FAC Explorer

Audit 10690

FY End
2023-06-30
Total Expended
$1.06M
Findings
2
Programs
6
Organization: Black Hills Works, Inc. (SD)
Year: 2023 Accepted: 2024-01-10
Auditor: Ketel Thorstenson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8113 2023-002 Significant Deficiency Yes N
584555 2023-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $470,250 Yes 1
14.275 Housing Trust Fund $161,742 - 0
10.551 Supplemental Nutrition Assistance Program $57,481 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $54,602 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $12,631 - 0
45.025 Promotion of the Arts_partnership Agreements $10,000 - 0

Contacts

Name Title Type
SFFMDJ7R8QH7 Mary Duncan Auditee
6057186201 Traci Hanson Auditor
No contacts on file

Notes to SEFA

Title: Note 2 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows as of June 30, 2023. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. These amounts reflect cash received. Federal reimbursements are based on approved rates for services provided rather than reimbursement for specific expenditures.
Title: Note 4 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows as of June 30, 2023. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Loan draws during the year are included in the federal expenditures presented in the Schedule.

Finding Details

Finding 2023-002
#2023-002 FINDING: Residual Receipts Reserves and Tenant Security Deposits Federal Programs Affected: Section 8 Subsidy ALN #14.181 Compliance Requirements: Special Tests and Provisions Questioned Costs: None Condition and Cause: During our engagement, we noted deposits of residual receipts reserves were not made within 60 days of year-end as required by U.S. Department of Housing and Urban Development. We also noted a security deposit for a tenant was never collected. Criteria and Effect: U.S. Department of Housing and Urban Development requires the Organization to make deposits to the residual receipts reserves within 60 days of year-end and collect security deposits from tenants. Repeat Finding from Prior Year: Yes Recommendation We recommend the Organization develop an internal control to track compliance with Section 8 compliance requirements including submitting required deposits to the residual receipts reserve accounts. Response/Correction Action Plan: Management is in agreement with the finding. See Correction Action Plan.
Finding 2023-002
#2023-002 FINDING: Residual Receipts Reserves and Tenant Security Deposits Federal Programs Affected: Section 8 Subsidy ALN #14.181 Compliance Requirements: Special Tests and Provisions Questioned Costs: None Condition and Cause: During our engagement, we noted deposits of residual receipts reserves were not made within 60 days of year-end as required by U.S. Department of Housing and Urban Development. We also noted a security deposit for a tenant was never collected. Criteria and Effect: U.S. Department of Housing and Urban Development requires the Organization to make deposits to the residual receipts reserves within 60 days of year-end and collect security deposits from tenants. Repeat Finding from Prior Year: Yes Recommendation We recommend the Organization develop an internal control to track compliance with Section 8 compliance requirements including submitting required deposits to the residual receipts reserve accounts. Response/Correction Action Plan: Management is in agreement with the finding. See Correction Action Plan.