c o n t e n t s independent auditor’s report on …public safety partnership and community...

C O N T E N T S

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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 ................................................ 1

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133.................................................................................................................... 3

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ............................................................... 6

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ........................................ 10

SCHEDULE OF FINDINGS AND QUESTIONED COSTS .................................................................. 14

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS ................................................................... 17

Federal 2013CFDA Federal

Federal Grantor/Pass-through Grantor/Program Title Number Expenditures

U.S. DEPARTMENT OF AGRICULTUREPassed -through Colorado Department of Human Services

State Administrative Matching Grants for Supplemental Nutrition Assistance Program 10.561 1,533,087Commodity Supplemental Food Program 10.565 513,707Emergency Food Assistance Program (Administration Costs)(ARRA) 10.568 3,393Emergency Food Assistance Program (Food Commodities) 10.569 220,554

Passed -through Colorado Department of Public Health and Environment

Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 608,237Special Supplemental Nutrition Program for Women, Infants, and Children - Cash value of food distributed to clients 10.557 1,891,539

Total U.S. Department of Agriculture 4,770,517

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTPassed -through Colorado Department of Local Affairs

Community Development Block Grants/State's Program 14.228 698,760Total U.S. Department of Housing and Urban Development 698,760

U.S. DEPARTMENT OF THE INTERIORDirect Program Payment in Lieu of Taxes 15.226 3,127,674

Total U.S. Department of Interior 3,127,674

U.S. DEPARTMENT OF JUSTICEDirect Programs

State Criminal Alien Assistance Program 16.606 113,159Bullet Proof Vest Partnership Program 16.607 4,142National Institute of Justice Research, Evaluation, and Development Project Grants 16.560 2,855Public Safety Partnership and Community Policing Grants - Hiring 16.710 107,111Public Safety Partnership and Community Policing Grants - SOS 16.710 25,655

Pass-thru 21st Judicial District Crime Victim Assistance - Service Tech 16.575 53,338Crime Victim Assistance - Training 16.575 677

Pass-through Colorado Division of Criminal JusticeEdward Byrne Memorial Justice Assistance Grant Program 16.738 28,192DNA Backlog Reduction Program 16.741 2,948

Total U.S. Department of Justice 338,077

MESA COUNTY, COLORADO

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For the year ended December 31, 2013

See accompanying footnotes. - 6 -






U.S. DEPARTMENT OF LABORPass-through Colorado Department of Labor and Employment

Employment Service/Wagner-Peyser Funded Activities 17.207 315,012Unemployment Insurance 17.225 84,768WIA Adult Program 17.258 4,492

H-1B Job Training Grants 17.268 38,434 Temporary Labor Certification for Foreign Workers 17.263 1,122

Disabled Veterans' Outreach Program (DVOP) 17.801 18,101 Veteran's Employment Program 17.802 4,235Trade Adjustment Assistance 17.245 20,671

Pass-through Colorado Rural Workforce ConsortiumWIA Adult Program 17.258 477,429WIA Youth Activities 17.259 150,391

WIA Dislocated Workers Formula Grant 17.278 219,133Total U.S. Department of Labor 1,333,788

U.S. DEPARTMENT OF TRANSPORTATIONDirect Programs

Federal Transit - Formula Grants Grand Valley Transit 5307 Federal Transit Formula Program 20.507 1,379,237 Grand Valley Transit 5309 Federal Transit Formula Program 20.507 646,462Federal Transit - Capital Investment Grants 20.500 646,462

Pass-through Colorado Department of TransportationHighway Planning and Construction - RPC 20.205 13,745Highway Planning and Construction - CPG 20.205 228,413Highway Planning and Construction - Bridges 20.205 732,122Highway Planning and Construction - Enhancement Activities 20.205 718,703Job Access And Reverse Commute Program - JARC-5316 20.516 305,000State and Community Highway Safety 20.600 26,815

Total U.S. Department of Transportation 4,696,959

ENVIRONMENTAL PROTECTION AGENCYPass-through Colorado Department of Public Health and Environment

Surveys, Studies, Research, Investigations, Demonstrations and Special Purpose Activities Relating to the Clean Air Act 66.034 14,941Capitalization Grants for Drinking Water State Revolving Funds ARRA 66.468 5,260

Total Environmental Protection Agency 20,201







FEDERAL EMERGENCY MANAGEMENT ADMINISTRATIONPass-through Colorado Department of Local Affairs

Emergency Management Performance Grants 97.042 51,183Total Federal Emergency Management Administration 51,183

EXECUTIVE OFFICE OF THE PRESIDENTDirect Programs

High Intensity Drug Trafficking Areas Program 95.001 355,561

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICESPass-through Colorado Department of Human Services

Special Programs for the Aging - Title VII, Chapter 3 -Prevention of Elder Abuse, Neglect and Exploitation 93.041 2,355

Special Programs for the Aging - Title VII, Chapter 2 -Long-term Care Ombudsman Services for Older Individuals 93.042 11,078

Special Programs for the Aging - Title III, Part D -Disease Prevention and Health Promotion Services 93.043 1,998

Special Programs for the Aging - Title III, Part B -Grants for Supportive Services and Senior Centers 93.044 269,006

Special Programs for the Aging - Title III, Part C -Nutrition Services 93.045 361,925Discretionary Projects 93.048 161,256

National Family Caregiver Support, Title III, Part E 93.052 95,649Nutrition Services Incentive Program 93.053 95,558Guardianship Assistance 93.090 259Affordable Care Act – Aging and Disability Resource Center 93.517 15,913Temporary Assistance for Needy Families 93.558 4,665,805Child Support Enforcement 93.563 1,192,828Low-Income Home Energy Assistance 93.568 1,150,016Child Care and Development Block Grant 93.575 256,087Child Care Mandatory and Matching Funds of the Child Care

and Development Fund 93.596 1,409,195Stephanie Tubbs Jones Child Welfare Services Program 93.645 150,041Foster Care - Title IV-E 93.658 2,025,026Adoption Assistance 93.659 865,999Social Services Block Grant 93.667 896,619Chafee Foster Care Independence Program 93.674 47,601Promoting Safe and Stable Families 93.556 94,563Medical Assistance Program 93.778 820,615







Pass-through Colorado Department of Health Care Policy and FinancingMedical Assistance Program 93.778 728,939Money Follows the Person Rebalancing Demonstration 93.791 33,293

Pass-through Colorado Department of Local AffairsCommunity Services Block Grant 93.569 115,294

Pass-through Colorado Department of Public Health and EnvironmentPublic Health Emergency Preparedness 93.069 618,644Maternal and Child Health Federal Consolidated Programs 93.110 3,019Affordable Care Act (ACA) Material, Infant, and Early Childhood Home Visiting Program 93.505 346,254Affordable Care Act: Building Epidemiology, Laboratory, and Health Information Systems Capacity in the Epidemiology and Laboratory Capacity for Infectious Disease (ELC) and Emerging Infectious Program (EIP) Cooperative Agreements:PPHF 93.521 1,969Family Planning _Services 93.217 240,382Immunization Cooperative Agreements 93.268 37,773National Bioterrorism Hospital Preparedness Program 93.889 61,448Preventive Health and Health Services Block Grant 93.991 15,000Maternal and Child Health Services Block Grant to the States 93.994 172,527

Total U.S. Department of Health and Human Services 16,963,934

Total Expenditures of Federal Awards 32,356,654$


Mesa County, Colorado

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

Year Ended December 31, 2013

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NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The Schedule of Expenditures of Federal Awards includes the federal grant activity of Mesa County, Colorado and is presented on the modified accrual basis. Expenditures are recognized when they become a demand on current available financial resources. The information in this schedule is presented in accordance with OMB Circular A-133, Audits of States, Local Governments, and Non-profit Organizations. Therefore, some amounts in this schedule may differ from the amounts presented in, or used in the preparation of the basic financial statements.

NOTE B – REPORTING ENTITY

The financial reporting entity consists of Mesa County, Colorado (the County) as the primary government; organizations for which the County is financially accountable; and other organizations for which the nature and significance of their relationship with the County are such that exclusion would cause the County’s financial statements to be misleading or incomplete.

NOTE C – PASS-THROUGH AWARDS

The County receives certain federal awards from pass-through awards from the State of Colorado. The amounts received are commingled by the State of Colorado with other funds. Only the federal amount of such pass-through awards is included in the Schedule of Expenditures of Federal Awards.

NOTE D – CLUSTERS

The following programs are reported as clusters: Federal CFDA

Program Title Number Amount Aging Cluster Nutrition Services Incentive Program 93.053 $ 95,558 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 269,006 Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 361,925 Total Aging Cluster $ 726,489

CCDF Cluster Childcare and Development Block Grant 93.575 $ 256,087 Childcare Mandatory and Matching Funds of the Childcare Development Fund 93.596 1,409,195 Total CCDF Cluster $ 1,665,282




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NOTE D – CLUSTERS – CONTINUED Federal CFDA

Program Title Number Amount

Employment Service Cluster Employment Service/Wagner-Peyser Funded Activities 17.207 $ 315,012 Disabled Veterans’ Outreach Program 17.801 18,101 Total Employment Service Cluster $ 333,113

WIA Cluster WIA Adult Program 17.258 $ 481,921 WIA Youth Activities 17.259 150,391 WIA Dislocated Workers Formula Grant 17.278 219,133 Total WIA Cluster $ 851,445

Federal Transit Cluster Federal Transit – Capital Investment Grants 20.500 $ 2,025,699 Federal Transit – Formula Grants 20.507 1,380,037 Total Federal Transit Cluster $ 3,405,736

Emergency Food Assistance Cluster Commodity Supplemental Food Program 10.565 $ 513,707 Emergency Food Assistance Program (Administrative Costs)(ARRA) 10.568 3,393 Emergency Food Assistance Program (Commodities) 10.569 220,554 Total Emergency Food Assistance Cluster $ 737,654




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NOTE E – SUBRECIPIENT AWARDS

The County receives certain federal awards that are passed through to subrecipients as follows:

Federal Amount CFDA Passed

Program Title Number Through

WIA 17.258-17.260 Hilltop Community Resources $ 846,953 Area Agency on Aging 93.041-93.053 Alpine Legal Services 43,955 Columbine Home Health 19,230 CLS Grand Junction 126,769 Garfield County Department of Human Services 218,928 Gray Gourmet 446,055 Grand Valley Senior Daybreak 11,609 MV Transportation 61,178 Moffat Housing Authority 23,013 Northwest Colorado VNA 56,798 Rio Blanco County 49,182 Routt County OMB 20,341 Routt County Council on Aging 109,187 United Way 211 Infoline 9,717 St. Mary’s Senior Companion 34,415 Community Services Block Grant 93.569 Marillac Clinic 31,356 HomewardBound of the Grand Valley 64,444 Hilltop Community Resource 15,783 Community Development Block Grant 14.228 Revolving Loan Fund (Western Colorado Business Development Corporation) 698,760 COPS – Secure our Schools Mesa County School District 16.710 25,655

The passed through funds for Area Agency on Aging include State funding.

NOTE F – PASS-THROUGH ENTITIES WITH COMMON CFDA#

The following programs are listed separately on the schedule of expenditures of federal awards due to the applicable pass-through entities:

CFDA# 17.258 $ 481,921 CFDA# 93.778 1,549,554


SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Year ended December 31, 2013

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SECTION I - SUMMARY OF AUDITOR’S RESULTS

Financial Statements Type of auditor’s report issued: Unmodified Opinion Internal control over financial reporting: Material weakness(es) identified? yes no Significant deficiency(ies) identified not considered to be material weaknesses? yes none reported

Noncompliance material to financial statements noted? yes no

Federal Awards

Internal Control over major programs: Material weakness(es) identified? yes no Significant deficiency(ies) identified not considered to be material weaknesses? yes none reported

Type of auditor’s report issued on compliance for major programs: Unmodified for all major programs except for CFDA# 14.228, Community Development Block Grant, for which the report was qualified

Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .510(a)? yes no

Identification of major programs:

CFDA Number(s) Name of Federal Program or Cluster 93.575/93.596 Childcare Cluster 20.205 Highway Planning and Construction 93.568 Low-Income Home Energy Assistance 15.226 Payments in Lieu of Taxes 14.228 Community Development Block Grants/State’s Dollar threshold used to distinguish between Type A and Type B programs: $970,700

Auditee qualified as low-risk auditee? yes no




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SECTION II – FINDINGS UNDER GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS

No findings under Generally Accepted Government Auditing Standards.




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SECTION III – FINDINGS AND QUESTIONED COSTS UNDER OMB CIRCULAR A-133:

2013-01 CFDA # 14.228 Community Development Block Grant/State’s Program Passed through Colorado Department of Local Affairs Material weakness in internal control over compliance Material compliance finding in sub-recipient monitoring requirements

Criteria: In compliance with OMB Circular A-133, Mesa County has a responsibility to monitor entities who receive federal funding as sub-recipients of the County. The County is responsible for monitoring all Federal awards that it passes through to sub-recipients. This should be accomplished through a combination of reporting, site visits, regular contact and other identified means that provide reasonable assurance that the sub-recipient administers Federal awards in compliance with laws, regulations, and provision of contracts or grant agreements and that performance goals are achieved. Furthermore, the County should have internal control policies in place that clearly outline the way that the County will comply with its monitoring responsibilities and those policies should be in writing so that they are known across departments and individuals in the County.

Condition: The Community Development Block Grant is received by Mesa County and passed through to a sub-recipient throughout the year. The County had one individual charged with administering the grant for the County during 2013. During compliance and internal control testing of the grant we were unable to determine that any monitoring activities were carried out by the County during the year ended December 31, 2013. Additionally, the person charged with administering the grant left the County prior to the grant testing and there was not another individual in the County who was able to identify the duties performed in carrying out this responsibility.

Cause: The County does not have policies and procedures related to administration and monitoring of the Community Development Block Grant.

Effect: The County is not in compliance with its responsibility to monitor its sub-recipients of the Community Development Block Grant during the year ended December 31, 2013. Furthermore, there are no internal control policies and procedures at the County related to monitoring sub-recipients of the Community Development Block Grant.

Recommendation: The County should develop written policies and procedures to follow to properly monitor the pass through funds for the Community Development Block Grant. Compliance with these requirements should be documented and regularly reviewed by another County staff member to ensure that monitoring is being performed per County policy and in compliance with the requirements of the grant and OMB Circular A-133. Sufficient evidentiary material should be maintained by the County to support its compliance with grant requirements and its own internal control policies and procedures.

County Response: Mesa County is drafting a written policy addressing internal controls. This policy is scheduled for approval on or before December 31, 2014. Procedures for monitoring sub-recipients, to provide reasonable assurance that compliance with all provisions of contracts or grants agreements are met, are being developed and implementation will be instituted by September 30, 2014.


SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS


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The 2012 audit report didn’t report any findings.

c o n t e n t s independent auditor’s report on …public safety partnership and community...

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