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2003 i . .. : .. � _ �_ r.� . ..:. F. , . � . � .. _ . _ .�.. .. � _ � ��� � . �.�.�E � � _� � ,� . .. �.. a � M �w.�. �_t , . W � . m. w. . .. � . . .. � � , r. . � ��� : � �� � . . ��� i ; �� .: . :�w :_x4 s . i � � �� CITY OF BANGOR,MAINE w ,�� !� I Re orts Re uire d b Government Auditin yi' �u V i' ��;,i t� �4i1 M ' � �, � P q Y g ����i� ,�,I uI ��, Standards and OMB Circular A- 133 ���' li�1'Il ' ���� � I � �jl I ��I ���� �{ � 4;, � I` � � I I' �� ; , I � ..x .,.. ... , .-: . ._,., � � � June 30,2003 I _. _. CERTIFIED PUBLIC ACCOUNTANTS A N D B U S I N E S S C O N S U LTA N T S ��, �t� v�.�av� �- `l�ers te ev� �- D�et tette-�� CITY OF BANGOR,MAINE - Reports Required by Government Auditing Standards � and OMB Circular A-133 ` . June 30,2003 � Report , Pa�e Report on Compliance and on Internal Control over Financial Reporting 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 7 Report on Compliarice with Requirements Applicable to the Passenger Facility Charge Program, Internal Control over Compliance and Schedule of Expenditures of Passenger Facility Charges 8-9 Schedule of Expenditures of Passenger Facility Charges 10 Schedule of Findings and Questioned Costs: Section I- Summary of Auditor's Results 11 Section II-Findings Required to be Reported Under Government Auditing Standards 12 . Section III-Findings and Questioned Costs for Federal Awards 13 Section IV—Status of Prior Year Findings and Questioned Costs � 14 �} R Li 1�1.L�O YI- ��= �C,ersteevc -� O ji1 e��et�e Certified Public Accountants and Business Consultants "REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council . � City of Bangor,Maine � We have audited the basic financial statements of the City of Bangor as of and for the year ended June . 30,2003, and have issued our report thereon dated October 29,2003. 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: � Comnliance � - As part of obtaining reasonable assurance about whether the City of Bangor's financial statements are � free of material misstatement,we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants,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 that are required to be reported under � Government Auditing Standards. ' Internal Control Over Financial Reporting , In planning and performing our audit, we considered the City's internal contxol over financia] reporting in order to deternune our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over firiancial reporting. However, we � noted a matter involving the intemal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in � our judgment, could adversely affect the City of Bangor's ability to record,process, summarize, and report financial data consistent with the assertions of management in the financial statements. A reportable condition is described in the accompanying schedule of findings and questioned costs as item � #2003-L � . A material weakness is a condition in which the design or operation of one or more of the internal contro] components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in .the internal control that rriight be reportable conditions and, accordingly, would not necessarily disclose 1 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FiNANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS,CONTINUED all reportable conditions that are also considered to be material wealmesses. However,we believe the reportable condition described above is not a material wealmess. � � We noted other matters involving the internal control over financial reporting that we have reported to . the management of the City in a separate letter dated October 29, 2003. • This report is intended for the information of the City Council, School Board,management and federal awarding agencies (including the Federal Aviation Administration) and pass-through entities and is not intended to be and should not be used by anyone other than these specific parties. � � October 29, 2003 . , � � South Portland,Maine . , 2 � �j,t y�,�oy(' �'_� . . 7Gersteevc �-�— . �ji1 el�e��e " Certified Public Accountants and Business Consultants REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH � MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN � ACCORDANCE WTTH OMB CIRCULAR A-133 City Council - City of Bangor,Maine " � Compliance . We have audited the compliance of the City of Bangor 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 June 30, 2003. The City of Bangor's major federal programs are identified in the summary of auditor's 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 Bangor's management. Our responsibility is to express an opinion on the City of Bangor'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 financia] 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 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 of Bangor's compliance with those requirements and perforniing 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 on the City of Bangor's compliance with those requirements. � In our opinion, the City of Bangor 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.June 30, 2003. Internal Control Over Compliance The management of the City of Bangor is responsible for establishing and maintaining effective internal � control over compliance with 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 and to test and report on internal control over compliance in accordance with OMB Circular A-133. . 3 � REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRA.M AND INTERNAL CONTROL OVER COMPLIANCE IN . ACCORDANCE WITH OMB.CIItCULAR A-133,CONTINUED Our consideration of the intemal control over compliance would not necessarily disclose all matters in. . internal.control that might be material wealrnesses. A material wealrness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws,regulations, contracts, and grants that would be material in relation to a major federal program being audited may occur and not be � � detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. Schedule of Expenditures of Federal Awards , We have audited the basic financial statements of the City of Bangor as of and for the year ended June 30,2003, and have issued our report thereon dated October 29, 2003: Our audit was performed for the purpose of forming an opinion on the financial statements taken as a whole. T'he 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 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 for the information of the City Council, School Board,management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone �other than these specific parties. �.�c.��� V . ' October 29,2003 , South Portland,Maine - . 4 . _ . � CITY OF BAIVGOR,MAINE " . ScheduleofEzpendituresofFederalAwerds � � ' � . For year ended Jane 30,2003 � � � Pass- � � Federal ffirovgh/ � . � � - -CFDA Award grenWr Beginning Revenue - ' Ending . FederelAwsrds � number amount namber 6alantt Federal State Other 1'ransfers E=penditores balance � � Received Direcdv - � . � - - Depaztment o(Housing aud Uxban Development . - ' � , � � Community Development Block Grants: . � � � � . � � � � � B-01-MC-23-0004 . 14.218 1,264,000 N/A (244,345) 349,428 - - - 105,083 - � � � B-02-MG23-0004 14218 1,292,000 �N/A - � 331,996 - 473,638 - 844,426 (38,792) Supportive Housing: � - � MH06B97-0201(8711) � _ � 14.235 . _ 348,581 N/A - 112,549 -� - - - 112,549 - � . � , M&O1B20-1002(8711) . 14.235 � 118,422 N/A , - 59,211 - . - 59,211 - . . Mfi 06B96-0105(8718) � . 14135 � 63,000 N/A - 17,252 - - , 17,252 M&06B96-0106(8719) � 14.135 . 395,000 N/A - 22,942 - - _� y�,9q2 _� . . ME O1B20-1003(8719) . 14.235 72,678 N/A � - 35,994 - - � - 33,994 - . . Shelter Plus Cae: � ' � . . ME O1C90-1001 TRA(8713) 14.238 . 254,640 N/A - 41,365 - . - 41,365 - � ME O1C00-]001 TRA Youth(8712) � - 14.238 259,200 N/A - � - � 53,085 - - - ' S3,085 - ME O1C00-1003 PRA(8916) , 14.238 33,400 N/A � - 18,645 - - - 18,645 - ' - ME OIC20-1006 TRA(8714) - � 14.238 144,900 N/A -. 47,279 - - � _ 47,Zyg � _ � � ME OIC90-1004 TRA(6914) � 14238 116,052 � N/A - � - 50,933 - - - 50,933 - � Mfi O1C90-1002 TRA(8715) - . 14.238 � 804,540 N/A � - - 140,669 - - - 140,669 ME 01C90-1007 PRA(8716) 14.238 52,512 N/A � � IS 247 � � 15 247 - � , Total DepaNnent of HousmR and Uifian Development (244 345) 1 296 595 � 473 638 1 564 680 (38 792) Depa�ent of Justice: � ' � _ Cops Fast '. 16.710 � 592,276 95CPWX3679 - 92,541 - 30,846 - 123,357 - . ' . , � Local Law Enfomemeut Block Grant 16.592 - 31,490 2001-LB-BX-2933 14,970 - - - - . 13,730 1,240 � � � Local Law Enfotcement Block Grant 16.592 . 29,895 2002-LB-BX-1136. � - 29,895 ' - 3,322 - 14,048 � 19,169 _ Juvenile Acwuntability Incentive Block Grant � 16.523 41,960 G202263 2,573 9,542 - 1,773 - 13,888 - - _ . Juvenile Accountability lucenfive Block Gxant 16.523 - 41,980 G1002235 - 30 392 - 3 375 35 525 (1 759) ` � Total Depaz�ent of Justice � " 17 543 162,370 � 39 316 200 578 18 650 . Depattment of TrnuspoRation: � � � � ' � � � ' ftiport Improvement Plan: ' , - - . � � 3-23-0005-27 � . 20.106 1,793,754 N/A - 7,169 � 394 - - 7,563 - 3-23-0005-28 ' . 20.106 t,278,850 N/A - I8,815 - - - 16,815 - . 3-23-0005-29 . � 20.106 1,307,992 N/A - 1,858 168 - - 2,026 � - . _� � � � 3-23-000531 � � � 20.106 . 2,198,732 N/A � - 1,513,362 82,565 109,559 � - 1,705,486 - � 3-23-000533 � � 20.106 2,300,000 N/A - _ � 2,300,000 127,778 127,77� 2,555,555 - 3-23-0005-34 - 20.106 79,200 N/A - - - - - ' 10,391 (10,391) 3-23-0005-35 20.106 4,501,268 N/A � 2,749,958 152,775 142,834 �2,672,453 3"73114 _ Total Depaztrnen[of Transportafion � - 6 591 162 363 680 380 170 6 972,289 362,723 � Environmental Protection ARency,.Special Putpose 66.606 6,000,000 N/A - 424 839 367,335 792,174 � � Psss Throueh . � � DepaAment of Agriculture,passed thmugh Maine Depar�ent of - � � - , � Hum�Services: � � � - �- � � Women,Inf�t�d Children-Admin: _ � . � � . WIC 02-02 � 10.557� 399,898 N/A - . 123,834 - - - 123,834 - � W1C 02-03 = � � • 10.557 198,796 N/A . - 198,541 - - - 198,541 - � WIC 04-02 10.557 891,972 N/A - � 88,934 - . � - - 88,934 - � . � , Women,Infant and Children-Food: � � � _ � WIC 02-02 10.557 I,SS6,686 N/A - 518,128 - - - 318,128 - � ' - W[C 02-03 � 10.557 705,785 N/A � - 705,785 - � - - 705,785 - WIC 04-02 - - 10.557 1,903,267 . N/A - 303,955 - �- - 303,955 - � ' . - � Passed thmugh Maine Depuiment of Education: . � . Food Distribution-Food Donation Progam 10.550 N/A � 013-6134-OS - 45,787 � _ � _ _ q5 789 _ � . . - School Bieakfast Program IO.SS3 . N/A 013-7127-OS � � - �56,956 - � - - � 56,756 - � � - School Lvnch Ptograz�i � 10.555 N/A � 013-7128-OS - - 371,908 - - - - 371,908 - � . Sununer Food PtoQ[ant 10.559 N/A 013-7130-OS 4 296 � 4 276 . � Total DepazUuent of Ap,nculture 2 417 904 - 2,419 904 � 5 , , ' CTTY OF BANGOR,MAINE - Schedule of Expenditures of Federal Awards,Continued � For year ended June 30,2003 � Pass- Federal through/ CFDA Award grantor Beginning Revenue � Ending - � Federal Awards - � � -.number amount number balance Federal State Other Transfers Expenditures balance - Pass Throueh,Continued � • - � ' ' Environmental Protection Agency,passed tiuough the State Revolving Loan Fund Program Combined Sewa Overflow 66.453 1,022,461 N/A 1,022,461 208,665 539,966 1,771,092 Depazhnent of Health&Human Services,passed through Bureau ofHealth: Bangor Children's Dental Clinic 93.994 15,354 BH 03-99 - 15,354 - 178,8�1 - 194,225 - HN Prevention&Education 93.118 I0,646 BH 03-184 - 4,436 - - - 3,339 1,097 HIV Prevention&Education 93.113 10,646 BH 02-86 3,443 5,323 - - - 8,600 171 STD/HIV Clinical andEpid�niologic Services 93.977 98,270 BH03-184 - 40,945 17,763 - 57,199 1,509 STD/HIV Clinical and Epidemiologic Services 93.977 96,314 BH 02-86 . 7,495 43,152 - 19,747 - 69,016 1,378 ImmunizationProgramNursing 93.268 10,000 BA03-302 - - - 21,133 - 37,583 (16,450) ImmunizationProgramNursing 93.268 10,000 Bfi02-133 (16,051) 7,500 - 21,719 - 39,341 (26,173) Departmen[of Health&Human Services,passed through the Maine Depaztment of Education: HN/AIDSPreventionEdGrant 93.938 013-0SA-3169-15 ' 1,384 • 1,384 Total Depaztment of Health&Human Services (3 724) 116 710 259 233 409 303 (37 084) Department oCEducation,passed through the'Maine Department of Education: - Adult Basic Education 84.002 49,218 013-OSA-6296-642 - . 49,218 - . - 49,218 - Adult Basic Education 84.002 20,124 013-OSA-6297-642 - 20,124 - - - 20,124 - Title lA 84.010 986,709 013-OSA-6334132 33,116 936,709 - - 28,000 942,190 105,635 Title IC 84.011 • 45,210 013-0SA-7151-132 16,918 45,210 - - - 62,128 - Title V 84.298 32,714 013-OSA 1072-662 8,044 32,714 - - , 13Qll0 140,537 30,331 EisenhowerElementary and Secondary 84.281 38,820 013-0SA-8091-102 22,037 - - - (17,164) 22,379 (17,50� Tit1eIID 84318 39,024 013-OSA-1006-072 - 39,024 - - - 37,674 1,350 Speciat Ed Local Entitletnent Title VAEHA 84.027 614,513 013-OSA-6317-122 12,032 614,513 - - - 524,428 102,117 Tit1eIIA 84367 349,727 013-OSA-1138-112 - 349,727 - - (117,144) 231,536 747 PreschoolLocalEntitlement 84.173 15,565 013-OSA-6241-023 - 10,000 - - - 15,341 (5,341) Passed through the Maine Depaztment of Substance Abuse: Dct�g Free Schools and Communities 84.186 44,623 N/A 16 912 44 623 (23 802) 36 398 I 335 Total Department of P.ducation 109 059 2 191 862 2 082 253 218 668 Urban Mass Transportation Assistance,passed through Maine , Department of Transportation: Operating 20.507 374,898 ME 90-X-135 - 363,498 43,930 656,076 - 1,068,504 - Capital 20.500 214,011 ME 90-X-105 - 191,131 22,880 26,172 - 240,183 - Capital 20.500 213,840 MFi 90-X-113 - 190,080 23,760 23,475 - 237,315 - Capital 20.500 225,529 MB 90-X-119 - 201,594 ' 23,935 25,479 - 251,008 - Capital Z0.500 632,853 ME 03-0034 - 537,200 95,653 95,653 - 728,506 - Capital � 20.500 77,375 ME 3�-X-003 - 77,375 - 77,375 - 154,750 - RTAP 20.509 7,750 ME 18-X-033 7,725 7,725 ' _ Total Urban Mass Trnnsportation Assistance 1 573 603 210 158 904 230 2 687 991 DepaRment of Defense,passed through the Maine , Air National Guard: National Guazd Military Projects 12.401 3,123,821 N/A 3 123 821 3 123 821 Total Fedcral Awards $ (121,46� 18,921,327 782,503 2,963,888 22,022,085 524,165 6 CITY OF BANGOR,MAINE Notes to Schedule of Expenditures of Federal Awards June 30,2003 PURPOSE OF THE SCHEDULE . Office of Management and Budget(OMB)Circular A-133,Audits of States, Local Governments and Non-profit Organizations,requires a Schedule of Expenditures of Federal Awards showing total expenditures for each federal award program as identified in the Catalog of Federal Domestic Assistance (CFDA). SIGNIFICANT ACCOUNTING POLICIES ' A. Reporting Entity-The accompanying schedule includes all federal award programs of the City of Bangor for the fiscal year ended June 30,2003. The reporting entity is defined in Notes to Basic Financial _ Statements of the City of Bangor. B. Basis of Presentation-The information in the accompanying Schedule of Expenditures of Federal Awards is - presented in accordance with OMB Circular A-133. l. Pursuant to OMB Circular A-133, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees,property,interest subsidies,insurance or direct appropriations. 2. Major-OMB Circular A-133 establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the City of Bangor are identified in the summary-of � auditor's results in the Schedule of Findings and Questioned Costs. C. Basis of Accounting-The information presented in the Schedule of Expenditures of Federal Awards is . presented on the modified accrual basis of accounting,which is consistent with the reporting in the City's basic financial statements. 7 � . � REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE PASSENGER FACILITY CHARGE PROGRAM,INTERNAL CONTROL OVER COMPLIANCE AND SCHEDULE OF EXPENDITURES OF PASSENGER FACILITY CHARGES City Council � . City of Bangor,Maine ' Compliance � We have audited the compliance of the City of Bangor with the compliance requirements described in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation � Administration(Guide), for its passenger facility charge.program for the year ended June 30, 2003. Compliance with the requirements of laws and regulations applicable to its passenger facility charge program is the responsibility of the City of Bangor's management. Our responsibility is to express an opinion on the City of Bangor'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 stanciards applicable to financial audits contained in Governnient Auditing Standards, issued by the Comptroller General of the United States; and the Guide. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material . effect on the passenger facility charge program occurred. An audit includes examining, on a test basis, evidence about the City of Bangor'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 of Bangor's compliance with those requirements. In our opinion,the City of Bangor complied, in all material respects,with the requirements refened to above that are applicable to its passenger facility charge program for the year ended June 30, 2003. Internal Control Over Compliance The management of the City of Bangor is responsible for establishing and maintaining effective internal contro] over compliance with the requirements of laws and regulations applicable to the passenger facility charge program. In planning and performing our audit,we considered the City of Bangor's internal control over compliance with requirements that could have a direct and material effect on the �passenger facility charge program in order to determine our auditing procedures.for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with the Guide. 8 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE PASSENGER FACILITY CHARGE PROGRAM,INTERNAL CONTROL OVER COMPLIANCE AND SCHEDULE OF EXPENDITURES OF PASSENGER FACILITY CHARGES,CONTINUED Our consideration of the internal control over compliance would not necessarily disclose all matters in the , - internal control that might be material wealrnesses. A material wealrness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws and regulations that would be material in relation to the passenger facility charge program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the . intemal control over compliance and its operation that we consider to be material wealrnesses. Schedule of Expenditures of Passenger Facilitv Charges We have audited the basic financial statements of the City of Bangor as of and for the year ended June 30, 2003, and have issued our report thereon dated October 29,2003. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of passenger facility charges is presented for purposes of additional analysis as specified in the Guide and is not a required part of the basic financial statements. Such inforination 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 City Council,management, and the Federal � Aviation Administration and is not intended to be and should not be used by anyone other than these specified parties. . ��� � . October 29,2003 ' South Portland,Maine � 9 ' CITI'OF BANGOR,MAINE . Schedule of Expenditures of Passenger Facility Charges For the Year and Each Quarter�Yithin the Year Ended June 30,2003 Memorandum Memorandum Only ' Only Cumalative Quarter Ended Quarter Ended . � Cumutative Approved Amounts Total September 30, Deccmber 31, � Quarter Ended Quarter Ended Year Ended Totals . � Impose and Usc June 30,2002 2002 2002 March 31,2003 June 30,2003 June 30,2003 June 30,2003 95-01-C-00-BGR(as amended) , . Passenger facility charge revenue and interest $ 8,96t,006 3,974,175 156,099 102,970 I04,831 ]14,874 478,774 4,452,949 Expenditures: , � Reconstruct Domestic Terminal Apron-South 2,301,222 2,301,222 - - - " - - 2,301,222 Rcconstruct Domestic Terminat Apran-North 1,07Q596 838,538� 98,913 - ' - - 98,913 937,451 Reconstruct International Tertninal Apron-North . 3,464,415 � - � - - - - - - , Reconstruct Commuter Apron Area 2,124,773 ` - � - Total expenditures $ 8,961,006 3,139,760 ' 98,913 - - - 98,913 3,238,673 . 10 CITY OF BANGOR,MAINE Schedule of Findings and.Questioned Costs June 30,2003 � Section I-Summary of Auditor's Results � Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: _ Material weaknesses identified? no Reportable conditions identified - not considered to be a material.wealrness? yes Noncompliance material to financial statements noted? no Federal Awards Internal Control over major programs: Material weaknesses identified? � no Reportable conditions identified not considered to be material wealrnesses? no Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required . to be reported in accordance with Circular A-133, Section .510(a)? no Identification of major programs: .. CFDA Numbers Name of Federal Program or Cluster 10.557 WIC-Nutrition Program 20.500 -20.507 ' MDOT—Capital and operating Assistance 20.106 Airport Improvement Plan 12.401 National Guard Military Projects _ 10.553 - 10.559 National School Lunch ProQram 66.606 EPA-Special purpose Dollar threshold used to distinguish between Type A and Type B programs:� $ 660,663 Auditee qualified as low-risk auditee? No ll � CITY OF BANGOR,MAINE , Schedule of Findings and Questioned Costs, Continued Section II-Findings Required to be Reported Under Government Auditing Standards � #2003- 1 -Sewei Svstem Controls Controls at the sewer utility are potentially weakened because of the utility's relationship with the Bangor Water District, which is a separate,non-City entity. The problem arises because the water and sewer utilities share many aspects of billing and collection. Specifically, sewer bills are based upon water usage data, as provided by the water.districts; water and sewer bills are mailed together; sewer payments may be made at, among other , places,the water district; and the water district's billing and paytnent software,which is incompatible with the City's general accounting software, is also employed by the sewer utility. As a result, a number of problems arise. First,where payments are made at the water district,City funds remain outside the City control for the period of time between their receipt from customers and the forwarding of payment to the City. This, combined with the increased handling of the City assets introduces the potential for diversion of City property by non-City employees. Second,the flow of funds between the fwo utilities and their timing often results in the"float"of relatively large amounts due the City. Third,the incompatibility of systems between the sewer utility and the rest of City government makes timely tracking of sewer utility performance difficult. Further, it makes reconcilement increasingly important and time consuming. � We recommend the City review its relationship with the water utility to correct these cash handling and accounting deficiencies. � 12 CITY OF BANGOR,MAINE . . Schedule of Findings and Questioned Costs,Continued . Section III-Findings and Questioned Costs For Federal Awards NONE . , � � 13 . TOWN OF GORHAM,MAINE Status of Prior Year Findings and Questioned Costs Section IV-Findings and Questioned Costs for Federal Awards #2002-2-U.S.Department of Transportation,Airport Improvement Pla�, CFDA#20.106,for the ueriod July 1, 2001 through June 30,2002. Finding—Certain employees were not paid prevailing wage rates as required by the Davis-Bacon Act. Criteria—All laborers arid mechanics employed by contractors or subcontractors to work on construction contracts in excess of$2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project(prevailing wage rates)by the Department of Labor. � Effect—Employees who were not paid prevailing wage rates will need to be contacted and paid the difference between what they were paid and the prevailing wage rate. Recommendation—City officials need to ensure that the outside engineering firm is performing their tasks related to the Davis-Bacon Act. These tasks include informing contractors and subcontractors of the requirements of the Act and also verification of payments at prevailing wages: � , Questioned Costs -None. Status—During fiscal year 2003, all employees not paid the prevailing wage rate in 2002 were contacted and compensated the difference between what they were paid and the prevailing wage rate. Additionally, all employees tested in the current year were paid the prevailing wage rates as required by the Davis-Bacon Act. � , 14 � � �� SOUTH PORTLAND WATERVILLE Tel. 207-773-2986 Tel. 207-877-9397 Fax 207-772-3361 Fax 207-877-9398 _ �,. , �_ _. .._.__ �.,. � ,_ . � ��,. �. �.. .. �,=��.. •t..;_ -.,.��.�.,.:,�n,�.�� n���� ..,.. �