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1988CITY OF BANGOR, MAINE REPORTS REQUIRED BY SINGLE AUDIT ACT OF NINETEEN EIGHTY FOUR June 30, 1988 �7 �TFRf9`68 anter Certified Public Accountants rooks Carter' Certified Public Accountants AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE To the Honorable Mayor, City Council and City Manager City of Bangor, Maine We have examined the general purpose financial statements of the City of Bangor, Maine, for the year ended June 30, 1988, and have issued our report thereon dated September 21, 1988. Our examination of such general purpose financial statements was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting office and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in this schedule has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. September 21, 1988 P.O. Box 1167, 84 Harlow Street, Bangor, Maine 04401 (207) 947-8568 Department of the Treasury -------------------------- Revenue Sharing Program Department of Health & Services ------------------------------- Veneral Disease Clinics Childhood Immunization Public Health Nurse Total - Accrual Basis ---------------------- Other Federal Assistance ------------------------ Kenduskeag Stream Recreation NPS 23-00528 Penobscot River Park 3024-1016-6401 WFA Garland Street Field NPS 23-00612 Water Works Reuse CZM 1986 Total - Cash Basis Receivables Total - Accrual Basis --------------------- 21.300 $ 152,167 $ - $' - $ - $ - -------------------------------------------- ----------- ($ 9,852) $ - $- 3 49 $ 27,577 16,759 - - 0 - - - - 3,915 553 -------------------------------------------- ----------- $ 6,907 -$--------- -a--------- $ 148,707 $ 28,130 ------- ---------- ----------- -------------------------------------------- ----------- ($ 11,458) $ - $ 1,633 $ 63,949 - 53,271 - - ( 10,319) - 20,000 - - --------------------------------- ----------- ------ 42,172 - 74,904 - - 20,487 - 3,923 - - ---------------------- ---------------------- ------ $ 62,659 $ - $ 78,827 $ - $ - ---------------------- ---------------------- ------ --------------------------------- ----------- ------ $ - $ 152,167 $ 152,167 v $ - ---------- --------------------------------- ----- ---------------------- ----------- $ - $ 71,217 48,059 37,623 102,091 ----------- ---------- $ 37,623 $ 221,367 ----------- ---------- ----------- ---------- $ - ($ 9,825) $ 66,730 $ 4,487 29,132 18,927. $ 197,953V $ 23,414 ----------- ----------- ----------- ----------- $ - ($ 9,825) 52,268 ( 52,268) 125,460 ( 8,240) 9,681 - ----------- ----------- 187,409 ( 70,333) - 24,410 _____7,0__4___9 --------- $ 187,409 ($ 45,923) ----------- ----------- ---------------------- CITY OF BANGOR MAINE SCHEDULE OF FEDERAL ASSISTANCE FOR THE YEAR ENDED JUNE 30, 1988 Grants Reference ---------------------------------------- Federal Catalogue Grant --------------------------- Local Grant of Federal Balance Received Through State Other Partici- Disburse- Balance Assistance ----------- 7/1/87 ----------- Directly State Grants Income ----------- pation Total ments 6/30/88 Department of Agriculture ------------------------- NIC 10.577 $ 37,973 ----------- ---------------------- $ - 173,786 $ ----------- # ----------- ----------- ----------- $ 211,759 $ 160,83 $ 50,921 ----------- ----------- -$ ----------- ---- --�-------------------- ----------- --------------------------------- ----------- ----------- ----------- -- - ----------- ---------------------- ----------- Department of the Treasury -------------------------- Revenue Sharing Program Department of Health & Services ------------------------------- Veneral Disease Clinics Childhood Immunization Public Health Nurse Total - Accrual Basis ---------------------- Other Federal Assistance ------------------------ Kenduskeag Stream Recreation NPS 23-00528 Penobscot River Park 3024-1016-6401 WFA Garland Street Field NPS 23-00612 Water Works Reuse CZM 1986 Total - Cash Basis Receivables Total - Accrual Basis --------------------- 21.300 $ 152,167 $ - $' - $ - $ - -------------------------------------------- ----------- ($ 9,852) $ - $- 3 49 $ 27,577 16,759 - - 0 - - - - 3,915 553 -------------------------------------------- ----------- $ 6,907 -$--------- -a--------- $ 148,707 $ 28,130 ------- ---------- ----------- -------------------------------------------- ----------- ($ 11,458) $ - $ 1,633 $ 63,949 - 53,271 - - ( 10,319) - 20,000 - - --------------------------------- ----------- ------ 42,172 - 74,904 - - 20,487 - 3,923 - - ---------------------- ---------------------- ------ $ 62,659 $ - $ 78,827 $ - $ - ---------------------- ---------------------- ------ --------------------------------- ----------- ------ $ - $ 152,167 $ 152,167 v $ - ---------- --------------------------------- ----- ---------------------- ----------- $ - $ 71,217 48,059 37,623 102,091 ----------- ---------- $ 37,623 $ 221,367 ----------- ---------- ----------- ---------- $ - ($ 9,825) $ 66,730 $ 4,487 29,132 18,927. $ 197,953V $ 23,414 ----------- ----------- ----------- ----------- $ - ($ 9,825) 52,268 ( 52,268) 125,460 ( 8,240) 9,681 - ----------- ----------- 187,409 ( 70,333) - 24,410 _____7,0__4___9 --------- $ 187,409 ($ 45,923) ----------- ----------- ---------------------- CITY OF BANGOR MAINE SCHEDULE OF FEDERAL ASSISTANCE FOR THE YEAR ENDED JUNE 30, 1988 Grants Environmental Protection Agency ------------------------------- Facility Planning Grant C23-0154-01 Cash Basis $ 19,283 $ - $ 48,567 $ - $ - $ - $ 67,850 $ - $ 67,850 Receivables 56,070 - ( 46,360) - - - 9,710 - .9,710 ----------- ----------- ----------- ------------------------------------------------------- ---------- Total - Accrual Basis $ 75,353 $ - $ 2,207 $ - $ - $ - $ 77,560 $ - $ 77,560 --------------------- ----------- ----------- ----------- ----------- ----------- ----------- ---------------------- ---------- ----------- ----------- ----------- ----------- --------------------------------- ----------- ---------- Department of Education Adult Basic Education Reference $ 22,876 $ - $ - $ - Federal $ 20,168 ($ 320) Indo-Chinese Bilingual - - 969 - - - 969 Catalogue Grant --------------------------- 84.010 7,054 - 404,341 - - - Local 331,656 79,739 Grant of Federal Balance Received Through State Other Partici- 121,581 Disburse- Balance 110,839 Assistance 7/1/87 Directly State Grants Income pation Total ments 6/30/88 Department of Transportation ---------------------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 57,965 Urban Mass Transportation Vocational Education for Single Parents 2,796 - - Capital and Operating 2,796 2,796 - Innovative Grant 260 - - 4,669 - - 4,929 ( 74) 5,003 Assistance 20.507 - 345 - - 622 275 347 Teacher Recertification - - - 35,837 - - Operating - ($ 21,130) $ - $ 107,455 $ 19,214 $ 234,880 $ 62,475 $ 402,894 $ 516,258 ($ 113,364) Capital 4,324 53,947 ----------- - ----------- - ----------- - ----------- - - ----------- 53,947 - - - 53,947 Total - Cash Basis - 32,817 - 107,455 19,214 ----------- 234,880 62,475 ----------- 456,841 ----------- ----------- 516,258 ( 59,417) Receivables ----------- $ 52,851 $ - $ - ----------- ----------- ----------- ----------- ----------- ----------- ----21,130- - ----------- 24,116 ----------- 7,100 ----------- - - 52,346 - 52,346 Totals - Accrual Basis ---------------------- $ 53,947 ----------- ----------- $ - ----------- ----------- $ 131,571 ----------- ----------- $ 26,314 ----------- ----------- ----------- $ 234,880 ----------- ----------- ----------- $ 62,475 ----------- ----------- ----------- $ 509,187 ----------- ----------- ---------------------- $ 516,258 ($ ----------- ----------- ----------- ----------- 7,071) Environmental Protection Agency ------------------------------- Facility Planning Grant C23-0154-01 Cash Basis $ 19,283 $ - $ 48,567 $ - $ - $ - $ 67,850 $ - $ 67,850 Receivables 56,070 - ( 46,360) - - - 9,710 - .9,710 ----------- ----------- ----------- ------------------------------------------------------- ---------- Total - Accrual Basis $ 75,353 $ - $ 2,207 $ - $ - $ - $ 77,560 $ - $ 77,560 --------------------- ----------- ----------- ----------- ----------- ----------- ----------- ---------------------- ---------- ----------- ----------- ----------- ----------- --------------------------------- ----------- ---------- Department of Education Adult Basic Education ($ 3,028) $ - $ 22,876 $ - $ - $ - $ 19,848 $ 20,168 ($ 320) Indo-Chinese Bilingual - - 969 - - - 969 - 969 E.C.I.A. Chapter I* 84.010 7,054 - 404,341 - - - 411,395 331,656 79,739 Local Entitlement, Title VI 25,594 - 121,581 - - - 147,175 110,839 36,336 Special Education Part B, PL 93-380 5,892 - 28,803 - - - 34,695 42,614 ( 7,919) E.C.I.A. Chapter II 6,900 - 56,770 - - -, 63,670 57,965 5,705 Vocational Education for Single Parents 2,796 - - - - - 2,796 2,796 - Innovative Grant 260 - - 4,669 - - 4,929 ( 74) 5,003 Arts & Humanities 277 - - 345 - - 622 275 347 Teacher Recertification - - - 35,837 - - 35,837 - 35,837 Wellspring - - - 12,000 - - 12,000 1,953 10,047 Title II Flow Through 2,477 - 4,324 - - - 6,801 50 6,751 Tudor Training 552 - - - - - 552 552 - Drug Free Schools - - ---------------------- 11,076 ----------- - - - ----------- ----------- 11,076 11,644 ( ----------- ----------- 568) Total - Accrual Basis --------------------- $ 48,774 $ - ----------- ----------- ---- I ------------------ $ 650,740 ----------- ----------- ----------- $ 52,851 $ - $ - ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 752,365 ----------- ----------- $ 580,438 $ ----------- ----------- --------------------- ----------- ----------- 171,927 CITY OF BANGOR MAINE SCHEDULE OF FEDERAL ASSISTANCE FOR THE YEAR ENDED JUNE 30, 1988 Grants Reference ---------------------------------------- Federal _ Catalogue Grant --------------------8------ Local Grant of Federal Balance Received Through State Other Partici- Disburse- Balance Assistance ---------- 7/1/87 ---------- Directly ----------- State ----------- Grants ----------- Income pation ----------- ----------- ----------- Total ments 6/30/88 ----------- ----------- Department of Housing and Urban Development ------------------------- Community Development Block Grants/Entitle- ment Grants* B -83 -MC -23-0004 14.218 $ 106,349 $ - $ - $ - $ - $ - $ 106,349 $ - $ 106,349 B -84 -MC -23-0004 18,526 - - - - - 18,526 18,526 - B -85 -MC -23-0004 ( 129,008) 207,815 - - - - 78,807 - 78,807 B -86 -MC -23-0004 ( 483,519) 253,741 - - - - ( 229,778) 217,339 ( 447,117) B -87 -MC -23-0004 - - - - - - - 679,832 ( 679,832) Program Income 613,000 - - - 278,479 - 891,479 689,782 201,697 Urban Development Action 14.221 Grants Program Income 34,615 - - - 4,585 - ----------- ----------- 39,200 - ----------- ----------- 39,200 Total - Cash Basis ---------- 159,963 ---------- 461,556 ---------- - ---------- - ----------- 283,064 - 904,583 1,605,479 ( 700,896) Receivables 28,378 203,842 - - - - 232,220 - ----------- 232,220 - Total - Accrual Basis --------------------- ---------- $ ---------- 188,341 ---------- $ 665,398 ---------- ---------- $ - ---------- ---------- $ - ---------- ---------- ----------- $ 283,064 $ - ---------- ----------- ----------- $1,136,803 ----------- $1,605,479 ($ ----------- ----------- 468,676) Department of Transportation ---------------------------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- ----------- ----------- Airport Development Aid Program* 6-23-0005-06 20.201 ($ 81,529) $ - $ - $ - $ - $ - ($ 81,529) $ - ($ 81,529) 6-23-0005-07 ( 84,217) - - - - - ( 84,217) - ( 84,217) 6-23-0005-09 ( 64,380) - - - - - ( 64,380) - ( 64,380) 6-23-0005-10 ( 60,000) - - - - - ( 60,000) - ( 60,000) 6-23-0005-11 ( 73,811) - - - - - ( 73,811) - ( 73,811) 3-23-0005-01 ( 101,735) - - - - - ( 101,735) - ( 101,735) 3-23-0005-02 ( 44,340) - - - - - ( 44,340) - ( 44,340) 3-23-0005-03 ( 139,996) - - - - - ( 139,996) - ( 139,996) 3-23-0005-04 - 921,110 - 55,217 - - 976,327 1,156,980 ( 180,653) 3-23-0005-05 ( 391,018) 354,320 - 27,077 - - ( 9,621) 383,445 ( 393,066) 3-23-0005-06 ( 10,158) - - 4,304 - - ( ----------- 5,854) 97,580 ( ----------- ----------- 103,434) Subtotal ----------- (1,051,184) ----------- 1,275,430 ----------- - ----------- 86,598 ----------- ----------- - - 310,844 1,638,005 (1,327,161) Other Airport Projects ( 1,071) - - ----------- - ----------- - - ----------- ----------- ( ----------- 1,071) - ( ----------- ----------- 1,071) Totals - Cash Basis ----------- (1,052,255) ----------- 1,275,430 - 86,598 - - 309,773 1,6389005 (1,328,232) Receivables 830,270 199,160 - ( 4,675)- - ---- ----------- ------- 1,024,755 ----------- - 1,024,755 ---------------------- Totals - Accrual Basis ---------------------- ----------- ($ ----------- ----------- 221,985) ----------- $1,474,590 ----------- ----------- ----------- $ - ----------- ----------- ----------- $ 81,923 ----------- ----------- $ - $ - ---------------------- ----------- ----------- $1,334,528 ----------- ----------- $1,638,005 ($ 303,477) ---------------------- ----------- ----------- rooks Carter, Certified Public Accountants REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT To the Honorable Mayor, City Council and City Manager City of Bangor, Maine We have examined the general purpose financial statements of the City of Bangor, Maine for the year ended June 30, 1988, and have issued our report thereon dated September 21, 1988. As part of our examination, we made a study and evaluation of the internal control systems, including applicable internal administrative controls, used in administering federal financial assistance programs to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities, and Function, issued by the U.S. General Accounting Office, the Single Audit Act of 1984, and the provisions of OMB Circular A-128, Audits of State and Local Governments. For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering federal financial assistance programs in the following categories: Accounting Controls: * Treasury or financing * Revenue/receipts Purchases/disbursements External financial reporting Administrative Controls: General Requirements - * Political Activity * Davis -Bacon Act * Civil Rights * Cash Management Relocation assistance and Federal Financial Reports real property acquisition P.O. Box 1167, 84 Harlow Street, Bangor, Maine 04401 (207) 947-8568 Page 2 (Continued) Specific Requirements: * Types of services * Eligibility * Matching level of effort Reporting * Special requirements, if any The management of the City of Bangor, Maine, is responsible for establishing and maintaining internal control systems used in Administering federal financial assistance programs. In fulfilling that responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in administering federal financial assistance programs are to provide management with reasonable, but not absolute assurance that, with respect to federal financial assistance programs, resource use is consistent with laws, regulations, and policies; resources are safeguarded against waste, loss, and misuse; and reliable data are obtained, maintained, and fairly disclosed in reports. Because of inherent limitations in any system of internal accounting and administrative controls used in administering federal financial assistance program, errors or irregularities may nevertheless occur and not be detected. Also projection of any evaluation of the systems to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study included all of the applicable control categories listed above. During the year ended June 30, 1988, the City of Bangor, Maine expended 85% of its total federal financial assistance under major federal financial assistance programs. With respect to internal control systems used in administering major federal financial assistance programs, our study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and are being followed satisfactorily, and evaluating any weaknesses. With respect to the internal control systems used solely in administering the nonmajor federal financial assistance programs of the City of Bangor, Maine, our study and evaluation was limited to a preliminary review of the systems to obtain an understanding of the control environment and the flow of transactions through the accounting system. Our study and evaluation of the internal control systems used solely in administering the nonmajor federal financial assistance programs of the City of Bangor, Maine, did not extend beyond this preliminary review phase. Page 3 (Continued) Our study and evaluation was more limited then would be necessary to express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Bangor, Maine. Accordingly, we do not express an opinion on the internal control systems used in administering the federal financial assistance program of the City of Bangor, Maine. Further, we do not express an opinion on the internal control systems used in administering the major federal financial assistance programs of the City of Bangor, Maine. Also, our examination, made in accordance with the standards mentioned above, would not necessarily disclose material weaknesses in the internal control systems used solely in administering nonmajor federal financial assistance programs. However, our study and evaluation and our examination disclosed no condition that we believe to be a material weakness in relation to a federal financial assistance program of the City of Bangor, Maine. This report is intended solely for the use of management and Federal Audit Agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Bangor, Maine, is a matter of public record. September 21, 1988 Brooks Carter, Certified Public Accountants REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS To the Honorable Mayor, City Council and City Manager City of Bangor, Maine We have examined the general purpose financial statements of the City of Bangor, Maine for the year ended June 30, 1988, and have issued our report thereon dated September 21, 1988. Our examination was made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Program, Activities, and Functions, issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the City of Bangor, Maine is responsible for the City's compliance with laws and regulations. In connection with the examination referred to above, we selected and tested transactions and records from each major federal financial assistance program and certain nonmajor federal financial assistance programs. The purpose of our testing of transactions and records from those federal financial assistance programs was to obtain reasonable assurance that the City of Bangor, Maine, had, in all material respects, administered major programs, and executed the tested nonmajor program transactions, in compliance with laws and regulations, including those pertaining to financial reports and claims and advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. Our testing of transactions and records selected from major federal financial assistance programs disclosed no instances of noncompliance with those laws and regulations. In our opinion, for the year ended, June 30, 1988, the City of Bangor, Maine administered each of its major federal financial assistance programs in compliance, in all material respects, with laws and regulations, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. P.O. Box 1167, 84 Harlow Street, Bangor, Maine 04401 (207) 947-8568 Page 2 The results of our testing of transactions and records selected from nonmajor federal financial assistance programs indicate that for the transactions and records tested the City of Bangor, Maine, complied with" the laws and regulations referred to in the second paragraph of our report. Our testing was more limited then would be necessary to express an opinion on whether the City of -Bangor, Maine, administered those programs in compliance in all material respects with those laws and regulations noncompliance with which we believe could have a material effect on the allowability of program expenditures; however, with respect to the transactions and records that were not tested by us, nothing came to our attention to indicate that the City of Bangor, Maine, had not complied with laws and regulations. September 21, 1988