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HomeMy WebLinkAbout2010 Special Purpose Opinion - MMKR CITY OF BROOKLYN CENTER HENNEP IN COUNTY, MINNESOTA Special Purpose Audit Reports on Single Audit, Internal Controls, and Compliance With Laws and Regulations Year Ended December 31, 2010 CITY OF BROOKLYN CENTER HENNEP IN COUNTY, MINNESOTA Table of Contents Page Independent Auditor's Report on Schedule of Expenditures of Federal Awards 1 Schedule of Expenditures of Federal Awards 2 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 3-4 Independent Auditor's 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 -6 Independent Auditor's Report on Compliance With Minnesota State Laws and Regulations 7 Schedule of Findings and Questioned Costs 8 -9 PRINCIPALS Thomas M. Monta CPA Thomas A. Karnowski., CPA Nid A. Radosevich, CPA William J. Lauer, CPA CERTIFIED PUBLIC J ames H. Eicktun. CPA A C C 0 U N T A N T S Aaron J. Nielsen, CPA Victoria L. Holirika, CPA INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Cit Council and Residents Cit of Brookl Center, Minnesota We have audited the financial statements of the g overnmental activities, the business-t activities, each major fund, and the a remainin fund information of the Cit of Brookl Center (the Cit as of and for the y ear ended December 31, 2010, which collectivel comprise the Cit basic financial statements, and have issued our report thereon dated Ma 26, 201 These basic financial statements are the responsibilit of the Cit mana Our responsibilit is to express opinions on these basic financial statements based on our audit. We conducted our audit in accordance with auditin standards g enerall y accepted in the United States of America and the standards applicable to financial audits contained in Government Auditin Standards, issued b the Comptroller General of the United States. Those standards re that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes consideration of internal control over financial reportin as a basis for desi audit procedures that are appropriate in the circumstances, but not for the purpose of expressin an opinion on the effectiveness of the Cit internal control over financin reportin Accordin we express no such opinion. An audit includes examinin on a test basis, evidence supportin the amounts and disclosures in the basic financial statements. An audit also includes assessin the accountin principles used and si estimates made b mana as well as evaluatin the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. Our audit was conducted for the purpose of formin opinions on the financial statements that collectivel comprise the Cit basic financial statements. The accompan Schedule of Expenditures of Federal Awards is presented for purposes of additional anal as re b the U.S. Office of Mana and Bud Circular A -133, Audits of States, Local Governments, and Nonprofit Or and is not a re part of the basic financial statements. Such information is the responsibilit of mana and was derived from and relates directl to the underl accountin and other records used to prepare the basic financial statements. The information has been subjected to the auditin procedures applied in the audit of the basic financial statements and certain additional procedures, includin comparin and reconcilin such information directl to the underl accountin and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditin standards g enerall y accepted in the United States of America. In our opinion, the information is fairl stated, in all material respects, in relation to the basic financial statements as a whole. q (I a 1410 V17 I�L 0 kA r0f 4 14J t ect Jos dAlt 'C,4, Ma 26, 201 Mallo Monta Karnowski, Radosevich & Co., P.A. 5353 Wapata Boukvard * Suiiv 410 o Minncapoks, MN 55416 *TUIU 952-545-0424 • Telcfax. 952-545-0569 www.rnmkr.cam CITY OF BROOKLYN CENTER Schedule of Expenditures of Federal Awards Year Ended December 31, 2010 Federal Federal Grantor/Pass- Through Grantor /Program Title Federal CFDA No. Expenditures U.S. Department of Housing and Urban Development Passed through Hennepin County Community Development Block Grants — Entitlement Grants 14.218 $ 556 Community Development Block Grants — State's Program and Non - Entitlement Grants in Hawaii 14.228 4 81, 518 U.S. Department of Justice Direct Program Bulletproof Vest Partnership Program 16.607 1,579 ARRA — Public Safety Partnership and Community Policing Grants 16.710 66 Passed through Hennepin County Edward Byrne Memorial Justice Assistance Grant Program 16.738 4,290 ARRA — Edward Byrne Memorial Justice Assistance Grant (JAG) Program — Grants to Units of Local Government 16.804 27 U.S. Department of Transportation Passed through state of Minnesota ARRA — Highway Planning and Construction 20.205 200 Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 3,404 U.S. Department of Energy Passed through state of Minnesota ARRA — Energy Efficiency and Conservation Block Grant Program 81.128 19,735 Total federal awards $ 3,160,498 Note 1: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting in accordance with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Nonprofit Organizations. Therefore, the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the City's basic financial statements. Note 2: All pass - through entities listed above use the same CFDA numbers as the federal grantors to identify these grants, and have not assigned any additional identifying numbers. Note 3: The City provided federal awards to subrecipients as follows: Program Title Federal CFDA No. Amount Provided Community Development Block Grants — Entitlement Grants 14.218 $ 19 -2- PRINCIPALS Thurnas M. M°mugu"CmA M l�omm /^uanmvs�cpA eu '�uadomevich,cnA vmmimm}- xauer, CPA C E R'//pI E DVUuLsC James *�Eichrea, CPA A C C U T ANTS Aaron J. Nielsen, Cpx Victoria L.eolinka, 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 City Council and Management City of Brooklyn Center, Minnesota We have audited the financial statements ofthe governmental activities, the business-type activities, each major fund" and the aggregate remaining fund information of the City of Brooklyn Center (the City) as of and for the year ended December 31" 2010" which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 26" 2011. We conducted our audit in accordance with auditing standards generally accepted inthe 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 reporti as ubasiu 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 Chr internal control over financial reporting. Accordingly, vvedo not express an opinion onthe effectiveness ofthe City's internal control over financial reporti 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 odrnely basis. /\material weakness is o deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that amaterial misstatement of the City's financial statements will not be prevented, or detected and corrected, on othneh/ basis. Our consideration of internal control over fin000io] reporti 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 financial reporti that might be deficiencies, significant deficiencies, or material �ukn��m��. We did not identify any deficiencies in internal control over financial reporti that we consider to be material weaknesses, os defined above. (continued) -3- Ma|Kmy. Muncog"e, Kar"o°"ki, Radns=vich & Co., P.A. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of 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. We noted certain matters that we reported to management of the City in a separate letter dated May 26, 2011. This report is intended solely for the information and use of the City Council, management of the City, others within the City, federal awarding agencies, and pass- through entities and is not intended to be, and should not be, used by anyone other than these specified parties. kf X� rA 4 0 /--?/1 . May 26, 2011 -4- PRINCIPALS Thomas M. Monza g uc, CPA Thomas A. Karnowski, (TA M R Paul A. Radosevich, CPA William 1. Lauer, CPA CERTIFIED PUBLIC J ames H. Elchrun, CPA A C C 0 N T A N T S Aaron J. Nielsen, CPA Victoria L. Holinka, CPA INDEPENDENT AUDITOR'S 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 -13 3 Cit Council and Mana Cit of Brookl Center, Minnesota Compliance We have audited the compliance of the Cit of Brookl Center's (the Cit compliance with the t of compliance re described in the U.S. Office of Mana and Bud (OMB) Circular A -133 Compliance Supplement that could have a direct and material effect on each of its major federal pro for the y ear ended December 31, 2010. The Cit major federal pro are identified in the summar of audit results section of the accompan Schedule of Findin and Questioned Costs. Compliance with the re of laws, re contracts, and g rants applicable to each of its major federal pro is the responsibilit of the Cit mana Our responsibilit is to express an opinion on the Cit compliance based on our audit. We conducted our audit of compliance in accordance with auditin standards g enerall y accepted in the United States of America the standards applicable to financial audits contained in Government Auditin Standards, issued b the Comptroller General of the United States and OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Or Those standards and OMB Circular A-133 re that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the t of compliance re referred to above that could have a direct and material effect on a major federal pro occurred. An audit includes examinin on a test basis, evidence about the Cit compliance with those re and performin such other procedures as we considered necessar in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a le determination on the Cit compliance with those re In our opinion, the Cit complied, in all material respects, with the compliance re referred to above that could have a direct and material effect on each of its major federal pro for the y ear ended December 31, 2010. (continued) -5- Mallo Monta Karnowski, Rado nevi ch & Co., P.A. 5353 Wa Boulevard # Suirc 414 9 Minncapolis, MN 55416 "I'LAU 952-545-0424 • Tcicfax: 952-545-0569 @ www.mmkr.com Internal Control Over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements - of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133, 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 City'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. 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 deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of the City Council, management of the City, others within the City, federal awarding agencies, and pass- through entities and is not intended to be, and should not be, used by anyone other than these specified parties. r • 4 4 % May 26, 2011 -6- PRINCIPALS 'I"huiiias M. Monta CPA Thon);i�.A. Karnowski, CPA MMKR PaL11 A. Rado.qevich, CPA Will -un I - I.1 Lier, CPA C E RT I F I E DIPUBLIC J anic.�,H. Eichreri, CPA A C C 0 U N T A N T S Aaron J . Nielsen, CPA Victoria L. Hulinka, CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH MINNESOTA STATE LAWS AND REGULATIONS Cit Council and Mana Cit of Brookl Center, Minnesota We have audited the financial statements of the g overnmental activities, the business-t activities, each major fund, and the a remainin fund information of the Cit of Brookl Center (the Cit as of and for the y ear ended December 31, 2010, which collectivel comprise the Cit basic financial statements, and have issued our report thereon dated Ma 26, 201 We conducted our audit in accordance with auditin standards g enerall y accepted in the United States of America the standards applicable to financial audits contained in Government Auditin Standards, issued b the Comptroller General of the United States and the provisions of the Minnesota Le Compliance Audit Guide for Political Subdivisions, promul b the Office of the State Auditor pursuant to Minnesota Statute § 6.65. Accordin the audit included such tests of the accountin records and such other auditin procedures as we considered necessar in the circumstances. The Minnesota Le Compliance Audit Guide for Political Subdivisions covers seven main cate of compliance to be tested: contractin and biddin deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financin Our stud included all of the listed cate The results of our tests indicate that, for the items tested, the Cit complied with the material terms and conditions of applicable le provisions. This report is intended solel for the information and use of the Cit Council, mana of the Cit and the state of Minnesota and is not intended to be, and should not be, used b an other than these specified parties. 1 41 0 r J� 0Z k ArojacqjSk t Ma 26, 201 -7- Mallo Monta Karnowski, Radoscvich. & Co., P. A. 5353 Wa Boulevard -9 Suite 410 -P Minneapolis, MN 55416 * TOuphone, 952-545-0424 1 Tcicfax: 952-545-0569 @ www.mmkr.com CITY OF BROOKLYN CENTER Schedule of Findings and Questioned Costs Year Ended December 31, 2010 A. SUMMARY OF AUDIT RESULTS This summary is formatted to provide federal granting agencies and pass- through agencies answers to specific questions regarding the audit of federal awards. Financial Statements What type of auditor's report is issued? X Unqualified Qualified Adverse Disclaimer Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiencies identified? Yes X No Noncompliance material to the financial statements noted? Yes X None reported Federal Awards Internal controls over major federal award programs: Material weakness(es) identified? Yes X No Significant deficiencies identified? Yes X No Major federal award program compliance: What type of auditor's report is issued? X Unqualified Qualified Adverse Disclaimer Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A -133? Yes X No Programs tested as major programs: Program or Cluster CFDA No. U.S. Department of Housing and Urban Development Community Development Block Grants — Entitlement Grants 14.218 Community Development Block Grants — State's Program and Non - Entitlement Grants in Hawaii 14.228 U.S. Department of Transportation ARRA — Highway Planning and Construction 20.205 Threshold for distinguishing between type A and B programs: $ 300 Does the auditee qualify as a low -risk auditee? Yes X No -8- CITY OF BROOKLYN CENTER Schedule of Findings and Questioned Costs (continued) Year Ended December 31, 2010 B. FINDINGS — FINANCIAL STATEMENT AUDIT None. C. FINDINGS —MAJOR FEDERAL AWARD PROGRAMS AUDIT None. D. FINDINGS — MINNESOTA LEGAL COMPLIANCE AUDIT None. E. SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS —MAJOR FEDERAL AWARD PROGRAMS AUDIT Not applicable. -9-