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WEALTH ADVISORY
OUTSOURCING
AUDIT, TAX, AND
CONSULTING
City of Oshkosh, Wisconsin
FEDERAL AND STATE AWARDS REPORT
December 31, 2019
City of Oshkosh, Wisconsin
DECEMBER 31, 2019
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 Guidelines 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
CLA (CliftonLarsonAllen LLP)
CLAconnect.com
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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 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, 2019. 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, 2019.
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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. 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, we did identify a deficiency in internal control over compliance, described in the
accompanying schedule of findings and questioned costs as item 2019-001 that we consider to be a significant
deficiency.
The City’s response to the internal control over compliance finding identified in our audit is described in the
accompanying schedule of findings and questioned costs. The City’s response was not subjected to the auditing
procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND THE SCHEDULE OF
EXPENDITURES OF STATE AWARDS 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, 2019, 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, 2020, 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 generally 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.
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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.
a
CliftonLarsonAllen LLP
Wausau, Wisconsin
August 28, 2020 except for the Schedules of
Expenditures of Federal and State Awards
As to which the date is July 31, 2020
City of Oshkosh, Wisconsin
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2019
CFDA Pass-Throu h
Grantor A enc /Federal Pro ram Title Number A enc
U.S. DEPARTMENT OF DEFENSE
Economic Ad ustment Assistance for State Governments 12.617 East Central Wisconsin Re ional
Plannin Commission
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CDBG - Entitlement Grants Cluster
Communit Develo ment Block Gran
Entitlement Pro ram 14.218 Direct Pro ram
Total U.S. De artment of Housin and Urban Develo ment
U.S. DEPARTMENT OF INTERIOR
Land and Water Conservation Fund 15.916 WI De artment of Natural Resources
Total U.S. De artment of Interior
U.S. DEPARTMENT OF JUSTICE
Bullet Proof Vest Partnershi Pro ram 16.607 Direct Pro ram
Edward B rne Memorial Justice Assistance Gran 16.738 Direct Pro ram
Internet Crimes A ainst Children 16.800 Direct Pro ram
E uitable Sharin Funds 16.922 Direct Pro ram
Total U.S. De artment of Justice
U.S. DEPARTMENT OF TRANSPORTATION
Federal Transit Cluster
Federal Transit-Formula Grants
Urbanized Areas Formula Pro ram 20.507 Direct Pro ram
Bus and Bus Facilities Formula Pro ram 20.526 Direct Pro ram
Total Federal Transit Cluster
Hi hwa Safet Cluster
Seat Belt Enforcement 20.616 Winneba o Count
Total Hi hwa Safet Cluste
Total U.S. De artment of Trans ortation
ENVIRONMENTAL PROTECTION AGENCY
Brownfield Trainin , Research and Technical Assistance 66.814 WEDC
Total Environmental Protection A enc
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Agin Cluste
S ecial Pro rams for the A in Title III, Part B Grants for
Su ortive Services and Senior Centers 93.044 Winneba o Count Committee on A in
S ecial Pro rams for the A in Title III, Part C Nutrition Service 93.045 Winneba o Count Committee on A in
Total A in Cluste
Total U.S. De artment of Health and Human Services
TOTAL FEDERAL AWARDS
The notes to the schedule of ex enditures of federal awards are an inte ral art of this schedule.
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Pass-Throu h Accrued Accrued
Entit Deferred Cash Deferred
Identif in Revenue Received Revenue Total Subreci ient
Number 1/1/19 Refunded 12/31/19 Ex enditures Pa men
ST1564-16-01 117,535$ 117,535$ -$ -$ -$
N/313,157 980,696 134,263 801,802 115,391
313,157 980,696 134,263 801,802 115,391
P19AP00030/55-01904 - 155,088 - 155,088 -
- 155,088 - 155,088 -
N/- 9,244 - 9,244 -
N/- 25,440 - 25,440 -
N/- 11,390 - 11,390 -
N/- 592 - 592 -
- 46,666 - 46,666 -
N/1,525,715 1,525,715 1,575,546 1,575,546 -
N/- 1,076,815 9,871 1,086,686 -
1,525,715 2,602,530 1,585,417 2,662,232 -
2017-25-05-M2 - 37,410 - 37,410 -
- 37,410 - 37,410 -
1,525,715 2,639,940 1,585,417 2,699,642 -
BF FY19-23000 - 150,000 - 150,000 -
- 150,000 - 150,000 -
N/1,725 22,425 - 20,700 -
N/2,115 27,493 - 25,378 -
3,840 49,918 - 46,078 -
3,840 49,918 - 46,078 -
1,960,247$ 4,139,843$ 1,719,680$ 3,899,276$ 115,391$
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City of Oshkosh, Wisconsin
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2019
Pass-Throu h
Entit
State I.D. Pass-Throu h Identif in
Grantor A enc /State Pro ram Title Number enc Number
DEPARTMENT OF NATURAL RESOURCES
Recycling Grant to Responsible Units 370.670 Direct Program N/A
Recycling Consolidation Grants 370.673 Direct Program N/A
Knowles Nelson Stewardship Program 370.TA10 Direct Program N/A
Urban Nonpoint Source & Storm Water Grants 370.658 Direct Pro ram N/
Total Department of Natural Resources
DEPARTMENT OF TRANSPORTATION
Transit Operating Aids 395.104 Direct Program N/A
2015
2016
2017
2018
2019
Total Transit Operating Aids
Paratransit Aids 395.xxx Direct Program N/A
Transportation Economic Assistant Program (TEA) 395.510 Direct Program 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.
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(Accrued ccrued
Deferred Cash Deferred
Revenue Received Revenue Total Subrecipient
1/1/19 Refunded 12/31/19 Expenditures Pa ment
-$ 220,099$ -$ 220,099$ -$
- 17,032 - 17,032 -
- 45,000 - 45,000 -
- 5,000 - 5,000 -
- 287,131 - 287,131 -
(112,459) 112,459 - - -
(76,034) 18,476 57,558 - -
(120,822) 117,721 60,659 57,558 -
119,606 (3,600) (116,006) - -
- 1,165,052 (119,606) 1,045,446 -
(189,709) 1,410,108 (117,395) 1,103,004 -
- 57,555 - 57,555 -
- 471,736 - 471,736 -
(189,709) 1,939,399 (117,395) 1,632,295 -
(189,709)$ 2,226,530$ (117,395)$ 1,919,426$ -$
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City of Oshkosh, Wisconsin
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2019
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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 2019 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 of Transportation
State - Wisconsin Department of Transportation
City of Oshkosh, Wisconsin
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
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SECTION I - SUMMARY OF AUDITORS’ RESULTS
BASIC FINANCIAL STATEMENTS
Type of auditors’ report issued: Unmodified
Internal control over financial reporting:
f Material weakness(es) identified? No
f Significant deficiency(ies) identified? None Reported
Noncompliance material to basic financial statements noted? None Reported
FEDERAL AND STATE AWARDS
Internal control over major program:
f Material weakness(es) identified? No
f Significant deficiency(ies) identified? Yes
Type of auditors’ report issued on compliance for major programs Unmodified
Any audit findings disclosed that are required to be reported in accordance
with 2 CFR 200.516(a)? No
Any audit findings disclosed 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
14.218 Community Development Block Grant Entitlement Progr
Federal Transit Cluster
20.507 Federal Transit Formula Grant
20.526 Bus and Bus Facilities Formula Program
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 $750,000
State Awards $250,000
Auditee qualified as low-risk auditee 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, 2019.
City of Oshkosh, Wisconsin
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
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SECTION III - FEDERAL AND STATE AWARD FINDINGS AND QUESTIONED COSTS
FINDING NO. UNIFORM GUIDANCE AND STATE SINGLE AUDIT GUIDELINES FINDINGS
2019-001 Time & Effort Documentation
Federal Agency: US Department of Housing and Urban Development
Federal program title: Community Development Block Grant Entitlement Program
CFDA Number: 14.218
Pass-Through Agency: n/a
Pass-Through Numbers(s): n/a
ward Period: 5/1/2019 – 4/30/2020
Type of Finding: Significant Deficiency in Internal Control over Compliance
Compliance
Requirement:
llowable Costs
Criteria: Total salaries charged to Federal awards (including extra service pay) are subject to the
Standards of Documentation as described by 2 CFR §200.430(i). Per this section, salaries and
wages charged to Federal awards must be based on records that accurately reflect the work
performed. These records must:
x Be incorporated into the organization’s official records;
x Reasonably reflect the total activity for which the employee is compensating across all
grant-related and non-grant related activities (100% effort);
x Support the distribution of employee salary across multiple activities or cost objectives
(for example, effort spent on multiple federal awards, spent on general/or administrative
activities, vacation, sick leave, leave without pay, etc.); and
x Utilize an "after-the-fact" review of the employee’s actual hours worked during the
reporting period for identifying and correcting significant changes (as defined by the
organization’s written policies).
Condition: The Community Development Department of the City of Oshkosh is responsible for the operation
of the Community Development Block Grant. Our audit noted that the City’s Community
Development Department utilizes time studies to allocate payroll costs between grant and non-
grant activities. Documentation was not maintained for one individual within the department to
support the allocation of payroll costs.
Questioned Costs: None
Cause: The individual in question is no longer employed by the City and as such the City was not able to
locate the necessary documentation.
Effect: The City did not have the required documentation to support the allocation of payroll costs to the
grant program. The City did not allocate all of the employee’s wages, and the position was
directly associated with the grant program and therefore no questioned costs were identified.
Recommendation: We recommend the Department establish a policy and implement procedures to ensure
compliance with the standards associated with the documentation of payroll costs under Uniform
Guidance
View of Responsible
Officials
There is no disagreement with the audit finding. Please refer to the management response in the
City’s corrective action plan.
City of Oshkosh, Wisconsin
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
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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 ____________________________
Jon Trautman, CPA
5. Date of report August 28, 2020
City of Oshkosh, Wisconsin
SCHEDULE OF PRIOR YEAR AUDIT FINDINGS AND CORRECTIVE ACTION PLAN
FOR THE YEAR ENDED DECEMBER 31, 2019
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PRIOR YEAR AUDIT FINDINGS
There were no findings or questioned costs for federal and state awards for the year ended December 31, 2018.
CORRECTIVE ACTION PLAN
No corrective action plan is required.
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