HomeMy Public PortalAbout2022 Single Audit Report
CITY OF PARKVILLE, MISSOURI
SINGLE AUDIT REPORT
FOR THE YEAR ENDED DECEMBER 31, 2022
City of Parkville, Missouri
Single Audit Report
For the Year Ended December 31, 2022
Table of Contents
Page
Number
Independent Auditor's Report on Schedule
of Expenditures of Federal Awards 1
A copy of the City of Parkville, Missouri’s Basic Financial Statements
for the year ended December 31, 2022 accompanies this report.
The independent auditor’s report and the financial statements
are hereby incorporated by reference.
Additional information:
Schedule of Expenditures of Federal Awards 2
Notes to the Schedule of Expenditures of Federal Awards 3
Schedule of Findings and Questioned Costs 4-6
Corrective Action Plan 7
Compliance reports:
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 8-9
Independent Auditor’s Report on Compliance for
Each Major Program and on Internal Control Over
Compliance Required by the Uniform Guidance 10-12
Independent Auditor's Report on Schedule
of Expenditures of Federal Awards
To the Honorable Mayor and
Board of Aldermen
City of Parkville, Missouri
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 Parkville, Missouri (the City) as of
and for the year ended December 31, 2022, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements. We issued our report thereon dated December
27, 2023 which contained unmodified opinions on those financial statements. Our audit was conducted for
the purpose of forming opinions on the financial statements that collectively comprise the basic financial
statements. The accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by the Uniform Guidance 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 basic 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 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.
Hood and Associates CPAs, PC
Kansas City, Missouri
December 27, 2023
ADDITIONAL INFORMATION
City of Parkville, Missouri
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2022
Assistance
Listing Pass-Through Federal
Program Number Number Expenditures
U.S. Department of Treasury:
American Rescue Plan Act
Coronavirus State and Local Fiscal Recovery Funds 21.027 325,000$
Total U.S. Department of Treasury 325,000
U.S. Department of Transportation:
Passed Through Missouri Highways and
Transportation Commission
Highway Planning and Construction Cluster 20.205 STP-3400(442) 833,881
Total U.S. Department of Transportation 833,881
Total Expenditures of Federal Awards 1,158,881$
See accompanying notes to the schedule of expenditures of federal awards.
2
City of Parkville, Missouri
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2022
3
Note 1. Organization
The City of Parkville, Missouri (the City), is the recipient of federal awards. All federal awards received directly
from federal agencies as well as those awards that are passed through other government agencies, are
included on the Schedule of Expenditures of Federal Awards.
Note 2. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City
of Parkville , Missouri, and is presented on the modified accrual basis of accounting. The information
presented in this schedule is in accordance with the requirements of Title 2 U.S. Code of Federal Regulation
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used
in the preparation of, the basic financial statements.
Note 3. Local Government Contributions
Local cost sharing, as defined by Title 2 CFR Part 200, Subpart D, Section 200.306 is required by certain
federal grants. The amount of cost sharing varies with each program. Only the federal share of expenditures
is presented in the Schedule of Expenditures of Federal Awards.
Note 4. Additional Audits
Grantor agencies reserve the right to conduct additional audits of the City’s grant programs for economy and
efficiency and program results that may result in disallowed costs to the City. However, management does
not believe such audits would result in any disallowed costs that would be material to the City’s financial
position at December 31, 2022.
Note 5. Indirect Cost Rate
The City does not allocate indirect costs, and therefore has not elected to use the 10% de minimis indirect
cost rate allowed under the Uniform Guidance.
City of Parkville, Missouri
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2022
4
Section 1 - Summary of Auditor's Results
Financial Statements:
Type Audit Report Issued on the Basic Financial Statements of Auditee
Unmodified
Internal Control Over Financial Reporting
No significant deficiencies reported, material weakness identified.
General Compliance
The audit did not disclose any instances of noncompliance, which would be material to the basic
financial statements.
Federal Awards:
Internal Control Over Major Programs
No significant deficiencies reported, no material weaknesses identified.
Type Audit Report Issued on Compliance for Major Programs
Unmodified
Audit Findings
None
Major Programs
CFDA Number Name of Federal Program
20.205 Highway Planning and Construction Cluster
Dollar Threshold Used to Distinguish Between Type A and Type B Program
$750,000
Auditee Qualified as a Low-risk Auditee
No
City of Parkville , Missouri
Schedule of Findings and Questioned Costs (continued)
For the Year Ended December 31, 2022
5
Section 2 – Financial Statement Findings
Financial Statement Findings Required to be Reported in Accordance with Generally Accepted Government
Auditing Standards
2022-001 Financial Reporting
Condition
Our audit procedures identified adjustments that were required to properly report certain transactions of
the City in accordance with generally accepted accounting principles. These adjustments were not initially
identified by the City’s internal controls over financial reporting.
Criteria
An effective internal control system over financial reporting should be in place to ensure year-end
balances and external financial reporting conforms to generally accepted accounting principles.
Cause
Year-end procedures were not sufficient to identify the adjustments noted above in a timely manner.
Effect
Potential exists for material misstatements to the financial statements.
Recommendation
We recommend that management review year-end closing procedures to ensure that transactions are
properly recorded in accordance with generally accepted accounting principles. In addition, due to the
complexities of financial reporting, we recommend that management explore various alternatives for
improving the controls over financial reporting including the use of governmental accounting standards,
reference guides and continuing education and training courses.
Management’s Response/Corrective Action
See Corrective Action Plan – page 7
Summary Schedule of Prior Audit Findings
2021-001 Financial Reporting
Condition
Our audit procedures identified adjustments that were required to properly report certain transactions of
the City in accordance with generally accepted accounting principles. These adjustments were not initially
identified by the City’s internal controls over financial reporting.
Recommendation
We recommended that management review year-end closing procedures to ensure that transactions are
properly recorded in accordance with generally accepted accounting principles. In addition, due to the
complexities of financial reporting, we recommended that management explore various alternatives for
improving the controls over financial reporting including the use of governmental accounting standards,
reference guides and continuing education and training courses.
Current Year Status
Comment repeated in the current year as part of finding 2022-001
City of Parkville , Missouri
Schedule of Findings and Questioned Costs (continued)
For the Year Ended December 31, 2022
6
Section 3 – Federal Award Findings and Questioned Costs
Federal Award Findings Required to be Reported in Accordance with the Uniform Guidance
None
Summary Schedule of Prior Audit Findings
None
7
Corrective Action Plan
Year Ended December 31, 2022
2022-001 Financial Reporting
Criteria
An effective internal control system over financial reporting should be in place to ensure year-end balances and
external financial reporting conforms to generally accepted accounting principles.
Condition
Our audit procedures identified adjustments that were required to properly report certain transactions of the City
in accordance with generally accepted accounting principles. These adjustments were not initially identified by the
City’s internal controls over financial reporting.
Cause
Year-end procedures were not sufficient to identify the adjustments noted above in a timely manner.
Effect
Potential exists for material misstatements to the financial statements.
Recommendation
We recommend that management review year-end closing procedures to ensure that transactions are properly
recorded and approved in accordance with generally accepted accounting principles.
Corrective Action Plan
Staff agrees with the adjustments recommended by our auditors. The City experienced staff turnover in the finance
area at the end of 2022 that had significant impact on the timing of performing year-end adjustments. Staff
understands that the City is ultimately accountable for the accuracy of the financial statements and will endeavor
to increase the in-house knowledge of governmental accounting standards to improve this reporting process.
The City hired a Deputy City Administrator/Finance Director at the end of August 2023 for the purpose of
restructuring the finance processes of the City. While this change took place after the 2022 fiscal year, we are
encouraged that the amount of adjustments staff performed increased over prior years. Staff has already started
the 2023 audit process and believe there will be substantial overall improvements in processes and procedures
to make for smoother, more efficient financial audits moving forward.
Personnel responsible For Corrective Action:
Bryan Kidney, Deputy City Administrator/Finance Director, 816-268-5014
Anticipated Completion Date:
March 31, 2024
Prior Year Reference Number: 2021-001
Finding Summary: Financial Reporting – Material Adjustments
Status: See Current Year finding 2022-001
COMPLIANCE REPORTS
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 Honorable Mayor and
Board of Aldermen
City of Parkville, Missouri
We have audited, in accordance with the 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 Parkville, Missouri (the City), as of and for the year ended December
31, 2022, and the related notes to the financial statements, which collectively comprise the City’s
basic financial statements and have issued our report thereon dated December 27, 2023.
Report on Internal Control over Financial Reporting
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 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. 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
and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that have not been identified. We did identify a certain deficiency in
internal control described in the accompanying schedule of findings and responses as item 2022-
001 that we consider to be a material weakness.
9
Report on Compliance and Other Matters
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.
Purpose of this Report
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 communication is not suitable for any other purpose.
Hood and Associates CPAs, PC
Kansas City, Missouri
December 27, 2023
Independent Auditor’s Report on Compliance for the Major Program
and on Internal Control Over Compliance Required by the Uniform Guidance
To the Honorable Mayor and
Board of Aldermen
City of Parkville, Missouri
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Parkville, Missouri’s (the City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material
effect on the City’s major federal program for the year ended December 31, 2022. The City’s major
federal program is identified in the summary of auditor’s results section of the accompanying schedule
of findings and questioned costs.
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 its major federal program for the
year ended December 31, 2022.
Basis for Opinion on Each Major Federal Program
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 the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Our responsibilities under those standards and the Uniform Guidance are further described in the
Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
compliance for each major federal program. Our audit does not provide a legal determination of the
City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements
applicable to the City’s federal programs.
11
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with
the compliance requirements referred to above occurred, whether due to fraud or error, and
express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high
level of assurance but is not absolute assurance and therefore is not a guarantee that an audit
conducted in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance will always detect material noncompliance when it exists.
The risk of not detecting material noncompliance resulting from fraud is higher than for that
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the
report on compliance about the City’s compliance with the requirements of each major federal
program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government
Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered
necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit
in order to design audit procedures that are appropriate in the circumstances and to test
and report on internal control over compliance in accordance with the Uniform Guidance,
but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material
weaknesses in internal control over compliance that we identified during the audit.
Report on 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 a 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.
12
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to
identify all deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies in internal control over compliance. Given these limitations, during our
audit we did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses, as defined above. However, material weaknesses or significant deficiencies
in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, no such opinion is expressed.
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 the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
Hood and Associates CPAs, PC
Kansas City, Missouri
December 27, 2023