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HomeMy WebLinkAbout2018_Federal_and_State_AwardsCity of Oshkosh, Wisconsin FEDERAL AND STATE AWARDS REPORT December 31,2018 City of Oshkosh, Wisconsin DECEMBER 31,2018 Table of Contents FEDERAL AND STATE AWARDS lndependent Auditors' Report on Compliance for Each Major Federal and State Program and on lnternal Control Over Compliance Required by the Uniform Guidance and the Sfafe Single Audit Guidelines Schedule of Expenditures of Federal Awards Schedule of Expenditures of State Awards Notes to the Schedule of Expenditures of Federal and State Awards Schedule of Findings and Questioned Costs Schedule of Prior Year Audit Findings and Corrective Action Plan 1 4 6 8 I 11 FEDERAL AND STATE AWARDS CliftonLarsonAllen LLP CLAconnect.com lndependent auditors' report on compl¡ance for each major federal and state program and on internal control over compliance requ¡red by the Uniform Guidance and the Sfafe 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 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's major federal and state programs for the year ended December 31 ,2018. 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. AU DITORS' 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 Sfafe Srng/e 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 ln 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 31,2018. A member of ø Nexiaolnternational REPORT ON INTERNAL CONTROL OVER COMPLIANCE Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. ln 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 SGHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND THE SCHEDULE OF EXPENDITURES OF STATE AWARDS REQUIRED BY THE UNIFORM GUIDANCE AND THE STATE S'NGIE 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 31,2018, 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 July 31 ,2019, 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 Sfafe Srng/e 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. ln 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. 2 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 Sfafe Srng/e Audit Guidelines. Accordingly, this report is not suitable for any other purpose. kfbr/ar¿-þ4//r*Z/P GliftonLarsonAllen LLP Wausau, Wisconsin September 12,2019 except for the Schedules of Expenditures of Federal and State Awards as to which the date is July 31, 2019 3 City of Oshkosh, Wisconsin SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31.2018 Grantor Agency/Federal Proqram Title U.S DEPARTMENT OF COMMERCE Economic Development Cluster lnvestments for Public Works and Economic Development Facilities 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 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) Bus and Bus Facilities Formula Program Total Federal Transit Cluster Highway Safety Cluster Seat Belt Enforcement 11.300 Direct Program 12.617 East Central Wisconsin Regional Planning Commission 14.218 Direct Program 15.918 Wl Department of Natural Resources Pass-Through Aqencv Direct Program Direct Program Direct Program Direct Program Winnebago County WEDC Winnebago County Committee on Aging Winnebago County Committee on Aging CFDA Number 16.607 16.738 20.507 20.526 20.616 Total U.S. Department of Transportation ENVIRONMENTAL PROTECTION AGENCY Brownfield Training, Research and Technical Assistance 66.814 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Aging Cluster Special Programs for the Aging Title lll, Part B Grants for Supportive Services and Senior Centers 93.044 Special Programs for the Aging Title lll, Part C Nutrition Servicer 93.045 TotalAging Cluster Total U.S. Department of Health and Human Services TOTAL FEDERAL AWARDS The notes to the schedule of expenditures of federal awards are an integral part of this schedute. 4 Pass-Through Entity ldentifying Number (Accrued) Deferred Revenue 1t1t18 Cash Received Accrued (Deferred) Revenue 12131118 Total Expenditures Subrecipient PavmentlRefunded) N/A $ 705,126 $$ 705,126 $ sTl 564-1 6-01 (137,123\619 193 117,535 ,605 N/A RTA-661-14 (42,159)747,429 313,157 18.427 124,2561 679,060 679,060 N/A N/A 8,859 6,000 8,859 6,000 14,859 2,487,514 1,525,715 1,525,715 2,487,514 14,859 N/A N/A 2 .514 1,525,715 4,013,229 2017-25-05-M2 18,327 18,327 2 841 1,525,715 4,031,556 BF FY15-23000 N/A N/A 153,346 53,346 20,700 25,378 46,078 46,078 1,725 22,425 2 115 27 493 3,840 49 918 3,840 49,918 s1s n79.282\_$_5J12CI-eæ_ 5 .247 $ 7.251.897 S 124.256 City of Oshkosh, Wisconsin SCHEDULE OF EXPENDITURES OF STATE AWARDS FOR THE YEAR ENDED BER 31 .2018 G rantor Aoencv/State Proo ram Title State LD. Number Pass-Through Agency Pass-Through Entity ldentifuing Number DEPARTMENT OF NATURAL RESOURCES Recycling Grant to Responsible Units Recycling Consolidation Grants Acquisition and Development of Local Parks Wildlife Damage Abatement Urban Nonpoint Source & Storm Water Grants Total Department of Natural Resources DEPARTMENT OF TRANSPORTATION Transit Operating Aids 2015 2016 2017 2018 Total Transit Operating Aids Paratransit Aids Transportation Economic Assistant Program (TEA) 370.670 370.673 370.TA.2 370.553 370.658 395.104 395.xxx 395.510 Direct Program Direct Program Direct Program Direct Program Direct Program Direct Program Direct Program Direct Program N/A N/A N/A N/A N/A N/A N/A N/A Total Department of Transportation TOTAL STATE PROGRAMS The notes to the schedule of expenditures of state awards are an integral part of this schedule. 6 (Accrued) Deferred Revenue 'U1118 Cash Received (Refunded) Accrued (Defened) Revenue 12t31t18 Total Subrecipient Pavment $$$219,807 17,253 274,340 2,978 25,053 $219,807 $ 17,253 274,340 2,978 25,053 539,431 539,431 (112,45e) (76,034) (12O,822) 112,459 76,034 120,822 (1 19,606)1 ,196,058 1,076,452 (309,315)1 ,196,058 56,730 189,709 1,076,452 56,730 891 945 891 945 (309,315)2 't44 733 189 709 2,025j27 _$_GAe.315L $ 2,684,164 $ 189.709 $ 2.564.558 $ 7 City of Oshkosh, Wisconsin NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2018 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 2OO, Uniform Administrative Requiremenfg Cosf Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Sfafe Srng/e 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 2018 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 1Oo/o oÍ modified total costs. NOTE 3: OVERSIGHT AGENGIES The federal and state oversight agencies for the City are as follows: Federal - U.S. Department of Transportation State - Wisconsin Department of Transportation I City of Oshkosh, Wisconsin SCHEDULE OF FINDINGS AND QUESTIONED COSTS FORTHE YEAR ENDED DECEMBER 31,2018 SECTION I . SUMMARY OF AUDITORS' RESULTS BASIC FINANCIAL STATEMENTS Type of auditors' report issued: lnternal control over financial reporting: > Materialweakness(es)identified? > Significant deficiency(ies) identified? Noncompliance material to basic financial statements noted? FEDERAL AND STATE AWARDS lnternal control over major program: ) Significantdeficiency(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 Sfafe Single Audit Guidelines? ldentification of major federal programs: CFDANumber Name of Federal Unmodified No None Reported None Reported No None reported Unmodified $750,000 $250,000 Yes No No ram 20.507 20.526 ldentification of major state programs: State lD Number Federal Transit Formula Grant Bus and Bus Facilities Formula Program Name of State Program 395.104 395.510 Transit Operating Aids Transportation Facilities Economic Assistance and Derclopment (TEA) Program Audit threshold used to determine between Type A and Type B programs FederalAwards State Awards Auditee qualified as low-risk auditee 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, 2018. I City of Oshkosh, Wisconsin SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2018 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 Sfafe Sing/e Audit Guidelines for the year ended December 31,2018 SECTION IV. OTHER ISSUES 1. Does the auditor have substantial doubt as to the auditee's ability to continue as a going concern? 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 granlcontracts with funding agencies that require audits to be in accordance with the Sfafe Single Audit Guidelines: Department of Transportation Department of Natural Resources 3. Was a Management Letter or other document conveying audit comments issued as a result of this audit? 4. Name and signature of partner No No No Yes 5. Date of report Jon Trautman, CPA September 12,2019 10 City of Oshkosh, Wisconsin SCHEDULE OF PRIOR YEAR AUDIT FINDINGS AND CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2018 PRIOR YEAR AUDIT FINDINGS There were no findings or questioned costs for federal and state awards for the year ended December 31,2017 CORREGTIVE ACTION PLAN No corrective action plan is required. 11