HomeMy WebLinkAbout2023 - Tri-County Metro Narcotics Squad 2023 Report on Financial Statements Audit TRI-COUNTY METRO NARCOTICS SQUAD
LANSING, MICHIGAN
REPORT ON FINANCIAL STATEMENTS
(with required supplementary information)
YEAR ENDED JUNE 30, 2023
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Maner
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TABLE OF CONTENTS
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INDEPENDENT AUDITOR'S REPORT.........................................................................................................................................1-3
BASIC FINANCIAL STATEMENTS...................................................................................................................................................4
Government-wide Financial Statements
Statementof Net Position..........................................................................................................................................................5
Statementof Activities................................................................................................................................................................6
Governmental Fund Financial Statements
BalanceSheet..................................................................................................................................................................................7
Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position.........................8
Statement of Revenues,Expenditures,and Changes in Fund Balance...................................................................9
Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balance
of the Governmental Fund to the Statement of Activities......................................................................................10
Notesto Financial Statements................................................................................................................................................11-15
REQUIRED SUPPLEMENTARY INFORMATION......................................................................................................................16
BudgetaryComparison Schedule.........................................................................................................................................17
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.....................................................................................................................18-19
2425 E.Grand River Ave.,
(0,0.ffManer Suite 1,Lansing,MI 48912
n 517.323.7500
osterisanED 517.323.6346
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor,Members of the City Council
of the City of Lansing,and Members of the Board of
Directors of the Tri-County Metro Narcotics Squad
Lansing,Michigan
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and the governmental
fund of the Tri-County Metro Narcotics Squad ("Tri-County Metro"),a special revenue fund of the City of Lansing,
Michigan, as of and for the year ended June 30, 2023, and the related notes to the financial statements,which
collectively comprise Tri-County Metro's basic financial statements as listed in the table of contents.
In our opinion,the financial statements referred to above present fairly,in all material respects,the respective
financial position of the governmental activities and the governmental fund of the Tri-County Metro Narcotics
Squad,as of June 30,2023,and the respective changes in financial position for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis of Opinions
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. Our responsibilities under those standards are further described
in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required
to be independent of Tri-County Metro Narcotics Squad and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Exclusive Presentation
As discussed in Note 1,the financial statements referred to above present only the Tri-County Metro Narcotics
Squad and do not purport to,and do not,present fairly the financial position of the City of Lansing,Michigan,as
of June 30, 2023,and the changes in its financial position,or where applicable, its cash flows, for the year then
ended, in conformity with accounting principles generally accepted in the United States of America. Our
opinions are not modified with respect to this matter.
1
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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about Tri-County Metro Narcotics Squad's
ability to continue as a going concern for twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that,individually or in the aggregate,they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards,we:
➢ Exercise professional judgment and maintain professional skepticism throughout the audit.
➢ Identify and assess the risks of material misstatement of the financial statements,whether due to fraud
or error,and design and perform audit procedures responsive to those risks. Such procedures include
examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements.
➢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of Tri-County Metro's internal control. Accordingly,no such opinion is expressed.
➢ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management,as well as evaluate the overall presentation of the financial
statements.
➢ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about Tri-County Metro's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
2
Required Supplementary Information
Tri-County Metro has omitted the management's discussion and analysis information that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information,although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. Our
opinions on the financial statements are not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the budgetary comparison
information, as identified in the table of contents, be presented to supplement the basic financial statements.
Such information is the responsibility of management and,although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries,the basic financial statements,and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any assurance on
the information because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated December 15,2023 on
our consideration of Tri-County Metro Narcotics Squad's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of
Tri-County Metro Narcotics Squad's internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in considering Tri-
County Metro Narcotics Squad's internal control over financial reporting and compliance.
December 15,2023
3
BASIC FINANCIAL STATEMENTS
4
TRI-COUNTY METRO NARCOTICS SQUAD
STATEMENT OF NET POSITION
JUNE 30,2023
ASSETS
Cash and cash equivalents $ 572,270
Due from other governments 118,778
Capital assets,net of accumulated depreciation 26,500
TOTAL ASSETS 717,548
LIABILITIES
Accounts payable 34,420
Accrued payroll 2,832
Due to other governments 358,666
Undistributed forfeitures 30,668
TOTAL LIABILITIES 426,586
NET POSITION
Investment in capital assets 26,500
Restricted for public safety 264,462
TOTAL NET POSITION $ 290,962
See accompanying notes to financial statements.
5
TRI-COUNTY METRO NARCOTICS SQUAD
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2023
Program Revenues Net(Expense)
Operating Revenues and
Charges for Grants and Changes in
Functions/Programs Expenses Services Contributions Net Position
Governmental activities
Public safety $ 664,410 $ 677,193 $ - $ 12,783
General revenues
Interest 8,160
Change in net position 20,943
Net position,beginning of the year 270,019
Net position,end of the year $ 290,962
See accompanying notes to financial statements.
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TRI-COUNTY METRO NARCOTICS SQUAD
GOVERNMENTALFUND
BALANCESHEET
JUNE 30,2023
ASSETS
Cash and cash equivalents $ 572,270
Due from other governments 118,778
TOTAL ASSETS $ 691,048
LIABILITIES
Accounts payable $ 34,420
Accrued payroll 2,832
Due to other governments 358,666
Undistributed forfeitures 30,668
TOTAL LIABILITIES 426,586
FUND BALANCE
Restricted for public safety 264,462
TOTAL LIABILITIES
AND FUND BALANCE $ 691,048
See accompanying notes to financial statements.
7
TRI-COUNTY METRO NARCOTICS SQUAD
RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30,2023
Total fund balance-governmental fund $ 264,462
Amounts reported for the government activities in the statement of net position are different
because:
Capital assets used in governmental activities are not financial resources and
therefore are not reported as assets in the governmental fund.
The cost of capital assets is $ 91,970
Accumulated depreciation is (65,470)
Capital assets,net 26,500
Net position of governmental activities $ 290,962
See accompanying notes to financial statements.
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TRI-COUNTY METRO NARCOTICS SQUAD
GOVERNMENTALFUND
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30,2023
REVENUES
Intergovernmental $ 499,744
Forfeitures 177,449
Interest 8,160
TOTAL REVENUES 685,353
EXPENDITURES
Current
Public safety 658,077
NET CHANGE IN FUND BALANCE 27,276
Fund balance,beginning of year 237,186
Fund balance,end of year $ 264,462
See accompanying notes to financial statements.
9
TRI-COUNTY METRO NARCOTICS SQUAD
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN
FUND BALANCE OF THE GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2023
Net change in fund balance-governmental fund $ 27,276
Amounts reported for governmental activities in the statement of activities are different
because:
Capital outlays are reported as expenditures in the governmental fund. However, in
the statement of activities,the cost of capital assets is allocated over their estimated
useful lives as depreciation expense.In the current period,these amounts are:
Depreciation expense (6,333)
Change in net position of governmental activities $ 20,943
See accompanying notes to financial statements.
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TRI-COUNTY METRO NARCOTICS SQUAD
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Tri-County Metro Narcotics Squad ("Tri-County Metro") is a special revenue fund of the City of Lansing,
Michigan. The financial statements of Tri-County Metro have been prepared in conformity with generally accepted
accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting
principles. The more significant of Tri-County Metro's accounting policies are described below.
Reporting Entity
Tri-County Metro was formed under an interlocal agreement with participation from the City of Lansing,City of
East Lansing,Ingham,Eaton,and Clinton Counties and the Michigan Department of State Police. This task force
was formed pursuant to the Urban Cooperation Act of 1967 and is governed by a command board made up of
member-designated representatives. The operations of Tri-County Metro are accounted for by the City of
Lansing as part of its nonmajor governmental funds.
The purpose of Tri-County Metro is to establish a cooperative law enforcement force assembled for the purpose
of enforcing narcotics and other controlled substances laws.
The accompanying financial statements present the financial position and results of operations of Tri-County
Metro. They do not purport to, and do not present fairly,the net position of the City of Lansing, Michigan and
changes in its net position or cash flows in conformity with accounting principles generally accepted in the
United States of America. Tri-County Metro has no blended or discretely presented component units and is not
itself,a component unit of any other government.
Operations
Tri-County Metro's primary revenue sources are forfeitures, grants and local contributions. These sources
provide funding for goods and services which include supply and equipment purchases,office,and vehicle rents
and contractual services including payment for contract labor. Tri-County Metro has no direct employees.
Basis of Presentation
Separate financial statements are provided for governmental funds and proprietary funds,when applicable. The
individual governmental fund is reported as a separate column in the fund financial statements. Tri-County
Metro does not have any proprietary funds.
Governmental Fund
This fund is used to account for all financial transactions including all financial resources and general operating
expenditures.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all of the activities of Tri-County Metro. Governmental activities are mainly supported by
forfeitures and intergovernmental revenues.
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TRI-COUNTY METRO NARCOTICS SQUAD
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Government-wide and Fund Financial Statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function
or segment. Program revenues include 1) charges to customers or applicants who purchase, forfeit to,use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Internally dedicated resources are reported as general revenues rather than as program revenues.
Measurement Focus.Basis of Accounting.and Financial Statement Presentation
The government-wide financial statements (the statement of net position and statement of activities) are
reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related
cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements (balance sheet and statement of revenues,expenditures and changes in
fund balance) are reported using the current financial resources measurement focus and the modified accrual
basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose,the government considers revenues to be available if they are
collected within three months of the end of the current fiscal period,or within one year for expenditure-driven
grants. Expenditures generally are recorded when a liability is incurred,as under accrual accounting.
Charges for services,grant revenue,and interest associated with the current fiscal period are all considered to
be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue
items are considered to be measurable and available only when cash is received by the government.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand,and amounts held by the City of Lansing for the benefit of Tri-
County Metro.
Capital Assets
Capital assets, which include property and equipment, are reported in the government-wide financial
statements (statement of net position). Capital assets are defined by Tri-County Metro as assets with an initial,
individual cost of more than $5,000 and an estimated life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at
their estimated acquisition cost at the date donated.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset
lives are not capitalized.
Depreciation is recorded over the estimated useful lives (six years for equipment) of the assets, using the
straight-line method for all capital assets.
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TRI-COUNTY METRO NARCOTICS SQUAD
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fund Equity
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted fund
balance is reported when externally imposed constraints are placed on the use of resources by grantors,
contributors,or laws or regulations of other governments. Committed fund balance is reported for amounts that
can only be used for specific purposes pursuant to constraints imposed by formal action of the government's
highest level of decision-making authority,the Board of Directors. A formal resolution of the Board of Directors
is required to establish,modify,or rescind a fund balance commitment. The government reports assigned fund
balance for amounts that are constrained by the government's intent to be used for specific purposes but are
neither restricted nor committed. Tri-County Metro currently has no committed or assigned fund balance.
When the government incurs an expenditure for purposes for which various fund balance classifications can be
used, it is the government's policy to use restricted fund balance first,then committed fund balance, assigned
fund balance,and finally unassigned fund balance.
Budgetary Process
Tri-County Metro is under formal budgetary control. Formal budget integration is employed as a management
control device during the year. Tri-County Metro's budget is provided to the Tri-County Metro Narcotics Squad
Board after approval by City Council of the City of Lansing to confirm in accordance with Public Act 2 of 1968,as
amended by Public Act 621, the Michigan Uniform Budgeting and Accounting Act, which mandates an annual
budget process and an annual appropriation act to implement the budget. The budget, as presented in the
accompanying statement of revenues,expenditures,and changes in fund balance,was prepared on the modified
accrual basis of accounting.
Public Act 2 of 1968,as amended,provides that a local unit shall not incur expenditures in excess of the amount
appropriated.
NOTE 2 -DEPOSITS
Tri-County Metro's cash and cash equivalents included on the statement of net position and governmental fund
balance sheet are classified as follows:
Imprest Cash $ 25,000
Equity in pooled cash of the
City of Lansing,Michigan 547,270
Total $ 572,270
Deposits and Investments
State of Michigan statutes authorize Tri-County Metro to invest in bonds,other direct obligations and repurchase
agreements of the United States,certificates of deposit,savings accounts,deposit accounts or receipts of a bank
which is a member of the FDIC,commercial paper,bankers'acceptance of U.S.banks,obligations of the State of
Michigan and its political subdivisions,external investment pools,and certain mutual funds.
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TRI-COUNTY METRO NARCOTICS SQUAD
NOTES TO FINANCIAL STATEMENTS
NOTE 2 -DEPOSITS(continued)
Deposits and Investments (continued)
The above cash and cash equivalents are held by the City of Lansing,Michigan(the fiscal agent of Tri-County Metro).
Specific deposit and investment accounts are not held in the name of Tri-County Metro but are pooled with all
deposits of the City. The amount of federal depositary insurance and custodial credit risk of investments is
determined for the City of Lansing,Michigan as a whole,and cannot be separately identified for Tri-County Metro.
NOTE 3 - CAPITAL ASSETS
The following is a summary of changes in capital assets for the year ended June 30,2023:
Balance Balance
July 1,2022 Additions Deletions June 30,2023
Equipment $ 91,970 $ - $ - $ 91,970
Less accumulated depreciation (59,137) (6,333) - (65,470)
Capital assets,net $ 32,833 $ (6,333) $ - $ 26,500
NOTE 4-RISK MANAGEMENT
Tri-County Metro, a special revenue fund of the City of Lansing, is exposed to various risks of loss that are
covered by the City's policies,including losses related to issues of cyber security,liability,errors and omissions,
flood, boiler and machinery, property, employee bonding, auto, crime, ERISA considerations, and workers'
compensation. City representatives in Tri-County Metro are covered through the City's insurance policies. The
City carries commercial insurance to cover these risks. Settled claims related to the commercial insurance have
not exceeded the amount of insurance coverage during the past three years.
NOTE 5-UPCOMING ACCOUNTING PRONOUNCEMENT
In June 2022,the GASB issued Statement No. 100,Accounting Changes and Error Corrections-an amendment of
GASB Statement No. 62. This Statement prescribes the accounting and financial reporting for (1) each type of
accounting change and(2) error corrections. This Statement requires that(a) changes in accounting principles
and error corrections be reported retroactively by restating prior periods,(b)changes to or within the financial
reporting entity be reported by adjusting beginning balances of the current period,and(c)changes in accounting
estimates be reported prospectively by recognizing the change in the current period. Tri-County Metro is
currently evaluating the impact this standard will have on the financial statements when adopted during the
2023-2024 fiscal year.
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TRI-COUNTY METRO NARCOTICS SQUAD
NOTES TO FINANCIAL STATEMENTS
NOTE 6-CHANGE IN ACCOUNTING PRINCIPLES
For the year ended June 30, 2023, Tri-County Metro implemented the following new pronouncement: GASB
Statement No.96,Subscription-based Information Technology Arrangements.
Summary:
Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-based Information
Technology Arrangements was issued in May 2020. This Statement provides guidance on the accounting and
financial reporting for subscription-based information technology arrangements (SBITAs) for government end
users (governments). This Statement(1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use
subscription asset - an intangible asset - and a corresponding subscription liability; (3) provides the
capitalization criteria for outlays other than subscription payments,including implementation costs of a SBITA;
and (4)requires note disclosures regarding a SBITA. To the extent relevant,the standards for SBITAs are based
on the standards established in Statement No.87,Leases,as amended.
There was no material impact on Tri-County Metro's financial statements after the adoption of GASB Statement
No.96.
15
REQUIRED SUPPLEMENTARY INFORMATION
16
TRI-COUNTY METRO NARCOTICS SQUAD
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30,2023
Variance with
Final Final Budget
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 425,000 $ 425,000 $ 499,744 $ 74,744
Forfeitures 268,000 268,000 177,449 (90,551)
Interest 8,000 8,000 8,160 160
TOTAL REVENUES 701,000 701,000 685,353 (15,647)
EXPENDITURES
Current
Public safety 701,000 701,000 658,077 42,923
NET CHANGE IN FUND BALANCE - - 27,276 27,276
Fund balance,beginning of year 237,186 237,186 237,186 -
Fund balance,end of year $ 237,186 $ 237,186 $ 264,462 $ 27,276
17
2425 E.Grand River Ave.,
(0,0.ffManer Suite 1,Lansing,MI 48912
n 517.323.7500
osterisanED 517.323.6346
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
The Honorable Mayor,Members of the City Council
of the City of Lansing,and Members of the Board of
Directors of the Tri-County Metro Narcotics Squad
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 Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities and the
governmental fund of the Tri-County Metro Narcotics Squad("Tri-County Metro"),a special revenue fund of the
City of Lansing, as of and for the year ended June 30, 2023, and the related notes to the financial statements,
which collectively comprise the Tri-County Metro's basic financial statements and have issued our report
thereon dated December 15,2023.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements,we considered the Tri-County Metro's internal
control over financial reporting(internal control)as a basis for designing audit procedures that are appropriate
in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Tri-County Metro's internal control. Accordingly,
we do not express an opinion on the effectiveness of the Tri-County Metro'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 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 or significant deficiencies
may exist that were not identified.
18
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Tri-County Metro'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 financial
statements. 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.
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 entity'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 entity's internal control and compliance. Accordingly,this communication is not
suitable for any other purpose.
December 15,2023
19