FAC Explorer

Audit 352503

FY End
2023-12-31
Total Expended
$1.17M
Findings
4
Programs
2
Organization: City of Deadwood (SD)
Year: 2023 Accepted: 2025-04-02
Auditor: Ketel Thorstenson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
553822 2023-001 Material Weakness - L
553823 2023-004 Significant Deficiency - ABI
1130264 2023-001 Material Weakness - L
1130265 2023-004 Significant Deficiency - ABI

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.16M Yes 2
10.664 Cooperative Forestry Assistance $10,000 - 0

Contacts

Name Title Type
T3HEDK26CNN5 Jessicca McKeown Auditee
6055782600 Jeff Yennie Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Note 1: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the City of Deadwood (the City) 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 City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. 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: Note 2: Indirect Cost Rate The City did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the City of Deadwood (the City) 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 City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. 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.
Title: Note 2: Indirect Cost Rate Accounting Policies: Note 1: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the City of Deadwood (the City) 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 City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. 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: Note 2: Indirect Cost Rate The City did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
FINDING #2023-001: Financial Statement and Schedule of Expenditure of Federal Awards (SEFA) Preparation Federal Program Affected: Disaster Grants – Public Assistance (Presidentially Declared Disasters), ALN #97.036 Compliance Requirement: Reporting Questioned Costs: None. Condition and Cause: We were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, during the course of our audit, there were significant adjustments made to the SEFA. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements, schedules and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for us to do this with cities of your size. Criteria and Effect: It is our responsibility to inform the Commission that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by the City’s management. Repeat Finding from Prior Year: Yes, prior year finding #2022-001. Recommendation: As in prior years, we have instructed management to review a draft of the auditor prepared financials and adjusted SEFA in detail for their accuracy, we have answered any questions they might have, and we have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in your statements. We are satisfied the appropriate steps have been taken to provide the City with complete financial statements and SEFA. It is the responsibility of management and the Commission to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The City is in agreement with the finding. See Corrective Action Plan.
Finding 2023-004
FINDING #2023-004: Written Uniform Guidance Policies Federal Program Affected: Disaster Grants – Public Assistance (Presidentially Declared Disasters), ALN #97.036 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment. Questioned Costs: None. Condition and Cause: The City does not have written policies required under Uniform Guidance. Criteria and Effect: Uniform Guidance specifically requires entities to maintain written policies. Not properly maintaining such policies may lead to noncompliance. Repeat Finding from Prior Year: No. Recommendation: The City should create written policies in accordance with Uniform Guidance. Response/Corrective Action Plan: The City is in agreement with the finding. See Corrective Action Plan.
Finding 2023-001
FINDING #2023-001: Financial Statement and Schedule of Expenditure of Federal Awards (SEFA) Preparation Federal Program Affected: Disaster Grants – Public Assistance (Presidentially Declared Disasters), ALN #97.036 Compliance Requirement: Reporting Questioned Costs: None. Condition and Cause: We were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, during the course of our audit, there were significant adjustments made to the SEFA. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements, schedules and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for us to do this with cities of your size. Criteria and Effect: It is our responsibility to inform the Commission that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by the City’s management. Repeat Finding from Prior Year: Yes, prior year finding #2022-001. Recommendation: As in prior years, we have instructed management to review a draft of the auditor prepared financials and adjusted SEFA in detail for their accuracy, we have answered any questions they might have, and we have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in your statements. We are satisfied the appropriate steps have been taken to provide the City with complete financial statements and SEFA. It is the responsibility of management and the Commission to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The City is in agreement with the finding. See Corrective Action Plan.
Finding 2023-004
FINDING #2023-004: Written Uniform Guidance Policies Federal Program Affected: Disaster Grants – Public Assistance (Presidentially Declared Disasters), ALN #97.036 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment. Questioned Costs: None. Condition and Cause: The City does not have written policies required under Uniform Guidance. Criteria and Effect: Uniform Guidance specifically requires entities to maintain written policies. Not properly maintaining such policies may lead to noncompliance. Repeat Finding from Prior Year: No. Recommendation: The City should create written policies in accordance with Uniform Guidance. Response/Corrective Action Plan: The City is in agreement with the finding. See Corrective Action Plan.