City of Warren Trumbull County Single Audit for the Year Ended December
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CITY OF WARREN TRUMBULL COUNTY DECEMBER 31, 2018 TABLE OF CONTENTS TITLE PAGE Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards ........................................................................................... 1 Independent Auditor’s Report on Compliance with Requirements Applicable to Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance ....................................................................................... 3 Prepared by Management: Schedule of Expenditures of Federal Awards ........................................................................................... 7 Notes to the Schedule of Expenditures of Federal Awards....................................................................... 8 Schedule of Findings ..................................................................................................................................... 9 Prepared by Management: Summary Schedule of Prior Audit Findings............................................................................................. 13 Corrective Action Plan ............................................................................................................................. 15 This page intentionally left blank. 101 Central Plaza South 700 Chase Tower Canton, Ohio 44702-1509 (330) 438-0617 or (800) 443-9272 [email protected] INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS REQUIRED BY GOVERNMENT AUDITING STANDARDS City of Warren Trumbull County 391 Mahoning Avenue NW Warren, Ohio 44483 To the Honorable Mayor and City Council: We have audited, in accordance with auditing standards generally accepted in the United States and the Comptroller General of the United States’ Government Auditing Standards, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Warren, Trumbull County, (the City) as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated June 27, 2019, wherein we noted the City adopted Governmental Accounting Standards Board Statement 75. Internal Control Over Financial Reporting As part of our financial statement audit, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures appropriate in the circumstances to the extent necessary to support our opinion on the financial statements, but not to the extent necessary to opine on the effectiveness of the City’s internal control. Accordingly, we have not opined on it. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, when performing their assigned functions, to prevent, or detect and timely correct misstatements. A material weakness is a deficiency, or combination of internal control deficiencies resulting in a reasonable possibility that internal control will not prevent or detect and timely correct a material misstatement of the City’s financial statements. 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 internal control deficiencies that might be material weaknesses or significant deficiencies. Therefore, unidentified material weaknesses or significant deficiencies may exist. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings that we consider material weaknesses. We consider findings 2018-001 and 2018-002 to be material weaknesses. 1 Efficient Effective Transparent City of Warren Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards Page 2 Compliance and Other Matters As part of reasonably assuring whether the City’s financial statements are free of material misstatement, we tested its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could directly and materially affect the determination of financial statement amounts. However, opining on compliance with those provisions was not an objective of our audit and accordingly, we do not express an opinion. The results of our tests disclosed instances of noncompliance or other matters we must report under Government Auditing Standards which are described in the accompanying schedule of findings as items 2018-001 and 2018-002. City’s Response to Findings The City’s responses to the findings identified in our audit are described in the accompanying schedule of findings. We did not subject the City’s responses to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. Purpose of this Report This report only describes the scope of our internal control and compliance testing and our testing results, and does not opine on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed under Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this report is not suitable for any other purpose. Keith Faber Auditor of State Columbus, Ohio June 27, 2019 2 101 Central Plaza South 700 Chase Tower Canton, Ohio 44702-1509 (330) 438-0617 or (800) 443-9272 [email protected] INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE City of Warren Trumbull County 391 Mahoning Avenue NW Warren, Ohio 44483 To the Honorable Mayor and City Council: Report on Compliance for Each Major Federal Program We have audited the City of Warren’s (the City) compliance with the applicable requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could directly and materially affect each of the City of Warren’s major federal programs for the year ended December 31, 2018. The Summary of Auditor’s Results in the accompanying schedule of findings identifies the City’s major federal programs. Management’s Responsibility The City’s Management is responsible for complying with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to opine on the City’s compliance for each of the City’s major federal programs based on our audit of the applicable compliance requirements referred to above. Our compliance audit followed auditing standards generally accepted in the United States of America; the standards for financial audits included in the Comptroller General of the United States’ Government Auditing Standards; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). These standards and the Uniform Guidance require us to plan and perform the audit to reasonably assure whether noncompliance with the applicable compliance requirements referred to above that could directly and materially affect a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe our audit provides a reasonable basis for our compliance opinion on each of the City’s major programs. However, our audit does not provide a legal determination of the City’s compliance. 3 Efficient Effective Transparent City of Warren Independent Auditor’s Report on Compliance with Requirements Applicable to Each Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance Page 2 Basis for Qualified Opinion on the Community Development Block Grant Section 108 Loan Guarantee Program As described in finding 2018-003 in the accompanying schedule of findings, the City of Warren did not comply with requirements regarding reporting applicable to its CFDA 14.248 Community Development Block Grant Section 108 Loan Guarantee Program major federal program. Compliance with this requirement is necessary, in our opinion, for the City of Warren to comply with requirements applicable to this program. Qualified Opinion on the Community Development Block Grant Section 108 Loan Guarantee Program In our opinion, except for the noncompliance described in the Basis for Qualified Opinion on the Community Development Block Grant Section 108 Loan Guarantee Program paragraph, the City of Warren complied, in all material respects, with the requirements referred to above that could directly and materially affect its Community Development Block Grant Section 108 Loan Guarantee Program for the year ended December 31, 2018. Unmodified Opinion on the Other Major Federal Programs In our opinion, the City of Warren complied in all