HomeMy WebLinkAbout2015_Federal_and_State_AwardsCITY OF OSHKOSH, WISCONSIN
FEDERAL AWARDS AND STATE
FINANCIAL ASSISTANCE REPORT
DECEMBER 31, 2015
CITY OF OSHKOSH, WISCONSIN
December 31, 2015
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 Uniform Guidance and the Schedule of State Financial Assistance and
the State Single Audit Guidelines 3 - 4
Schedule of Expenditures of Federal Awards 5 - 6
Schedule of Expenditures of State Financial Assistance 7
Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance 8
Schedule of Findings and Questioned Costs 9 -10
Schedule of Prior Year Audit Findings and Corrective Action Plan 11
Schenck
ADVISORY I TAX I ASSURANCE
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, 2015, 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 16, 2016.
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 on the effectiveness of the 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Oshkosh, Wisconsin's financial statements
are free of 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.
schencksc.com
Schenck SC
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 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 16, 2016
2
Schenck
ADVISORY I TAX ASSURANCE
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 AND THE SCHEDULE OF STATE FINANCIAL ASSISTANCE
REQUIRED BY THE UNIFORM GUIDANCE AND THE STATE SINGLE AUDIT GUIDELINES
To Common 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. S. Office of Management and Budget (OMB) 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, 2015. The 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 the 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; 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), and the State Single Audit Guidelines issued by the Wisconsin Department of Administration.
Those standards, Uniform Guidance 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 the 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 the City of Oshkosh, Wisconsin's
compliance.
Opinion on Each Major Federal and State Program
In our opinion, the 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 a
programs for the year ended December 31, 2015.
schencksc.com
Schenck SC
Report on Internal Control Over Compliance
Management of the City of Oshkosh, 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 the 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 the Uniform Guidance 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.
Report on Schedule of Expenditures of Federal Awards and the Schedule of State Financial Assistance
Required by the Uniform Guidance and 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, 2015, 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 16, 2016, 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 and schedule of
state financial assistance are presented for purposes of additional analysis as required by the Uniform Guidance
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.
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 and the State Single Audit Guidelines. Accordingly, this report is not suitable for any other purpose.
Certified Public Accountants
Green Bay, Wisconsin
August 16, 2016
4
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CITY OF OSHKOSH, WISCONSIN
Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance
For the Year Ended December 31, 2015
NOTE A - BASIS OF PRESENTATION
In accordance with audit requirements issued by the Comptroller General of the United States Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance) 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 2015
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 2 CFR
section 200.520. Therefore major programs, as identified in Section I of the Schedule of Findings and
Questioned Costs, represent those with combined expenditures exceeding 20% of total federal awards that also
were deemed major programs based on the auditor's risk assessment. All other federal programs are
considered nonmajor programs.
State Programs: Major programs represent state assistance programs with expenditures of $250,000 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.
8
CITY OF OSHKOSH, WISCONSIN
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2015
Section I - Summary of Auditors' Results
Basic Financial Statements
Type of auditors' report issued:
Internal control over financial reporting:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
Noncompliance material to basic financial statements noted?
Federal Awards and State Financial Assistance
Internal control over major program:
• Material weakness(es) identified
• Significant deficiency(ies) identified?
Type of auditors' report issued on compliance for major programs
Any audit findings disclosed that are required to be reported
in accordance with the Uniform Guidance?
Any audit findings disclosed that are required to be reported in
accordance with the State Single Audit Guidelines?
Identification of major federal programs:
CFDA Number I Name of Federal Program
Federal Transit Cluster
20.507 Federal Transit Formula Grant
20.500 Federal Transit Capital Investment 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
State Financial Assistance
Auditee qualified as low -risk auditee
Unmodified
No
None reported
None reported
No
None reported
Unmodified
No
No
$750,000
$250,000
Yes
E
CITY OF OSHKOSH, WISCONSIN
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended December 31, 2015
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, 2015.
Section III - Federal Award Findings and Questioned Costs
There are no audit findings and questioned costs required to be reported under the Uniform Guidance and the
State Single Audit Guidelines for the year ended December 31, 2015.
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 Justice
Yes
X No
Department of Military Affairs
Yes
X No
Name and signature of shareholder
Thomas Karman, CPA
Date of report
August 16, 2016
10
CITY OF OSHKOSH, WISCONSIN
Schedule of Prior Year Audit Findings and Corrective Action Plan
For the Year Ended December 31, 2015
Prior Year Audit Findings
There were no findings or questioned costs for federal and state awards for the year ended December 31, 2014.
Corrective Action Plan
No corrective action plan is required.
11