FAC Explorer

Audit 407988

FY End
2025-12-31
Total Expended
$3.49M
Findings
2
Programs
1
Organization: SOUTHERN BLACK HILLS WATER SYSTEM, INC. (SD)
Year: 2025 Accepted: 2026-07-27
Auditor: KETEL THORSTENSON LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1224787 2025-001 Material Weakness Yes L
1224788 2025-004 Material Weakness Yes ABI

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.49M Yes 2

Contacts

Name Title Type
NNNVKDX4MM99 Don Peterson Auditee
6057454669 Traci Hanson Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the System under programs of the federal government for the year ended December 31, 2025. 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 System, it is not intended to and does not present the net assets, changes in net assets, or cash flows of the System. Expenditures reported on the Schedule are reported on the modified-cash 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.
The System did not elect to use the 15 percent de minimis indirect cost rate as allowed under the Uniform Guidance

Finding Details

Finding 2025-001
Finding #2025-001: 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: As a matter of practicality and efficiency, we have assisted in drafting the financial statements and SEFA, in both form and content, based on information provided by management during the audit. Criteria and Effect: Management and those charged with governance are ultimately responsible for preparing and presenting the financial statements and SEFA in accordance with the applicable financial reporting framework. The auditor’s responsibility for the financial statements and SEFA is to express an opinion on them based on the audit evidence obtained. Repeat Finding from Prior Year: Yes, prior year finding #2024-001. Recommendation: Management and if applicable, governance, should review the financial statements and SEFA for accuracy of account balances and context of note disclosures. Management and governance should inquire of the auditors about any balances or disclosures which management does not understand or cannot reconcile to internal records prior to signing the management representation letter. Response/Corrective Action Plan: The System agrees with the above Finding. See Corrective Action Plan.
Finding 2025-004
Finding #2025-04: Written Uniform Guidance Policies Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds, ALN #21.027 Compliance Requirement: Allowable Cost, Activities Allowed/Unallowed, and Procurement Questioned Costs: None Condition and Cause: The System does not have written Uniform Guidance policies related to federal grant compliance. Criteria and Effect: Uniform Guidance specifically requires entities to maintain written policies. Not properly maintaining such policies leads to noncompliance and potential unallowable costs. Repeat Finding from Prior Year: No Recommendation: The System should create written Uniform Guidance policies specific to administering federal funds. Views of Responsible Officials: See System’s Corrective Action Plan