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NOES: <br /> <br />ABSTAIN: <br /> <br />ABSENT: <br /> <br />Price, Ream, Reyna, Zaragoza (14) <br />None (0) <br /> <br />None (0) <br /> <br />Bracho, Brewster, Burder-Lund, Fogarty, <br />Haynes, Hernandez, Martinez, Mijares, <br />Ramirez (9) <br /> <br />PRESENTATIONS <br /> <br />Santa Ana Empowerment Corporation Annual Financial Audit for fiscal year <br />2002-2003 presented by Michael Harrison, Conrad & Associates, L.L.P. <br /> <br />Mr. Harrison reported that the Independent Auditors reviewed the statement of <br />financial position of the Santa Ana Empowerment Corporation (SAEC) and the <br />related statements of activities, functional expenses and cash flows for the year <br />ended on June 30, 2003. To determine if the SAEC's financial statements are free <br />of material misstatement, the auditors performed tests of its compliance with certain <br />provisions of laws, regulations, contracts and grants. The results of the tests <br />disclosed no instances of noncompliance that are required to be reported under <br />Government Auditing Standards. <br /> <br />The auditors did note two instances involving internal control over financial reporting <br />that presented opportunities for improvement. <br />· Non federal entities are prohibited from contracting with or making sub-awards to <br /> parties that are suspended or debarred or whose principals are suspended or <br /> debarred. Sub-recipients receiving individual awards for $100,000 must certify <br /> that the organization and its principals are not suspended or debarred. The <br /> audit found that the SAEC staff did not obtain the required documentation from <br /> any of the sub-recipients they granted funds. The auditors subsequently <br /> recommended that the SAEC develop and implement procedures to ensure a <br /> certification of suspension and debarment is received from each sub-recipient <br /> organization before grant monies are awarded. <br />· The audit found that SAEC staff did not receive copies of single audit reports <br /> from each sub-recipient organization that was required to have an audit. This <br /> condition occurred because the SAEC only requests audit reports from sub- <br /> recipient organizations that were required to have single audits. As a result, <br /> sub-recipient organizations could have reported instances of noncompliance or <br /> material weaknesses in internal control that might have gone undetected by the <br /> SAEC. <br /> <br />SAEC MINUTES 7 SEPTEMBER 24, 2003 <br /> <br /> <br />