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HomeMy WebLinkAboutTRI - County TCRPC 2016 Single Audit Final Tri-County Regional Planning Commission Lansing, Michigan SUPPLEMENTARY INFORMATION TO FINANCIAL STATEMENTS (FEDERAL AWARDS) September 30, 2016 Tri-County Regional Planning Commission TABLE OF CONTENTS September 30, 2016 Paqe INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 1-2 SUPPLEMENTARY INFORMATION Schedule of Expenditures of Federal Awards 3 Notes to Schedule of Expenditures of Federal Awards 4 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 5-6 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 7 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 8 Principals ����� 351 1 Coolidge Road Suite 100 �a�.'es Dale J.Abraham, CPA ���.�� . East Lansing, MI 48823 Steven R. Kirinovic, CPA == (517) 351-6836 Aaron M. Stevens, CPA ABRAHAM & GAFFNEY, P.C. FAX: (517) 351-6837 Eric J. Glashouwer, CPA Certified Public Accountants Alan D. Panter, CPA William I. Tucker IV, CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Commissioners Tri-County Regional Planning Commission Lansing, Michigan Report on Compliance for Each Major Federal Program We have audited Tri-County Regional Planning Commission's (the Commission's) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Commission's major federal programs for the year ended September 30, 2016. The Commission's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance 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 express an opinion on compliance for each of the Commission'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 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). Those standards and the Uniform Guidance 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 the Commission'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 on the Commission's compliance. Opinion on Each Major Federal Program In our opinion, Tri-County Regional Planning Commission 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 September 30, 2016. Auburn Hills• East Lansing • Grand Rapids- St.Johns - 1 - Report on Internal Control Over Compliance Management of the Commission 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 the Commission'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 Uniform Guidance, 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 the Commission'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. 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. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities and the major fund of the Commission as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements. We issued our report thereon dated December 6, 2016, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for the purposes of additional analysis as required by Uniform Guidance and is not a required part of the basic 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 basic 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 basic 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 basic financial statements as a whole. 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 Uniform Guidance. Accordingly, this report is not suitable for any other purpose. ABRAHAM & GAFFNEY, P.C. Certified Public Accountants December 6, 2016 -2 - Tri-County Regional Planning Commission SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2016 Pass-Through (Memo Only) Federal Grantor/ Pass-Through Grantor CFDA Grantor's Award Prior Years' Program Title Number Number Amount Expenditures Expenditures U.S. DEPARTMENT OF COMMERCE Direct Award Economic Development Administration 11.302 Support for Planning Organizations 06-83-05565 $ 169,095 $ 95,473 $ 73,622 Support for Planning Organizations ED16CH13020021 157,884 - 7,191 TOTAL U.S. DEPARTMENT OF COMMERCE 326,979 95,473 80,813 FEDERAL HIGHWAY ADMINISTRATION Passed Through Michigan Department of Transportation (b) Highway Planning and Construction 20.205 FHWA 2015-0011/Z6 657,073 - 612,713 FHWA 2015-0011/Z9 18,635 - 18,635 FHWA 2015-0011/Z11 158,241 - 55,976 FHWA 2015-001 1/Z1 2 40,000 - 8,381 FHWA 2015-001 1/Z1 5 35,089 - 17,446 TOTAL FEDERAL HIGHWAY ADMINISTRATION 909,038 -0- 713,151 TOTAL FEDERAL AWARDS $ 1,078,133 $ 95,473 $ 793,964 (a)(7 There were no funds that were provided to subrecipients from the above programs. - 3 - Tri-County Regional Planning Commission NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2016 NOTE A: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of Tri- County Regional Planning Commission and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the 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). The Commission has elected not to use the 10 percent de minimus indirect rate allowed under the Uniform Guidance. NOTE B: SUMMARY OF SIGNIFICANT EXPLANATIONS OF SCHEDULE The following descriptions identified below as (a) through (c) represent explanations that cross reference to amounts on the Schedule of Expenditures of Federal Awards. (a) The expenditures reported in this schedule are in agreement with the amounts reported in the financial statements and financial reports. The financial reports tested, including claims for advances and reimbursements, were materially correct, complete, accurate, and timely and contain information that is supported by the books and records from which the financial statements have been prepared. (b) Denotes program tested as"major program". (c) Agrees to total revenues from Federal sources per financial statements. -4 - Principals ����� 351 1 Coolidge Road Suite 100 �a�.'es Dale J.Abraham, CPA ���.�� . East Lansing, MI 48823 Steven R. Kirinovic, CPA == (517) 351-6836 Aaron M. Stevens, CPA ABRAHAM & GAFFNEY, P.C. FAX: (517) 351-6837 Eric J. Glashouwer, CPA Certified Public Accountants Alan D. Panter, CPA William I. Tucker IV, CPA 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 To the Board of Commissioners Tri-County Regional Planning Commission Lansing, Michigan 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 Governmental Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the major fund of Tri-County Regional Planning Commission (the Commission) as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements and have issued our report thereon dated December 6, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Commission'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 the Commission's internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission'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 a 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 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 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 the Commission's financial statements are free from 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. Auburn Hills• East Lansing • Grand Rapids- St.Johns - 5- 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 the Commission's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. ABRAHAM & GAFFNEY, P.C. Certified Public Accountants December 6, 2016 - 6 - Tri-County Regional Planning Commission SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended September 30, 2016 Section I -Summary of Auditor's Results Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified? 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? Yes X None reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes X No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 20.205 Highway Planning and Construction Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000 Auditee qualified as low-risk auditee? X Yes No Section II -Financial Statement Findings None noted. Section III -Federal Award Findings and Questioned Costs None noted. - 7 - Tri-County Regional Planning Commission SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS Year Ended September 30, 2016 FINDINGS/NONCOMPLIANCE Control Deficiencies Related to Internal Controls Over the Financial Statements. No prior audit findings. Findings Related to Compliance with Requirements Applicable to the Financial Statements. No prior audit findings. Findings Related to Compliance with Requirements Applicable to Federal Awards and Internal Control Over Compliance in Accordance with OMB Circular A-133. No prior audit findings. - 8 -