HomeMy WebLinkAbout2020_Federal_and_State_AwardsCity of Oshkosh, Wisconsin
FEDERAL AND STATE AWARDS REPORT
December 31, 2020
City of Oshkosh, Wisconsin
DECEMBER 31, 2020
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
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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
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 (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, 2020. 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, 2020.
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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 2020-001 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, 2020, 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 2, 2021, 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.
CliftonLarsonAllen LLP
Wausau, Wisconsin
September 27, 2021
a
City of Oshkosh, Wisconsin
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2020
CFDA Pass-Through
Grantor Agency/Federal Program Title Number Agency
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CDBG - Entitlement Grants Cluster
Community Development Block Grant
Entitlement Program 14.218 Direct Program
U.S. DEPARTMENT OF JUSTICE
Bullet Proof Vest Partnership Program 16.607 Direct Program
Edward Byrne Memorial Justice Assistance Grant 16.738 Direct Program
Total U.S. Department of Justice
U.S. DEPARTMENT OF TRANSPORTATION
Federal Transit Cluster
Federal Transit-Formula Grants
(Urbanized Areas Formula Program)20.507 Direct Program
Bus and Bus Facilities Formula Program 20.526 Direct Program
Total Federal Transit Cluster
Highway Safety Cluster
Seat Belt Enforcement 20.616 Winnebago County
Total Highway Safety Cluster
Total U.S. Department of Transportation
U.S. DEPARTMENT OF TREASURY
COVID 19 - Coronavirus Relief Fund 21.019 WI Department of Administration
Total U.S. Department of Treasury
U.S. ELECTION ASSISTANCE COMMISSION
2018 HAVA Election Security Grants 90.404 WI Elections Commission
Total U.S. Election Assistance Commission
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 93.044 Winnebago County Committee on Aging
Special Programs for the Aging Title III, Part C Nutrition Services 93.045 Winnebago County Committee on Aging
Total Aging 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 schedule.
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Pass-Through (Accrued)Accrued
Entity Deferred Cash (Deferred)
Identifying Revenue Received Revenue Total Subrecipient
Number 1/1/20 (Refunded)12/31/20 Expenditures Payment
N/A (134,263)$ 596,317$ 95,866$ 557,920$ -$
N/A - 5,092 - 5,092 -
N/A - 14,920 - 14,920 -
- 20,012 - 20,012 -
N/A (1,575,546) 1,575,546 1,601,867 1,601,867 -
N/A (9,871) 9,871 - - -
(1,585,417) 1,585,417 1,601,867 1,601,867 -
2020-25-05-M2 - 37,805 - 37,805 -
- 37,805 - 37,805 -
(1,585,417) 1,623,222 1,601,867 1,639,672 -
N/A - 1,208,475 - 1,208,475 -
- 1,208,475 - 1,208,475 -
N/A - 38,793 - 38,793 -
- 38,793 - 38,793 -
N/A - 20,700 - 20,700 -
N/A - 21,148 - 21,148 -
- 41,848 - 41,848 -
- 41,848 - 41,848 -
(1,719,680)$ 3,528,667$ 1,697,733$ 3,506,720$ -$
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City of Oshkosh, Wisconsin
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2020
Pass-Through
Entity
State I.D.Pass-Through Identifying
Grantor Agency/State Program Title Number Agency Number
DEPARTMENT OF NATURAL RESOURCES
Forest Fire Protection 370.545 Direct Program N/A
Wildlife Damage Control 370.553 Direct Program N/A
Municipal Flood Control 370.658 Direct Program N/A
Recycling Grants to Responsible Units 370.670 Direct Program N/A
Total Department of Natural Resources
DEPARTMENT OF TRANSPORTATION
Transit Operating Aids 395.104 Direct Program N/A
Paratransit Aids 395.xxx Direct Program N/A
Transportation Economic Assistant Program (TEA)395.510 Direct Program N/A
Total Department of Transportation
DEPARTMENT OF MILITARY AFFAIRS
Regional Emergency Response Teams 465.306 Direct Program N/A
Emergency Response Equipment Grants 465.308 Direct Program N/A
Total Department of Military Affairs
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)Accrued
Deferred Cash (Deferred)
Revenue Received Revenue Total Subrecipient
1/1/20 (Refunded)12/31/20 Expenditures Payment
-$ 5,838$ -$ 5,838$ -$
- 2,517 - 2,517 -
- 360,706 - 360,706 -
- 237,038 - 237,038 -
- 606,099 - 606,099 -
117,395 1,256,356 (119,870) 1,253,881 -
- 63,042 - 63,042 -
- 315,764 - 315,764 -
117,395 1,635,162 (119,870) 1,632,687 -
- 45,075 - 45,075 -
- 69,211 - 69,211 -
- 114,286 - 114,286 -
117,395$ 2,355,547$ (119,870)$ 2,353,072$ -$
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City of Oshkosh, Wisconsin
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2020
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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 2020 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.Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards and the State Single Audit Guidelines for all awards with the exception of CFDA 21.019, which follows
criteria determined by the Department of Treasury for allowability costs. Under these principles, certain types of
expenditures are not allowable or are limited as to reimbursement.
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, 2020
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SECTION I -SUMMARY OF AUDITORS’ RESULTS
BASIC FINANCIAL STATEMENTS
Type of auditors’ report issued:Unmodified
Internal control over financial reporting:
Material weakness(es) identified?No
Significant deficiency(ies) identified?Yes
Noncompliance material to basic financial statements noted?None Reported
FEDERAL AND STATE AWARDS
Internal control over major programs:
Material weakness(es) identified?No
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)?Yes
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 Nam e of Federal Program
Federal Trans it Cluster
20.507 Federal Trans it Formula Grant
21.019 Coronavirus Relief Fund
Identification of major state programs:
State ID Num ber Nam e of State Program
370.658 Municipal Flood Control
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
City of Oshkosh, Wisconsin
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2020
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SECTION II -FINANCIAL STATEMENT FINDINGS
FINDING NO.CONTROL DEFICIENCIES –SIGNIFICANT DEFICIENCY
2020-001 Adjustments to the City’s Financial Records
Condition:During the year, the City recorded a prior period adjustment pertaining to duplicate capital
assets within the Redevelopment Authority and the Sewer Utility.
Criteria:Material adjusting journal entries pertaining to prior year activity indicate a weakness in
internal controls.
Cause:Due to turnover within the City’s finance department, the City did not have adequate controls
and review procedures in place to ensure that capital assets were not duplicated, currently
tracked and updated.
Effect:Year-end financial records prepared by the City may contain material misstatements.
Recommendation:We recommend the City review its current process for determining the cost of capital assets to
ensure assets are not duplicated and appropriately recorded.
Management
Response:
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, 2020
11
SECTION III -FEDERAL AND STATE AWARD FINDINGS AND QUESTIONED COSTS
Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a).
City of Oshkosh, Wisconsin
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2020
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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 noncompliance, nonmaterial
noncompliance, 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?No
4. Name and signature of partner ____________________________
Jon Trautman, CPA
5.Date of report September 27, 2021