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HomeMy WebLinkAboutAUDIT FILE_10-5258-000-5263ACF Packet p. 1 Texas Department of Rural Affairs (TDRA) Audit Certification Form On Line Option: Go to www.tdra.state.tx.us for an inter -active ACF form. Instructions are: (1) Glide your mouse to the heading About TDRA"as listed on the lop left-hand side of the page, (2) Glide down and over to the heading "Compliance Divlslon" and click. Then (3) Glide down to the heading "Compliance Forms on the left side of the page and click. Then (4) Scroll to the appropriate year-end heading In the middle of the page, click the 'on line ceAificalion form"option and follow the directions. Or from the website location you can still print hard copies that you can complete and then mail to us. Sub -recipient: City of La Porte Fiscal Year Ending: 09/30/2010 (community or non-proflt name) (Month/ Year) / We have met or exceeded the federal or state expenditure threshold of $500,000. We have or will contract with ® �eii' (1otEcaJn� Ntl� (CPA Firm) to complete our Single Audit or Program Specific Audit. We anticipate completion of the audit by and will submit the audit report within nine (9) months after the end of the audited fiscal year. If y s, skip down to signature section. ❑ We did not exceed the $500,000 federal or state expenditure threshold required for a Single Audit or a Program Specific Audit to be performed this fiscal year. (Also fill out schedule below) Federal/State Expenditure Disclosure Federal Funds Pass -through Program Name & Contract Federal Grantor Grantor CFDA Number Number Expenditures HUD TDRA CDBG 14.228 Total Federal Expenditures for this Fiscal Year $ State Funds Pass -through Contract State Grantor Grantor (if any) Program Name Number Expenditures p Total State Expenditures for this Fiscal Year $ Qymi5 RUlr. `lnct Ccrr{co��rC C,�r_hnr� ln7 ��.poy}m{'X. noJ ri ed Name Title Etil /L.tl°�ra�L XlZ2V1_/]CLfj r8/ //1)0-So8ln Certify[60 Officer Signature Phone Number Date Failure to submit an ACF or similar financial information or failure to submit a complete ACF or single audit package as described in (he audit requirements by the required due date could affect funding on all existing contracts, eligibility to apply under the TDRA's Programs and freezing any newly awarded contracts. For assistance please call (512) 936-7892 or(512) 936-7882. Submit this form to TDRA within 60 days alter the end of your fiscal year to: TDRA Compliance Division P. 0. Box 12877 Austin, TX 78711-2877 (800) 544-2042 or fax 512-936-6776 Revised 04/15/10 CITY OF LA PORTE, TEXAS SINGLE AUDIT REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2010 CITY OF LA PORTE, TEXAS SINGLE AUDIT REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2010 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 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 Schedule of Findings and Questioned Costs ........................................... Summary Schedule of Prior Audit Find F491 PATTILLO, BROWN & HILL,T..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 AVD/T/NG STANDARDS To the Honorable Mayor and Members of the City of Council City of La Porte, Texas We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of La Porte, Texas, as of and for the year ended September 30, 2010, which collectively comprise the City of La Porte, Texas' basic financial statements and have issued our report thereon dated March 11, 2011 . 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 Renortin In planning and performing our audit, we considered the City of La Porte, Texas' 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 of La Porte, Texas' internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of La Porte, Texas' internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting 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 reporting that might be deficiencies, 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. 1 401 WEST HIGHWAY 6 ■ P.O. BOX 2072S ■ WACO, TX 76702-0725 ■ (254) 772A901 ■ FAX: (254) 772A920 ■ umwpbhcpa.cam AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 ■ HILLSBORO, TX (254) 582-2583 TEMPLE, TX (254) 791-3460 ■ ALBUQUERQUE, NM (505) 266-5904 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of La Porte, Texas' 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 entity, 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 11, 2011 3 P13�M PATTILLO, BROWN & HILL,I..L.P. CERrmeo PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS 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 To the Honorable Mayor and Members of the City of Council City of La Porte, Texas Compliance We have audited the City of La Porte, Texas' compliance, with the types of compliance requirements described in the (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City of La Porte, Texas' major federal programs for the year ended September 30, 2010. The City of La Porte, Texas' 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 of La Porte, Texas' management. Our responsibility is to express an opinion on the City of La Porte, Texas' 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 A-133 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 of La Porte, Texas' 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 of La Porte, Texas' compliance with those requirements. In our opinion, the City of La Porte, Texas complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2010. Internal Control Over Compliance Management of the City of La Porte, Texas is responsible for establishing and maintaining effective intemal 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 of La Porte, Texas' intemal control over compliance with the 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 of La Porte, Texas' internal control over compliance. 3 401 WEST HIGHWAY 6 ■ P.O. BOX 20725 ■ WACO, TX 76702-0725 ■ (254) 772A901 ■ FAX: (254) 772A920 ■ w v.pbhcpa.com AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 ■ HILLSBORO, TX (254) 582-2583 TEMPLE, TX (254) 791-3460 6 ALBUQUERQUE, NM (505) 266-5904 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. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of La Porte, Texas, as of and for the year ended September 30, 2010, and have issued our report thereon dated March 11, 2011, which contained unqualified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements as a whole. The Schedule of Expenditures of Federal Awards is presented for the purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations, and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. This report is intended solely for the information and use of management, City Council, others within the entity, 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. P0'4:10/ Y:�X'ov» `. qA , L. L.-?. March 11, 2011 4 �.• --_ ,}.. .Sir CITY OF LA PORTE TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2010 Federal Pass -through Federal Grantor/Pass-through Grantor/ CFDA Entity Identifying Program Title Number Number Federal Expenditures U. S. Office of National Drue Control Policy Direct Programs: 2009 HIDTA Program 07.999 G091fN0012A $ 42,513 Total Direct Programs 42,513 Total U. S. Office of National Drug Control Policy 42,513 U. S. Department of Justice Direct Programs: Equitable Sharing Program 16.000 N/A 31,618 2008 Bullet Proof Vest Partnership Program 16.607 2009BUBX08041874 597 2009 Bullet Proof Vest Partnership Program 16.607 2009BUBX09046618 3,544 Edward Byme Memorial Justice Assistance Grant- ARRA 16.804 2009-SB-B9-0856 34,701 Total Direct Programs 70,460 Total U. S. Department of Justice 70,460 U. S. Department of Transportation Passed through Texas Department of Transportation: Click It or Ticket 20.600 2010-LaPorte-CIOT-00025 19,732 Total Passed through Texas Department of Transportation 19,732 Passed through Texas State Emergency Response Commission: Hazardous Materials Emergency Preparedness 20.703 07-DEM-LEPC-8 22,180 Total Passed through Texas State Emergency Response Commission 22,180 Total U. S. Department of Transportation 41,912 (continued) 5 CITY OF LA PORTE TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) FOR THE YEAR ENDED SEPTEMBER 30, 2010 Federal Pass -through Federal Grantor/Pass-through Grantor/ CFDA Entity Identifying Program Title Number Number U. S. Department of Health and Human Services Passed through the City of Houston Department of Health and Human Services: Title III, Part C, Nutrition Services - Congregate 93.045 Title III, Part C, Nutrition Services - Home Delivered 93.045 Total Passed through the City of Houston Department of Health and Human Services Total U. S. Department of Health and Human Services U. S. Department of Homeland Securi Passed through Office of the Govemoes Division of Emergency Management: Disaster Grants - Public Assistance- Hurricane Ike Hazard Mitigation Grant Program- Hurricane Ike 2007-2010 Public Safety Interoperable Communication Grant 2008-201 I Homeland Security Grant Program Regional Catastrophic Preparedness Grant Total Passed through Office of the Govemor s Division of Emergency Management Total U. S. Department of Homeland Security Total Expenditures of Federal Awards 97.036 97.039 97.055 97.073 97.111 4600009506 4600009506 FEMA-1791-DR-TX FEMA-1791-DR-TX 2007-GS-H7-0077 2008-GE-T8-0023 2008-CP-T8-0023 Federal Expenditures S 27,415 33,604 61,019 61,019 436,747 105,765 270,692 55,800 64,985 933,989 933,989 S 1,149,893 6 CITY OF LA PORTE, TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS SEPTEMBER 30, 2010 1. BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards (the "Schedule") is prepared on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 2. REPORTING ENTITY The City of La Porte, Texas (the City), for purposes of the Schedule of Expenditures of Federal Awards, includes all the funds of the primary government. 3. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS The information included in the Schedule may not fully agree with other federal award reports that the City submits to granting agencies because, among other reasons, the award reports may be prepared for a different fiscal period and may include cumulative (from prior years) data rather than data for the current year only. 7 CITY OF LA PORTE, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2010 Summary of Auditors' Results Financial Statements: Type of auditors' report issued Unqualified Internal control over financial reporting: Material weakness(es) identified? No Significant deficiency(ies) identified? None reported Noncompliance material to financial statements noted? None Federal Awards: Internal control over major programs: Material weakness(es) identified? No Significant deficiency(ies) identified? None reported Type of auditors' report issued on compliance for major programs Unqualified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A-133? None Identification of major programs: CFDA Number(s) #97.036 Public Assistance Grants Dollar threshold used to distinguish between type A and type B programs $300,000 Auditee qualified as low -risk auditee? Yes Findings Relatine 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 8 CITY OF LA PORTE, TEXAS SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED SEPTEMBER 30, 2010 None CITY OF LAPORTE, TEXAS FEDERAL SINGLE AUDIT REPORT YEAR ENDED SEPTEMBER 30, 2011 /,lCUMREDPPUBIUCA° UN MS 2000 Lcop 197 N., Suite 200 Tcxa City, Tcxw 77590 (409) 948-4406 CITY OF LA PORTE, TEXAS FEDERAL S/NGLEAUDIT REPORT TABLE OF CONTENTS Page Independent Auditors' 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 Independent Auditors' Report on Compliance with Requirements that Could have a Direct and Material Effect on each Major Program and Internal Control over Compliance in Accordance with OMB CircularA-133 Schedule of Findings and Questioned Costs Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures for Federal Awards AXNulllairson PC CERMEDPUB CACCCONRM Independent Auditors' 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 To the Honorable Mayor and City Council City of La Porte, Texas We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of La Porte, Texas (the "City") as of and for the year ended September 30, 2011, which collectively comprise the City's basic financial statements and have issued our report thereon dated March 26, 2012. 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 Management of the City is responsible for establishing and maintaining effective 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 opinion 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 deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting 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 reporting that might be deficiencies, 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. 3411 Richmond l.Suite 5001 Houston. 7X77046I (P) 713.621.15151 (l.) 713.621.1570 2000 Loop 197 A'orih I Suite 2001 Texas Citn, TV 775901 (P) 409-948-4406 1 (F) 409-948-0364 tvu•ty. null-lairson. coin Honorable Mayor and City Council City of La Porte, Texas 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 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 the City Council, management, others within the entity, and other applicable 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. U4406)11 k Texas City, Texas March 26, 2012 2 AXNulllairson CERTIREDPUB CACCCOI NW9 Independent Auditors' 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 CircularA-133 To the Honorable Mayor and City Council City of La Porte, Texas Compliance We have audited City of La Porte's (the "City") compliance with the types of requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended September 30, 2011. 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 Slates, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 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 compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2011. 3411 Richmond I Suite 5001 llousmn. 7X 77046I (P) 713.621.151 i I (F) 713.621.1570 2000 Loop 19' .Vorlh I Suiie 2001 Tema Ciro, ff 775901 (P) 409-948-4406 (F) 409-948-0364 www, null-lairson. cam Honorable Mayor and City Council City of La Porte, Texas Internal Control over Compliance 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 intemal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing an 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 intemal 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 intemal 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 intemal 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, each major fund, and the aggregate remaining fund information of the City as of and for the year ended September 30, 2011, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 26, 2012, which contained unqualified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. 4 Honorable Mayor and City Council City of La Porte, Texas closing This report is intended solely for the information and use of the City Council, management, others within the organization, and other applicable 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. Texas City, Texas March 26, 2012 CITY OF LA PORTE, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended September 30, 2011 1. Summary of Auditors' Results Financial Statements Type of auditors' report issued: Unqualified Internal control over financial reporting: Material weakness(es) identified that are not No considered to be material weaknesses? Significant deficiencies identified that are not None reported considered to be material weaknesses? Noncompliance material to the financial statements No noted? Federal Awards Internal control over major programs: Material weakness(es) identified? No Significant deficiencies(s) identified that are not None reported considered to be material weaknesses? Type of auditors' report issued on compliance with Unqualified major programs. Any audit findings disclosed that are required to be reported in accordance with section 510(a) OMB No Circular A-133? Identification of major programs: Name of Federal Program or Cluster CFDA Numbers Community Development Block Grant/States Grant 14.228 Dollar Threshold Considered Between Type A and $300,000 Type B Federal Programs Auditee qualified as low risk auditee? Yes C CITY OF LA PORTE, TEXAS SCHEDULE OF FINDINGSAND QUESTIONED COSTS (continued) For the Year Ended September 30, 2011 II. Financial Statement Findings None III. Federal Awards Findings and Questioned Costs None W. Schedule of Prior Year Findings No prior year findings V. Corrective Action Plan N/A CITY OF LA PORTE SCHEDULE OFEXPENDITURES OF FEDERAL AWARDS September 30, 2011 Federal Grantor/Pass Through CFDA Pass Through Federal Grantor/Program Title Number Grantor's Number Expenditures U. S. Department of Justice Passed through United Slates Attorney Southern District of Texas: 2010 High Intensity Drug Trafeking Areas Program 95.001 G I OHN0012A S 32,448 Direct Programs: Equitable Sharing Program 16.000 79,855 2009 Bulletproof lest Partnership Program 16.607 137 2010 Bulletproof Pest Partnership Program 16.607 5.290 2010 Justice Assistance Grant Program (ARRA) 16.804 2010-H4920= rX-DJ 11.657 Total U. S. Department of Justice 129.387 U. S. Department of Homeland Security Passed through Governor's Division of Emergency Management Hazard Mitigation Grant Program 97.039 FEMA-1791-DR-TX 37,466 2008-2011 Sine Homeland Security Grant Program 97.073 2008-GE-T8.0034 4,334 State Homeland Security Grant Program 97.073 2010-SS-TO-0008 58,000 Direct Programs: Assistance to Firefighters Grant 97.044 EM W-2010-FO-00290 39,000 Total U. S. Department of Homeland Security 137.800 U. S. Department of Health and Human Services Passed through City of Houston Department of Health and Human Services Special Program for Aging, Tide HI, Part C, Nutrition Services - Congregate 93.045 4600009506 26,080 Special Program for Aging, Title Ill, Part C, Nutrition Services - Delivered 93.045 4600009506 35,770 Total U. S. Department of Health and Human Services 61,850 U. S. Department of Housing and Urban Development Passed through Texas General Land Office Community Development Block Grant/Staie's Program 14.228 DRS010231 454.854 Total U. S. Department of Housing and Urban Development 454.954 U. S. Department of Transportation Passed through Texas Department of Transportation Airport Improvement Program 20.106 M 112LPRTE 59,550 Total U. S. Department of Transportation 59,550 Total Federal Awards S 843.441 CITY OF LA PORTE, TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Note 1 -Basis of Accounting The City of La Porte, Texas accounts for federal funding using the modified accrual method of accounting. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e. both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences, claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Equipment purchases for grant purposes are treated as expenses in the schedule of expenditures of federal awards and typically capitalized for financial statement purposes. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned. Generally, unused balances are returned to the grantor at the close of specified project periods Note 2 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the City under programs of the federal government for the year ended September 30, 2011. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Circular A-133, Audits of Stares, Local Government, and Non -Profit Organizations. Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets or cash Flows of the City.