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Single Audit Report Year Ended June 2013

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Single Audit Report Year Ended June 2013 SINGLE AUDIT REPORTS For the Fiscal Year Ended June 30, 2013 County of Alameda, California California Alameda, of County We Are Many, We Are One project features fabric quilts created by families in the Ashland community. This 100 Families Alameda County project included over 40 participants, ages 2 to 65, who created fabric quilts with images of the family unit and interlocking hands representing support, compassion and unity. Patrick O’Connell, Auditor-Controller Front Cover: We Are Many, We Are One project took place in the Ashland community in early 2012 with over 40 participants, ages 2 to 65. The families worked with local teaching artist Marion Coleman to learn traditional quilt-making techniques and to create their own fabric quilts featuring images of the family unit and interlocking hands representing support, compassion and unity. This activity was conducted as part of the Ashland Youth Center project and the 100 Families Alameda County program. Through the support and shared vision of New Beginnings, the Alameda County Arts Commission’s program 100 Families Alameda County brings together multi-generational families to enliven, celebrate, and strengthen the power and health of families and their communities through the inspiring and transformative process of making art. The project contributes to Alameda County’s vision to be one of the best counties in which to live, work, and do business while fostering safe neighborhoods and thriving communities. New Beginnings is an innovative Alameda County Initiative that inspires and prepares at-risk youth for their future. For more information, visit www.acgov.org/newbeginnings, www.acgov.org/arts and www.100Families.com. Photographs by Sibila Savage, courtesy of the Alameda County Arts Commission. Back Cover – Top: Images feature the Ashland community members who created the We Are Many, We Are One fabric quilts featured on the front cover. Utilizing traditional quilt-making techniques, the participants selected an image pattern and colorful fabric pieces to create their compositions. The final sewing was completed by teaching artist Marion Coleman and her assistants. Photographs by Sibila Savage, courtesy of the Alameda County Arts Commission. Back Cover – Bottom: Images feature youth and adults at the 2012 Alameda County “Take Our Children to Work Day” event while participating in the Creating a Better Future Together paper quilt project led by the Arts Commission. For this project, participants expressed ideas about how we can make positive changes for our community and planet by combining images and words to create paper quilt squares. The bottom artwork images are paper quilt squares created by youth at the Alameda County Juvenile Justice Center and Camp Sweeney through the Creative Power Arts Education Program. The Creating a Better Future Together project was also conducted throughout the County with hundreds of community members at Alameda County Library locations as part of Art IS Education month of March 2012. COUNTY OF ALAMEDA Single Audit Reports For the Year Ended June 30, 2013 Table of Contents FINANCIAL SECTION: Page(s) Independent Auditor’s Report ....................................................................................................................... 1 Management’s Discussion and Analysis ....................................................................................................... 4 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ........................................................................................................... 19 Statement of Activities ................................................................................................................ 20 Fund Financial Statements: Balance Sheet – Governmental Funds ....................................................................................... 21 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ....................................................................................................... 22 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ............................................................................................................... 23 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................... 24 Statement of Net Position – Proprietary Funds .......................................................................... 25 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds .................................................................................................................... 26 Statement of Cash Flows – Proprietary Funds ........................................................................... 27 Statement of Fiduciary Net Position – Fiduciary Funds .............................................................. 28 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .......................................... 29 Notes to Basic Financial Statements .................................................................................................. 30 Required Supplementary Information: Schedules of Funding Progress .......................................................................................................... 85 Budgetary Comparison Schedules: General Fund .............................................................................................................................. 86 Property Development Special Revenue Fund ........................................................................... 87 Flood Control Special Revenue Fund ......................................................................................... 88 Notes to Required Supplementary Information ................................................................................... 89 SINGLE AUDIT SECTION: Independent Auditor’s 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 ......................... 91 Independent Auditor’s Report on Compliance For Each Major Federal Program and Report on Internal Control Over Compliance ........................................................................................... 93 Schedule of Expenditures of Federal Awards ............................................................................................. 97 Notes to the Schedule of Expenditures of Federal Awards ...................................................................... 109 Schedule of Findings and Questioned Costs ............................................................................................ 115 Status of Prior Year Findings .................................................................................................................... 126 INDEPENDENT AUDITOR’S REPORT The Grand Jury and Honorable Members of the Board of Supervisors County of Alameda, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County of Alameda, 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 as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Alameda County Employees’ Retirement Association (ACERA), which represents 70%, 75%, and 11%, respectively, of the assets, net position/fund balances, and revenues/additions of the aggregate remaining fund information. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for ACERA, is based solely on the report of the other auditors. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
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