FAC Explorer

Audit 318434

FY End
2023-12-31
Total Expended
$1.90M
Findings
8
Programs
2
Organization: City of Dell Rapids (SD)
Year: 2023 Accepted: 2024-09-03
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485639 2023-004 Material Weakness - L
485640 2023-004 Material Weakness - L
485641 2023-005 Material Weakness - I
485642 2023-005 Material Weakness - I
1062081 2023-004 Material Weakness - L
1062082 2023-004 Material Weakness - L
1062083 2023-005 Material Weakness - I
1062084 2023-005 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.22M Yes 2
97.039 Hazard Mitigation Grant $62,886 - 0

Contacts

Name Title Type
FNHNNNUMKZE8 Claire Baartman Auditee
6054283595 Jamie Fay Auditor
No contacts on file

Notes to SEFA

Title: NOTE A-BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City under programs of the federal government for the year ended December 31, 2023. The information 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 City, it is not intended to and does not present the financial position or changes in net position or fund balance of the City.
Title: NOTE B- SUMMARY OF SIGNIGICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis cost rate. Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
Title: NOTE C- INDIRECT COST RATE Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis cost rate. The District has not elected to use the 10% de minimis cost rate.

Finding Details

Finding 2023-004
Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring that all reports are completed accurately by the City. Condition – During the course of our engagement, we noted that the annual project and expenditure report submitted for the year ended December 31, 2023, had amounts reported that did not agree to the general ledger system of the City. Cause – The City does not have an internal control system designed to ensure that the project and expenditure report is submitted accurately. Effect – The control deficiency could result in the City’s project and expenditure report is not being completed accurately. Questioned Costs – None reported Context/Sampling – The entirety of the annual reporting requirement was tested. Repeat Finding from Prior Years – No Recommendation – Management should put procedures in place to ensure that all quarterly construction reports are accurate and submitted by the required due dates. View of responsible officials – Management is in agreement with the finding.
Finding 2023-004
Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring that all reports are completed accurately by the City. Condition – During the course of our engagement, we noted that the annual project and expenditure report submitted for the year ended December 31, 2023, had amounts reported that did not agree to the general ledger system of the City. Cause – The City does not have an internal control system designed to ensure that the project and expenditure report is submitted accurately. Effect – The control deficiency could result in the City’s project and expenditure report is not being completed accurately. Questioned Costs – None reported Context/Sampling – The entirety of the annual reporting requirement was tested. Repeat Finding from Prior Years – No Recommendation – Management should put procedures in place to ensure that all quarterly construction reports are accurate and submitted by the required due dates. View of responsible officials – Management is in agreement with the finding.
Finding 2023-005
Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the City did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – All vendors, which totaled one, were selected for procurement testing. Repeat Finding from Prior Years – No Recommendation – Management should establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. View of responsible officials – Management is in agreement with the finding.
Finding 2023-005
Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the City did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – All vendors, which totaled one, were selected for procurement testing. Repeat Finding from Prior Years – No Recommendation – Management should establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. View of responsible officials – Management is in agreement with the finding.
Finding 2023-004
Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring that all reports are completed accurately by the City. Condition – During the course of our engagement, we noted that the annual project and expenditure report submitted for the year ended December 31, 2023, had amounts reported that did not agree to the general ledger system of the City. Cause – The City does not have an internal control system designed to ensure that the project and expenditure report is submitted accurately. Effect – The control deficiency could result in the City’s project and expenditure report is not being completed accurately. Questioned Costs – None reported Context/Sampling – The entirety of the annual reporting requirement was tested. Repeat Finding from Prior Years – No Recommendation – Management should put procedures in place to ensure that all quarterly construction reports are accurate and submitted by the required due dates. View of responsible officials – Management is in agreement with the finding.
Finding 2023-004
Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring that all reports are completed accurately by the City. Condition – During the course of our engagement, we noted that the annual project and expenditure report submitted for the year ended December 31, 2023, had amounts reported that did not agree to the general ledger system of the City. Cause – The City does not have an internal control system designed to ensure that the project and expenditure report is submitted accurately. Effect – The control deficiency could result in the City’s project and expenditure report is not being completed accurately. Questioned Costs – None reported Context/Sampling – The entirety of the annual reporting requirement was tested. Repeat Finding from Prior Years – No Recommendation – Management should put procedures in place to ensure that all quarterly construction reports are accurate and submitted by the required due dates. View of responsible officials – Management is in agreement with the finding.
Finding 2023-005
Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the City did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – All vendors, which totaled one, were selected for procurement testing. Repeat Finding from Prior Years – No Recommendation – Management should establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. View of responsible officials – Management is in agreement with the finding.
Finding 2023-005
Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the City did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – All vendors, which totaled one, were selected for procurement testing. Repeat Finding from Prior Years – No Recommendation – Management should establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. View of responsible officials – Management is in agreement with the finding.