2013 Special Purpose ReportCITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
Special Purpose Audit Reports on
Single Audit,
Internal Controls, and
Compliance with Laws and Regulations
Year Ended
December 31, 2013
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CITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
Table of Contents
Page
Independent Auditor’s Report on Schedule of Expenditures of Federal Awards
Required by OMB Circular A-133 1–2
Schedule of Expenditures of Federal Awards3
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
4–5
Independent Auditor’s Report on Compliance For Each Major Federal Program and
Report on Internal Control Over Compliance Required by OMB Circular A-1336–7
Independent Auditor’s Report on Minnesota Legal Compliance 8
Schedule of Findings and Questioned Costs9–10
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INDEPENDENT AUDITOR’S REPORT ON THE SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133
To the City Council and Management
City of New Hope, Minnesota
We have audited, 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, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of New Hope, Minnesota (the City) as of and for the year ended December 31, 2013, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements.
We issued our report thereon dated May 14, 2014, which contained an unmodified opinion on those
financial statements.
Audit standards referred to in the previous paragraph require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement. An audit
involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the 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 accompanying Schedule of Expenditures of Federal
Awards is presented for purposes of additional analysis as required by the 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 of the City. The Schedule of Expenditures of Federal
Awards is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic 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 basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards
is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
(continued)
-1-
The purpose of this report on the Schedule of Expenditures of Federal Awards Required by OMB Circular
A-133 is solely to describe the scope of our testing of the Schedule of Expenditures of Federal Awards
and the results of that testing based on our audit. Accordingly, this report is not suitable for any other
purpose.
Minneapolis, Minnesota
May 14, 2014
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CITY OF NEW HOPE
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2013
FederalFederal
Federal Grantor/Pass-Through Grantor/Program Title
CFDA No.Expenditures
U.S. Department of Homeland Security
Passed through MN Dept of Public Safety
Disaster Grants-Public Assistance (Presidentially Declared Disasters)97.03658,032$
U.S. Department of Transportation
Passed through City of Minneapolis
Minimum Penalties for Repeat Offenders for Driving While Intoxicate20.60829,813
d
State and Community Highway Safety
20.600771
US Environmental Protection Agency
Passed through the MN Public Facilities Agency
Capitalization Grants for Drinking Water State Revolving Funds66.4681,035,000
Total federal awards$1,123,616
Note 1:TheScheduleofExpendituresofFederalAwardsispreparedontheaccrualbasisofaccountingin
accordancewiththerequirementsofOMBCircularA-133,AuditsofStates,LocalGovernments,and
Non-ProfitOrganizations.Therefore,theamountspresentedinthisschedulemaydifferfromtheamounts
presented in, or used in the preparation of, the City’s basic financial statements.
Note 2:Allpass-throughentitieslistedaboveusethesameCFDAnumbersasthefederalgrantorstoidentifythese
grants, and have not assigned any additional identifying numbers.
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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
To the City Council and Management
City of New Hope, Minnesota
We have audited, 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, the financial statements of the governmental
activities, the business-type activities, each major fund,and the aggregate remaining fund information of
the City of New Hope, Minnesota (the City) as of and for the year ended December 31, 2013, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated May 14, 2014.
ICOFR
NTERNALONTROLVERINANCIAL EPORTING
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances 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’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
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 combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
(continued)
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COM
OMPLIANCE AND THERATTERS
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
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.
PTR
URPOSE OF HISEPORT
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this report is not suitable for any other purpose.
Minneapolis, Minnesota
May 14, 2014
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL
CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
To the City Council and Management
City of New Hope, Minnesota
RCEMFP
EPORT ON OMPLIANCE FOR ACHAJOREDERALROGRAM
We have audited the City of New Hope, Minnesota’s (the City) compliance with the types of compliance
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 December 31, 2013. The City’s major federal programs are identified in the
summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs.
M’R
ANAGEMENTSESPONSIBILITY
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
A’R
UDITORSESPONSIBILITY
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs
based on our audit of the types of compliance requirements referred to above. 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 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 on compliance for each major
federal program. However, our audit does not provide a legal determination of the City’s compliance.
OEMFP
PINION ON ACHAJOREDERALROGRAM
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended December 31, 2013.
(continued)
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RICOC
EPORT ON NTERNALONTROL VER OMPLIANCE
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to on the previous page. In planning and
performing our audit of compliance, we considered the City’s internal control over compliance with the
types of requirements that could have a direct and material effect on each major federal program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing
an opinion on compliance for each major federal program 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 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. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
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 material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
Minneapolis, Minnesota
May 14, 2014
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INDEPENDENT AUDITOR’S REPORT
ON MINNESOTA LEGAL COMPLIANCE
To the City Council and Management
City of New Hope, Minnesota
We have audited, 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, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of New Hope, Minnesota (the City) as of and for the year ended December 31, 2013, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated May 14, 2014.
TheMinnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the Office of
the State Auditor pursuant to Minnesota Statute § 6.65, contains seven categories of compliance to be
tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness,
claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered
all of the listed categories.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to
comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions.
However, our audit was not directed primarily toward obtaining knowledge of such noncompliance.
Accordingly, had we performed additional procedures, other matters may have come to our attention
regarding the City’s noncompliance with the above referenced provisions.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any
other purpose.
Minneapolis, Minnesota
May 14, 2014
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CITY OF NEW HOPE
Schedule of Findings and Questioned Costs
Year Ended December 31, 2013
A. SUMMARY OF AUDIT RESULTS
This summary is formatted to provide federal granting agencies and pass-through agencies answers to
specific questions regarding the audit of federal awards.
Financial Statements
What type of auditor’s report is issued?XUnmodified
Qualified
Adverse
Disclaimer
Internal control over financial reporting:
X
Material weakness(es) identified?YesNo
X
Significant deficiencies identified?YesNone reported
X
Noncompliance material to the financial statements noted?YesNo
Federal Awards
jor federal award programs:
Internal controls over ma
Material weakness(es) identified?YesXNo
X
Significant deficiencies identified?YesNone reported
X
Type of auditor’s report issued on compliance for majorprograms?Unmodified
Qualified
Adverse
Disclaimer
Any audit findings disclosed that are required to be reported
(a) of OMB Circular A-133?YesXNo
in accordance with Section 510
Programs tested as major programs:
CFDA No.
Program or Cluster
US Environmental Protection Agency
Capitalization Grants for Drinking Water State Revolving Funds66.468
$ 300,000
Threshold for distinguishing between type A and B programs:
X
Does the auditee qualify as a low-risk auditee?YesNo
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CITY OF NEW HOPE
Schedule of Findings and Questioned Costs (continued)
Year Ended December 31, 2013
B.FINDINGS – FINANCIAL STATEMENT AUDIT
None.
C.FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT
None.
D.FINDINGS – MINNESOTA LEGAL COMPLIANCE AUDIT
None.
E.SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS – MAJOR FEDERAL AWARD
PROGRAMS AUDIT
Not applicable.
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