OMB CIRCULAR A-133 SINGLE AUDIT REPORT DECEMBER 31, 2014
Contents Page 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... 1-2 Independent Auditor s Report On Compliance For Each Major Federal Program; Report On Internal Control Over Compliance; And Report On Schedule Of Expenditures Of Federal Awards Required By OMB Circular A-133... 3-5 Schedule Of Expenditures Of Federal Awards... 6-13 Notes To Schedule Of Expenditures Of Federal Awards... 14 Schedule Of Findings And Questioned Costs... 15-16 Summary Schedule Of Prior Audit Findings... 17
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 Directors Mid-America Regional Council We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Mid-America Regional Council, as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise Mid-America Regional Council s basic financial statements, and have issued our report thereon dated *. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Mid- America Regional Council 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 Mid-America Regional Council s internal control. Accordingly, we do not express an opinion on the effectiveness of Mid-America Regional Council 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 combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit the attention of those charged with governance.
Board of Directors Mid-America Regional Council 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 Mid-America Regional Council s financial statements are free of 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 Mid-America Regional Council s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Mid-America Regional Council s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. * Page 2
Independent Auditor s Report On Compliance For Each Major Federal Program; Report On Internal Control Over Compliance; And Report On Schedule Of Expenditures Of Federal Awards Required By OMB Circular A-133 Board of Directors Mid-America Regional Council Report On Compliance For Each Major Federal Program We have audited Mid-America Regional Council s 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 Mid-America Regional Council s major federal programs for the year ended December 31, 2014. Mid-America Regional Council s major federal programs are identified in the summary of auditors results section of the accompanying schedule of findings and questioned costs. Management s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditors Responsibility Our responsibility is to express an opinion on compliance for each of Mid-America Regional Council 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 Mid-America Regional Council 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 Mid-America Regional Council s compliance. Page 3
Board of Directors Mid-America Regional Council Opinion On Each Major Federal Program In our opinion, Mid-America Regional Council 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 December 31, 2014. Report On Internal Control Over Compliance Management of Mid-America Regional Council 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 Mid-America Regional Council 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 Mid-America Regional Council 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. Page 4
Board of Directors Mid-America Regional Council 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. Report on Schedule Of Expenditures Of Federal Awards Required by OMB Circular A-133 We have audited the financial statements of Mid-America Regional Council as of and for the year ended December 31, 2014, and have issued our report thereon dated *, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. 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 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 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 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 financial statements as a whole. * Page 5
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended December 31, 2014 MARC Pass-Through Federal Funding Agency, CFDA Number And Grant Grant Total To Sub- Description Agency Awarding Funds To MARC Grant Identifying Description/Number Number Expenditures Recipients Department Of Commerce: 11.302 Economic Development_Support for Planning Organizations Economic Development Administration Economic Development Plan 14-15 - 05-83-05383-01 52898 $ 24,309 $ Economic Development Administration Economic Development Plan 13-14 - 05-83-05383 52897 44,986 Subtotal 11.302 69,295 11.303 - Economic Development_Technical Assistance Economic Development Administration EDA Digital Storytelling 05-06-05541 53110 46,801 11.558 - State Broadband Data and Development Grant Program (ARRA) University of Missouri UMC GIS Structures dbase 00039950 55280 14,000 Missouri Office of Administration MO ARRA Broadband Data - AOC13380136 57110 27 Subtotal 11.558 14,027 Department Of Education: 84.305 - Education Research, Development & Dissemination Rector & Visitors of the University of Virginia University of Virginia MTP M/S - GM10129-141897 49520 223,675 Department Of Energy: 81.117 - Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance Department of Energy Solar Ready II - DE-EE0006310 68410 $ 1,221,826 $ 583,152 See the accompanying notes to schedule of expenditures of federal awards. Page 6
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) For The Year Ended December 31, 2014 MARC Pass-Through Federal Funding Agency, CFDA Number And Grant Grant Total To Sub- Description Agency Awarding Funds To MARC Grant Identifying Description/Number Number Expenditures Recipients Department Of Health And Human Services: 93.008 - Medical Reserve Corps Small Grant Program National Assocation of County & City Health Officials Medical Reserve Corps Support FY13-5MRCSG101005-03 74108 2,085 93.041 Special Programs for the Aging_Title VII, Chapter 3_Programs for for Prevention of Elder Abuse, Neglect and Exploitation Missouri Department of Health and Senior Services (Cluster 1) MO DHSS SFY 15 - ERS 105 15 007 Various 373 93.042 Special Programs for the Aging_Title VII, Chapter 2_Long Term Care Ombudsman Services for Older Individuals Missouri Department of Health and Senior Services MO DHSS SFY 15 - ERS 105 15 007 Various 5,515 Missouri Department of Health and Senior Services MO DHSS SFY 14 - ERS 105 14 007 Various 6,625 Subtotal 93.042 (Cluster 1) 12,140 93.043 Special Programs for the Aging_Title III, Part D_Disease Prevention and Health Promotion Services Missouri Department of Health and Senior Services MO DHSS SFY 15 - ERS 105 15 007 Various $ 27,049 $ 27,048 Missouri Department of Health and Senior Services MO DHSS SFY 14 - ERS 105 14 007 Various 33,444 32,807 Subtotal 93.043 (Cluster 1) 60,493 59,855 93.044 Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers Missouri Department of Health and Senior Services MO DHSS SFY 15 - ERS 105 15 007 Various 449,221 352,170 Missouri Department of Health and Senior Services MO DHSS SFY 14 - ERS 105 14 007 Various 390,883 302,297 Program Income MO DHSS SFY 15 - ERS 105 15 007 Various 575 575 Program Income MO DHSS SFY 14 - ERS 105 14 007 Various 1,333 1,333 Subtotal 93.044 (Cluster 1) 842,012 656,375 See the accompanying notes to schedule of expenditures of federal awards. Page 7
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) For The Year Ended December 31, 2014 MARC Pass-Through Federal Funding Agency, CFDA Number And Grant Grant Total To Sub- Description Agency Awarding Funds To MARC Grant Identifying Description/Number Number Expenditures Recipients 93.045 Special Programs for the Aging_Title III, Part C_Nutrition Services Missouri Department of Health and Senior Services MO DHSS SFY 15 - ERS 105 15 007 Various 954,427 514,498 Missouri Department of Health and Senior Services MO DHSS SFY 14 - ERS 105 14 007 Various 646,312 376,438 Program Income MO DHSS SFY 15 - ERS 105 15 007 Various 141,650 81,031 Program Income MO DHSS SFY 14 - ERS 105 14 007 Various 134,394 42,376 Subtotal 93.045 (Cluster 1) 1,876,783 1,014,343 93.052 National Family Caregiver Support, Title III, Part E Missouri Department of Health and Senior Services MO DHSS SFY 15 - ERS 105 15 007 Various $ 160,493 $ 124,409 Missouri Department of Health and Senior Services MO DHSS SFY 14 - ERS 105 14 007 Various 148,036 129,128 Program Income MO DHSS SFY 15 - ERS 105 15 007 Various 600 600 Program Income MO DHSS SFY 14 - ERS 105 14 007 Various 420 420 Subtotal 93.052 (Cluster 1) 309,549 254,557 93.053 Nutrition Services Incentive Program Missouri Department of Health and Senior Services MO DHSS SFY 15 - ERS 105 15 007 Various 142,511 54,190 Missouri Department of Health and Senior Services MO DHSS SFY 14 - ERS 105 14 007 Various 147,152 52,465 Subtotal 93.053 (Cluster 1) 289,663 106,655 93.069 - Public Health Emergency Preparedness Kansas City, Missouri Health Department KCMO Martin Contract 13-14 - 54093189001 76573 67,785 Kansas City, Missouri Health Department KCMO Martin Contract 14-15 - 54094184001 76574 43,236 Subtotal 93.069 111,021 93.531 - The Patient Protection and Affordable Care Act of 2010 authorizes Community Transformation Grants and National Dissemination and Support for Community Transformation Grants U.S. Department of Health and Human Services Community Transformation FY12-13 - 5U58DP003613-02 52650 64,127 14,147 U.S. Department of Health and Human Services Community Transformation FY13-14 - 5U58DP003613-03 52660 574,091 321,227 Subtotal 93.531 638,218 335,374 See the accompanying notes to schedule of expenditures of federal awards. Page 8
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) For The Year Ended December 31, 2014 MARC Pass-Through Federal Funding Agency, CFDA Number And Grant Grant Total To Sub- Description Agency Awarding Funds To MARC Grant Identifying Description/Number Number Expenditures Recipients 93.600 Head Start U.S. Department of Health and Human Services Head Start & Early Head Start - FY 14-07CH7056/02 41500 $ 20,382,563 $ 18,737,463 U.S. Department of Health and Human Services Head Start & Early Head Start - FY 15-07CH7056/03 41800 3,358,145 3,050,863 Subtotal 93.600 23,740,708 21,788,326 93.667 Social Services Block Grant Missouri Department of Health and Senior Services MO DHSS SFY 15 - ERS 105 15 007 Various 84,085 37,809 Missouri Department of Health and Senior Services MO DHSS SFY 14 - ERS 105 14 007 Various 81,628 35,878 Subtotal 93.667 (Cluster 1) 165,713 73,687 93.889 National Bioterrorism Hospital Preparedness Program Missouri Department of Health and Senior Services 2014 Public Health Volunteer Program - None 74104 1,000 Missouri Department of Health and Senior Services MO DHSS Bioterrorism (ASPR) FY 2012 - C312195001 77100 (1,880) Missouri Department of Health and Senior Services MO DHSS Bioterrorism (ASPR) FY 2013 - C312195001-001 77110 493,666 131,494 Missouri Department of Health and Senior Services MO DHSS Bioterrorism (ASPR) FY 2014 - C312195001-002 77120 138,281 Subtotal 93.889 631,067 131,494 Department Of Homeland Security: 97.047 - Pre-Disaster Mitigation Missouri State Emergency Management Agency Hazard Mitigation Plan 2014 - FY13 PDMC-EMK-2014-PC-0001 74214 18,790 97.053 - Citizens-Community Resilience Innovation Challenge Missouri Office of Homeland Security Missouri Citizen Corps Program FY11 - EMW-2011-SS-00003 76300 5,842 97.056 Port Security Grant Program Federal Emergency Management Agency DHS FEMA FY11 Port Security - EMW2011PUK00095 76080 669,820 611,908 See the accompanying notes to schedule of expenditures of federal awards. Page 9
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) For The Year Ended December 31, 2014 MARC Pass-Through Federal Funding Agency, CFDA Number And Grant Grant Total To Sub- Description Agency Awarding Funds To MARC Grant Identifying Description/Number Number Expenditures Recipients 97.067 Homeland Security Grant Program Missouri Office of Homeland Security MO HSGP FY 2011 - EMW-2011-SS-00003-S01-5003 73200 $ 441,885 $ 127,458 Missouri Office of Homeland Security MO HSGP FY 2012 - APRS - EMW-2012-SS-00023-S01-5003 73215 27,150 Missouri Office of Homeland Security UASI FY 12 - EMW-2012-SS-00023-S01-023-5504 73220 1,059,175 465,338 Missouri Office of Homeland Security UASI FY 14 - EMW-2014-SS-00002-S01-017 73240 115,908 11,808 Missouri Office of Homeland Security MO Homeland Security Grant Program FY 2013 - EMW-2013-SS-0023 73300 223,359 49,944 Missouri Office of Homeland Security KS Homeland Security Grant Program FY 2013 - EMW-2013-SS-0078 73400 162,748 73,621 Missouri Office of Homeland Security KS Homeland Security Grant Program FY 2014 - EMW-2014-SS-0027-73410 20,906 Missouri Office of Homeland Security Metro Medical Response System FY11 - EMW-2011-SS-00003-S01-5034 75280 132,417 14,907 Subtotal 97.067 2,183,548 743,076 Department of Housing and Urban Development: 14.704 - Community Challenge Planning Grants and the Department of Transporation's TIGER II Planning Grants Department of Housing and Urban Development HUD Community Challenge - CCPMO0059-11 52720 197,320 Department of Transportation: 20.106 - Airport Improvement Program See the accompanying notes to schedule of expenditures of federal awards. Page 10
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) For The Year Ended December 31, 2014 MARC Pass-Through Federal Funding Agency, CFDA Number And Grant Grant Total To Sub- Description Agency Awarding Funds To MARC Grant Identifying Description/Number Number Expenditures Recipients 20.205 Highway Planning & Construction Kansas Department of Transportation STP Planning Sustainable Places Pilot Project - 106 N-0572-01 61985 $ 26,285 $ 19,747 Kansas Department of Transportation Operation Green Light Operations FY 2010-2015 - 106 K-9218-05 65370 384,273 Kansas Department of Transportation Regional Bikeway Plan Update - N-0591-01 STP N059(101) 66295 34,740 Kansas Department of Transportation KS CMAQ 2011-12 Air Quality Public Education - 164-11 66320 220,804 Kansas Department of Transportation KS CMAQ 2011-12 Active Transportation (Bike/PED) - 172-11 66321 45,809 Kansas Department of Transportation KS CMAQ 2011-12 Rideshare - 171-11 66322 92,654 Kansas Department of Transportation KS CMAQ 2014 Active Transportation - 283-14 66324 36,795 Kansas Department of Transportation KS CMAQ Rideshare 2014-282-14 66325 19,234 Missouri Highway and Transportation Commission MO SmartPort ITS Demonstration Project - 3422(402) (DP-4Q1941) 61890 271,759 Missouri Highway and Transportation Commission Operation Green Light Operations FY 2010-2015 - STP-3301(433) 65370 469,667 Missouri Highway and Transportation Commission Regional Bikeway Plan Update - STP-3301(461) 66295 52,110 Missouri Highway and Transportation Commission MoDOT Safe Streets for Bikes STP-3301(448) 66296 3,478 Missouri Highway and Transportation Commission Operation Green Light Camera Project - STP-3301(458) 65390 49,161 Missouri Highway and Transportation Commission Operation Green Light Camera Project - STP-3301(458) - KDOT Transf 65390 19,118 Missouri Highway and Transportation Commission MoDOT SHRP2 (C20) Data Integration FY14 (009) 61870 39,419 Missouri Highway and Transportation Commission Northern Streetcar Extension Study 61935 75,000 Subtotal 20.205 1,840,306 19,747 20.500 - Federal Transit Capital Investment Grants Federal Transit Administration (Cluster 2) Veterans Transp. & Comm. Living Initiative - MO-04-0139 61440 371 20.505 - Metropolitan Transportation Planning Kansas Department of Transportation Consolidated Planning Grant FY 2014 - L-0134-14 69600 $ 927,884 $ Missouri Highway and Transportation Commission Consolidated Planning Grant FY 2014 - None 69600 1,884,197 See the accompanying notes to schedule of expenditures of federal awards. Page 11
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) For The Year Ended December 31, 2014 Federal Funding Agency, CFDA Number And Grant MARC Pass-Through Grant Total To Sub- Description Agency Awarding Funds To MARC Grant Identifying Description/Number Number Expenditures Recipients 20.507 Federal Transit_Formula Grants Federal Transit Administration STP Planning Sustainable Places - MO-95-X259-00 61990 17,495 7,180 Federal Transit Administration CMAQ/STP MO 2011-12 - MO-95-X255-01 66340 587,051 Federal Transit Administration CMAQ MO FY2010 Projects - MO-95-2013-00 66590 4,954 Federal Transit Administration FTA-MO 2014 CMAQ Projects MO-95-X016-00 66595 500 Subtotal 20.507 (Cluster 2) 610,000 7,180 20.514 - Public Transportation Research Federal Transit Administration Veterans Resource Database/Public Outreach - MO-26-0012-00 61445 49,237 40,734 Federal Transit Administration US-71 Highway Commuter Corridot AA - MO-26-0011-00 61930 1,187 20.516 Job Access_Reverse Commute 50,424 40,734 Kansas City Area Transportation Authority JARC/New Freedom Administration FY 10 - MO-37-X045 61050 856 Kansas City Area Transportation Authority JARC/New Freedom Administration FY 10 - MO-37-X045-01 61055 23,533 20.521 - New Freedom Program Subtotal 20-516 (Cluster 3) 24,389 Kansas City Area Transportation Authority JARC/New Freedom Administration FY 10 - MO-57-X009 61050 $ 586 $ Kansas City Area Transportation Authority JARC/New Freedom Administration FY 10 - MO-57-X009-01 61055 16,216 Subtotal 20-521 (Cluster 3) 16,802 20.600 - State and Community Highway Safety Kansas Department of Transporation Destination Safe FY 14 - PM-1516-13 61975 13,000 U. S. Environmental Protection Agency: 66.001 Air Pollution Control Program Support Kansas Department of Health and Environment KDHE Air Quality Implementation FY 2014 - None 62350 47,879 Kansas Department of Health and Environment KDHE Air Quality Implementation FY 2015 - None 62355 13,980 See the accompanying notes to schedule of expenditures of federal awards. Page 12
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) For The Year Ended December 31, 2014 MARC Pass-Through Federal Funding Agency, CFDA Number And Grant Grant Total To Sub- Description Agency Awarding Funds To MARC Grant Identifying Description/Number Number Expenditures Recipients 66.039 National Clean Diesel Funding Assistance Program Missouri Department of Natural Resources MDNR DERA Breath Easy - BE-1001-11 66480 46,340 Missouri Department of Natural Resources MDNR DERA Clean Up MO - CU-1001-11 66485 187,670 Subtotal 66.039 234,010 66.461 Regional Wetland Program Development Grants U.S. Environmental Protection Agency EPA Green Infrastructure & Sustainable Corridor Planning in KC - CD-97731501-0 35270 $ 25,021 $ U.S. Environmental Protection Agency EPA Wetlands Land Use Planning - CD-97740001-0 35280 80,103 Subtotal 66.461 105,124 66.605 Performance Partnership Grants Missouri Department of Natural Resources MDNR Air Quality FY 2014 - A-2000-14 62230 13,431 Missouri Department of Natural Resources MDNR Air Quality FY 2015 - A-2000-15 62231 3,595 Subtotal 66.605 17,026 Total expenditures of federal awards $ 39,130,698 $ 26,426,463.00 Cluster Groupings: 1 Aging Cluster 2 Federal Transit Cluster 3 Transit Services Program Cluster See the accompanying notes to schedule of expenditures of federal awards. Page 13
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS December 31, 2014 1. Organization The accompanying schedule of expenditures of federal awards presents the activity of all federal award programs of Mid-America Regional Council (MARC) for the year ended December 31, 2014. All federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies, are included on the schedule. 2. Basis Of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of MARC and is presented on the modified-accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 3. Local Government Contributions Local cost sharing, as defined by the Office of Management and Budget Circular A-102, is required by certain federal grants. The amount of cost sharing varies with each program. Only the federal share of expenditures is presented in the Schedule of Expenditures of Federal Awards. 4. Additional Audits Grantor agencies reserve the right to conduct additional audits of MARC s grant programs for economy and efficiency program results. Such an audit may disclose disallowed costs to MARC. However, management does not believe such audits would result in any disallowed costs that would be material to MARC s financial position at December 31, 2014. Page 14
SCHEDULE OF FINDINGS AND QUESTIONED COSTS December 31, 2014 Section I - Summary Of Auditors Results Financial Statements Type of auditors report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? yes x no Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes x none reported Noncompliance material to financial statements noted? yes x no Federal Awards Internal control over major programs: Material weakness(es) identified? yes x no Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes x none reported Type of auditors report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? yes x no Identification of major programs: CFDA Number Name Of Federal Program Or Cluster 20.205 Highway Planning and Construction 20.505 Metropolitan Transportation Planning and State Non-Metropolitan Planning and Research 81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance 93.600 Head Start Cluster 93.889 National Bioterrorism Hospital Preparedness Program 97.067 Homeland Security Grant Dollar threshold used to distinguish between type A and type B programs: $1,173,921 Auditee qualified as low-risk auditee? Yes Page 15
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings None Section III - Federal Award Findings And Questioned Costs None Page 16
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For The Year Ended December 31, 2014 Finding No. CFDA No. Program Description Current Year Status 2013-1 93.600 Head Start Cluster FFATA reporting had not been completed for any subrecipients who received awards meeting the reporting criteria in November under the program. Resolved 2013-2 97.067 Homeland Security Grant Program It was noted that MARC Resolved - For all does not perform any form of verification check on subrecipients who receive equipment contracts entered into during 2014 and after this issue has been corrected awards to verify they have not been suspended or debarred. Page 17
Mid America Regional Council Attn: Ms. Dorothy Pope 600 Broadway, Suite 200 Kansas City, Missouri 64105-1659 Dear Board of Directors: Enclosed are copies of the single audit report for Mid-America Regional Council as of December 31, 2014. The Data Collection Form (Form SF-SAC) is required to be submitted electronically along with the electronic copies of the Single Audit Report and the CAFR. We appreciate the opportunity to be of continued service to you. If we may furnish you with any additional information, please feel free to contact us. Very truly yours, RubinBrown LLP Kaleb J. Lilly, CPA Partner Direct Dial Number: 913.499.4417 E-mail: kaleb.lilly@rubinbrown.com KJL:lkm Enclosures