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HomeMy WebLinkAboutMINUTES - 06092009 - C.82RECOMMENDATION(S): RECEIVE single audit reports prepared by Caporicci & Larson, CPA, for the fiscal year ended June 30, 2008 and REFER them to the Board's Finance Committee and the County Administrator for review and follow-up. FISCAL IMPACT: None. BACKGROUND: Under federal law, programs administered by Contra Costa County that are fully or partially funded with federal funds are subject to an annual review called the single audit. The purpose of the single audit is to review and determine compliance and integrity of federally funded programs. Caporicci & Larson, an independent certified public accounting firm, conducted the audit and has submitted it to the County. In November 1999, the Board of Supervisors established a policy and procedure for addressing the annual findings and recommendations of the County's external auditors. The APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/09/2009 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Lisa Driscoll, County Finance Director, 335-1023 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 9, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: Katherine Sinclair, Deputy cc: County Administrator, Auditor Controller C.82 To:Board of Supervisors From:David Twa, County Administrator Date:June 9, 2009 Contra Costa County Subject:SINGLE AUDIT REPORTS FOR FISCAL REPORT ENDED JUNE 30, 2008 policy directs that all letters from the County's independent audit BACKGROUND: (CONT'D) firm addressed to the Board be referred to the Board's Finance Committee, accompanied by a copy of the prior year's audit findings and recommendations. When the Finance Committee schedules the audit report for Board consideration, it will be accompanied by a report from the County Administrator that identifies what corrective action has been taken or is planned to be taken on each audit recommendation. ATTACHMENTS Single Audit Report - June 30, 2008 County of Contra Costa Single Audit Reports For the year ended June 30, 2008 Table of Contents Page Independent Auditors’ Report on Compliance and on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................ 1 Independent Auditors’ Report on Compliance with Requirements Applicable to each Major Program, Internal Control over Compliance and the Schedule of Expenditures of Federal Awards in accordance with OMB Circular A-133 and Supplemental Schedules of Revenue and Expenditures Prepared by the Contra Costa County Employment & Human Service Department Contra Costa County Community Services Department.................................................................................................................. 3 Schedule of Expenditures of Federal Awards .................................................................................................... 5 Notes to the Schedule of Expenditures of Federal Awards............................................................................ 11 Schedule of Findings and Questioned Costs .................................................................................................... 14 Summary Schedules of Prior Audit Findings................................................................................................... 17 Supplemental Schedules: Supplemental Schedule of Expenditures for Federal and State Awards Prepared by the Contra Costa Employment and Human Services Department............................ 24 Supplemental Schedules of Revenues and Expenditures Prepared by the Contra Costa Community Services Department.................................................... 26 2 To the Board of Supervisors of the County of Contra Costa, California Martinez, California Page 2 Internal Control over Financial Reporting In planning and performing our audit, we considered the County’s internal control over financial reporting as a basis for designing our audit procedures 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 County’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over financial reporting. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the County’s financial statements that is more than inconsequential will not be prevented or detected by the County’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the County’s internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. However, we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the County’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 result of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the audit committee, management, Board of Supervisors, and 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. However, this report is a matter of public record and its distribution is not limited. Oakland, California December 23, 2008 4 To the Board of Supervisors of the County of Contra Costa, California Martinez, California Page 2 In planning and performing our audit, we considered the County’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, 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 County’s internal control over compliance. A control deficiency in an entity’s internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the County’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity’s internal control. We did not consider any of the deficiencies in the accompanying schedule of findings and questioned costs to be material weaknesses. The County’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the County’s response and, accordingly, we express no opinion on it. Schedule of Expenditures of Federal Awards and Supplemental Schedules of Revenue and Expenditures We have audited the basic financial statements of the County of Contra Costa, California (County), as of and for the year ended June 30, 2008, and have issued our report thereon dated December 23, 2008. Our audit was performed for the purpose of forming opinions on the financial statements, which collectively comprise the basic financial statements of the County. The accompanying Schedule of Expenditures of Federal Awards and Supplemental Schedules of Revenues and Expenditures prepared by the County’s Community Services Department and Employment and Human Services Department are presented for purposes of additional analysis as required by OMB Circular A-133 and the State Department of Community Services and Development and State Department of Aging, respectively, and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the audit committee, management, Board of Supervisors, and 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. Oakland, California December 23, 2008 County of Contra Costa Single Audit Reports Schedule of Expenditures of Federal Awards For the year ended June 30, 2008 Catalog of Amount of Domestic Expenditures Assistance Federal Provided to Federal Grantor/Pass-Through Grantor/Program Title Number (CFDA) Expenditures Subrecipients U.S. DEPARTMENT OF AGRICULTURE Pass-Through Animal & Plant Health Inspection Service: Plant and Animal Disease, Pest control, and animal care 10.025 $ 232,415 $ - Pass-Through State Department of Education: School Breakfast and Lunch (Juvenile Hall)10.555 408,691 - Child & Adult Care Food Program 10.558 1,017,213 - Pass-Through State Department of Social Services: Special Supplemental Nutrition Program for Women, Infants and Children (WIC)10.557 2,651,719 - Pass-Through State Department of Aging: Senior Farmer's Market 10.576 10,000 - Food Stamp Cluster: State Administrative Matching Grants for Food Stamp 10.561* 11,327,984 135,760 Sub-total Pass Through Programs 15,648,022 135,760 Total U.S. Department of Agriculture $ 15,648,022 $ 135,760 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Direct Programs: Community Development Block Grants/Entitlement Grants 14.218* $ 3,822,299 $ 1,547,518 Emergency Shelter Grants Program 14.231 147,453 138,277 Homeless Program Multi Service Centers 14.235 527,319 462,277 Adults Addicted to Alcohol 14.238 422,267 422,267 HOME Investment Partnerships Program 14.239 1,968,091 1,486,512 Housing Opportunities for Persons with AIDS 14.241 179,262 89,937 Opportunities for Youth - Youthbuild Program 14.243 267,110 267,110 Sub-total Direct Programs 7,333,801 4,413,898 Pass-Through State Department of Housing & Community: Emergency Shelter Grants Program 14.231 127,667 - Total U.S. Department of Housing and Urban Development $ 7,461,468 $ 4,413,898 U.S. DEPARTMENT OF JUSTICE Direct Programs: Organized Crime Drug Enforcement Task 16.001 $ 20,594 $ - Zero Tolerance Access & Visitation Program 16.527 226,897 - Grants to Encourage Arrest Policies and Enforcement of Protection Orders 16.590 798,051 - Criminal Alien Assistance Program 16.606* 2,082,818 - Bullet Proof Vest 16.607 27,446 - Sub-total Direct Programs 3,155,806 - * Denotes Major Program. See Notes to the Schedule of Expenditures of Federal Awards.(Continued) 5 County of Contra Costa Single Audit Reports Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2008 Catalog of Amount of Domestic Expenditures Assistance Federal Provided to Federal Grantor/Pass-Through Grantor/Program Title Number (CFDA) Expenditures Subrecipients U.S. DEPARTMENT OF JUSTICE, Continued Pass-Through State Office of Criminal Justice Planning: Juvenile Accountability Incentive Block Grants 16.523 $ 32,510 $ - Pass-Through State Office of Juvenile and Delinquency Prevention: Disproportionate Minority Contact 16.540 137,039 - Pass-Through State Office of Emergency Services: Victim Witness Assistance Program 16.575 222,807 - Regional Anti-Drug Program 16.579 534,304 - Violence Against Women 16.588 62,484 - DNA Capacity Enhancement Program 16.741 44,781 - Paul Coverdell Forensic Sciences Improvement Grant 16.742 41,037 - Anti-gang Initiative 16.744 224,134 - Sub-total Pass-Through Programs 1,299,096 - Total U.S. Department of Justice $ 4,454,902 $ - U.S. DEPARTMENT OF LABOR Pass-Through State Employment Development Department (EDD): Workforce Investment Act (WIA) Cluster: WIA Adult Program 17.258* $ 1,708,498 $ 417,329 WIA Youth Activities 17.259* 1,795,742 1,506,214 WIA Dislocated Worker 17.260* 2,214,151 551,005 Sub-total WIA Cluster 5,718,391 2,474,548 Total U.S. Department of Labor $ 5,718,391 $ 2,474,548 U.S. DEPARTMENT OF TRANSPORTATION Direct Programs: Airport Improvement Program 20.106 $ 1,119,351 $ - Sub-total Direct Programs 1,119,351 - Pass-Through State Department of Transportation: Highway Planning and Construction 20.205 3,200,695 - Pass-Through State Office of Traffic Safety: Injury Prevent Project 20.600 242,044 26,777 State and Community Highway Safety 20.601 53,165 33,369 Sub-total Pass-Through Programs 3,495,904 60,146 Total U.S. Department of Transportation $ 4,615,255 $ 60,146 U.S. DEPARTMENT OF TREASURY Pass-Through Secretary of State Office: Help America Vote Act (HAVA)90.401 $ 163,804 $ - Pass-Through State Office of the State Librarian: Promotion of the Arts Grants 45.024 10,000 - Library Services & Technology Act 45.310 389,774 - Sub-total Pass-Through Programs 563,578 - Total U.S. Department of Treasury $ 563,578 $ - * Denotes Major Program. See Notes to the Schedule of Expenditures of Federal Awards.(Continued) 6 County of Contra Costa Single Audit Reports Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2008 Catalog of Amount of Domestic Expenditures Assistance Federal Provided to Federal Grantor/Pass-Through Grantor/Program Title Number (CFDA) Expenditures Subrecipients U.S. DEPARTMENT OF ENERGY Pass-Through State Department of Community Services and Development: Weatherization Assistance for Low-Income Persons 81.042 $ 108,667 $ - Total U.S. Department of Energy $ 108,667 $ - U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Direct Programs: Health Center Grants for Homeless Populations 93.224 $ 995,111 $ - Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease 93.918 326,368 42,200 Project Coming Home 93.230 247,808 236,558 SYNERGY Program 93.243 319,398 269,302 Head Start 93.600* 17,233,892 3,188,014 Basic Center Grant 93.623 189,991 189,991 Family to Family System of Care 93.670 487,651 - Safe and Bright Futures for Children Initiative 93.990 - - Sub-total Direct Programs 19,800,219 3,926,065 Pass-Through State Department of Aging: Special Programs for the Aging-Title VII, Chapter 3 - Programs for Prevention of Elder Abuse, Neglect, and Exploitation 93.041 12,899 12,899 Special Programs for the Aging-Title VII, Chapter 2 - Long-Term Care Ombudsman Service for Older Individuals 93.042 44,429 44,429 Special Programs for Aging - Title III, Part D- Disease Prevention and Health Promotion Services 93.043 47,557 7,000 National Family Caregiver Support - Title III Part E 93.052 345,502 345,502 Nutrition Services Incentive Program (NSIP)93.053 268,586 268,586 Medical Assistance Program (Medicaid; Title XIX MSSP)93.778 419,930 - Centers for Medicare and Medicaid Services - Research Demonstrations and Evaluations (HICAP)93.779 79,661 - Aging Cluster: Special Programs for Aging-Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 1,146,253 465,110 Special Programs for the Aging-Title III, Part C - Nutrition Services 93.045 1,248,024 1,248,024 Sub-total Aging Cluster 2,394,277 1,713,134 Pass-Through State Department of Community Services and Development: Low-Income Home Energy Assistance 93.568 1,142,155 - Community Services Block Grant 93.569 428,936 129,000 Sub-total Pass-Through Programs 5,183,932 2,520,550 * Denotes Major Program. See Notes to the Schedule of Expenditures of Federal Awards.(Continued) 7 County of Contra Costa Single Audit Reports Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2008 Catalog of Amount of Domestic Expenditures Assistance Federal Provided to Federal Grantor/Pass-Through Grantor/Program Title Number (CFDA) Expenditures Subrecipients U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, Continued Sub-total Pass-Through Programs from previous page $ 5,183,932 $ 2,520,550 Pass-Through State Department of Education: Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 1,112,000 143,993 Child Care and Development Block Grant 93.575 388,814 - Pass-Through State Department of Health & Human Services: Bioterrorism 93.069 1,119,515 213,397 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.116 154,069 - Disabilities Prevention 93.184 2,184,902 - Lead Poisoning Prevention Program 93.197 64,791 - Immunization Grants 93.268 241,391 - HRSA Bioterrorism preparedness program 93.889 360,025 360,025 AIDS-Ryan White Care Act Title I 93.914 1,162,764 677,694 AIDS-Ryan White Care Act Title II 93.917 601,210 37,344 Maternal and Child Health Services Block Grant to the State 93.994 1,769,406 435,862 Pass-Through State Department of Mental Health: Assistance in Transition from Homeless McKinney Homeless Block Grants 93.150 133,473 122,746 Block Grants for Community Mental Health Services 93.958 1,579,270 379,096 Pass-Through State Department of Social Services: Promoting Safe and Stable Families 93.556 660,297 - Temporary Assistance to Needy Families 93.558 100,970,367 - Child Support Enforcement 93.563* 12,062,573 - Refugee and Entrant Assistance - State Administered Program 93.566 185,037 - Child Welfare Services - State Grants - Title IV-B 93.645 668,574 - Foster Care - Title IV-E 93.658 36,538,260 - Adoption Assistance 93.659* 7,983,302 - Social Services Block Grant - Title XX 93.667 2,554,117 - Independent Living 93.674 443,449 - IHSS Public Authority 93.778* 6,981,682 - Pass-Through State Department of Veterans Affairs: Medical Cost Avoidance Program 93.778* 5,660 - Sub-total Pass-Through Programs 185,108,880 4,890,707 Total U.S. Department of Health and Human Services $ 204,909,099 $ 8,816,772 U.S. DEPARTMENT OF HOMELAND SECURITY Direct Programs: State Domestic Preparedness Equipment Support Program 97.004 $ 56,017 $ - Urban Area Security Initiative 97.008* 1,215,391 - Emergency Food and Shelter National Board Program 97.024 45,000 45,000 Port Security 2006 97.056* 604,288 - Assistance to Firefighters Grant 97.044* 413,077 - Sub-total Direct Programs 2,333,773 45,000 * Denotes Major Program. See Notes to the Schedule of Expenditures of Federal Awards.(Continued) 8 County of Contra Costa Single Audit Reports Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2008 Catalog of Amount of Domestic Expenditures Assistance Federal Provided to Federal Grantor/Pass-Through Grantor/Program Title Number (CFDA) Expenditures Subrecipients U.S. DEPARTMENT OF HOMELAND SECURITY, Continued Pass-Through State Office of Homeland Security: Buffer Zone Protection Program 97.078 $ 140,993 $ 104,166 State Homeland Security Grant Program 97.073 720,157 18,948 Pass-Through State Office of Emergency Service FY 05 Emergency Management Performance 97.042 193,007 15,451 Sub-total Pass-Through Programs 1,054,157 138,565 Total U.S. Department of Homeland Security $ 3,387,930 $ 183,565 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 246,867,312 $ 16,084,689 * Denotes Major Program. See Notes to the Schedule of Expenditures of Federal Awards.(Concluded) 9 This page intentionally left blank. 10 County of Contra Costa Single Audit Reports Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2008 11 1. GENERAL The Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal award programs of the County of Contra Costa, California (County), except for the awards related to the County of Contra Costa Housing Authority (Authority) that conducted a separate single audit in accordance with OMB A-133. The County’s reporting entity is defined in Note 1A of the County’s basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through to the County from other governmental agencies, are included on the Schedule. 2. BASIS OF ACCOUNTING The Schedule is presented using the modified accrual basis of accounting for governmental funds and full accrual basis of accounting for proprietary funds, which are described in Note 1D of the County’s basic financial statements. 3. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS The majority of the federal award expenditures are reported in the County’s basic financial statements in the general fund, special revenue funds, and enterprise funds. Revenues and expenditures related to the value of food stamps issued under the Food Stamps program are not reported in the County’s basic financial statements as they are non-cash awards. Non cash transactions related to the Food Donation Program are not reflected in the County’s basic financial statements as these represent aid-in-kind. 4. LOAN PROGRAMS The County has provided loans under several U.S. Department of Housing and Urban Development programs. These loans are made to carry out activities for affordable housing and economic development. The programs are administered both internally and by servicing and trust arrangements with financial institutions to collect loan repayments. The funds will be returned to the County programs upon repayment of the principal and interest, and will be recorded as program income at that time. The following is a summary of the loan programs maintained by the County along with the outstanding loan receivable balances at June 30, 2008: Federal CFDA Amount Program Title Number Outstanding Community Development Block Grant 14.218 27,660,327$ HOME Investment Partnerships Program 14.239 33,251,824 Housing Opportunities for Persons with AIDS 14.241 3,915,995 64,828,146$ County of Contra Costa Single Audit Reports Notes to the Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2008 12 5. PROGRAMS FUNDED THROUGH THE STATE DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT The following table, requested by the State, is a summary of expenditures for selected programs funded through the State Department of Community Services and Development for the year ended June 30, 2008: CFDA Program Title Number Amount Weatherization Assistance for Low-Income Person 81.042 108,667$ Low-Income Home Energy Assistance 93.568 1,142,155 Community Services Block Grants 93.569 428,936 The detail of these programs, by contract, is included in the Supplemental Schedules section of this report. The amounts reported in the Supplemental Schedules are on the cash basis. 6. SUMMARY OF FEDERAL EXPENDITURES OF THE HOUSING AUTHORITY The Authority’s expenditures are excluded from the accompanying Schedule because they are separately audited by other auditors. The programs of the Authority for the fiscal year ended March 31, 2008 were as follows: CFDA Federal Program Title Number Expenditures U.S. Department of Housing and Urban Development: Community Development Block Grant 14.218 12,656$ Shelter Plus Care 14.238 2,907,930 Public and Indian Housing 14.850 4,707,108 Section 8 Housing Choice Voucher 14.855 35,299 Low Income Housing Assistance Program Section 8 Moderate Rehabilitation 14.856 161,261 Housing Choice Voucher 14.871 76,907,740 Public Housing Capital Fund 14.872 2,785,938 Project Safe Neighborhood 16.609 4,900 Total U.S. Department of Housing and Urban Development 87,522,832$ County of Contra Costa Single Audit Reports Notes to the Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2008 13 7. PROGRAMS FUNDED THROUGH THE STATE OFFICE OF CRIMINAL JUSTICE PLANNING (OCJP) The County had program audits performed by an independent auditor on the following programs passed through the Office of Emergency Services: Grant Title Grant Number Regional Anti-Drug Program DC07200070 Vertical Prosecution Program VB06040070 Victim Witness Assistance Center VW07260070 A copy of the audit report for the above programs can be obtained from the Auditor-Controller’s Office at 625 Court Street, Room 103, Martinez, California, 94553-1282. County of Contra Costa Single Audit Reports Schedule of Findings and Questioned Costs For the year ended June 30, 2008 14 A. SUMMARY OF AUDIT RESULTS 1. The auditors' report expresses an unqualified opinion on the basic financial statements of the County of Contra Costa (County). 2. No significant deficiencies relating to the audit of the financial statements are reported in Part B of this schedule. 3. No instances of noncompliance material to the basic financial statements of the County were disclosed during the audit. 4. No significant deficiencies relating to the audit of the major federal award programs are reported in Part B of this schedule. 5. The auditors' report on compliance for the major federal award programs for the County expresses an unqualified opinion. 6. Audit findings relative to the major federal award programs for the County are reported in Part C of this Schedule. 7. The programs tested as major programs include: Major Program Expenditures State Administrative Matching Grants for Food Stamp 11,327,984$ Community Development Block Grants/Entitlement Grants 3,822,299 Criminal Alien Assistance Program 2,082,818 Workforce Investment Act Adult Program 1,708,498 Workforce Investment Act Youth Activities 1,795,742 Workforce Investment Act Dislocated Worker 2,214,151 Head Start 17,233,892 Child Support Enforcement 12,062,573 Adoption Assistance 7,983,302 IHSS Public Authority 6,981,682 Medical Cost Avoidance Program 5,660 Urban Area Security Initiative 1,215,391 Port Security 2006 604,288 Assistance to Firefighters Grant 413,077 Total Major Program Expenditures 69,451,357$ Total Federal Award Expenditures 246,850,488$ Percent of Total Federal Award Expenditures 28.13% 8. The threshold for distinguishing Types A and B programs was $3,000,000. 9. The County was determined to be a low risk auditee. County of Contra Costa Single Audit Reports Schedule of Findings and Questioned Costs, Continued For the year ended June 30, 2008 15 B. FINDINGS - FINANCIAL STATEMENTS AUDIT No financial statement findings were noted. C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 08-1 U.S. DEPARTMENT OF LABOR Workforce Investment Act – Youth Activities, (CFDA Number 17.259) – Eligibility. Passed through State Employment Development Department. Administered by the County’s Employment and Human Services Department. Criteria In accordance with OMB Circular A-133, grantees are required to abide by the eligibility requirements in the individual grant agreements of the respective programs. The Workforce Investment Act – Youth Activities grant requires participants be low-income individuals. Condition During the performance of our audit, we noted that a case file examined did not contain documentation to support low-income verification. Questioned Costs The amount for questioned costs could not be determined. Context and Effect By ensuring that documentation support for individuals, which qualify as low- income, is maintained in the case files it would support the applicant’s eligibility to receive support services, it would also reduce the chances of ineligible costs being claimed for reimbursement. Recommendation We recommended that the County strengthen its controls by providing additional periodic reviews of the case files to ensure that the documents contained in the case files are kept current and complete. Management’s Response In response to the finding listed above, Contra Costa Workforce Development Board will assign quarterly file reviews to Workforce Investment Act Youth files. This file review will be done to a limited number of files selected randomly, excluding files reviewed within the last 12 months. A quarterly quality control checklist will be held in central file at the Workforce Development Board office as well as the participant file. County of Contra Costa Single Audit Reports Schedule of Findings and Questioned Costs, Continued For the year ended June 30, 2008 16 C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT, Continued 08-2 U.S. DEPARTMENT OF AGRICULTURE State Administrative Matching Grants for Food Stamp, (CFDA Number 10.561) – Special Test and Provisions. Passed through State Department of Social Services. Administered by the County’s Employment and Human Services Department. Criteria In accordance with OMB Circular A-133, grantees are required to abide by the special tests and provision requirements in the individual grant agreements of the respective programs. The State Administrative Matching Grants for Food Stamp requires that grant recipients shall employ sufficient level staff to perform all aspects of the Performance Reporting System. The staff used to conduct the QC reviews shall be organizationally independent of program operations. Condition During the performance of our audit, we noted that the County’s quality control unit for the food stamp program is not organizationally independent of program operations. County employees assigned to the quality control unit report to the same department manager as employees assigned to program operations. Questioned Costs No questioned costs noted. Context and Effect By ensuring that the quality control unit is independent of program operations this will ensure that QC staff will not have prior knowledge of either the person or household of the decision under review. Recommendation We recommended that the County ensure the quality control unit is independent of program operations by having the QC staff report to a department manager separate form program operations manager. Management’s Response We acknowledge the basis for this recommendation. Contra Costa has a highly successful QC program that has been instrumental in achieving and maintaining one of the lowest Food Stamp error rates in the state. While organizational placement of the QC unit could result in a conflict, to date, it has not presented any problems and has been effectively managed within the Aging and Adult Bureau. To address the recommendation and to ensure there is no potential for conflicts, effective July 1, 2009 the QC unit will be reassigned to the Administrative Bureau as a direct report to the Bureau Director. County of Contra Costa Single Audit Reports Summary Schedules of Prior Audit Findings For the year ended June 30, 2008 17 D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS 07-1 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Ryan White Care Act Title I, (CFDA Number 93.914) – Allowable Costs / Cost Principles. Passed through State Department of Health & Human Services. Administered by the County’s Health Services Department - Public Health. Criteria In accordance with OMB Circular A-87, grantees are required to maintain appropriate documentation to abide by the allowable costs / cost principle requirements in the individual grant agreements of the respective programs. The Ryan White Care Act Title I grant requires that direct expenses claimed be supported by appropriate documentation and be readily available to support the amount claimed. Condition During the performance of our audit, we noted that direct payroll expenses claimed for reimbursement could not be identified specifically to the performance of the program. Functional time sheets were not used to allocate payroll expense. Questioned Costs The amount for questioned costs could not be determined. Context and Effect By ensuring that payroll expense is allocated based on functional time sheets this would assure that the grant program is being reimbursed the correct amount. Recommendation We recommended that the County support direct payroll expenses with ether functional time sheets or a time allocation study. Status Implemented. County of Contra Costa Single Audit Reports Summary Schedules of Prior Audit Findings, Continued For the year ended June 30, 2008 18 D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS, Continued 07-2 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Ryan White Care Act Title I, (CFDA Number 93.914) – Eligibility. Passed through State Department of Health & Human Services. Administered by the County’s Health Services Department - Public Health. Criteria In accordance with OMB Circular A-133, grantees are required to abide by the eligibility requirements in the individual grant agreements of the respective programs. The Ryan White Care Act Title I grant requires case management services be provided to individuals who are HIV+ Condition During the performance of our audit, we noted that a portion of the files examined did not contain documentation to support the HIV+ diagnosis. These participants did receive case management services from the county during the fiscal period. Questioned Costs The amount for questioned costs could not be determined. Context and Effect By ensuring that support for HIV virus test status is maintained in the case files it would support the applicant’s eligibility to receive case management assistance, it would also reduce the chances of ineligible costs being claimed for reimbursement. Recommendation We recommended that the County strengthen its controls by providing additional periodic reviews of the case files and monitoring of contracted services to ensure that the documents contained in the case files are kept current and complete. Status Implemented. County of Contra Costa Single Audit Reports Summary Schedules of Prior Audit Findings, Continued For the year ended June 30, 2008 19 D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS, Continued 07-3 U.S. DEPARTMENT OF THE TREASURY Help America Vote Act, (CFDA Number 90.401) – Reporting. Passed through Secretary of State Office. Administered by the County Clerk’s Office. Criteria In accordance with OMB Circular A-133, grantees are required to abide by the reporting requirements in the individual grant agreements of the respective programs. The Help America Vote Act grant requires that grant recipients report the federal award expenditures on their Schedule of Expenditures for Federal Awards. Condition During the performance of our audit, we noted that the County did not report on their prior year Single Audit Reports the expenditures for the Help America Vote Act grant. The prior year expenditures were not properly identified by the County as federal award expenditures. The amounts not reported were $39,662 for FYE05 and $4,423,042 for FYE06. Questioned Costs No questioned costs noted. Context and Effect By ensuring that all expenses are properly reported on the Schedule of Expenditures of Federal Awards in the proper period, the County will ensure that all major programs have been properly identified. This will prevent having to reissue the Single Audit report in future years when the omission is discovered. Recommendation We recommended that the County strengthen its review process over the preparation of the Schedule of Expenditures of Federal Awards to ensure the accuracy and completeness of the amounts provided by individual County Departments. Status Implemented. County of Contra Costa Single Audit Reports Summary Schedules of Prior Audit Findings, Continued For the year ended June 30, 2008 20 D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS, Continued 07-4 U.S. DEPARTMENT OF JUSTICE Grant to Encourage Arrest Policies and Enforcement of Protection Orders, (CFDA Number 16.590) – Reporting. Administered by the County Administration Office. Criteria In accordance with OMB Circular A-133, grantees are required to abide by the reporting requirements in the individual grant agreements of the respective programs. The Grant to encourage Arrest Policies and Enforcement of Protection Orders requires that grant recipients report the federal award expenditures on their Schedule of Expenditures for Federal Awards. Condition During the performance of our audit, we noted that the County did not report part of their expenditures for the grant on prior year Single Audit Reports. The prior year expenditures were not properly identified by the County as federal award expenditures. The amount not reported in prior year was $56,078. Questioned Costs No questioned costs noted. Context and Effect By ensuring that all expenses are properly reported on the Schedule of Expenditures of Federal Awards in the proper period, the County will ensure that all major programs have been properly identified. This will prevent having to reissue the Single Audit report in future years when the omission is discovered. Recommendation We recommended that the County strengthen its review process over the preparation of the Schedule of Expenditures of Federal Awards to ensure the accuracy and completeness of the amounts provided by individual County Departments. Status Implemented. County of Contra Costa Single Audit Reports Summary Schedules of Prior Audit Findings, Continued For the year ended June 30, 2008 21 D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS, Continued 07-5 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES HRSA Bioterrorism Program, (CFDA Number 93.889) – Allowable Costs / Cost Principles. Passed through State Department of Health & Human Services. Administered by the County’s Health Services Department - Public Health. Criteria In accordance with OMB Circular A-87, grantees are required to maintain appropriate documentation to abide by the allowable costs / cost principle requirements in the individual grant agreements of the respective programs. The HRSA Bioterrorism grant requires that direct expenses claimed be supported by appropriate documentation and be readily available to support the amount claimed. Condition During the performance of our audit, we noted that direct payroll expenses claimed for reimbursement could not be identified specifically to the performance of the program. Functional time sheets were not used to allocate payroll expense. Questioned Costs The amount for questioned costs could not be determined. Context and Effect By ensuring that payroll expense is allocated based on functional time sheets this would assure that the grant program is being reimbursed the correct amount. Recommendation We recommended that the County support direct payroll expenses with ether functional time sheets or a time allocation study. Status Implemented. County of Contra Costa Single Audit Reports Summary Schedules of Prior Audit Findings, Continued For the year ended June 30, 2008 22 D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS, Continued 07-6 U.S. DEPARTMENT OF AGRICULTURE Women, Infant, and Children, (CFDA Number 10.557) – Eligibility. Passed through State Department of Social Services. Administered by the County’s Health Services Department – Public Health. Criteria In accordance with OMB Circular A-133, grantees are required to abide by the eligibility requirements in the individual grant agreements of the respective programs. The Women, Infant, and Children (WIC) grant provides benefits to participants based on specific eligibility requirements. Condition During the performance of our audit, we noted that a portion of the participant files could not be examined for eligibility testing. The participant files are maintained on State of California’s WIC eligibility computer system. However, once a participant withdrew from the program, the computer system purged their information. This prevented eligibility testing to be performed on inactive participant files even-though these participants received benefits from the County during the fiscal year. Questioned Costs The amount for questioned costs could not be determined. Context and Effect Due to the nature of the State of California’s WIC eligibility computer system, a complete participant listing was not provided during the performance of our audit of compliance over participants receiving benefits. Therefore, we were unable to audit inactive participant’s eligibility compliance during the fiscal year. Recommendation We recommended that the County add a tracking mechanism to ensure that all participants of the program during the fiscal year be documented and identified. This would allow compliance eligibility audit testing to be performed. Status Implemented. SUPPLEMENTAL SCHEDULES 23 County of Contra Costa Employment and Human Services Department Supplemental Schedule of Expenditures for Federal and State Awards Summary Schedule For the year ended June 30, 2008 Catalog of Federal Federal / State Grantor Domestic Grant / Pass-through Grantor Assistance Contract State Federal Program Title Number (CFDA) Number Expenditures Expenditures Federal Awards U.S. Department of Health & Human Services Aging Cluster Passed through CA Dept of Aging: 93.044 AP-0708-07 125,422$ 1,146,253$ Special Programs for Aging-Title III Part B Grants for Supportive Services and Senior Centers Special Programs for Aging Title III Part C, 93.045 AP-0708-07 88,011 1,248,024 Nutrition Services Nutrition Services Incentive Program 93.053 AP-0708-07 - 268,586 (NSIP) Special Programs for Aging-Title III Part D 93.043 AP-0708-07 2,311 47,557 Disease Prevention and Health Promotion Services National Family Caregiver Support Title III 93.052 AP-0708-07 - 345,502 Part E Special Programs for Aging Title VII A 93.042 AP-0708-07 8,878 44,429 Chapter 2 Long Term Care Ombudsman Services for Older Individuals Special Programs for Aging Title VII B 93.041 AP-0708-07 592 12,899 Chapter 3 Programs for Prevention of Elder Abuse, Neglect and Exploitation Centers for Medicare and Medicaid Services 93.779 HI-0708-07 - 79,661 (CMS) Research, Demonstrations and Evaluations (Health Insurance Counseling and Advocacy Program, HICAP) Medical Assistance Program (Medicaid 93.778 MS-0708-27 437,070 419,930 Title XIX) Multi-Senior Services Program MSSP U.S. Department of Agriculture Passed through CA Dept of Aging: Senior Farmer's Market 10.576 - 10,000 Total Expenditures Federal Awards 662,284$ 3,622,841$ 24 County of Contra Costa Employment and Human Services Department Supplemental Schedule of Expenditures for Federal and State Awards Summary Schedule, Continued For the year ended June 30, 2008 Catalog of Federal Federal / State Grantor Domestic Grant / Pass-through Grantor Assistance Contract State Federal Program Title Number (CFDA) Number Expenditures Expenditures State Awards California Department of Aging Direct State Programs: Ombudsman Initiative Federal Citation Penalty AP-0708-07 36,524$ -$ CBSP-Brown Bag AP-0708-07 23,277 - CBSP-ADCRC AP-0708-07 80,000 - CBSP-Linkages AP-0708-07 232,892 - CBSP-Respite AP-0708-07 6,386 - HICAP Reimbursement HI-0708-07 123,550 - HICAP FUND HI-0708-07 61,705 - Total Expenditures State Awards 564,334$ -$ 25 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures Summary Schedule For the year ended June 30, 2008 Catalog of Federal Domestic Assistance Total DCSD Contract No.Number (CFDA)Expenditures 07C-1656 Weatherization 81.042 108,667$ Total 108,667$ 07B-5406 Assurance 16 93.568 67,097$ 07B-5406 ECIP and HEAP Intake Costs 93.568 5,103 07B-5406 ECIP and HEAP Administrative Costs 93.568 43,016 06B-5356 ECIP and HEAP Energy Automation Set-a-Side 93.568 4,689 07B-5406 ECIP Program Costs 93.568 48,791 07B-5406 HEAP-Outreach 93.568 24,169 07B-5406 Weatherization 93.568 297,758 08B-5456 Assurance 16 93.568 91,407 08B-5456 ECIP and HEAP Intake Costs 93.568 24,100 08B-5456 ECIP and HEAP Administrative Costs 93.568 53,990 08B-5456 ECIP Program Costs 96.568 48,681 08B-5456 HEAP-Outreach 93.568 61,414 08B-5456 Weatherization 93.568 371,940 Total 1,142,155$ 06F-4708 CSBG CAA-2007 93.569 302,158 08F-4708 CSBG CAA-2008 93.569 126,778 Total 428,936$ 26 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 07C-1656 Weatherization (CFDA #81.042) For the year ended June 30, 2008 Total Recorded Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue 110,707$ 110,707$ 114,082$ Total revenue 110,707$ 110,707$ 114,082$ EXPENDITURES: Administrative Costs 4,830$ 4,830$ 5,680$ Other Program Costs: Health & Safety 9,269 9,269 23,312 Training & Technical Assistance 2,761 2,761 2,885 Total Other Program Costs 12,030 12,030 26,197 Program Costs: Client Education 4,477 4,477 4,474 Direct Program Activities 74,943 74,943 65,411 Intake 3,942 3,942 3,944 Outreach 6,873 6,873 6,870 Workers' Compensation 1,572 1,572 1,506 Total Program Costs 91,807 91,807 82,205 Total expenditures 108,667$ 108,667$ 114,082$ 27 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures For the year ended June 30, 2008 Total Recorded Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue 247,709$ 247,709$ 362,210$ Total revenue 247,709$ 247,709$ 362,210$ EXPENDITURES: Assurance 16 Program Costs: Assurance 16 Activities 67,097$ 67,097$ 102,215$ Intake Program Costs: Intake 5,103 5,103 26,494 Administrative Costs: Administrative Costs 43,016 43,016 61,750 Energy Automation Set-a-Side 4,689 4,689 27,583 Total Administrative Costs 47,705 47,705 89,333 ECIP Program Costs: Cooling Service Repair/Replacement 89 89 4,203 Heating Service Repair/Replacement 28,653 28,653 101,313 Other 1,034 1,034 - Outreach 19,015 19,015 30,371 Total ECIP Program Costs 48,791 48,791 135,887 Heap Outreach WPO Costs: Outreach 24,169 24,169 35,864 Energy Education Workshop Energy Education Client Workshops - - - Total expenditures 192,865$ 192,865$ 389,793$ DCSD Contract No. 07B-5406 LIHEAP ASSURANCE 16, INTAKE, ECIP and HEAP (CFDA #93.568) 28 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 07B-5406 Weatherization (CFDA #93.568) For the year ended June 30, 2008 Total Recorded Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue 293,703$ 293,703$ 513,107$ Total revenue 293,703$ 293,703$ 513,107$ EXPENDITURES: Administrative Costs: Administrative Costs 28,588$ 28,588$ 40,820$ Other Program Costs: Training 8,235 8,235 10,255 Vehicle and Equipment - - - Total Other Program Costs 8,235 8,235 10,255 Program Costs: Intake (Eligibility Determination) 8,562 8,562 10,255 Direct Program Activities 229,705 229,705 420,938 Outreach 19,831 19,831 25,639 Workers' Compensation 2,837 2,837 5,200 Total Program Costs 260,935 260,935 462,032 Total expenditures 297,758$ 297,758$ 513,107$ 29 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures For the year ended June 30, 2008 Total Recorded Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue 279,592$ 279,592$ 365,401$ Total revenue 279,592$ 279,592$ 365,401$ EXPENDITURES: Assurance 16 Program Costs: Assurance 16 Activities 91,407$ 91,407$ 103,504$ Intake Program Costs: Intake 24,100 24,100 26,716 Administrative Costs: Administrative Costs 53,990 53,990 62,186 ECIP Program Costs: Cooling Service Repair/Replacement 2,953 2,953 4,406 Heating Service Repair/Replacement 45,728 45,728 90,000 Outreach - - - Total ECIP Program Costs 48,681 48,681 94,406 Heap Outreach WPO Costs: Outreach 61,414 61,414 66,788 Total expenditures 279,592$ 279,592$ 353,600$ DCSD Contract No. 08B-5456 LIHEAP ASSURANCE 16, INTAKE, ECIP and HEAP (CFDA #93.568) 30 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures For the year ended June 30, 2008 Total Recorded Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue 365,710$ 365,710$ 527,898$ Total revenue 365,710$ 365,710$ 527,898$ EXPENDITURES: Administrative Costs: Administrative Costs 29,934$ 29,934$ 41,925$ Other Program Costs: Training 214 214 10,548 Program Costs: Intake (Eligibility Determination) 5,894 5,894 10,548 Direct Program Activities 318,547 318,547 432,505 Outreach 14,665 14,665 26,372 Workers' Compensation 2,686 2,686 6,000 Total Program Costs 341,792 341,792 475,425 Total expenditures 371,940$ 371,940$ 527,898$ DCSD Contract No. 08B-5456 Weatherization (CFDA #93.568) 31 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 06F-4708 CSBG CAA-2007 (CFDA #93.569) For the year ended June 30, 2008 Total Recorded Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue 301,143$ 301,143$ 627,150$ Total revenue 301,143$ 301,143$ 627,150$ EXPENDITURES: Administrative Costs: Salaries & Wages 78,114$ 78,114$ 177,114$ Fringe Benefits 50,360 50,360 119,764 Travel - - - Space (Rent/Lease) - - - Consumable Supplies - - - Equipment (Lease/Purchase) 9,681 9,681 58,540 Other Costs 27,271 27,271 94,674 Total Administrative Costs 165,426 165,426 450,092 Program Costs: Salaries & Wages 4,842 4,842 18,827 Fringe Benefits 2,890 2,890 12,731 Consultant Services - - - Subcontractors 129,000 129,000 145,500 Total Other Program Costs 136,732 136,732 177,058 Total expenditures 302,158$ 302,158$ 627,150$ 32 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 08F-4908 CSBG CAA-2008 (CFDA #93.569) For the year ended June 30, 2008 Total Recorded Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue 186,474$ 186,474$ 627,150$ Total revenue 186,474$ 186,474$ 627,150$ EXPENDITURES: Administrative Costs: Salaries & Wages 47,962$ 47,962$ 160,413$ Fringe Benefits 32,431 32,431 126,421 Travel - - 7,669 Space (Rent/Lease) - - - Consumable Supplies - - - Equipment (Lease/Purchase) 8,227 8,227 39,419 Other Costs 31,109 31,109 110,000 Total Administrative Costs 119,729 119,729 443,922 Program Costs: Salaries & Wages 4,641 4,641 20,540 Fringe Benefits 2,408 2,408 16,188 Consultant Services - - - Subcontractors - - 146,500 Total Other Program Costs 7,049 7,049 183,228 Total expenditures 126,778$ 126,778$ 627,150$ 33