HomeMy WebLinkAbout2017_Federal_and_State_AwardsCity of Oshkosh, Wisconsin
FEDERAL AND STATE AWARDS REPORT
December 31, 2017
Schenck
City of Oshkosh, Wisconsin
DECEMBER 31, 2017
Table of Contents
FEDERAL AND STATE AWARDS
Independent Auditors' Report on Compliance For Each Major Federal and State Program
and on Internal Control Over Compliance Required by the Uniform Guidance and the
State Single Audit Cuidelines 1
Schedule of Expenditures of Federal Awards 4
Schedule of Expenditures of State Awards 6
Notes to the Schedule of Expenditures of Federal and State Awards 8
Schedule of Findings and Questioned Costs 9
Schedule of Prior Year Audit Findings and Corrective Action Plan 11
FEDERAL AND STATE AWARDS
Schenck
ADVISORY I TAX I ASSURANCE
Independent auditors' report on oompiianoe for each major federal and state
program and on Internal control over compliance required by the Uniform
Guidance and the State Single Audit Guidelines
To the Common Council
City oF Oshkosh, Wisconsin
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL AND STATE PROGRAM
We have audited City oF Oshkosh, Wisconsin's {the "City's") compliance with the types oF compliance requirements
described in the U.S. Office ofManagement and Budget (0MB) 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's major Federal and state programs For the year ended December 31, 2017. The City'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 Federal and state statutes, regulations, and the
terms and conditions oF its Federal and state awards applicable to its Federal and state programs.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on compliance For each oF the City'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'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's compliance.
OPINION ON EACH MAJOR FEDERAL AND STATE PROGRAM
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 each oF its major Federal and state programs For the year ended
December 31,2017.
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Schenck SC
REPORT ON INTERNAL CONTROL OVER COMPLIANCE
Managemenb of the City 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'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 and 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'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 and therefore, material weaknesses or significant deficiencies may exist that
were not identified. 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
EXPENDITURES OF STATE AWARDS REQUIRED BYTHE 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 31,2017, 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 20,2018, which contained an unmodified opinion 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 expenditures of state awards 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 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 general accepted in the
United States of America. In our opinion, the schedule of expenditures of federal awards and schedule of expenditures
of state awards 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.
sScJl£V<A' de
certified Public Accountants
Green Bay, Wisconsin
August 20, 2018, except for the Report on Schedule of
Expenditures of Federal Awards and the Schedule of
Expenditures of State Awards as detailed in Note 4
as to which the date is September 20,2018
City of Oshkosh, Wisconsin
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FDR THE YEAR ENDED DECEMBER 31, 2017
Grantor Agency/Federal Program Title
U.S. DEPARTMENT OF DEFENSE
Economic Adjustment Assistance for State Governments
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CDBG - Entitlement Grants Cluster
Community Development Block Grant
Entitlement Program
U.S. DEPARTMENT OF INTERIOR
Fish and Wildlife Cluster
Outdoor Recreation Acquisition, Development & Planning
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 Areas Formula Program)
Highway Safety Cluster
Seat Belt Enforcement
Total Highway Safety Cluster
Total U.S. Department of Transportation
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Aging Cluster
Special Programs for the Aging Title III, Part B Grants for
Supportive Services and Senior Centers
Special Programs for the Aging Title III, Part C Nutrition Services
Total Aging Cluster
Total U.S. Department of Health and Human Services
U.S. DEPARTMENT OF HOMELAND SECURITY
Assistance to Firefighters Grant Program
Fire Prevention and Safety Grants
Total U.S. Department of Homeland Security
TOTAL FEDERAL AWARDS
CFDA
Number
12.617
14.218
16.607
16.738
20.507
20.616
97.044
Pass-Through
Agency
East Central Wisconsin Regional
Planning Commission
Direct Program
15.918 Wl Department of Natural Resources
Direct Program
Direct Program
Direct Program
Winnebago County
93.044 Winnebago County Committee on Aging
93.045 Winnebago County Committee on Aging
Direct Program
The notes to the schedule of expenditures of federal awards are an integral part of this schedule.
Pass-Through
Entity
Identifying
Number
(Accrued)
Deferred
Revenue
1/1/17
Cash
Received
(Refunded)
Accrued
(Deferred)
Revenue
unim
Total
Expenditures
Subreclplent
Payment
ST1564-16-01 $ 238.965 5 137.123 $ 376.088 _$_
N/A $ (60.578) $ 679.583 $ 42.159 $ 661.164 $ 70.816
RTA-661-14 390,262 390.262
N/A 10,164 10,164
N/A 17,739 17,739 -
27,903 27,903
N/A 1,500,009 1,500,009
2017-25-05-M2 25,063 25,063
25,063 25,063 -
1,525,072 1,525,072
N/A 22,725 22,725
N/A 23,263 23.263 -
45,988 45.988 -
45,988 45.988
N/A 80,644 80.644
80,644 80.644
$(60.578) 5 2.988.417 5 179.282 5 3.107.121 5 70.816
City of Oshkosh, Wisconsin
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31. 2017
Grantor Agency/State Program Title
state i.D.
Number
Pass-Through
Agency
Pass-Through
Entity
Identifying
Number
DEPARTMENT OF NATURAL RESOURCES
Recycling Grant to Responsible Units
Recycling Consolidation Grants
Acquisition and Development of Local Parks
Total Department of Natural Resources
370.670
370.673
370.TA2
Direct Program
Direct Program
Direct Program
N/A
N/A
N/A
DEPARTMENT OF TRANSPORTATION
Transit Operating Aids
2015
2016
2017
Total Transit Operating Aids
Paratransit Aids
395.104
395.XXX
Direct Program
Direct Program
N/A
N/A
Total Department of Transportation
TOTAL STATE PROGRAMS
The notes to the schedule of expenditures of state awards are an integral part of this schedule.
(Accrued)
Deferred
Revenue
1/1/17
cash
Received
(Refunded)
Accrued
(Deferred)
Revenue
lZI31fl7
Total
Expenditures
Subrecipient
Payment
219,807 $
17,103
589,671
826,581
219,807
17,103
589.671
826,581
(112,459)
(245,315)169,281
112,459
76,034
(357,774)1,228,771
54,606
309,315 1,180,312
54,606
(357,774)1,283,377 309,315 1,234,918
$(357.774) S 2.109.958 S 309.315 S 2.061.499 5
City of Oshkosh, Wisconsin
NOTES TO SCHEDULE OF EXPENDITURES DP FEDERAL AND STATE AWARDS
FDR THE YEAR ENDED DECEMBER 31, 2017
NOTE 1: BASIS OF PRESENTATION
The accompanying Schedules of Expenditures oF Federal and State Awards For the City are presented in accordance
with the 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.
The Schedules oF Expenditures oF Federal and State Awards include all Federal and state awards oF the City. Because
the schedules present only a selected portion oF the operations oF the City, it is not intended to and does not present
the Financial position, changes in net position, or cash Flows oF the City.
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES
Revenues and expenditures in the schedules 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 2017 Fund 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 unearned revenue represents advances For Federal and state programs that exceed
recorded City expenditures. Because oF subsequent program adjustments, these amounts may diFFer From the prior
year's ending balances.
The City has not elected to charge a de minimis rate oF 10% oF modiFied total costs.
NOTE 3: OVERSIGHT AGENCIES
The Federal and state oversight agencies For the City are as Follows:
Federal - U.S. Department oFTransportation
State - Wisconsin Department oF Transportation
NOTE A: RESTATEMENT OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND SCHEDULE OF
EXPENDITURES OF STATE AWARDS
Subsequent to issuance oF the report on the Schedule oF Expenditures oF Federal Awards and the Schedule oF
Expenditures oF State Awards on August 20,2018, we became aware oF a Federal grant program - Economic
Adjustment Assistance For State Governments, CFDA No. 12.617, which wasn't included. Restatement to include these
grant expenditures didn't aFFect our Report on Compliance For Each Major Federal and State Program or the Report on
Internal Control over Compliance.
City of Oshkosh, Wisconsin
SCHEDULE OF FINDINGS AND QUESTIDNED CDSTS
FDR THE YEAR ENDED DECEMBER 31, 2017
SECTION 1 - 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 AND STATE AWARDS
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 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
UnmodiFied
No
None Reported
None Reported
No
None reported
UnmodiFied
No
No
20.507 Federal T ransit Cluster
Federal T ransit Formula Grant
IdentiFication oF major state programs:
State ID Number Name of state Program
395.104
370.TA2
T ransit Operating Aids
Acquisition and Development oF Local Parks
Audit threshold used to determine between Type A and Type B programs:
Federal Awards
State Awards
Auditee qualiFied as low-risk auditee
$750,000
$250,000
Yes
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 31,2017.
City of Oshkosh, Wisconsin
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FDR THE YEAR ENDED DECEMBER 31, 2017
SECTION III - FEDERAL AND STATE 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, 2017
SECTION IV-OTHER ISSUES
1. Does the auditor have substantial doubt as to the auditee's ability to continue
as a going concern? No
2. Does the audit report show audit issues (i.e. material non-compliance, non-material
non-compliance, questioned cost, material weakness, significant deficiencies, management
letter comment, excess revenue or excess reserve) related to grant/contracts with funding
agencies that require audits to be in accordance with the State Single Audit Guidelines:
Department of Transportation No
Department of Natural Resources No
3. Was a Management Letter or other document conveying audit comments issued as a result
of this audit? Yes
4. Name and signature of partner
JonTrautman, CPA
5. Date of report August 20, 2018
10
City of Oshkosh, Wisconsin
SCHEDULE GF PRIOR YEAR AUDIT FINDINGS AND CORRECTIVE ACTION PLAN
FDR THE YEAR ENDED DECEMBER 31, 2017
PRIOR YEAR AUDIT FINDINGS
There were no Findings or questioned costs For Federal and state awards For the year ended December 31,2016
CORRECTIVE ACTION PLAN
No corrective action plan is required.
11