FAC Explorer

Audit 356439

FY End
2024-12-31
Total Expended
$5.99M
Findings
4
Programs
1
Organization: Rapid Valley Sanitary District Water Service (SD)
Year: 2024 Accepted: 2025-05-16
Auditor: Ketel Thorstenson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560530 2024-002 Material Weakness - L
560531 2024-002 Material Weakness - L
1136972 2024-002 Material Weakness - L
1136973 2024-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $636,875 Yes 1

Contacts

Name Title Type
L1C9JGRALZ95 Rusty Schmidt Auditee
6053931050 Traci Hanson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation and Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended December 31, 2024. 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 District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. 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: The District has not elected to use the 10% 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 District under programs of the federal government for the year ended December 31, 2024. 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 District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. 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: Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended December 31, 2024. 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 District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. 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: The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
2024-002 Finding: Preparation of Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Federal Program Affected: ALN #21.027 Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: We were requested to draft the audited financial statements, SEFA and related footnote disclosures as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements, SEFA and footnotes, and the responsibility of the auditor to determine the fairness of the presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for districts of your size. Criteria and Effect: It is our responsibility to inform the Board that this deficiency could result in a material misstatement to the financial statements or SEFA that would have not been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding #2023-001. Recommendation: As in prior years, we have instructed management to review a draft of the auditor-prepared financial statements and SEFA in detail for their accuracy. We have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the District’s statements. We are satisfied the appropriate steps have been taken to provide the District with complete financial statements and SEFA. It is the District’s responsibility to make the ultimate decision to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.
Finding 2024-002
2024-002 Finding: Preparation of Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Federal Program Affected: ALN #21.027 Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: We were requested to draft the audited financial statements, SEFA and related footnote disclosures as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements, SEFA and footnotes, and the responsibility of the auditor to determine the fairness of the presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for districts of your size. Criteria and Effect: It is our responsibility to inform the Board that this deficiency could result in a material misstatement to the financial statements or SEFA that would have not been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding #2023-001. Recommendation: As in prior years, we have instructed management to review a draft of the auditor-prepared financial statements and SEFA in detail for their accuracy. We have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the District’s statements. We are satisfied the appropriate steps have been taken to provide the District with complete financial statements and SEFA. It is the District’s responsibility to make the ultimate decision to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.
Finding 2024-002
2024-002 Finding: Preparation of Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Federal Program Affected: ALN #21.027 Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: We were requested to draft the audited financial statements, SEFA and related footnote disclosures as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements, SEFA and footnotes, and the responsibility of the auditor to determine the fairness of the presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for districts of your size. Criteria and Effect: It is our responsibility to inform the Board that this deficiency could result in a material misstatement to the financial statements or SEFA that would have not been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding #2023-001. Recommendation: As in prior years, we have instructed management to review a draft of the auditor-prepared financial statements and SEFA in detail for their accuracy. We have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the District’s statements. We are satisfied the appropriate steps have been taken to provide the District with complete financial statements and SEFA. It is the District’s responsibility to make the ultimate decision to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.
Finding 2024-002
2024-002 Finding: Preparation of Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Federal Program Affected: ALN #21.027 Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: We were requested to draft the audited financial statements, SEFA and related footnote disclosures as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements, SEFA and footnotes, and the responsibility of the auditor to determine the fairness of the presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for districts of your size. Criteria and Effect: It is our responsibility to inform the Board that this deficiency could result in a material misstatement to the financial statements or SEFA that would have not been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding #2023-001. Recommendation: As in prior years, we have instructed management to review a draft of the auditor-prepared financial statements and SEFA in detail for their accuracy. We have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the District’s statements. We are satisfied the appropriate steps have been taken to provide the District with complete financial statements and SEFA. It is the District’s responsibility to make the ultimate decision to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.