Reports Issued Pursuant to the OMB Circular A-133 for the Year Ended December 31, 2008
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L UCAS C OUNTY, O HIO Reports Issued Pursuant to the OMB Circular A-133 For the Year Ended December 31, 2008 Ernst & Young LLP Board of County Commissioners Lucas County One Government Center, Suite 600 Toledo, Ohio 43604-2255 We have reviewed the Independent Auditor’s Report of Lucas County, prepared by Ernst & Young LLP, for the audit period January 1, 2008 through December 31, 2008. Based upon this review, we have accepted these reports in lieu of the audit required by Section 117.11, Revised Code. The Auditor of State did not audit the accompanying financial statements and, accordingly, we are unable to express, and do not express an opinion on them. Our review was made in reference to the applicable sections of legislative criteria, as reflected by the Ohio Constitution, and the Revised Code, policies, procedures and guidelines of the Auditor of State, regulations and grant requirements. Lucas County is responsible for compliance with these laws and regulations. Mary Taylor, CPA Auditor of State September 29, 2009 88 E. Broad St. / Fifth Floor / Columbus, OH 43215‐3506 Telephone: (614) 466‐4514 (800) 282‐0370 Fax: (614) 466‐4490 www.auditor.state.oh.us This Page is Intentionally Left Blank. Lucas County, Ohio Reports Issued Pursuant to the OMB Circular A-133 Year Ended December 31, 2008 Contents 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......................................................................1 Report of Independent Auditors on Compliance With Requirements Applicable to Each Major Program, on Internal Control Over Compliance, and the Schedule of Expenditures of Federal Awards in Accordance With OMB Circular A-133...................................................................................3 Schedule of Expenditures of Federal Awards..................................................................................6 Notes to the Schedule of Expenditures of Federal Awards ...........................................................12 Schedule of Findings and Questioned Costs..................................................................................14 Summary Schedule of Prior Audit Findings..................................................................................24 0904-1051621 Ernst & Young LLP One SeaGate Toledo, Ohio 43604 Phone: (419) 244-8000 Fax: (419) 244-4440 www.ey.com 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 Lucas County Board of Commissioners Toledo, Ohio 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 Lucas County, Ohio (the County) as of and for the year ended December 31, 2008, which collectively comprise the County’s basic financial statements and have issued our report thereon dated May 29, 2009. Our report was modified to include a reference to other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Other auditors audited the financial statements of the Toledo Mud Hens Baseball Club, Inc., Lott Industries, Inc., and Preferred Properties, Inc. as described in our report on the County’s financial statements. This report does not include the results of the other auditors’ testing on internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. The financial statements of the Toledo Mud Hens Baseball Club, Inc., Lott Industries, Inc., and Preferred Properties, Inc. were not audited in accordance with Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the County’s internal control over financial reporting as a basis for designing our auditing procedures 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 over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. 0904-1051621 1 A member firm of Ernst & Young Global Limited A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity’s financial statements that is more than inconsequential will not be prevented or detected by the entity’s internal control. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as items 2008-01 and 2008-02 to be significant deficiencies in internal control over financial reporting. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity’s internal control. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that none of the significant deficiencies described above are material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the County’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. We also noted certain matters that we reported to management of the County in a separate letter dated May 29, 2009. The County’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the County’s response and accordingly, we express no opinion on it. This report is intended solely for the information and use of management, the Board of Commissioners, others within the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ey May 29, 2009 0904-1051621 2 A member firm of Ernst & Young Global Limited Ernst & Young LLP One SeaGate Toledo, Ohio 43604 Phone: (419) 244-8000 Fax: (419) 244-4440 www.ey.com Report of Independent Auditors on Compliance With Requirements Applicable to Each Major Program, on Internal Control Over Compliance, and the Schedule of Expenditures of Federal Awards in Accordance With OMB Circular A-133 The Lucas County Board of Commissioners Toledo, Ohio Compliance We have audited the compliance of Lucas County, Ohio (the County) with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2008. 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. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the County’s management. Our responsibility is to express an opinion on the County’s compliance based on our audit. The County’s basic financial statements include the operations of the Lucas County Family and Children First Council which received federal awards which are not included in the schedule during the year ended December 31, 2008. Our audit described below, did not include the operations