, CALIFORNIA Single Audit Report
, CALIFORNIA Single Audit Reports TABLE OF CONTENTS 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 Independent Auditors Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by OMB Circular A-133... 3 Schedule of Expenditures of Federal Awards... 6 Notes to the Schedule of Expenditures of Federal Awards... 10 Schedules of Findings and Questioned Costs I. Summary of Auditors Results... 15 II. Financial Statement Findings... 16 III. Federal Award Findings and Questioned Costs...17 Summary Schedule of Prior Audit Findings... 21
Vavrinek, Trine, Day & Co., LLP Certified Public Accountants VALUE THE DIFFERENCE 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 Board of Supervisors County of Sonoma, California 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 businesstype activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of County of Sonoma, California (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 December 20, 2013. Our report included an emphasis of matter paragraph regarding the County s adoption of Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus an amendment of GASB Statement No. 14 and No. 34, GASB 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, and GASB 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Our report also included a reference to other auditors who audited the financial statements of the Sonoma County Agricultural Preservation and Open Space District (nonmajor governmental fund), Transit Fund (major enterprise fund), Sonoma County Fair and Exposition (Nonmajor enterprise fund), Community Development Commission (discretely presented component unit), Sonoma County Library (discretely presented component unit), Sonoma County Water Agency (discretely presented component unit), Sonoma Valley County Sanitation District (discretely presented component unit), Russian River County Sanitation District (discretely presented component unit), South Park County Sanitation District (discretely presented component unit), and the Occidental County Sanitation District (discretely presented component unit), as described in our report on the County of Sonoma 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. The financial statements of the Sonoma County Agriculture Preservation and Open Space District were not audited in accordance with Government Auditing Standards. 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. 1 8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com FRESNO LAGUNA HILLS PALO ALTO PLEASANTON RANCHO CUCAMONGA riverside Sacramento
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. 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 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. Rancho Cucamonga, California December 20, 2013 2
Vavrinek, Trine, Day & Co., LLP Certified Public Accountants VALUE THE DIFFERENCE INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133 Board of Supervisors County of Sonoma, California Report on Compliance for Each Major Federal Program We have audited the County of Sonoma, California s (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, 2013. 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 following entities, which are not included in the schedule of expenditures of federal awards for the fiscal year ended June 30, 2013: Entity Federal Expenditures Sonoma County Community Development Commission $ 31,643,639 Russian River County Sanitation District 3,884,450 Sonoma County Water Agency 3,587,117 County of Sonoma Transportation Project Fund (Transit) 2,427,901 Sonoma Valley County Sanitation District 729,187 Sonoma County Fair and Exposition 131,638 Sonoma County Library 20,856 Our audit, described below, did not include the operations of these entities because they 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. 3 8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com FRESNO LAGUNA HILLS PALO ALTO PLEASANTON RANCHO CUCAMONGA riverside Sacramento
Auditors 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, 2013. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as items 2013-001 through 2013-003. Our opinion on each major federal program is not modified with respect to these matters. The County s responses to the noncompliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The County s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. 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. 4
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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain deficiencies in internal control over compliance, as described in the accompanying schedule of findings and questioned costs as items 2013-001 through 2013-003 that we consider to be significant deficiencies. The County s responses to the internal control over compliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The County s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. 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. 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, the aggregate discretely presented component units, 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 the County s basic financial statements. We issued our report thereon dated December 20, 2013, which contained unmodified opinions on those financial statements. Our report included an emphasis of matter paragraph regarding the County s adoption of Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus an amendment of GASB Statement No. 14 and No. 34, GASB 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements, and GASB 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Our report also includes a reference to other auditors who audited the financial statements of the Sonoma County Agricultural Preservation and Open Space District (nonmajor governmental fund), Transit Fund (major enterprise fund), Sonoma County Fair and Exposition (Nonmajor enterprise fund), Community Development Commission (discretely presented component unit), Sonoma County Library (discretely presented component unit), Sonoma County Water Agency (discretely presented component unit), Sonoma Valley County Sanitation District (discretely presented component unit), Russian River County Sanitation District (discretely presented component unit), South Park County Sanitation District (discretely presented component unit), and the Occidental County Sanitation District (discretely presented component unit), as described in our report on the County of Sonoma s 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. Rancho Cucamonga, California March 14, 2014 5
Schedule of Expenditures of Federal Awards Federal Agency / Pass-Through Federal Grantor/Pass-through Grantor/Program or Cluster Title Federal CFDA No. Entity Identifying Number State Expenditures Federal Expenditures U.S. Department of Agriculture Direct Federal Programs Rural Business Enterprise Grant (RBEG): Healthy Food Outlet Program Cooperative Forestry Assistance Forest Health Protection Program Subtotal Direct Federal Programs 10.769 10.664 RBEG Grant 11-DG-11052021-122 $ 142 29,293 29,435 Passed through the State Department of Food and Agriculture Plant and Animal Disease, Pest Control, and Animal Care: Exotic Pest Detection Program Pierce's Disease Control Program European Grapevine Moth Forest Health Protection - Sudden Oak Death and Strategic Response Light Brown Apple Moth (LBAM) Regulatory Subtotal Plant and Animal Disease, Pest Control, and Animal Care Meat, Poultry, and Egg Product Inspection Egg Quality Control Program Subtotal Passed through the State Department of Food and Agriculture 10.025 10.025 10.025 10.025 10.025 10.477 11-8520-1399-CA 12-8506-0484-CA 11-8520-1317-CA & 12-8506-1317-CA 11-8523-0572-CA 11-8520-1164-CA & 12-8520-1164-CA 12-25-A-3269 $ 145,490 284,098 821,834 18,905 81,582 1,351,909 13,996 1,365,905 Passed through the State Department of Forestry and Fire Protection Cooperative Forestry Assistance Volunteer Fire Assistance Program 10.664 7FG12025 13,303 Passed through the State Department of Social Services State Administrative Matching Grant for the Supplemental Nutrition Assistance Program (SNAP) 10.561 11609 7,171,216 Passed through the State Department of Public Health Special Supplemental Nutrition Program for Women, Infants and Children (WIC) State Administrative Matching Grant for the Supplemental Nutrition Assistance Program (SNAP) Subtotal Passed through the State Department of Public Health 10.557 10.561 11-10457 11-10767 & 12-10193 2,150,188 303,599 2,453,787 Passed through the State Department of Education, Nutritional Services Division Child Nutrition Cluster: School Breakfast Program National School Lunch Program Special Milk Program for Children Summer Food Service Program for Children Subtotal Child Nutrition Cluster Passed through the State Department of Education, Nutrition Services Division 10.553 10.555 10.556 10.559 02836-SN-49-R 02836-SN-49-R 02837-SN-49-R CN110423 61,625 97,286 4,252 25,680 188,843 Total U.S. Department of Agriculture 11,222,489 U.S. Department of Defense Direct Federal Program Navigation Projects Navigation Projects Subtotal Direct Federal Programs 12.107 12.107 W912P7-12-P-0031 W912P7-13-P-0022 61,279 38,538 99,817 Total U.S. Department of Defense 99,817 U.S. Department of Housing and Urban Development Passed through Sonoma County Community Development Commission Community Development Block Grant Community Development Block Grant Subtotal CDBG - Entitlement Grant Cluster Passed through the Sonoma County Community Development Commission 14.218 14.218 2010-2011 CDBG 2011-2012 CDBG 68,940 71,975 140,915 Total U.S. Department of Housing and Urban Development 140,915 U.S. Department of Justice Direct Federal Programs Equitable Sharing Program Enhanced Training and Sevices to end Violence Against and Abuse of Women Later in Life Drug Court Discretionary Grant Program Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program: Public Safety Partnership and Community Policing Grants State Criminal Alien Assistance Program Edward Byrne Memorial Justice Assistance Grant Program Edward Byrne Memorial Justice Assistance Grant Program Subtotal JAG Program Cluster Subtotal Direct Federal Programs 16.922 16.528 16.585 16.590 16.710 16.606 16.738 16.738 not available 2012-EW-AX-K009 2009-DC-BX-0101 2009-WE-AX-0005 2009-CK-WX-0565 2012-AP-BX-026 2012-DJ-BX-0620 2011-DJ-BX-3353 28,500 16,781 72,955 53,250 50,627 230,243 39,060 461,476 45,281 952,892 See accompanying notes to the schedule of expenditure of federal awards. 6
Schedule of Expenditures of Federal Awards (Continued) Federal Grantor/Pass-through Grantor/Program or Cluster Title Federal CFDA No. Federal Agency / Pass-Through Entity Identifying Number State Expenditures Federal Expenditures U.S. Department of Justice (Continued) Passed through the California Emergency Management Agency Victim/Witness Assistance Program ARRA - Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program / Grants To Units of Local Government ARRA - Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program / Grants To Units of Local Government Subtotal JAG Program Cluster Subtotal Passed through the California Emergency Management Agency 16.575 16.804 16.804 VW12310490 ARRA-ZO-09-01-0490 ARRA-ZP-09-01-0490 $ 3,110 124,758 $ 111,052 127,868 238,920 Passed through the Board of State & Community Corrections Juvenile Accountability Block Grants (JABG) Edward Byrne Memorial Justice Assistance Grant Program Anti-Drug Abuse Program Subtotal Passed through the Board of State & Community Corrections 16.523 16.738 BSCC 153-12 BSCC 608-12 50,637 157,006 207,643 Total U.S. Department of Justice 1,399,455 U.S. Department of Labor Passed through the State Employment Development Department Workforce Investment Act (WIA) Cluster: WIA Adult Program WIA Youth Activities WIA Dislocated Workers Formula Grants WIA Dislocated Workers Formula Grants - Rapid Response Subtotal WIA Cluster passed through the State Employment Development Department 17.258 17.259 17.278 17.278 K282510 11/12, K386333 12/13 K178696 10/11, K282510 11/12 K282510 11/12, K386333 12/13 K282510 11/12, K386333 12/13 1,161,935 1,252,716 1,474,913 276,303 4,165,867 Total U.S. Department of Labor 4,165,867 U.S. Department of Transportation Direct Federal Program Airport Improvement Program Airport Improvement Program Airport Improvement Program Subtotal Direct Federal Programs - Airport Improvement Program 20.106 20.106 20.106 3-06-0241-40 3-06-0241-33 3-06-0241-42 2,411 12,529 77,421 92,361 Passed through the State Department of Transportation ARRA - ARRA - Subtotal - passed through the State Department of Transportation BHLO-5920(075) BHLO-5920(106) BHLO-5920(118) BHLO-5920(130) BRLO-5920(125) BRLO-5920(126) BRLO-5920(127) BRLO-5920(129) BRLO-5920(131) BRLO-5920(138) BRLO-5920(139) BRLS-5920(045) BRLS-5920(092) CML-5920(112) ER 4442(086) SRTSL-5920(133) STPL-5920(123) STPL-5920(134) STPLZ-5920(030) STPLZ-5920(056) STPLZ-5920(059) STPLZ-5920(111) STPLZ-5920(135) STPLZ-5920(137) ARRA-ESPL-5920(116) ARRA-ESPL-5920(121) 80,949 28,922 21,735 12,980 93,630 17,370 39,630 28,036 58,274 29,445 5,324 920,849 244,234 (1) 445,627 88,784 38,968 489,736 (18,075) 18,372 55,423 44,791 168,016 3,298 (79,175) 26,706 2,863,848 Passed through the Sonoma County Transportation and Public Works Subtotal - passed through the Sonoma County Transportation and Public Works CML-5920(124) RPSTPLE-5920(107) CML-5920(132) SRTSLNI-5920(114) 50,739 469,840 295,516 59,988 876,083 Passed through the State of California Office of Traffic Safety State and Community Highway Safety g y 20.600 AL1043 27,945 Total U.S. Department of Transportation 3,860,237 See accompanying notes to the schedule of expenditure of federal awards. 7
Schedule of Expenditures of Federal Awards (Continued) Federal Grantor/Pass-through Grantor/Program or Cluster Title Federal CFDA No. Federal Agency / Pass-Through Entity Identifying Number State Expenditures Federal Expenditures U.S. Environmental Protection Agency Passed through the State of California Water Resource Control Board Beach Monitoring and Notification Program Implementation Grant 66.472 11-10789 & 12-050-250 $ 25,148 Total U.S. Environmental Protection Agency 25,148 U.S. Department of Energy Direct Federal Programs ARRA - Energy Efficiency and Conservation Block Grant Program (EECBG) 81.128 ARRA-DE-SC0003184 35,784 Total U.S. Department of Energy 35,784 U.S. Department of Education Passed through State Department of Rehabilitation Rehabilitation Services - Vocational Rehabilitation Grants to States 84.126A 28562 99,006 Total U.S. Department of Education 99,006 U.S. Election Assistance Commission Passed through the California Secretary of State Help America Vote Act Requirements Payments - Section 301 90.401 11G30126 26,716 Total U.S. Election Assistance Commission 26,716 U.S. Department of Health and Human Services Direct Federal Programs Special Programs for the Aging - Title IV and Title II Discretionary Projects - Chronic Disease Salf Management Education 93.048 Drug-Free Communities Support Program Grants 93.276 PPHF 2012: Community Transformation Grants - Small Communities 93.737 Subtotal Direct Federal Programs 90CS0039/01 5H79SP014746-10 1H75DP004611-01 10,554 104,479 441,030 556,063 Passed through the State Department of Aging Special Programs for the Aging - Title VII, Chapter 3 - Programs for Prevention of Elder Abuse, Neglect, and Exploitation 93.041 Special Programs for the Aging - Title VII, Chapter 2 - Long Term Care 93.042 Ombudsman Services for Older Individuals Special Programs for the Aging - Title III, Part D - Disease Prevention and Health Promotion Services 93.043 National Family Caregiver Support - Title III, Part E 93.052 AP-1213-27 AP-1213-27 AP-1213-27 AP-1213-27 7,614 35,303 29,369 227,607 Aging Cluster: Special Programs for the Aging - Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 Special Programs for the Aging - Title III, Part C - Nutrition Services 93.045 Nutrition Services Incentive Program 93.053 Subtotal Aging Cluster Medical Assistance Program (Medicaid) - Title XIX 93.778 Centers for Medicare and Medicaid Services (CMS) Research, Demonstrations and Evaluations 93.779 Subtotal Passed through State Department of Aging AP-1213-27 AP-1213-27 AP-1213-27 MS-1213-11 HI-1213-27 $ 73,556 311,796 $ 776,653 638,325 215,265 1,630,243 669,155 178,604 2,777,895 Passed through the State Department of Mental Health Projects for Assistance in Transition from Homelessness (PATH) 93.150 Block Grants for Community Mental Health Services 93.958 Subtotal passed through the State Department of Mental Health 68-0317191 68-0317191 66,220 256,474 322,694 Passed through the State Department of Public Health Centers for Disease Control and Prevention: Public Health Emergency Preparedness 93.069 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.116 Immunization Cooperative Agreement 93.268 National Bioterrorism Hospital Preparedness Program 93.889 Preventive Health Services - Sexually Transmitted Diseases Control Grants Chlamydia Screening Project 93.977 Medical Assistance Program - Adolescent Family Life - Title XIX 93.778 Medical Assistance Program - Maternal Child and Adolescent Health Grant - Title XIX 93.778 Subtotal Medical Assistance Program Maternal and Child Health Services Block Grants to the States - Maternal Child and Adolescent Health Grant - Title XIX 93.994 Maternal and Child Health Services Block Grants to the States - Adolescent Family Life - Title V 93.994 Subtotal Maternal and Child Health Services Block Grants Subtotal Passed through the State Department of Public Health EPO 11-49, EPO 12-49 TBCB-01-49 11-10570 EPO 11-49 & EPO 12-49 11-10066 2012-49 2012-49 2012-49 2012-49 181,785 246,528 142,348 134,321 654,164 25,488 178,624 309,724 22,151 428,313 276,669 1,895,133 See accompanying notes to the schedule of expenditure of federal awards. 8
Schedule of Expenditures of Federal Awards (Continued) Federal Grantor/Pass-through Grantor/Program or Cluster Title Federal CFDA No. Federal Agency / Pass-Through Entity Identifying Number State Expenditures Federal Expenditures U.S. Department of Health and Human Services (Continued) Passed through the State Department of Health Care Services Children's Health Insurance Program Medical Assistance Program - Administration Medical Assistance Program - Children Medical Assistance Program - Children Medical Assistance Program - Children Subtotal Medical Assistance Program Subtotal passed through the State Department of Health Care Services 93.767 93.778 93.778 93.778 93.778 68-0317191 08-85136 A01 68-0317191 68-0317191 68-0317191 $ 1,938,268 21,922 428,085 1,040,034 $ 319,129 3,428,309 3,747,438 Passed through the State Department of Education Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 CAPP-2074 128,408 Passed through the State Department of Alcohol and Drug Programs Block Grants for Prevention and Treatment of Substance Abuse 93.959 10-NNA49 2,396,851 Passed through the State Department of Social Services Promoting Safe and Stable Families Refugee and Entrant Assistance - State Administered Programs Temporary Assistance for Needy Families - Program Administration Temporary Assistance for Needy Families - FGU Subtotal TANF Cluster Child Support Enforcement Stephanie Tubbs Jones Child Welfare Services Program - State Grants - Title IV-B Foster Care Assistance - Title IV-E Foster Care Assistance - Title IV-E - Administration Foster Care Assistance - Title IV-E - Administration Subtotal Foster Care Assistance - Title IV-E Social Services Block Grant Adoption Assistance Adoption Assistance - Administration Subtotal Adoption Assistance Chafee Foster Care Independent Program Medical Assistance Program Subtotal Passed through the State Department of Social Services 93.556 93.566 93.558 93.558 93.563 93.645 93.658 93.658 93.658 93.667 93.659 93.659 93.674 93.778 22333 Not Available 11001 11001 1204CA4004 12313 12307 0601CA1401 12307 12307 12402 12402 12332 05-45175 19,007,348 5,928,480 4,881,109 933,130 3,345,639 2,311,909 1,030,309 284,018 30,078 24,935,828 8,009,893 263,776 9,159,878 1,198,301 3,342,218 116,954 13,706,421 61,047,365 Passed through the National Association of County and City Health Officials Centers for Disease Control and Prevention - Investigations and Technical Assistance 93.283 5U38HM000449-05 2,500 Total U.S. Department of Health and Human Services 72,874,347 U.S. Department of Homeland Security Direct Federal Programs Staffing for Adequate Fire & Emergency Response 97.044 EMW-2011-FF-00566 18,113 Passed through the California Emergency Management Agency Disaster Grants - Public Assistance (Presidentially Declared Disasters) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Subtotal Disaster Grants - Public Assistance (Presidentially Declared Disasters) Emergency Management Performance Grants Homeland Security Grant Program (HSGP) Homeland Security Grant Program (HSGP) Homeland Security Grant Program (HSGP) Subtotal Homeland Security Grant Program (HSGP) Buffer Zone Protection Program (BZPP) Subtotal Passed through the California Emergency Management Agency 97.036 97.036 97.036 97.042 97.067 97.067 97.067 97.078 DR - 1628 - DTPW Roads DR - 1646 - DTPW Roads DR - 1628 - SPK38, DR - 1628 - SPARK 18, DR - 1628 - SCRP01C 2012-0027 2010-0085 2011-SS-0077 2012-SS-00123 2010-BF-TO-0020 517,011 75,082 568,353 533,762 281,000 9,602 1,160,446 283,127 824,364 12,235 2,280,172 Passed through the Marine Exchange of the San Francisco Bay Reqion Port Security Grant Program 97.056 2008-GB-T8-K063 143,883 Passed through the Bay Area Urban Area Security Initiative 2010 Urban Area Security Initiative 2011 Urban Area Security Initiative Subtotal Urban Area Security Initiative (UASI) 97.067 97.067 2010-0085 2011-SS-0077 194,000 465,445 659,445 Total U. S. Department of Homeland Security 3,101,613 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 385,352 $ 97,051,394 See accompanying notes to the schedule of expenditure of federal awards. 9
, CALIFORNIA Notes to the Schedule of Expenditures of Federal Awards NOTE 1 GENERAL The accompanying schedule of expenditures of federal awards (SEFA) for the fiscal year ended June 30, 2013, presents the activity of all federal award programs of the County of Sonoma, California (County) with the exception of the federal award programs of the Sonoma County Community Development Commission, the Russian River County Sanitation District, the Sonoma County Water Agency, the County of Sonoma Transportation Project Fund (Transit), the Sonoma Valley County Sanitation District, the Sonoma County Fair and Exposition, and the Sonoma County Library, which were subject to separate audits by other independent auditors. The expenditures incurred under federal award programs audited by other auditors are as follows: Sonoma County Community Development Commission $ 31,643,639 Russian River County Sanitation District 3,884,450 Sonoma County Water Agency 3,587,117 County of Sonoma Transportation Project Fund (Transit) 2,427,901 Sonoma Valley County Sanitation District 729,187 Sonoma County Fair and Exposition 131,638 Sonoma County Library 20,856 The County reporting entity is defined in Note 1 to the County s basic financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the SEFA. The SEFA also includes certain expenditures of State awards required by the State Department of Aging. NOTE 2 BASIS OF ACCOUNTING The accompanying SEFA is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1 to the County s basic financial statements. NOTE 3 CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS The CFDA numbers included in the accompanying SEFA were determined based on the program name, review of grant contract information and the Office of Management and Budget s Catalog of Federal Domestic Assistance. NOTE 4 PASS-THROUGH ENTITY IDENTIFYING NUMBERS The County has included in the SEFA the identifying numbers for pass-through grants when such information has been provided by the pass-through entities. For grants that the County was not provided with such information by the pass-through entities, the County has indicated the pass-though indentifying numbers as not available. 10
Notes to Schedule of Expenditures of Federal Awards NOTE 5 AMOUNT PROVIDED TO SUBRECIPIENTS Of the total federal expenditures presented in the SEFA, the following amounts were passed through to Subrecipients: Amount CFDA Provided to Program Title Number Subrecipients State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 $ 149,273 Drug Court Discretionary Grant Program 16.585 39,801 ARRA - Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government 16.804 3,110 Equitable Sharing Program 16.922 31,700 WIA Youth Activities 17.259 1,180,556 261,592 State and Community Highway Safety 20.600 27,945 Special Programs for the Aging - Title VII, Chapter 2 - Long Term Care Ombudsman Services for Older Individuals 93.042 35,303 Special Programs for the Aging - Title III, Part D - Disease Prevention and Health Promotion Services 93.043 18,582 Special Programs for the Aging - Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 468,640 Special Programs for the Aging - Title III, Part C - Nutrition Services 93.045 638,325 Special Programs for the Aging Title IV and Title II Discretionary Projects - Chronic Disease Salf Management Education 93.048 8,134 National Family Caregiver Support, Title III, Part E 93.052 204,255 Nutrition Services Incentive Program 93.053 215,265 Centers for Disease Control and Prevention Public Health Emergency Preparedness 93.069 23,104 Temporary Assistance for Needy Families 93.558 282,738 PPHF 2012: Community Transformation Grants - Small Communities 93.737 104,607 Medical Assistance Program 93.778 87,842 Centers for Medicare and Medicaid Services (CMS) Research- Demonstrations and Evaluations 93.779 178,604 National Bioterrorism Hospital Preparedness Program 93.889 88,238 Block Grants for Community Mental Health Services 93.958 256,474 Block Grants for Prevention and Treatment of Substance Abuse 93.959 1,975,915 Emergency Management Performance Grants 97.042 59,474 Total $ 6,339,477 11
NOTE 6 PROGRAM TOTALS COUNTY OF SONOMA Notes to Schedule of Expenditures of Federal Awards The schedule of expenditures of federal awards does not summarize programs that cross agency funding sources. The following summarizes those programs that cross agency funding sources: Program/Cluster Title CFDA Number Pass Through Grantor Amount Cooperative Forestry Assistance Forest Health Protection Program 10.664 Direct Federal Program $ State Department of Forestry and Fire Protection Program Total $ 29,293 13,303 42,596 State Administrative Matching 10.561 State Department of Social Services $ 7,171,216 Grant for the Supplemental State Department of Public Health 303,599 Nutrition Assistance Program Program Total $ 7,474,815 JAG Program Cluster 16.738 / 16.804 Direct Federal Program $ 45,281 California Emergency Management Agency 127,868 Board of State and Community Corrections 157,006 Cluster Total $ 330,155 State Department of Transportation $ 2,863,848 Sonoma County Transportation and Public Works 876,083 Program Total $ 3,739,931 Medical Assistance Program 93.778 State Department of Aging 669,155 State Department of Public Health $ 428,313 State Department of Health Care Services 3,428,309 State Department of Social Services 13,706,421 Program Total $ 18,232,198 Homeland Security Grant Program 97.067 California Emergency Management Agency $ Bay Area Urban Area Security Initiative Program Total $ 824,364 659,445 1,483,809 12
Notes to Schedule of Expenditures of Federal Awards NOTE 7 SCHEDULE OF STATE OF CALIFORNIA EMERGENCY MANAGEMENT AGENCY GRANT EXPENDITURES The following represents expenditures for U.S. Department of Justice grants passed through the State of California Emergency Management Agency (CalEMA), as well as CalEMA funded grant expenditures for the fiscal year ended June 30, 2013. This information is included in the County s single audit report at the request of CalEMA. Expenditures Incurred California Multi-Jurisdiction Methamphetamine Enforcement Team - Grant No. MH08 03 0490 Department/Category Total Federal State County Sheriff: Personal services $ 2,640 $ - $ 2,640 $ - Operating expenses - - - - Total $ 2,640 $ - $ 2,640 $ - Victim Assistance/Victim Witness Program - Grant No. VW 12310490 Department/Category Total Federal State County District Attorney: Personal services $ 255,439 $ 111,052 $ 144,387 $ - Operating expenses - - - - Total $ 255,439 $ 111,052 $ 144,387 $ - Edward Byrne Memorial Justice Assistance Grant (JAG) - Grant No. ZP09010490 Department/Category Total Federal State County Probation: Personal services $ 129,368 $ 129,368 $ - $ - Operating expenses (4,610) (4,610) - - Subtotal Probation $ 124,758 $ 124,758 $ - $ - Edward Byrne Memorial Justice Assistance Grant (JAG) - Grant No. ZO09010490 Health Services: Personal services $ - $ - $ - $ - Operating expenses 3,110 3,110 - - Subtotal Health Services $ 3,110 $ 3,110 $ - $ - Total $ 127,868 $ 127,868 $ - $ - 13
Notes to Schedule of Expenditures of Federal Awards NOTE 8 ADDITIONAL INFORMATION FOR THE STATE OF CALIFORNIA DEPARTMENT OF AGING The following represents the State Department of Aging grant expenditures for the fiscal year ended June 30, 2013. Community Based Services Programs and Special Deposit Contract AP-0910-27 - State Funded Amount Ombudsman Initiative (Special Deposit) $ 50,389 14
Schedules of Findings and Questioned Costs I. Summary of Auditors Results FINANCIAL STATEMENTS Type of auditors' report issued: Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified not considered to be material weaknesses? Noncompliance material to financial statements noted? FEDERAL AWARDS Internal control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified not considered to be material weaknesses? Type of auditors' report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section.510(a) Identification of major programs: Unmodified No None Reported No No Yes Unmodified Yes CFDA Number(s) Name of Federal Program or Cluster 10.561 Supplemental Nutrition Assistance Program (SNAP) Cluster Edward Byrne Memorial Justice Assistant Grant (JAG) Program Cluster 16.738; 16.804 (includes ARRA) 93.558 Temporary Assistance for Needy Families (TANF) Cluster 93.778 Medical Assistance Program Cluster Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? $ 2,911,542 No 15
Schedules of Findings and Questioned Costs II. Financial Statement Findings None reported. 16
Schedules of Findings and Questioned Costs III. Federal Award Findings and Questioned Costs The following findings represent significant deficiencies, and instances of noncompliance that are required to be reported by OMB Circular A-133. Finding 2013-001 Program: SNAP Cluster CFDA No.: 10.561 Federal Grantor: U.S. Department of Agriculture (USDA) Passed-through: California Department of Social Services Award Year: FY 2012-2013 Compliance Requirement: Special Test and Provision ADP System for SNAP Criteria: The March 2013 Office and Budget of Management (OMB) Circular A-133 Compliance Supplement requires that the County (1) accurately and completely process and store all case file information for eligibility determination and benefit calculation; (2) automatically cut off households at the end of their certification period unless recertified; and, (3) provide data necessary to meet Federal issuance and reconciliation reporting requirements. Condition: Significant Deficiency, Instance of Non-Compliance Of the 40 cases files selected for test-work, one required SAWS1 application form or DFA285-A1 application form could not be located. Questioned Costs: None noted. Context: The condition noted above was identified during test procedures related to the Special Tests and Provisions compliance requirement. The SAWS 1 form, substitutable with the DFA285-A1 form, is the application form for benefits. Effect: Case data may not be current in the case file and the system, which could increase the risk of eligibility errors, incorrect benefit calculations, or increased error rates for the County. Cause: The County s procedures did not ensure that all required forms were consistently maintained in the case files. Recommendation: We recommend that the County strengthen its established policies and internal control procedures to ensure all required SNAP forms are maintained in case files. 17
Schedules of Findings and Questioned Costs III. Federal Award Findings and Questioned Costs View of Responsible Official and Planned Corrective Action: Management agrees with the finding and will strengthen current policies and procedures to ensure all required forms are maintained in case files. Finding 2013-002 Program: SNAP Cluster CFDA No.: 10.561 Federal Grantor: U.S. Department of Agriculture (USDA) Passed-through: California Department of Social Services Award Year: FY 2012-2013 Compliance Requirement: Special Test and Provision EBT Card Security Criteria: The March 2013 Office and Budget of Management (OMB) OMB Circular A-133 Compliance Supplement requires the County to maintain adequate security over, and documentation/records for, EBT cards (7 CFR section 274.12(h)(3)), to prevent their theft, embezzlement, loss, damage, destruction, unauthorized transfer, negotiation, or use (7 CFR sections 274.7(b) and 274.11(c)). Condition: Significant Deficiency, Instance of Non-Compliance As a result of our procedures, we noted the following: The EBT Cards were stored in a locked safe inside the Human Service Department; however, the key to the safe was not stored in a secured location with restricted access. The County did not maintain procedures to inventory/track EBT cards on hand. Questioned Costs: None noted. Context: The condition noted above was identified during test procedures related to the Special Tests and Provisions compliance requirement. Effect: There is an increased risk of theft, embezzlement, loss, damage, destruction, unauthorized transfer, negotiation, or use of the EBT Cards. 18
Schedules of Findings and Questioned Costs III. Federal Award Findings and Questioned Costs Cause: The County did not maintain procedures to safeguard the key to the EBT Card safe; and the County did not maintain procedures to evaluate the inventory of EBT Cards on-hand. Recommendation: We recommend that the County strengthen its policies and procedures to increase security over the EBT Cards. View of Responsible Official and Planned Corrective Action: Management agrees with the finding and will strengthen current policies and procedures to ensure proper security over EBT cards. Finding 2013-003 Program: SNAP Cluster CFDA No.: 10.561 Federal Grantor: U.S. Department of Agriculture (USDA) Passed-through: California Department of Social Services Award Year: FY 2012-2013 Compliance Requirement: Special Test and Provision Quality Control Unit Criteria: The March 2013 Office and Budget of Management (OMB) Circular A-133 Compliance Supplement states that the local government must establish a quality control unit that is independent of program operations (7 CFR section 275.2(b)). Condition: Significant Deficiency, Instance of Non-Compliance We noted that the County has not established a Quality Control Unit independent of program operations for the SNAP program. Case file reviews are done within the program division. Questioned Costs: None noted. Context: The condition noted above was identified during test procedures related to the Special Test and Provisions compliance requirement. 19
Schedules of Findings and Questioned Costs III. Federal Award Findings and Questioned Costs Effect: As a result of the condition, there is an increased risk of noncompliance related to the quality control unit requirement. Cause: The County did not establish a quality control unit that is independent of SNAP program operations. Recommendation: We recommend that the County set up an independent SNAP quality control unit. View of Responsible Official and Planned Corrective Action: Management agrees with the finding and will establish a quality control unit independent of the SNAP program operations once staffing levels allow for position(s) to be assigned to this function. 20
Summary Schedule of Prior Audit Findings Summarized below is the current status of all audit findings reported in the prior year audit s schedule of audit findings and questioned costs. Financial Statement Findings Finding No. Area Status of Corrective Action 2012-A Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Implemented Federal Awards Findings Finding No. Program CFDA No. Compliance Requirements Status of Corrective Action 2012-1 2012-2 ARRA-Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government ARRA-Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government 16.804 16.804 Subrecipient Monitoring Subrecipient Monitoring Implemented Implemented 21