Page 20 - People Inc. Annual Report 2017
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Hicok, Fern & Company
Certi ed Public Accountants
Thomas M. Hicok,
CPA, CVA, MAFF I, IV• James H. Fern, CPA, CVA III• David B. Brown, CPA Juan J. Garcia, CPA Karen L. Jackson, CPA Rodney P. Jackson, CPAII
155 E. Valley Street P.O. Box 821 Abingdon, Virginia 24212-0821
276-628-1123 Fax: 276-676-3000
e-mail: hicokfern&co@ rmcpa.com
Members of American Institute of Certified Public Accountants
Members of Virginia Society of Certified Public Accountants
All Accountants Licensed In Virginia With Additional Licensures Noted: IKY; IINC; IIITN; IVWV
•Members of National Association of Certified Valuation Analysts
A complete copy of our audited  nancial statements is available at www.peopleinc.net or upon request.
INDEPENDENT AUDITOR’S REPORT November 6, 2017
TO THE BOARD OF DIRECTORS, PEOPLE INCORPORATED OF VIRGINIA, ABINGDON, VIRGINIA
Report on Compliance for Each Major Federal Program
We have audited People Incorporated of Virginia and Af liates’ compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of People Incorporated of Virginia and Af liates’ major federal programs for the year ended June 30, 2017. People Incorporated of Virginia and Af liates’ major federal programs are identi ed in the summary of auditor’s results section of the accompanying schedule of  ndings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of People Incorporated of Virginia and Af liates’ 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  nancial 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). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirement 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 People Incorporated of Virginia and Af liates’ 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 People Incorporated of Virginia and Af liates’ compliance.
Opinion on Each Major Federal Program
In our opinion, People Incorporated of Virginia and Af liates, 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 June 30, 2017.
Report on Internal Control Over Compliance
Management of People Incorporated of Virginia and Af liates is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered People Incorporated of Virginia and Af liates’ 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 the Uniform Guidance, 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 People Incorporated of Virginia and Af liates’ 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 de ciency or combination of de ciencies, 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 de ciency, or a combination of de ciencies, 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  rst paragraph of this section and was not designed to identify all de ciencies in internal control over compliance that might be material weaknesses or signi cant de ciencies. We did not identify any de ciencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identi ed.
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.
HICOK, FERN & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS, November 6, 2017
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