HomeMy WebLinkAbout2016_Federal_and_State_AwardsCITY OF OSHKOSH, WISCONSIN
FEDERAL AWARDS AND STATE
FINANCIAL ASSISTANCE REPORT
DECEMBER 31, 2016
CITY OF OSHKOSH, WISCONSIN
December 31, 2016
Table of Contents
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Page No.
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
and the Schedule of State Financial Assistance Required by Uniform Guidance and
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 1 O
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ADVISORY TAX ASSURANCE
INDEPENDENT AUDITORS ' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AN D
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 , W iscons in
We have audited , in accordance with the auditing standa rds 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 act ivities , the business -type
activities, the discretely presented component unit, each major fund , and the aggregate remain i ng fund information
of the City of Oshkosh , Wisco nsin , as of and for the yea r ended December 31 , 20 16, and the related notes to the
financial statements , which collectively comprise the City of Oshkosh 's basic financia l statements , and have
issued our report the reon dated August 15 , 2017 .
Internal Control Over Financial Reporting
In planning and perfo rming our audit of the financ ial st atements, we considered the C ity of Oshkosh , Wisconsi n's
in ternal co ntrol over financ ial r epo rt ing (interna l control) to dete rmine th e aud it procedures that are app rop ri ate in
the ci r cum stances fo r the pu rpose of exp r ess in g our opin ions on the financial statements , but not fo r the pu rpose
of expressing an opinion on the effectiveness of the Ci ty of Oshkosh , Wiscons in's internal control. According ly,
we do not express an opin ion on the effectiveness of the City of Oshkosh , Wisconsin 's interna l control.
A deficiency in internal con trol exists when the design or operation of a con trol does no t allow management or
employees , in the normal course of performing their assigned functions , to prevent, or detect and correc t,
m isstatements on a timely basis . A material weakness is a deficiency, or combination of defi ciencies , in internal
control , such that th ere is a reasonable possibility that a material misstatement of the City's financial statements
wi ll not be pr evented , or detected and co rrected on a timely basis. A significant deficiency is a deficiency, or a
comb inat ion of deficiencies, in internal control that is less seve re than a material weakness , yet important enough
to merit attention by those charged w ith governance.
Our cons id eration of int ernal control was for the limited purpose described in the first parag raph of this section
and was not designed to id entify al l deficiencies in interna l control that might be material weaknesses or
significant defic ie ncies. Given these limitations, during our audit we did not identify any deficiencies in internal
control th at we conside r to be ma teri al weak nesses . However, ma teria l weaknesses may ex ist that have not
been identifi ed.
Compliance a nd Other Matters
As pa rt of obtaining reasonable assurance about whether the City of Oshkosh , Wisco nsin's financial statements
are free of materia l m isstatement, we perfo rm ed tests of its compliance with certain provi s ions of laws,
regulations , contracts and grant agreements , noncompliance with which could have a direct and ma terial effect on
the determination of financia l statement amounts . Howe ver, provid in g an opinion on compliance with those
provisions was not an objective of our audit , and accordingly, we do not express such an opinion. The resu lts of
ou r tests disclosed no in stances of noncompl iance or other matters that are required to be reported under
Government Auditing Standards.
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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
August15,2017
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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
REQU IRED 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 comp l iance 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 cou ld have a direct and material
effect on each of the City of Oshkosh , Wisconsin 's major fede ra l and state programs for the year ended
December 31 , 2016. The City of Oshkosh , Wiscons in's major federal and state programs are identified in the
summary of auditors ' resu lts section of the accompanying schedu le 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 federa l and state programs.
Auditors' Responsibility
Our responsibility is to express an opinion on complia nce for each of the City of Oshko sh , Wisconsin 's major
federal and state programs based on our audit of the types of comp liance requirements referred to a bove. We
conducted our aud it of compliance in accordance with auditing standards generally accepted in the United States
of America; the standa r ds app licab le to financial audits con tained in Government Auditing Standards , issued by
the Comptroller Genera l of the United States; the audit requirements of Ti tle 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.
Th ose 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 requ irements
referred to above that cou ld have a direct and material effect on a major federal or state program occur red. An
a ud it includes exam inin g , on a test basis , evidence abou t 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 prov ides a reasonable basis for our opinion on compliance for each major federa l 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 , w ith the types of comp liance
re qu irements referred to above that cou ld have a direct and materi al effect on each of its maj or federa l and state
programs fo r the year ended December 31 , 2016.
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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, 2016, 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 15, 2017, 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.
~~Sc.
Certified Public Accountants
Green Bay, Wisconsin
August15,2017
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Granter Agency/Federal Program Title Pass-through Agency
U.S. DEPARTMENT OF COMMERCE
Economic Development Cluster
Investments for Public Works and Economic
Development Facilities Direct Program
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CDBG -Entitlement Grants Cluster
Community Development Block Grant
Entitlement Program Direct Program
U.S. DEPARTMENT OF JUSTICE
Bullet Proof Vest Partnership Program Direct Program
Edward Byrne Memorial Justice
Assistance Grant Direct Program
Total U.S. Department of Justice
U.S. DEPARTMENT OF TRANSPORTATION
Highway Plannning and Construction Cluster
Recreational Trails Program WI Department of Natural Resources
Federal Transit Cluster
Federal Transit-Formula Grants (Urbanized
Area Formula Program) Direct Program
Highway Safety Cluster
State and Community Highway Safety WI Department of Transportation
Total U.S. Department of Transportation
U.S. DEPARTME~T OF HEAL TH AND HUMAN SERVICES
Aging Cluster
Grants for Supportive Services and
Senior Centers (Title 111-B) Winnebago County Committee on Aging
Title Ill PartC Winnebago County Committee on Aging
Total Aging Cluster
Total U.S. Department of Health and
Human Services
TOTAL EXPENDITURES OF FEDERAL AWARDS
CITY OF OSHKOSH, WISCONSIN
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2016
(Accrued)
Federal or Deferred
Pass-through CFDA Revenue
Identification Number Number 1/1/16
N/A 11.300 $
N/A 14.218 (40,484)
N/A 16.607
N/A 16.738
RTA-661-14 20.219
N/A 20.507
N/A 20.600
N/A 93.044
N/A 93.045
$ {401484}
The notes to the schedule of expenditures of federal awards are an integral part of this schedule.
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Revenues
Accrued or
(Deferred)
Cash Revenue Total Total Subrecipient
Received 12/31/16 Revenues Expenditures Payments
$ 843,978 $ $ 843,978 $ 843,978 $
1,083,770 60,578 1,103,864 1,103,864 111,214
6,715 6,715 6,715
6,643 6,643 6,643
13,358 13,358 13,358
45,000 45,000 45,000
1,453,329 1,453,329 1,453,329
22,457 22,457 22,457
1,520,786 1,520,786 1,520,786
20,225 20,225 20,225
24,123 24,123 24,123
44,348 44,348 44,348
44,348 44,348 44,348
$ 3,506,240 $ 60,578 $ 31526.334 $ 3.5261334 $
Grantor Agency/State Program Title Pass-through Agency
DEPARTMENT OF NATURAL RESOURCES
Recycling Grants to Responsible Units Direct Program
Recycling Consolidation Grants Direct Program
Urban Nonpoint Source & Storm Water Grants Direct Program
Total Department of Natural Resources
DEPARTMENT OF TRANSPORTATION
Transit Operating Aids Direct Program
2014
2015
2016
Paratransit Aids Direct Program
Total Department of Transportation
TOTAL STATE PROGRAMS
CITY OF OSHKOSH, WISCONSIN
Schedule of Expenditures of State Financial Assistance
For the Year Ended December 31, 2016
Revenues
(Accrued) Accrued or
State or Deferred (Deferred)
Pass-through l.D. Revenue Cash Revenue
Identification Number Number 1/1/16 Received 12131/16
N/A 370.670 $ $ 208,711 $
N/A 370.673 17,403
N/A 370.658 43,175
269,289
N/A 395.104
(109,924) 109,924
(112,459) 112,459
846,405 245,315
N/A 395.xxx 54,770
(222,383) 1,011,099 357,774
$ (222,383) $ 1,280,388 $ 357,774
The notes to the schedule of expenditures of state financial assistance are an integral part of this schedule.
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Total Total Subrecipient
Revenues Expenditures Payments
$ 208,711 $ 208,711 $
17,403 17,403
43,175 43,175
269,289 269,289
1,091,720 1,091,720
54,770 54,770
1,146,490 1,146,490
$ 1,415,779 $ 1,415,779 $
CITY OF OSHKOSH, WISCONSIN
Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance
For the Year Ended December 31, 2016
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 2016
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. The City has not elected to charge a
de minim is indirect rate of 10% of modified total direct costs.
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 Hof 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.
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CITY OF OSHKOSH, WISCONSIN
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2016
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 Name of Federal Program
Federal Transit Cluster
20.507 Federal Transit Formula Grant
Economic Development Cluster
Unmodified
No
None reported
None reported
No
None reported
Unmodified
No
No
11.300 Investments for Public Works and Economic Development Facilities
CDBG -Entitlement Grants Cluster
14.218 Community Development Block Grant Entitlement Program
Identification of major state programs:
State ID
Number
395.104 Transit Operating Aids
Name of State Program
Audit threshold used to determine between Type A and Type B programs:
Federal Awards
State Financial Assistance
Auditee qualified as low-risk auditee
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$750,000
$250,000
Yes
CITY OF OSHKOSH, WISCONSIN
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended December 31, 2016
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, 2016.
Section Ill -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, 2016.
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?
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
Department of Transportation
Name and signature of shareholder
Date of report
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Yes x No ------
Yes X No ------Yes x No ------
August15,2017
CITY OF OSHKOSH, WISCONSIN
Schedule of Prior Year Audit Findings and Corrective Action Plan
For the Year Ended December 31, 2016
Prior Year Audit Findings
There were no findings or questioned costs for federal and state awards for the year ended December 31, 2015.
Corrective Action Plan
No corrective action plan is required.
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