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HomeMy WebLinkAbout2022_Federal_and_State_AwardsCITY OF OSHKOSH, WISCONSIN Federal and State Awards December 31, 2022 DRAFT CITY OF OSHKOSH, WISCONSIN Table of Contents December 31, 2022 FEDERAL AND STATE AWARDS Independent Auditors’ Reports on Compliance for Each Major Federal and State Program and on Internal Control Over Compliance and on Schedules of Expenditures of Federal and State Awards Required by the Uniform Guidance and Wisconsin State Single Audit 1 - 3 Schedule of Expenditures of Federal Awards 4 Schedule of Expenditures of State Awards 5 Notes to the Schedules of Expenditures of Federal Awards and State Awards 6 Schedule of Findings and Questioned Costs 7 - 8 DRAFT 1 Independent Auditors’ Reports To the Common Council City of Oshkosh, Wisconsin Report on Compliance For Each Major Federal and State Program Opinion on Each Major Federal and State Program We have audited City of Oshkosh, Wisconsin’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement and Wisconsin State Single Audit Guidelines that could have a direct and material effect on each of City of Oshkosh, Wisconsin’s major federal and state programs for the year ended December 31, 2022. City of Oshkosh, Wisconsin’s major federal and state programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, City of Oshkosh, Wisconsin 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, 2022. Basis for Opinion on Each Major Federal and State Program 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 Wisconsin State Single Audit Guidelines. Our responsibilities under those standards, the Uniform Guidance, and State Single Audit Guidelines are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of City of Oshkosh, Wisconsin and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal and state program. Our audit does not provide a legal determination of City of Oshkosh, Wisconsin’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to City of Oshkosh, Wisconsin’s federal and state programs. Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of Oshkosh, Wisconsin’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, the Uniform Guidance and Wisconsin State Single Audit Guidelines will always detect material noncompliance when it exists. DRAFT To the Common Council City of Oshkosh, Wisconsin 2 The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City of Oshkosh, Wisconsin’s compliance with the requirements of each major federal and state program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, the Uniform Guidance and Wisconsin State Single Audit Guidelines, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding City of Oshkosh, Wisconsin’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of City of Oshkosh, Wisconsin’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance and Wisconsin State Single Audit Guidelines, but not for the purpose of expressing an opinion on the effectiveness of City of Oshkosh, Wisconsin’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on 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 and state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a 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 and 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 Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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 Wisconsin State Single Audit Guidelines. Accordingly, this report is not suitable for any other purpose. DRAFT To the Common Council City of Oshkosh, Wisconsin 3 Report on Schedules of Expenditures of Federal and State Awards Required by Uniform Guidance and Wisconsin 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 City of Oshkosh, Wisconsin, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise City of Oshkosh, Wisconsin’s basic financial statements. We issued our report thereon dated , 2023, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedules of expenditures of federal and state awards are presented for purposes of additional analysis as required by the Uniform Guidance and Wisconsin 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 schedules of expenditures of federal and state awards are fairly stated in all material respects in relation to the basic financial statements as a whole. KerberRose SC KerberRose SC Certified Public Accountants Oshkosh, Wisconsin ____________, 2023 . DRAFT Pass-Pass- Through Through ALN Agency Number U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CDBG - Entitlement Grants Cluster Community Development Block Grant Entitlement Program 14.218 Wisconsin Department of Administration N/A $(144,572) $159,646 $732,662 $747,736 $- U.S. DEPARTMENT OF JUSTICE Coronavirus Emergency Supplemental Funding 16.034 Direct Program N/A - 1,396 - 1,396 - Bulletproof Vest Partnership Program 16.607 Direct Program N/A - 11,045 - 11,045 - Edward Byrne Memorial JAG Award 16.738 Direct Program 21-GG-01983-JAGX - 8,306 - 8,306 - Total U.S Department of Justice - 20,747 - 20,747 - U.S. DEPARTMENT OF TRANSPORTATION Highway Planning and Construction Cluster Transportation Alternatives Program 20.205 Wisconsin Department of Transportation N/A - 181,214 181,214 - Federal Transit Cluster Federal Transit-Formula Grants (Urbanized Areas Formula Program)20.507 Wisconsin Department of Transportation WI-2023-007-00-5307 - - 2,130,747 2,130,747 - Bus and Bus Facilities Formula Program 20.526 Wisconsin Department of Transportation WI-2017-003-02-5307 - 60,794 - 60,794 - Bus and Bus Facilities Formula Program 20.526 Wisconsin Department of Transportation WI-2018-036-00-5307 - 113,314 - 113,314 - Bus and Bus Facilities Formula Program 20.526 Wisconsin Department of Transportation WI-2020-008-00-5339 - 205,812 - 205,812 - Bus and Bus Facilities Formula Program 20.526 Wisconsin Department of Transportation WI-2022-009-00-5339 - 381,720 - 381,720 - Total Federal Transit Cluster - 761,640 2,130,747 2,892,387 - Formula Grants for Rural Areas Formula Grants for Rural Areas - COVID-19 Funding 20.509 Wisconsin Department of Transportation WI-2021-015-01-00 - 981,924 - 981,924 - Highway Safety Cluster - - State and Community Highway Safety 20.600 Wisconsin Department of Transportation N/A - 5,465 - 5,465 - Total U.S. Department of Transportation - 1,930,243 2,130,747 4,060,990 - U.S. DEPARTMENT OF TREASURY American Rescue Plan Act Coronavirus State and Local Fiscal Recovery Fund 21.027 Direct Program N/A 9,300,339 10,259,192 (17,312,025) 2,247,506 - U.S. ENVIRONMENTAL PROTECTION AGENCY Drinking Water State Revolving Fund (CWSRF) Cluster Capitalization Grants for Drinking Water State Revolving Funds 66.468 Wisconsin Department of Natural Resources N/A - 196,384 - 196,384 - Community-Wide Brownfields Assessment Grant 66.818 Direct Program N/A - 109,753 - 109,753 - Total U.S. Department of Environmental Protection Agency - 306,137 - 306,137 - TOTAL FEDERAL ASSISTANCE $9,155,767 $12,675,965 $(14,448,616) $7,383,116 $- Schedule of Expenditures of Federal Awards CITY OF OSHKOSH, WISCONSIN Subrecipient Payments or Value Accrued Revenue (Deferred)Cash (Accrued) Received (Refunded)1/1/2022 Revenue For the Year Ended December 31, 2022 12/31/2022 Expenditures Total Deferred Grantor Agency/Federal Program Title See Notes to the Schedule of Expenditures of Federal Awards 4 DRAFT Pass-Through (Accrued)Accrued Entity Deferred Cash (Deferred) State I.D.Pass-Through Identifying Revenue Received Revenue Total Subrecipient Grantor Agency/State Program Title Number Agency Number 1/1/2022 (Refunded)12/31/2022 Expenditures Payment DEPARTMENT OF NATURAL RESOURCES Urban Forestry Grant 370.587 Direct Program N/A (17,620)$ 17,620$ -$ -$ -$ Recycling Grant 370.670 Direct Program N/A - 236,961 - 236,961 - Total Department of Natural Resources (17,620) 254,581 - 236,961 - DEPARTMENT OF TRANSPORTATION Paratransit Aids 395.175 Direct Program N/A - 55,742 - 55,742 - Tier B Transit Operating Aids 395.175 Direct Program N/A - 1,216,082 - 1,216,082 - Planning Commission Program 395.461 Direct Program N/A - 24,914 - 24,914 - Total Department of Transportation - 1,296,738 - 1,296,738 - DEPARTMENT OF MILITARY AFFAIRS Regional Emergency Response Teams 465.306 Direct Program N/A - 45,075 - 45,075 - DEPARTMENT OF ADMINISTRATION Housing Cost Reduction Initiative 505.703A Direct Program N/A - 11,000 - 11,000 - TOTAL STATE PROGRAMS (17,620)$ 1,607,394$ -$ 1,589,774$ -$ CITY OF OSHKOSH, WISCONSIN Schedule of Expenditures of State Awards For the Year Ended December 31, 2022 See Notes to the Schedule of Expenditures of State Awards 5 DRAFT CITY OF OSHKOSH, WISCONSIN Notes to the Schedules of Expenditures of Federal Awards and State Awards For the Year Ended December 31, 2022 6 Note 1: Basis of Presentation The accompanying schedules of expenditures of federal awards 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 awards 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, they are not intended to and do not present the financial position, changes in net position, or cash flows of the City. Note 2: Significant Accounting Policies Expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with expenditures reported in the City’s 2022 fund financial statements. Accounts receivable 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 the Uniform Guidance and State Single Audit Guidelines, wherein 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 Treasury State - Wisconsin Department of Transportation Note 4: Indirect Cost Rate A nonfederal and state entity may have a federal and state negotiated indirect cost rate that is being used for federal and state awards. In general, under 2 CFR 200.414(f), if an entity has never received a negotiated indirect cost rate, the entity may elect to use a 10% de minimis indirect cost rate. Further, 2 CFR 200.510(b)(6) states that the notes to the schedules of expenditures of federal awards and state awards must include whether or not the nonfederal and state entity has elected to use the 10% de minimis indirect cost rate. The City has elected not to use the 10% de minimis indirect cost rate. DRAFT CITY OF OSHKOSH, WISCONSIN Schedule of Findings and Questioned Costs For the Year Ended December 31, 2022 7 Section I – Summary of Auditor’s Results Basic Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting  Material weakness(es) identified? No  Significant deficiency(ies) identified? None Reported Noncompliance material to basic financial statements noted? No Federal and State Awards Internal control over major program:  Material weakness(es) identified? No  Significant deficiency(ies) identified? None Reported Type of auditors’ report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance With the Uniform Guidance? No Any audit findings disclosed that are required to be reported in accordance with State Single Audit Guidelines? No Identification of major federal programs: ALN Name of Federal Program 20.509 Formula Grants for Rural Areas – COVID-19 Funding 21.027 Coronavirus State and Local Fiscal Recovery Fund Identification of major state program: State ID Number Name of State Program 395.175 Tier B 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 No DRAFT CITY OF OSHKOSH, WISCONSIN Schedule of Findings and Questioned Costs For the Year Ended December 31, 2022 8 Section II – Financial Statement Findings There are no findings related to the basic financial statements required to be reported under Government Auditing Standards for the year ended December 31, 2022. Section III – Federal and State Award Findings and Questioned Costs There are no findings related to the federal and state awards for the year ended December 31, 2022. 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 Natural Resources No Department of Transportation No 3. Was a Management Letter or other document conveying audit comments issued as a result of this audit? Yes DRAFT