FAC Explorer

Audit 366615

FY End
2024-12-31
Total Expended
$1.03M
Findings
2
Programs
1
Organization: Lead Deadwood Sanitary District (SD)
Year: 2024 Accepted: 2025-09-18
Auditor: Ketel Thorstonson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1153401 2024-002 Material Weakness Yes L
1153402 2024-004 Material Weakness Yes ABCI

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.03M Yes 2

Contacts

Name Title Type
H6P4C599PCM3 Terry Wolterstorff Auditee
6055781835 Traci Hanson Auditor
No contacts on file

Notes to SEFA

Note 1 - Basis of Presentation and Summary of Significant 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 position, 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
Note 2 - Indirect Cost Rate The District did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance

Finding Details

Finding 2024-002
#2024-002 Finding: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds (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, 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 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 that would have not been prevented or detected by the District’s management. Recommendation: 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 District 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: See District’s Corrective Action Plan.
Finding 2024-004
#2024-004: Written Uniform Guidance Policies Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Compliance Requirement: Allowable Costs/Cost Principles, Procurement and Suspension and Debarment, Cash Management Questioned Costs: None Condition and Cause: The District does not have written policies for allowable costs/cost principles or suspension and debarment in accordance with Uniform Guidance. Criteria and Effect: Uniform Guidance specifically requires entities to maintain written policies for allowable costs/cost principles, suspension and debarment, and cash management. Not properly maintaining such policies may lead to noncompliance and potential unallowable costs or business with suspended vendors. Repeat Finding from Prior Year: No. Recommendation: The District should create written policies in accordance with Uniform Guidance. Response/Corrective Action Plan: The District is in agreement with the finding. See District’s Corrective Action Plan.