FAC Explorer

Audit 309466

FY End
2023-12-31
Total Expended
$955,708
Findings
2
Programs
2
Organization: Lake Area Improvement Corporation (SD)
Year: 2023 Accepted: 2024-06-21
Auditor: Wohlenberg Ritzman & CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401370 2023-001 Significant Deficiency - N
977812 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.767 Intermediary Relending Program $755,708 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $200,000 - 0

Contacts

Name Title Type
DTHVHZWBN3V7 Brooke Rollag Auditee
6052560797 Jessica Gadeken Auditor
No contacts on file

Notes to SEFA

Accounting Policies: This accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the Lake Area Improvement Corporation under programs of the federal government for the year ended December 31, 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 Lake Area Imrovement Corporation, it is not intended 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. 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: Lake Area Improvement Corporation has not elected to use the 10% de minimis cost rate.

Finding Details

Finding 2023-001
Finding 2023-001 – Compliance and Internal Control Over Compliance – Deposit Insurance Coverage of Intermediary Relending Program Funds (ALN 10.767) Significant Deficiency Condition: Intermediary Relending Program (IRP) funds on deposit with a local financial institution were not fully insured by the Federal Deposit Insurance Corporation (FDIC). Questioned Costs: None. Criteria: The U.S. Department of Agriculture, as outlined in 7 CFR Part 4274.332(b), requires all reserves and cash in the IRP revolving fund to be fully insured or collateralized with U.S. Government obligations. Cause: Management was aware of the requirement but due to the influx of cash received during the year, it was inadvertently overlooked. Effect: Inadequate internal controls over compliance could result in noncompliance with grantor agency requirements and could jeopardize LAIC’s continued participation in the program. Recommendation: Management and those charged with governance should be aware of all program requirements and take appropriate action to correct deficiencies. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Finding 2023-001
Finding 2023-001 – Compliance and Internal Control Over Compliance – Deposit Insurance Coverage of Intermediary Relending Program Funds (ALN 10.767) Significant Deficiency Condition: Intermediary Relending Program (IRP) funds on deposit with a local financial institution were not fully insured by the Federal Deposit Insurance Corporation (FDIC). Questioned Costs: None. Criteria: The U.S. Department of Agriculture, as outlined in 7 CFR Part 4274.332(b), requires all reserves and cash in the IRP revolving fund to be fully insured or collateralized with U.S. Government obligations. Cause: Management was aware of the requirement but due to the influx of cash received during the year, it was inadvertently overlooked. Effect: Inadequate internal controls over compliance could result in noncompliance with grantor agency requirements and could jeopardize LAIC’s continued participation in the program. Recommendation: Management and those charged with governance should be aware of all program requirements and take appropriate action to correct deficiencies. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.