City of Toledo, Ohio
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CITY OF TOLEDO, OHIO Single Audit Reports Year Ended December 31, 2011 Members of Council City of Toledo One Government Center Suite 2050 Toledo, Ohio 43604 We have reviewed the Independent Auditors’ Report of the City of Toledo, Lucas County, prepared by Clark, Schaefer, Hackett & Co., for the audit period January 1, 2011 through December 31, 2011. 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. The City of Toledo is responsible for compliance with these laws and regulations. Dave Yost Auditor of State October 25, 2012 88 East Broad Street, Fifth Floor, Columbus, Ohio 43215‐3506 Phone: 614‐466‐4514 or 800‐282‐0370 Fax: 614‐466‐4490 www.ohioauditor.gov This page intentionally left blank. TABLE OF CONTENTS Schedule of Expenditures of Federal Awards ............................................................................1 – 2 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..............................................................3 – 4 Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133.............................................................5 – 7 Schedule of Findings and Questioned Costs...........................................................................8 – 13 Schedule of Prior Audit Findings............................................................................................14 – 15 This page intentionally left blank. CITY OF TOLEDO, OHIO Schedule of Expenditures of Federal Awards Year Ended December 31, 2011 Federal Grant CFDA Federal Grantor/Program Title Number Number Expenditures U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CDBG Entitlement Cluster: G35000-G37999/ Community Development Block Grants/Entitlement Grants GNSP08/GNSP10 14.218 $ 12,629,745 ARRA - Community Development Block Grants ARRA Entitlement Grants GSBG09 14.253 224,322 Total CDBG Entitlement Cluster 12,854,067 Emergency Shelter Grants Program GE2300-GE2599 14.231 145,789 HOME Investment Partnerships Program GH1000-GH2999 14.239 2,723,445 HOME Investment Partnerships Program Outstanding Loans 14.239 840,214 3,563,659 Economic Development Initiative-Special Project, Neighborhood Initiative and Miscellaneous Grants GED602-GED899 14.251 113,745 ARRA - Neighborhood Stabilization Program G9NSP2 14.256 3,630,565 ARRA - Homelessness Prevention and Rapid Re-Housing Program GFTLC9/GHPF09 14.257 1,431,925 Lead-Based Paint Hazard Control in Privately-Owned Housing GL7000 14.900 508 Total U.S. Department of Housing and Urban Development 21,740,258 U.S. DEPARTMENT OF THE INTERIOR Great Lakes Restoration Program G10390 15.662 54,334 Total U.S. Department of the Interior 54,334 U.S. DEPARTMENT OF JUSTICE Civil Rights of Institutionalized Persons G06781/G06782 16.105 15,156 Juvenile Justice and Delinquency Prevention - Allocation to States G07729 16.540 17,455 ARRA - Public Safety Partnership and Community Policing Grants G07739 16.710 2,666,647 JAG Program Cluster: Edward Byrne Memorial Justice Assistance Grant Program G07711/G13217/G13231 16.738 62,990 (Passed through Toledo-Lucas County Criminal Justice Coordinating Council): ARRA - Recovery Act - Edward Byrne Memorial Justice Assistance Grant GF3000-GF7999 16.804 412,040 Total JAG Program Cluster 475,030 (Passed through Ohio's Office of Criminal Justice): Violence Against Women Formula Grants G07330/G07331 16.588 30,648 Community Capacity Development Office G05600-G06799 16.595 9,433 Total U.S. Department of Justice 3,214,369 U.S. DEPARTMENT OF TRANSPORTATION Highway Planning and Construction Cluster: (Passed through Ohio Department of Transportation): Highway Planning and Construction Various 20.205 8,826,755 ARRA - Highway Planning and Construction Various 20.205 503,160 Total Highway Planning and Construction Cluster 9,329,915 Highway Safety Cluster: (Passed through Ohio Department of Highway Safety): State and Community Highway Safety G06748-G6751 20.600 71,084 Safety Belt Performance Grants G19230 20.609 6,560 Total Highway Safety Cluster 77,644 Total U.S. Department of Transportation 9,407,559 U.S. ENVIRONMENTAL PROTECTION AGENCY Nonpoint Source Implementation Grants G10384 66.460 2,258 Great Lakes Program G10399 66.469 96,790 ARRA - Brownfields Assessment and Cleanup Cooperative Agreements Various 66.818 622,233 (Passed through Ohio Environmental Protection Agency): Air Pollution Control Program Support G2009V-G2012V 66.001 391,320 Total U.S. Environmental Protection Agency 1,112,601 U.S. DEPARTMENT OF ENERGY ARRA - Energy Efficiency and Conservation Block Grant Program GEEC01 81.128 550,157 Total U.S. Department of Energy 550,157 (Continued) 1 CITY OF TOLEDO, OHIO Schedule of Expenditures of Federal Awards Year Ended December 31, 2011 Federal Grant CFDA Federal Grantor/Program Title Number Number Expenditures EXECUTIVE OFFICE OF THE PRESIDENT High Intensity Drug Trafficking Area (HIDTA) Grants G04860/G04861 95.001 169,400 Total Executive Office of the President 169,400 U.S. Department of Homeland Security: ARRA - Assistance to Firefighters Grant G05439 97.115 540,610 (Passed through Ohio Emergency Management Agency): Emergency Management Performance Grants G4500-G5400 97.042 749,243 Total U.S. Department of Homeland Security 1,289,853 Total Federal Awards $ 37,538,531 NOTE A - SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Toledo and is presented on the modified accrual basis of accounting, which is described in Note 1(c) to the City of Toledo, Ohio's (the City) Comprehensive Annual Financial Report. 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. NOTE B - SUBRECIPIENTS The City provided federal awards to various subrecipients on a pass-through basis as follows: CFDA Program Number Amount U.S. Department of Housing & Urban Development: Community Development Block Grants/Entitlement Grants 14.218 $ 1,917,362 Emergency Shelter Grants Program 14.231 307,422 U.S. Department of Energy ARRA - Energy Efficiency and Conservation Block Grant Program 81.128 100,000 $ 2,324,784 2 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of City Council City of Toledo, Ohio: We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Toledo, Ohio (the “City”) as of and for the year ended December 31, 2011, which collectively comprise the City’s basic financial statements and have issued our report thereon dated August 31, 2012. We conducted our audit in accordance with 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. Internal Control Over Financial Reporting Management of the City is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the City’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 City’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City’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 was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. 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