Direct: Consolidated Health Centers 93.224 733,520 Affordable Care Act (ACA) Grants for New and Expanded Services 93.527 828,619 Youth Investment 93.667 214,155 Medical Assistance Program 93.778 100,544 Promoting Safe and Stable Families 93.556 74,909 Passed through Oregon Department of Justice: Child Support Enforcement 93.563 1,269,671 Passed through Oregon Health & Sciences University: Oregon Health & Sciences University Cacoon 93.994 52,736 Passed through Oregon Health Authority: Public Health Emergency Preparedness-Bio Terrorism 93.069 159,363 Healthy Communities 93.070 4,892 Tuberculosis Control Programs 93.116 5,270 Family Planning Services 93.217 75,776 Drug Court Enhancement Grant 93.243 25,980 Substance Abuse and Mental Health Services 93.243 180,000 Immunization Grants 93.268 2,160 Immunization Grants-noncash assistance 93.268 471,280 CDC_Investigations,Technical Assistance 93.283 26,386 See notes to schedule of expenditures of federal awards 204

Lane County, Oregon Schedule for Expenditures of Federal Awards For Fiscal Year ended June 30, 2014 Federal Grantor and Program Title CFDA Number Expenditures Nursing Family Authority 93.505 $ 556,786 The Patient Protection and Affordable Care Act of 2010 93.544 17,527 Chronic Disease Self-Management Education Programs 93.734 7,161 Medical Assistance Program 93.778 41,343 Hospital Preparedness Program Grant 93.889 25,211 HIV Block Grant 93.940 80,129 Assistance Programs for Chronic Disease Prevention and Control 93.945 12,006 Community Mental Health Services Block Grant 93.958 275,913 Prevention and Treatment of Substance Abuse Block Grant 93.959 1,397,362 Maternal and Child Health Services Block Grant 93.994 184,858 Passed through Oregon Housing & Community Services: Housing Stabilization Program 93.558 52,626 Low Income Energy Assistance Program 93.568 3,551,959 Community Services Block Grant 93.569 400,591 US Department of Health & Human Services Total 10,828,733 US Department of Homeland Security Passed through Oregon Emergency Management: Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 558,073 Emergency Management Performance Grant 97.042 231,309 Homeland Security Program 97.073 14,684 Boating Safety Financial Assistance 97.012 123,630 US Department of Homeland Security Total 927,696 US Department of Housing & Urban Development Direct: Supportive Housing Program 14.235 1,488,617 Community Development Block Grant 14.218 350,000 Community Development Block Grant 14.218 71,935 Emergency Shelter Grants Program 14.231 254,215 HOME Investments Partnerships Program 14.239 124,161 US Department of Housing & Urban Development Total 2,288,928 US Department of Justice Direct: Marijuana Eradication Project 16.580 32,531 DV Pre-trial monitoring Victim Safety Through Enforcement 16.590 119,891 Edward Byrne Memorial Justice Assistance Grant Program 16.738 9,000 State Criminal Alien Assistance Program 16.606 131,627 Passed through Bureau of Justice Assistance: Drug Court Enhancement Grant 16.585 82,855 Intensive Treatment and Supervision and Reentry Programs 16.753 6,844 Regional Shared Public Safety Technology Improvements 16.753 77,495 Second Chance Act Prisoner Reentry Initiative 16.812 44,694 Passed through Oregon Commission on Children and Families: Juvenile Accountability Block grant 16.523 14,467 Disproportionate Minority Contact Asmnt 16.540 39,074 Passed through Oregon Criminal Justice Commission: Edward Byrne Memorial Justice Assistance Grant (JAG) 16.738 25,782 See notes to schedule of expenditures of federal awards 205

Lane County, Oregon Schedule for Expenditures of Federal Awards For Fiscal Year ended June 30, 2014 Federal Grantor and Program Title CFDA Number Expenditures Passed through Oregon Department of Justice: Crime Victim Assistance 16.575 $ 96,378 STOP Violence Against Women Formula Grant 16.588 88,308 US Department of Justice Total 768,946 US Department of Labor Passed through Lane Workforce Partnership: Workforce Initiative Act 17.259 88,151 US Department of Labor Total 88,151 US Department of the Interior Direct: Payment in Lieu of Taxes 15.226 626,977 Distribution of Receipts to State and Local Governments (O&C) 15.227 5,022,974 Passed through Bureau of Land Management: Secure Rural Schools and Community Self-Determination 15.234 139,699 Passed through Oregon State Marine Board: Maintenance Assistance Payment Clean Vessel (CVA) 15.616 108,503 US Department of the Interior Total 5,898,153 US Department of Transportation Passed through Lane Council of Governments: Unified Planning Work Program 20.205 19,723 Passed through Oregon Department of Transportation: Highway Planning and Construction 20.205 476,334 Passed through Oregon State Sheriffs Association: Alcohol Impaired Driving Countermeasures Incentive Grants 20.601 3,525 US Department of Transportation Total 499,582 Executive Office of the President Passed through Oregon HIDTA High Intensity Drug Trafficking Areas Program 95.001 118,670 Executive Office of the President Total 118,670 General Services Administration Passed through Oregon Department of Administrative Services Donation of Federal Surplus Personal Property 39.003 53,088 General Services Administration Total 53,088 Total Expenditures of Federal Awards $ 33,955,665 See notes to schedule of expenditures of federal awards 206

Lane County, Oregon Notes to Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2014 1. Purpose of the Schedule The accompanying Schedule of Expenditures of Federal Awards is a supplementary schedule to Lane County, Oregon's (the "County") basic financial statements and is presented for purposes of additional analysis. Because the schedule presents only a selected portion of the activities of the County, it does not present the financial position, changes in financial position, or the cash flows of the County. 2. Significant Accounting Policies Reporting Entity The reporting entity is fully described in Note I.A. to the County's basic financial statements. The schedule includes all federal programs administered by the primary government for the fiscal year ended June 30, 2014. The Housing and Community Services Agency of Lane County, a discretely presented component unit of Lane County, receives federal monies under its own employer identification number and independently submits its schedule and related internal control and compliance reports as required by OMB Circular A-133. Basis of Presentation The information in the schedule is presented in accordance with OMB Circular A-133. Federal Financial Assistance Pursuant to the Single Audit Act and OMB Circular A-133, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and is reported on the schedule (if applicable). Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the County and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and OMB Circular A-133 establish criteria to be used in defining major programs. Major programs are those programs selected for testing using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in OMB Circular A-133. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Receipts and expenditures are accounted for using the modified accrual basis of accounting. Revenues are recorded when measurable and available, or in the case of grants where expenditure is the prime factor for determining eligibility, when the expenditure is made. Expenditures are recorded when a liability is incurred. 3. Insurance Coverage For the year ended June 30, 2014, the County had insurance in effect as recommended by their agent of record which was comparable in coverage to other counties of similar size and circumstance. 4. Non-cash Assistance A total of $529,183 was received in non-cash assistance (commodities, immunizations, and surplus property) and is included in federal awards expended. 207

Lane County, Oregon Notes to Schedule of Expenditures of Federal Awards, continued For the Fiscal Year Ended June 30, 2014 5. Schedule of Federal Awards by Department and Program The Schedule of Expenditures of Federal Awards is organized by federal department and the organization the County contracted with; either the federal government (direct) or a non-federal entity (pass-through). As a result, total federal expenditures by Catalog of Federal Domestic Assistance (CFDA) number are not apparent. The following Listing of Federal Awards by Department and Program as of June 30, 2014 summarizes expenditures of federal awards by CFDA number regardless of who the County contracted with. 6. Schedule of Federal Awards by Cluster The Schedule of Expenditures of Federal Awards contains various programs that are considered to be clusters. As defined by OMB Circular A-133, a cluster of programs are those Federal programs with different CFDA numbers that are closely related and share common compliance requirements. The following Listing of Federal Awards by Cluster for the year ended June 30, 2014 is provided to disclose this information. 208

Lane County Oregon Notes of Schedule of Expenditures of Federal Awards, continued For the Fiscal Year Ended June 30, 2014 Listing of Federal Awards by Department and Program Department/Program Title CFDA Number Expenditures Department of Agriculture School Breakfast Program 10.553 $ 18,686 National School Lunch Program 10.555 38,825 Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 1,255,184 Schools and Roads - Grants to States 10.665 10,507,885 Department of Agriculture Total 11,820,580 Department of Defense Payments to States in Lieu of Real Estate Taxes 12.112 3,029 Department of Defense Total 3,029 Department of Energy Weatherization Assistance for Low-Income Persons 81.042 594,552 Department of Energy Total 594,552 Department of Health and Human Services Public Health Emergency Preparedness 93.069 159,363 Environmental Public Health and Emergency Response 93.070 4,892 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.116 5,270 Family Planning_Services 93.217 75,776 Consolidated Health Centers (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) 93.224 733,520 Substance Abuse and Mental Health Services_Projects of Regional and National Significance 93.243 205,980 Immunization Cooperative Agreements 93.268 473,440 Centers for Disease Control and Prevention_Investigations and Technical Assistance 93.283 26,386 Affordable Care Act (ACA) Maternal, Infant, and Early Childhood Home Visiting Program 93.505 556,786 Affordable Care Act (ACA) Grants for New and Expanded Services under the Health Center Program 93.527 828,619 The Patient Protection and Affordable Care Act of 2010 (Affordable Care Act) authorizes Coordinated Chronic Disease prevention and Health Promotion Program 93.544 17,527 Promoting Safe and Stable Families 93.556 74,909 Temporary Assistance for Needy Families 93.558 52,626 Child Support Enforcement 93.563 1,269,671 Low-Income Home Energy Assistance 93.568 3,551,959 Community Services Block Grant 93.569 400,591 Social Services Block Grant 93.667 214,155 Empowering Older Adults and Adults with Disabilities through Chronic Disease Self-Management Education Programs financed by Prevention and Public Health Funds (PPHF) 93.734 7,161 Medical Assistance Program 93.778 141,887 National Bioterrorism Hospital Preparedness Program 93.889 25,211 HIV Prevention Activities_Health Department Based 93.940 80,129 Assistance Programs for Chronic Disease Prevention and Control 93.945 12,006 Block Grants for Community Mental Health Services 93.958 275,913 Block Grants for Prevention and Treatment of Substance Abuse 93.959 1,397,362 Maternal and Child Health Services Block Grant to the States 93.994 237,594 Department of Health and Human Services Total 10,828,733 Department of Homeland Security Boating Safety Financial Assistance 97.012 123,630 Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 558,073 Emergency Management Performance Grants 97.042 231,309 State Homeland Security Program (SHSP) 97.073 14,684 Department of Homeland Security Total 927,696 Department of Housing and Urban Development Community Development Block Grants/Entitlement Grants 14.218 421,935 Emergency Solutions Grant Program 14.231 254,215 Supportive Housing Program 14.235 1,488,617 Home Investment Partnerships Program 14.239 124,161 Department of Housing and Urban Development Total 2,288,928 209

Lane County Oregon Notes of Schedule of Expenditures of Federal Awards, continued For the Fiscal Year Ended June 30, 2014 Listing of Federal Awards by Department and Program, continued Department/Program Title CFDA Number Expenditures Department of Justice Juvenile Accountability Block Grants 16.523 $ 14,467 Juvenile Justice and Delinquency Prevention_Allocation to States 16.540 39,074 Crime Victim Assistance 16.575 96,378 Edward Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Program 16.580 32,531 Drug Court Discretionary Grant Program 16.585 82,855 Violence Against Women Formula Grants 16.588 88,308 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 119,891 State Criminal Alien Assistance Program 16.606 131,627 Edward Byrne Memorial Justice Assistance Grant Program 16.738 34,782 Congressionally Recommended Awards 16.753 84,339 Second Chance Act Prisoner Reentry Initiative 16.812 44,694 Department of Justice Total 768,946 Department of Labor WIA Youth Activities 17.259 88,151 Department of Labor Total 88,151 Department of the Interior Payments in Lieu of Taxes 15.226 626,977 Distribution of Receipts to State and Local Governments 15.227 5,022,974 Secure Rural Schools and Community Self-Determination 15.234 139,699 Clean Vessel Act 15.616 108,503 Department of the Interior Total 5,898,153 Department of Transportation Highway Planning and Construction 20.205 496,057 Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 3,525 Department of Transportation Total 499,582 Environmental Protection Agency State Public Water System Supervision 66.432 34,986 Capitalization Grants for Drinking Water State Revolving Funds 66.468 30,571 Environmental Protection Agency Total 65,557 Executive Office of the President High Intensity Drug Trafficking Areas Program 95.001 118,670 Executive Office of the President Total 118,670 General Services Administration Donation of Federal Surplus Personal Property 39.003 53,088 Executive Office of the President Total 53,088 Grand Total $ 33,955,665 210

Lane County Oregon Notes of Schedule of Expenditures of Federal Awards, continued For the Fiscal Year Ended June 30, 2014 Listing of Federal Awards by Cluster CFDA Number Expenditures CDBG - Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants 14.218 $ 421,935 CDBG - Entitlement Grants Cluster Total 421,935 Child Nutrition Cluster: School Breakfast Program 10.553 18,686 National School Lunch Program 10.555 38,825 Child Nutrition Cluster Total 57,511 Drinking Water State Revolving Fund Cluster Capitalization Grants for Drinking Water State Revolving Funds 66.468 30,571 Drinking Water State Revolving Fund Cluster Total 30,571 Forest Service Schools and Roads Cluster: Schools and Roads - Grants to States 10.665 10,507,885 Forest Service Schools and Roads Cluster Total 10,507,885 Health Centers Cluster: Consolidated Health Centers (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) 93.224 733,520 Affordable Care Act (ACA) Grants for New and Expanded Services under the Health Center Program 93.527 828,619 Health Centers Cluster Total 1,562,139 Highway Planning and Construction Cluster: Highway Planning and Construction 20.205 496,057 Highway Planning and Construction Cluster Total 496,057 Highway Safety Cluster: Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 3,525 Highway Safety Cluster Total 3,525 JAG Program Cluster: Edward Byrne Memorial Justice Assistance Grant Program 16.738 34,782 JAG Program Cluster Total 34,782 Medicaid Cluster: Medical Assistance Program 93.778 141,887 Medicaid Cluster Total 141,887 TANF Cluster: Temporary Assistance for Needy Families 93.558 52,626 TANF Cluster Total 52,626 WIA Cluster: WIA Youth Activities 17.259 88,151 WIA Cluster Total 88,151 211

LANE COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2014 Financial Statements Type of auditor s report issued: Internal control over financial reporting: Section I Summary of Auditor s Results Unmodified Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None reported Noncompliance material to financial statements noted? Yes No Federal Awards Internal control over major federal programs: Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None reported Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A 133? Yes No Identification of Major Federal Programs CFDA Numbers Name of Federal Program or Cluster Type of Auditor s Report Issued 10.665 Schools and Roads Grants to States Unmodified 14.235 Supportive Housing Program Unmodified 93.568 Low Income Home Energy Assistance Unmodified Dollar threshold used to distinguish between type A and type B programs: $ 1,018,670 Auditee qualified as low risk auditee? Yes No None reported Section II Financial Statement Findings None reported Section III Federal Award Findings and Questioned Costs 212

LANE COUNTY, OREGON SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30, 2014 Follow-up on findings reported June 30, 2013 Federal Award Findings and Questioned Costs Finding 2013-001 Reporting Significant Deficiency in Internal Control and Instance of Noncompliance Federal Program: CFDA 14.235 Department of Housing and Urban Development- Supportive Housing Program Condition: FFATA subreporting did not occur for subrecipients receiving subawards from the County through this program. Recommendation: We recommend the County implement controls to ensure that subaward reporting is completed timely under the requirements of this Act. We also recommend that the County provide training to personnel responsible for FFATA subreporting. Status of Finding: Fully Resolved: Financial Services coordinated with other County departments to develop procedures to comply with the FFATA subreporting compliance requirements. 213

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