FAC Explorer

Audit 330908

FY End
2023-12-31
Total Expended
$6.00M
Findings
4
Programs
4
Organization: City of Redfield (SD)
Year: 2023 Accepted: 2024-12-04
Auditor: Kohlman Bierschbach & Anderson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
513032 2023-001 Material Weakness - L
513033 2023-002 - - L
1089474 2023-001 Material Weakness - L
1089475 2023-002 - - L

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $5.97M Yes 2
20.106 Airport Improvement Program $20,036 - 0
93.301 Small Rural Hospital Improvement Grant Program $13,011 - 0
39.003 Donation of Federal Surplus Personal Property $1,020 - 0

Contacts

Name Title Type
HN31LH3BAL58 Adam L Hansen Auditee
6054724550 Emily Schaefers Auditor
No contacts on file

Notes to SEFA

Title: Federal Surplus Property Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City does not utilitize these costs. The amount reported represents 23.3% of the original acquisition cost of the federal surplus property received by the City.

Finding Details

Finding 2023-001
Major Federal Program: The major federal program affected is Water and Waste Disposal Systems for Rural Communities - #10.760. Criteria: Internal control can help a City achieve its performance targets and prevent loss of resources. It can help ensure reliable financial reporting, and it can help ensure that the City complies with laws and regulations. Condition Found: A material weakness was reported for a lack of internal control for reporting for federal compliance. Cause: The City only has 3 employees in the finance department, so proper internal controls have not been achieved. Effect: Due to the lack of internal controls, reports that were required to be filed with Rural Development were not filed in a timely manner. Questioned Costs: There were no questioned costs. Repeat Finding: This finding has not previously been reported. Recommendation: We recommend the City implement compensating controls wherever and whenever possible and practical to prevent future reporting issues.
Finding 2023-002
Major Federal Program: The major federal program affected is Water and Waste Disposal Systems for Rural Communities - #10.760. Criteria: Rural Development required the City to file Form RD 442-2, Statement of Budget, Income and Equity, and Form RD 442-3, Balance Sheet by the required due dates. Condition Found: The Form RD 442-2 for 2024 was required to be filed on December 1, 2023 and Form RD 442-3 for 2023 was required to be filed on April 1, 2024, but both were not submitted until July 2024. Cause: The City did not prepare the required forms in a timely manner. Effect: The required forms were not submitted to Rural Development by the required due date. Questioned Costs: There were no questioned costs. Repeat Finding: This finding has not previously been reported. Recommendation: We recommend that required forms be submitted in a timely manner.
Finding 2023-001
Major Federal Program: The major federal program affected is Water and Waste Disposal Systems for Rural Communities - #10.760. Criteria: Internal control can help a City achieve its performance targets and prevent loss of resources. It can help ensure reliable financial reporting, and it can help ensure that the City complies with laws and regulations. Condition Found: A material weakness was reported for a lack of internal control for reporting for federal compliance. Cause: The City only has 3 employees in the finance department, so proper internal controls have not been achieved. Effect: Due to the lack of internal controls, reports that were required to be filed with Rural Development were not filed in a timely manner. Questioned Costs: There were no questioned costs. Repeat Finding: This finding has not previously been reported. Recommendation: We recommend the City implement compensating controls wherever and whenever possible and practical to prevent future reporting issues.
Finding 2023-002
Major Federal Program: The major federal program affected is Water and Waste Disposal Systems for Rural Communities - #10.760. Criteria: Rural Development required the City to file Form RD 442-2, Statement of Budget, Income and Equity, and Form RD 442-3, Balance Sheet by the required due dates. Condition Found: The Form RD 442-2 for 2024 was required to be filed on December 1, 2023 and Form RD 442-3 for 2023 was required to be filed on April 1, 2024, but both were not submitted until July 2024. Cause: The City did not prepare the required forms in a timely manner. Effect: The required forms were not submitted to Rural Development by the required due date. Questioned Costs: There were no questioned costs. Repeat Finding: This finding has not previously been reported. Recommendation: We recommend that required forms be submitted in a timely manner.