FAC Explorer

Audit 364950

FY End
2024-12-31
Total Expended
$2.18M
Findings
2
Programs
2
Organization: City of Ipswich (SD)
Year: 2024 Accepted: 2025-08-26
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
574674 2024-003 Material Weakness - I
1151116 2024-003 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.77M Yes 1
10.766 Community Facilities Loans and Grants $406,222 - 0

Contacts

Name Title Type
EAJ8AC1ADZR1 Amanda Metzinger Auditee
6054266961 Cameron Zent Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported in the schedule are reported on the modified cash 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: Note 3 - Indirect Cost Rate The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimus 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, 2024. 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, changes in net position and fund balance, or cash flows of the City.
Title: Note 4 - Loan Programs Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported in the schedule are reported on the modified cash 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: Note 3 - Indirect Cost Rate The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimus cost rate. For the Community Facilities Loan and Grants program, expenditures reported in this schedule consist of the beginning of the year outstanding loan balance plus advances made on the loan during the year. The outstanding balance at December 31, 2024, was $374,433.

Finding Details

Finding 2024-003
U.S. Department of Treasury Passed through State of South Dakota Board of Water and Natural Resources Federal Financial Assistance Listing 21.027 Federal Award Number SLFRP5319 Federal Award Year 2021 Coronavirus State and Local Fiscal Recovery Funds Procurement Material Weakness in Internal Control over Compliance and Noncompliance Criteria: Non-federal entities other than states must follow the procurement standards set out at 2 CFR sections 200.318 through 200.327, which include having documented procedures for procurement transactions and written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award, and administration of contracts. Condition: The City does not have a formal documented procurement policy which includes written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award, and administration of contracts with federal funds. Cause: The City has not formalized their practiced procurement policy and conflict of interest standards into a formal written document. Effect: This condition increases the risk of that federal procurement requirements and conflict of interest standards are not adequately communicated to and understood by employees engaged in the selection, award, and administration of contracts, which increases the risk of procurements under federal awards being made not in compliance with federal regulations or other procurement requirements specific to an award. Context/Sampling: No sampling used. Repeat Finding from Prior Year(s): No Recommendation: We recommend management formally document their procurement policy, ensuring that all required procurement standards within 2 CFR sections 200.318 through 200.327 are addressed. Views of Responsible Officials: Management agrees with the finding.
Finding 2024-003
U.S. Department of Treasury Passed through State of South Dakota Board of Water and Natural Resources Federal Financial Assistance Listing 21.027 Federal Award Number SLFRP5319 Federal Award Year 2021 Coronavirus State and Local Fiscal Recovery Funds Procurement Material Weakness in Internal Control over Compliance and Noncompliance Criteria: Non-federal entities other than states must follow the procurement standards set out at 2 CFR sections 200.318 through 200.327, which include having documented procedures for procurement transactions and written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award, and administration of contracts. Condition: The City does not have a formal documented procurement policy which includes written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award, and administration of contracts with federal funds. Cause: The City has not formalized their practiced procurement policy and conflict of interest standards into a formal written document. Effect: This condition increases the risk of that federal procurement requirements and conflict of interest standards are not adequately communicated to and understood by employees engaged in the selection, award, and administration of contracts, which increases the risk of procurements under federal awards being made not in compliance with federal regulations or other procurement requirements specific to an award. Context/Sampling: No sampling used. Repeat Finding from Prior Year(s): No Recommendation: We recommend management formally document their procurement policy, ensuring that all required procurement standards within 2 CFR sections 200.318 through 200.327 are addressed. Views of Responsible Officials: Management agrees with the finding.