HomeMy WebLinkAbout2014_Federal_and_State_AwardsCITY OF OSHKOSH,WISCONSIN
FEDERAL AWARDS AND STATE
FINANCIAL ASSISTANCE REPORT
DECEMBER 31,2014
CITY OF OSHKOSH,WISCONSIN
December 31,2014
Table of Contents
Page No.
Independent Auditors'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 1 - 2
Independent Auditors' Report on Compliance for Each Major Federal and State Program and on Internal
Control Over Compliance;and Report on the Schedule of Expenditures of Federal Awards
Required by 0MB Circular A-133;and Report on the Schedule of State Financial Assistance
Required by the State Single Audit Guidelines 3 - 4
Schedule of Expenditures of Federal Awards 5
Schedule of Expenditures of State Financial Assistance 6
Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance 7
Schedule of Findings and Questioned Costs 8 - 9
Schedule of Prior Year Audit Findings and Corrective Action Plan 10
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CPAs AND SO MUCH MORE.
INDEPENDENT AUDITORS'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 Common Council
City of Oshkosh,Wisconsin
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,the discretely presented component unit,each major fund,and the aggregate remaining fund information
of the City of Oshkosh,Wisconsin,as of and for the year ended December 31,2014.and the related notes to the
financial statements,which collectively comprise the City of Oshkosh's basic financial statements,and have
issued our report thereon dated August 11,2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements,we considered the City of Oshkosh,Wisconsin'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 of Oshkosh,Wisconsin's internal control.Accordingly,
we do not express an opinion onthe effectiveness ofthe City of Oshkosh,Wisconsin'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.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Oshkosh,Wisconsin'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 City of Oshkosh,Wisconsin'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 of Oshkosh,Wisconsin's internal control and on compliance.
Accordingly, this communication is not suitable for any other purpose.
Certified Public Accountants
Green Bay,Wisconsin
August 11,2016
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CPAs AND SO MUCH MORE.
INDEPENDENT AUDITORS'REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL AND STATE
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE;AND REPORT ON THE SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133;AND REPORT ON THE
SCHEDULE OF STATE FINANCIAL ASSISTANCE REQUIRED BY THE STATE SINGLE AUDIT GUIDELINES
To the Mayor and City Council
City of Oshkosh,Wisconsin
Report on Compliance for Each Major Federal and State Program
We have audited the City of Oshkosh,Wisconsin's compliance with the types of compliance requirements
described in the U.3. Office of Management and Budget (OMB)Circular A-133 Compliance Supplement and the
State Single Audit Guidelines issued by the Wisconsin Department of Administration that could have a direct and
material effect on each of the City of Oshkosh,Wisconsin's major federal and state programs for the year ended
December 31.2014.City of Oshkosh,Wisconsin's major federal and state programs are identified in the
summary of auditors'results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws,regulations,contracts,and grants
applicable to its federal and state programs.
Auditors'Responsibility
Our responsibility is to express an opinion on compliance for each of City of Oshkosh,Wisconsin's major federal
and state 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;OMB Circular A-133,Audits of States.Local Governments,and Non
profit Organizations,and the State Single Audit Guidelines issued by the Wisconsin Department of
Administration.Those standards,OMB Circular A-133 and the State Single Audit Guidelines 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 or state program
occurred.An audit includes examining,on a test basis,evidence about City of Oshkosh,Wisconsin'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 and
state program.However,our audit does not provide a legal determination of City of Oshkosh,Wisconsin's
compliance.
Opinion on Each Major Federal and State Program
In our opinion. City of Oshkosh,Wisconsin 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 and state
programs for the year ended December 31,2014.
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Report on Internal Control Over Compliance
Management of City of Oshl<osli,Wisconsin 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 City of Oshkosh,Wisconsin's Internal control over compliance with the
types of requirements that could have a direct and material effect on each major federal or state 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 or state program and to test and report on internal control over
compliance in accordance with OMB Circular A-133 and the State Single Audit Guidelines, 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 of Oshkosh,Wisconsin'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 or state 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 or state 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 or state 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
and the State Single Audit Guidelines.Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 and Schedule of
State Financial Assistance Required by the State Single Audit Guidelines
We have audited the financial statements of the governmental activities,the business-type activities,the
discretely presented component unit,each major fund, and the aggregate remaining fund information of the City
of Oshkosh,Wisconsin as of and for the year ended December 31,2014,and the related notes to the financial
statements,which collectively comprise the City of Oshkosh,Wisconsin's basic financial statements.We issued
our report thereon dated August 11,2015, which contained unmodified opinions on those financial statements.
Our audit was conducted for the purpose of fomriing opinions on the financial statements that collectively comprise
the basic financial statements.The accompanying schedule of expenditures of federal awards and schedule of
state financial assistance are presented for purposes of additional analysis as required by OMB Circular A-133
and the State Single Audit Guidelines and are 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 and schedule of state financial assistance are fairly stated
in all material respects in relation to the basic financial statements as a whole.
Certified Public Accountants
Green Bay,Wisconsin
August 11,2015
CITY OF OSHKOSH,WISCONSIN
Schedule of Expenditures of Federal Awards
For the Year Ended December 31,2014
Revenues
Grantor Agency/Federal Program Title Pass-through Agency
Federal
CFDA
Number
(Accrued)
or Defen-ed
Revenue
1/1/14
Cash
Received
Accrued or
(Deferred)
Revenue
12/31/14
Total
Revenues
Total
Expenditures
U.S.DEPARTMENT OF DEFENSE
Community Economic Adjustment Assistance
for Reductions in Defense Industry Employment Direct Program 12.611 $$69,075 $$69,075 $69,075
(466,113)1,086,276 64,311 684,474 684,474
67,344 67,344 67,344
(466,113)1,153,620 64,311 751,818 751,818
-9,634 -9,634 9,634
63,675 _63,675 63,675
-73,309 -73,309 73,309
(140,316)1,598,459 1,458,143 1,458,143
(7,772)33,347 -25,575 25,575
(148,088)1,631,806 -1,483,718 1,483,718
26,904 26,904 26,904
-23,263 -23,263 23,263
50,167 50,167 50,167
297,597 1,494,148 1,791,745 1,791,745
-297,597 1,494,148 1,791,745 1,791,745
$(614.201)$3.275.574 $1.558.459 $4,219,832 $4.219.832
U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Community Development Block Grant
Entitlement Program Direct Program
Community Development Block Grant
States Program Wl Department of Administration
Total U.S.Department of Housing and Urban Development
U.S.DEPARTMENT OF JUSTICE
Bullet Proof Vest Partnership Program
Edward Byrne Memorial Justice
Assistance Grant
Total U.S.Department of Justice
U.S.DEPARTMENT OF TRANSPORTATION
Federal Transit Cluster
Federal Transit-Formula Grants (Urbanized
Area Formula Program)
State and Community Highway Safety
Total U.S.Department of Transportation
U.S.DEPARTMENT OF HEALTH AND HUMAN SERVICES
Grants for Supportive Services and
Senior Centers (Title lll-B)
Title III Part C
Total U.S.Department of Health and
Human Services
U.S.DEPARTMENT OF HOMELAND SECURITY
Hazard Mitigation Grant Program
Total U.S.Department of Homeland Security
Direct Program
Direct Program
Direct Program
Wl Department of Transportation
Winnebago County Committee on Aging
Winnebago County Committee on Aging
Wl Department of Military Affairs
TOTAL EXPENDITURES OF FEDERAL AWARDS
The notes to the schedule of expenditures of federal awards are an integral part of this schedule.
14.228
16.607
16.738
20.507
20.600
93.044
93.045
97.039
CITY OF OSHKOSH,WISCONSIN
Schedule of Expenditures of State Financial Assistance
For the Year Ended December 31,2014
Revenues
(Accrued)Accrued or
State or Deferred (Deferred)
I.D.Revenue Cash Revenue Total Total
Grantor Agency/State Program Title Pass-through Agency Number 1/1/14 Received 12/31/14 Revenues Expenditures
DEPARTMENT OF NATURAL RESOURCES
Recycling Program Direct Program 370.670 $$237,855 $$237,855 $237,855
Wildlife Damage Abatement Direct Program 370.553 -2,500 -2,500 2,500
Urban Nonpoint Source &Storm Water Grants Direct Program 370.658 -150,000 -150,000 150,000
Total Department of Natural Resources -390,355 -390,355 390,355
DEPARTMENT OF TRANSPORTATION
Transit Operating Aids Direct Program 395.104
2009 18,880 (18,880)---
2010 61,480 (61,480)---
2011 (74,324)74,324 ---
2012 (113,120)-113,120 --
2013 (87,735)-87,735 --
2014 -989,313 109,924 1,099,237 1,099,237
Paratransit Aids Direct Program 395.XXX -70,794 -70,794 70,794
Safe Routes to Schools Direct Program 395.XXX -12,869 -12,869 12,869
Total Department of Transportation (194,819)1,066,940 310,779 1,182,900 1,182,900
TOTAL STATE PROGRAMS $n 94.819)$1.457.295 $310.779 $1.573.255 $1.573.255
The notes to the schedule of expenditures of state financial assistance are an integral part of this schedule.
CITY OF OSHKOSH,WISCONSIN
Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance
For the Year Ended December 31,2014
NOTE A -BASIS OF PRESENTATION
In accordance with audit requirements issued by the Office of Management and Budget (0MB) Circular A-133
and the State Single Audit Guidelines issued by the Wisconsin Department of Administration,supplemental
information is presented by the City in regard to federal and state financial assistance programs administered
by the City.
NOTE B -SIGNIFICANT ACCOUNTING POLICIES
Revenues and expenditures in the schedule are presented in accordance with the modified accrual basis of
accounting and are generally in agreement with revenues and expenditures reported in the City's 2014
financial statements.Accrued revenue at year-end consists of federal and state program expenditures
scheduled for reimbursement to the City in the succeeding year while deferred revenue represents advances
for federal and state programs that exceed recorded City expenditures.
Federal Programs:The City of Oshkosh qualifies as a low risk auditee in accordance with paragraph 530 of
OMB Circular A-133.Therefore major programs,as identified in Section I of the Schedule of Findings and
Questioned Costs,represent those with combined expenditures exceeding 25% of total federal awards that
also were deemed major programs based on the auditor's risk assessment.All other federal programs are
considered non-major programs.
State Programs:Major programs represent state assistance programs with expenditures of $100,000 or more
and other state programs classified as major in the State Single Audit Guidelines.All other state assistance
programs required to be included in the Schedule of Expenditures of State Financial Assistance in
accordance with Appendix H of the State Single Audit Guidelines are non-major programs.
NOTE C -OVERSIGHT AGENCIES
The Federal oversight agency for the City is the U.S.Department of Transportation.
The State cognizant agency for the City is the Wisconsin Department of Transportation.
CITY OF OSHKOSH,WISCONSIN
Schedule of Findings and Questioned Costs
For the Year Ended December 31,2014
Section I -Summary of Auditors'Results
Basic Financial Statements
Type of auditors' report issued;Unmodified
Internal control over financial reporting:
• Material weakness(es}identified?No
• Significantdeficiency(ies) identified?None reported
Noncompliance material to basic financial statements noted?None reported
Federal Awards and State Financial Assistance
Intemal control over major program:
• Material weakness(es)identified No
• Significant deficiency(ies) identified?None reported
Type of auditors' report issued on compliance for major programs Unmodified
Any audit findings disclosed that are required to be reported
in accordance with Section 510(a)of Circular A-133?No
Anyaudit findingsdisclosed that are required to be reported in
accordance with the State Single Audit Guidelines?No
Identification of major federal programs:
CFDA Number Name of Federal Program
20.507 Federal Transit Formula Grant
97.039 Hazard Mitigation Grant
Identification of major state programs:
State ID
Number Name of State Program
395.104 Transit Operating Aids
Audit threshold used to determine between Type A and Type B programs:
Federal Awards $300,000
State Financial Assistance $100,000
Auditee qualified as low-risk auditee Yes
CITY OF OSHKOSH,WISCONSIN
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended December 31,2014
Section II -Financial Statement Findings
There are no findings related to the basic financial statements required to be reported under governmental
auditing standards generally accepted in the United States of America for the year ended December 31,2014.
Section III -Federal Award Findings and Questioned Costs
There are no audit findings and questioned costs required to be reported under OMB Circular A-133 "Audits
of States,Local Governments,and Non-Profit Organizations"and the State Single Audit Guideiines for the
year ended December 31,2014.
Section IV -Other Issues
Does the auditors'report or the notes to the financial statement include
disclosure with regard to substantial doubt as to the auditee's ability to
continue as a going concern?Yes X No
Does the audit report show audit issues (i.e.,material non-compliance,non-
material non-compliance,questioned costs,material weakness,significant
deficiency,management letter comment,excess revenue or excess reserve)
related to grants/contracts with funding agencies that require audits to be in
accordance with the State Single Audit Guidelines:
Department of Natural Resources Yes X No
Department of Transportation Yes X No
Department of Administration Yes X No
Department of MilitaryAffairs Yes X No
Name and signature of shareholder
Tho>i1as Karman,CPA
Date of report August 11,2015
CITY OF OSHKOSH,WISCONSIN
Schedule of Prior Year Audit Findings and Corrective Action Plan
For the Year Ended December 31.2014
Prior Year Audit Findings
There were no findings or questioned costs for federal awards for the year ended December 31,2013.
Corrective Action Plan
No corrective action plan is required.
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