FAC Explorer

Audit 23946

FY End
2022-09-30
Total Expended
$1.09M
Findings
2
Programs
1
Organization: Black Hills Community Economic Development, Inc. (SD)
Year: 2022 Accepted: 2023-02-05
Auditor: Ketel Thorstenson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35365 2022-001 Material Weakness Yes L
611807 2022-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
11.307 Economic Adjustment Assistance $1.09M Yes 1

Contacts

Name Title Type
EU6BZNJ5VJK5 Fran White Auditee
6057160012 Traci Hanson Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: Note 1 Basis of Presentation and Summary of Significant Accounting PoliciesThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity ofthe Organization under programs of the federal government for the year ended September 30, 2022. The informationin this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the Organization.Expenditures reported on the Schedule are reported on the accrual basis of accounting and grant guidance (see Note3). Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Note 3 Calculations were as follows:2021 CARES Revolving Loan Fund (RLF):RLF Principal Outstanding 973,095Cash in RLF 119,815Administrative Expenses 8911,093,801Federal Share 100.00%1,093,801

Finding Details

Finding 2022-001
#2022-001 FINDING: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Affected: CARES Act RLF, Assistance Listing #11.307. Compliance Requirement: Reporting. Questioned Costs: None. Condition and Cause: We were requested to draft the audited financial statements, related footnote disclosures, and SEFA as part of our regular audit services. Ultimately, it is management?s responsibility to provide for the preparation of the Organization?s statements, footnotes, and SEFA, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for you at the same time in connection with our audit. This is not unusual for us to do this with organizations of your size. Criteria and Effect: This control deficiency could result in a material misstatement to the financial statements that would not be prevented or detected by your Organization?s internal control system. Repeat Finding from Prior Year: Yes, prior year finding #2021-001. Recommendation: We have instructed management to review a draft of the auditor prepared financial statements in detail for their accuracy. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Views of Responsible Officials Corrective Action Plan: See Organization?s Corrective Action Plan
Finding 2022-001
#2022-001 FINDING: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Affected: CARES Act RLF, Assistance Listing #11.307. Compliance Requirement: Reporting. Questioned Costs: None. Condition and Cause: We were requested to draft the audited financial statements, related footnote disclosures, and SEFA as part of our regular audit services. Ultimately, it is management?s responsibility to provide for the preparation of the Organization?s statements, footnotes, and SEFA, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for you at the same time in connection with our audit. This is not unusual for us to do this with organizations of your size. Criteria and Effect: This control deficiency could result in a material misstatement to the financial statements that would not be prevented or detected by your Organization?s internal control system. Repeat Finding from Prior Year: Yes, prior year finding #2021-001. Recommendation: We have instructed management to review a draft of the auditor prepared financial statements in detail for their accuracy. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Views of Responsible Officials Corrective Action Plan: See Organization?s Corrective Action Plan