HomeMy WebLinkAboutSingle Audit Report 2008CITY OF
FRIENDSWOOD, TEXAS
SINGLE AUDIT REPORT
SEPTEMBER 30, 2008
CITY OF FRIENDSWOOD, TEXAS
SEPTEMBER 30, 2008
TABLE OF CONTENTS
Page
Number
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......................................................................................... 1-2
Independent Auditors' Report on Compliance With Requirements
Applicable to Each Major Program and Internal Control Over
Compliance in Accordance With OMB Circular A-133..................................................... 3-4
Schedule of Expenditures of Federal Awards........................................................................ 5-6
Notes to Schedule of Expenditures of Federal Awards......................................................... 7
Schedule of Findings and Questioned Costs.......................................................................... 8
Summary Schedule of Prior Audit Findings.......................................................................... 9
IV4�i
PATTILLO, BROWN & HILL,L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS
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 A UDITING STANDARDS
To the Honorable Mayor and
Members of the City of Council
City of Friendswood, Texas
We have audited the financial statements of the governmental activities, the business -type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Friendswood, Texas (the "City") as of and for the year ended September 30,
2008, which collectively comprise the City's basic financial statements and have issued our report
thereon dated March 6, 2009. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial
reporting as a basis 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
City's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City'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 City'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 City's financial statements that is more than
inconsequential will not be prevented or detected by the City'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 City's internal control.
1
401 WEST HIGHWAY 6 ■ P. O. BOX 20725 ■ WACO, TX 76702-0725 ■ (254) 772-4901 ■ FAX: (254) 772-4920 ■ www.pbhepa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 ■ HILLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460 0 WHITNEY, TX (254) 694-4600 0 ALBUQUERQUE, NM (505) 266-5904
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies in
internal control that might be significant deficiencies or material weaknesses. 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 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.
This report is intended solely for the information and use of management, City Council, others
within the City, 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.
March 6, 2009
2
FV07� 1
PATTILLO, BROWN & HILL,L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO
EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE
IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Honorable Mayor and
Members of City Council
City of Friendswood, Texas
Compliance
We have audited the compliance of the City of Friendswood, Texas (the "City") with the types of
compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-
133 Compliance Supplement that are applicable to each of its major federal programs for the year ended
September 30, 2008. The City's major federal programs are identified in the summary of auditors'
results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the
requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs
is the responsibility of the City's management. Our responsibility is to express an opinion on the City's
compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,
Audits of States, Local Governments, and Nonprofit Organizations. Those standards and OMB Circular
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about the
City's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Our audit does not provide a legal determination of the City's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to
above that are applicable to each of its major federal programs for the year ended September 30, 2008.
3
401 WEST HIGHWAY 6 ■ P. O. BOX 20725 ■ WACO, TX 76702-0725 ■ (254) 772-4901 ■ FAX: (254) 772-4920 ■ www.pbhcpa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 ■ HILLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460 0 WHITNEY, TX (254) 694-4600 0 ALBUQUERQUE, NM (505) 266-5904
Internal Control Over Compliance
The management of the City is responsible for establishing and maintaining effective internal control
over compliance with the 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 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 City'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 entity'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.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be 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.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business -type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City, as of and for the year ended September 30, 2008, and have issued our report
thereon dated March 6, 2009. Our audit was performed for the purpose of forming opinions on the
financial statements that collectively comprise the City of Friendswood, Texas' basic financial statements.
The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional
analysis as required by OMB Circular A-133 and is 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 whole.
This report is intended solely for the information and use of management, City Council, and
others within the City, 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.
atudr J� Apo,/X
March 6, 2009
4
CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Federal Grantor/Pass-through Grantor/
Program Title
U. S. Department of Justice
Direct Programs:
Justice Forfeiture Funds
Bulletproof Vest Partnership Program
Total Direct Programs
Passed through the Office of the Governor - Criminal
Justice Division:
Crime Victim Assistance Program
Crime Victim Assistance Program
Total Passed through the Office of the Governor -
Criminal Justice Division
Total U. S. Department of Justice
U. S. Department of Transportation
Passed through the Texas Department
of Transportation:
Step Speed
Total Passed through the Texas Department
of Transportation
Total U. S. Department of Transportation
Federal Pass -through
CFDA Entity Identifying Federal
Number Number Expenditures
16.000 N/A $ 2,760
16.607 N/A 2,100
4,860
16.575 VA-07-V30-14062-08 30,516
16.575 VA-08-V30-14062-09 13,672
44,188
49,048
20.600 588EGF6040 4,740
(continued)
4,740
4,740
5
CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(Continued)
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Federal Grantor/Pass-through Grantor/
Program Title
U. S. Department of Homeland Security
Direct Programs:
Public Assistance
Total Direct Programs
Passed through the Office of the Governor - Emergency
Management Division:
Emergency Management Performance Grant
Emergency Management Performance Grant
Homeland Security Grant Program
Total Passed through the Office of the Governor -
Emergency Management Division
Total U. S. Department of Homeland Security
Total Expenditures of Federal Awards
Federal Pass -through
CFDA Entity Identifying Federal
Number Number Expenditures
97.036 N/A $ 3,426,628
3,426,628
97.042 07TX-EMPG-0338 11,520
97.042 08TX-EMPG-0338 51,423
97.042 2007-GE-T7-0024 18,213
81,156
3,507,784
$ 3,561,572
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CITY OF FRIENDSWOOD, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
SEPTEMBER 30, 2008
1. GENERAL
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all
federal financial assistance programs of the City of Friendswood, Texas, for the year ended
September 30, 2008. The City's reporting entity is defined in Note 1 to the City's financial
statements. Federal financial assistance received directly from federal agencies and other
agencies are included in the Schedule of Expenditures of Federal Awards.
2. BASIS OF ACCOUNTING
The accompanying Schedule of Expenditures of Federal Awards is presented using the modified
accrual basis of accounting, which is described in Note 1 to the City's financial statements.
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CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Summary of Auditors' Results
Type of report on financial statements
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiencies identified that are not
considered to be material weaknesses?
Internal control over major programs:
Material weakness(es) identified?
Significant deficiencies identified that are not
considered to be material weaknesses?
Noncompliance which is material to the
basic financial statements
Type of report on compliance with major
program
Findings and questioned costs for federal
awards as defined in Section 501(a), OMB
Circular A-133 disclosed
Dollar threshold considered between Type A
and Type B federal programs
Low risk auditee statement
Major federal program
Unqualified
No
None reported
RM
None reported
None
Unqualified
None
$300,000
The City was not classified as a low -risk auditee
in the context of OMB Circular A-133.
Public Assistance, CFDA #97.036
Findings Relating to the Financial Statements Which Are
Required to be Reported in Accordance With Generally
Accepted Government Auditing Standards
None
Findings and Questioned Costs for Federal Awards
None
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CITY OF FRIENDSWOOD, TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
None