EIN: 460224542
UEI: XQANWVB9AWF6
Audited by: Eide Bailly LLP
Oversight agency: 93 [Department of Health and Human Services]
Data as of August 27, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 18, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 18, 2024 (801 days ago).
What is a management decision? →The Victims’ Service final financial report was not completed and submitted until requested by the auditors. Cause: There was a lapse in the Organization’s internal control process ensuring reporting requirements were fulfilled timely. Effect: Lack of compliance with designed internal controls over reporting could result in the Organization reporting incorrect or incomplete information. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 6 reports out of 10 reports. Repeat Finding from Prior Year(s): No Recommendation: We recommend management review internal control procedures over reporting to ensure reporting requirements are completed and submitted timely.
Show full finding ▾Hide full finding ▴2023-003 Department of Justice and State of South Dakota Department of Public Safety FFAL #16.575, 2022-COMBO-00022 Crime Victim Assistance Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the conditions of the federal award. 2 CFR 200.327 and 2 CFR 200.328 require the auditee to collect financial information and monitor its activities under federal awards to assure compliance with applicable federal requirements and performance expectations are being achieved and report these items in accordance with the program requirements. Condition: The Victims’ Service final financial report was not completed and submitted until requested by the auditors. Cause: There was a lapse in the Organization’s internal control process ensuring reporting requirements were fulfilled timely. Effect: Lack of compliance with designed internal controls over reporting could result in the Organization reporting incorrect or incomplete information. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 6 reports out of 10 reports. Repeat Finding from Prior Year(s): No Recommendation: We recommend management review internal control procedures over reporting to ensure reporting requirements are completed and submitted timely.
Finding 2023-003 Reporting – Material Weakness in Internal Control Over Compliance Federal/State Agency Name: Department of Justice and State of South Dakota Department of Public Safety Program Name: Crime Victim Assistance FFAL # 16.575, 2022-COMBO-00022 Finding Summary: The Victims’ Service final financial report was not completed until requested by the auditors. Responsible Persons: Shannon Clark, Chief Financial Officer Lynn Peterson, Controller Michelle Tarrell, Finance Administrator Corrective Action Plan: A Finance Administrator has been designated for each Federal Financial Assistance Program. The Controller and Finance Administrator(s) will monitor and ensure reporting requirements are timely completed. Anticipated Completion Date: June 30, 2024
FAC accepted this audit on January 11, 2023 — management decision was due July 11, 2023.
Our testing over expenditures noted the following items: - Three instances in which hours used to allocate payroll to the grant differed from actual hours worked and paid, resulting in deficiencies in allowable costs, allowable activities, and matching. - One instance in which hours used to allocate payroll to the grant differed from actual hours worked and paid, resulting in deficiencies in allowable costs and allowable activities only. - One instance identified over non-payroll expenditures in which costs were charged to the grant at the time paid rather than period of service, resulting in in deficiencies in allowable costs, allowable activities, and matching. Cause: Tracking of grant-related payroll is a manual process which increases the likelihood of error. Additionally, costs were charged to the program at the time the expenditure was paid rather than over the period of service. Effect: The Organization?s controls did not detect nor correct the errors identified, which results in a reasonable possibility that the Organization could submit disallowed costs under the federal awards. Questioned Costs: No questioned costs over $25,000. Context/Sampling: A nonstatistical sample of 60 payroll transactions were selected for allowable costs and allowable activities testing, which accounted for $45,235 out of $789,604 of payroll transactions. Of those payroll transactions 18 were also tested for matching which accounted for $2,360 out of $36,064 match payroll transactions. A nonstatistical sample of 16 non-payroll transactions out of 59 total transactions for allowable costs and allowable activities were selected for testing, which accounted for $8,680 of $24,213 of non-payroll transactions. One of those items was selected for matching testing which accounted for $139 of $159 of match expenditures. Repeat Finding from Prior Year(s): Yes, Finding 2021-002 Recommendation: We recommend management continue to review the process over tracking payroll related to federal programs and consider incorporating a secondary review of any manual spreadsheets or consider if the payroll can be allocated directly within the payroll system. Views of Responsible Officials: Management is in agreement.
Show full finding ▾Hide full finding ▴2022-003 Department of Justice and State of South Dakota Department of Public Safety CFDA #16.575, 2022-COMBO-00022, 2022-COMBO-00011 Crime Victim Assistance Allowable Costs, Allowable Activities, and Matching Significant Deficiency in Internal Control over Compliance Criteria: The Organization is required to have procedures in place to ensure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.430(i) establishes requirements for documentation of personnel expenses. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Our testing over expenditures noted the following items: - Three instances in which hours used to allocate payroll to the grant differed from actual hours worked and paid, resulting in deficiencies in allowable costs, allowable activities, and matching. - One instance in which hours used to allocate payroll to the grant differed from actual hours worked and paid, resulting in deficiencies in allowable costs and allowable activities only. - One instance identified over non-payroll expenditures in which costs were charged to the grant at the time paid rather than period of service, resulting in in deficiencies in allowable costs, allowable activities, and matching. Cause: Tracking of grant-related payroll is a manual process which increases the likelihood of error. Additionally, costs were charged to the program at the time the expenditure was paid rather than over the period of service. Effect: The Organization?s controls did not detect nor correct the errors identified, which results in a reasonable possibility that the Organization could submit disallowed costs under the federal awards. Questioned Costs: No questioned costs over $25,000. Context/Sampling: A nonstatistical sample of 60 payroll transactions were selected for allowable costs and allowable activities testing, which accounted for $45,235 out of $789,604 of payroll transactions. Of those payroll transactions 18 were also tested for matching which accounted for $2,360 out of $36,064 match payroll transactions. A nonstatistical sample of 16 non-payroll transactions out of 59 total transactions for allowable costs and allowable activities were selected for testing, which accounted for $8,680 of $24,213 of non-payroll transactions. One of those items was selected for matching testing which accounted for $139 of $159 of match expenditures. Repeat Finding from Prior Year(s): Yes, Finding 2021-002 Recommendation: We recommend management continue to review the process over tracking payroll related to federal programs and consider incorporating a secondary review of any manual spreadsheets or consider if the payroll can be allocated directly within the payroll system. Views of Responsible Officials: Management is in agreement.
Finding 2022-003 Allowable Costs, Allowable Activities, and Matching ? Significant Deficiency in Internal Control Over Compliance Federal/State Agency Name: Department of Justice and State of South Dakota Department of Public Safety Program Name: Crime Victim Assistance CFDA # 16.575, 2022-COMBO-00022, 2022-COMBO-00011 Finding Summary: Audit testing over expenditures noted the following items: -Three instances were noted where hours used to allocate payroll to the grant differed from the actual hours worked and paid resulting in deficiencies in allowable costs, allowable activities, and matching. -One instance was noted where the hours used to allocate payroll to the grant differed from the actual hours worked and paid resulting in deficiencies in allowable costs and allowable activities. -One instance was noted where a non-payroll expenditure where costs charged to the grant that were paid within the service period but related to services outside of the service period resulting in deficiencies in allowable costs, allowable activities and matching. Responsible Persons: Shannon Clark, Chief Financial Officer; Lynn Peterson, Controller; Amy Carter, Program Director; Janice Lee, Finance Administrator Corrective Action Plan: This has been an ongoing issue and we are revising how our draws are prepared and reviewed. We plan to have one person familiar with the process prepare all the draws then a detailed review by the Controller before the draw will be submitted. Anticipated Completion Date: June 30, 2023
2021-002
One instance identified in which an independent review was not completed prior to the submission of monthly draw request. Cause: Turnover in the accounting department resulted in a draw request submitted for reimbursement prior to an independent review and approval being completed. Effect: Failure to perform an independent review of draw requests could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported Context/Sampling: Cash draws were reviewed for four months in the Organization?s fiscal year. A total of 12 cash draws were submitted for reimbursement during the Organization?s fiscal year. Repeat Finding from Prior Year(s): Yes, Finding 2021-003 Recommendation: We recommend management ensure a documented independent review and approval is completed prior to submission of the draw request. Views of Responsible Officials: Management is in agreement.
Show full finding ▾Hide full finding ▴2022-004 Department of Justice and State of South Dakota Department of Public Safety CFDA #16.575, 2022-COMBO-00022, 2022-COMBO-00011 Crime Victim Assistance Cash Management Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: One instance identified in which an independent review was not completed prior to the submission of monthly draw request. Cause: Turnover in the accounting department resulted in a draw request submitted for reimbursement prior to an independent review and approval being completed. Effect: Failure to perform an independent review of draw requests could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported Context/Sampling: Cash draws were reviewed for four months in the Organization?s fiscal year. A total of 12 cash draws were submitted for reimbursement during the Organization?s fiscal year. Repeat Finding from Prior Year(s): Yes, Finding 2021-003 Recommendation: We recommend management ensure a documented independent review and approval is completed prior to submission of the draw request. Views of Responsible Officials: Management is in agreement.
Finding 2022-004 Cash Management ? Significant Deficiency in Internal Control over Compliance Federal/State Agency Name: Department of Justice and State of South Dakota Department of Public Safety Program Name: Crime Victim Assistance CFDA # 16.575, 2022-COMBO-00022, 2022-COMBO-00011 Finding Summary: One instance was noted in which an independent review of a grant draw request was not completed prior to the draw request being submitted for reimbursement. Responsible Persons: Shannon Clark, Chief Financial Officer; Lynn Peterson, Controller; Amy Carter, Program Director; Janice Lee, Finance Administrator Corrective Action Plan: Independent review of grant draws will be completed prior to submission for reimbursement and formally documented to support that the review occurred prior to submission. Anticipated Completion Date: June 30, 2023
2021-003
FAC accepted this audit on November 9, 2021 — management decision was due May 9, 2022.
Four instances were noted where hours used to allocate payroll to the grant differed from actual hours worked and paid. Cause: Tracking of grant-related payroll is a manual process which increases the likelihood of error. Effect: Payroll and related costs were not properly reported by an insignificant amount. Questioned Costs: Question costs as a result of the conditions outlined above were $13 related to allowable costs/allowable activities and $3 related to matching. Context/Sampling: A nonstatistical sample of 60 payroll transactions out of 783 total transactions for allowable costs/activities and matching were selected for testing. All 60 transactions were tested for both allowable costs/activities and matching. Allowable cost/activities testing accounted for approximately $41,020 of $728,121 of federal program expenditures and matching testing accounted for approximately $10,255 of $184,053 of match expenditures. Repeat Finding from Prior Year(s): Yes, Finding 2020-002 Recommendation: We recommend management continue to review the process over tracking payroll related to federal programs and consider incorporating a secondary review of any manual spreadsheets or consider if the payroll can be allocated directly within the payroll system. Views of Responsible Officials: Management is in agreement.
Show full finding ▾Hide full finding ▴2021-002 Department of Justice and State of South Dakota Department of Public Safety CFDA #16.575, 2021-1441-0013, 2022-1441-00011 Crime Victim Assistance Allowable Costs, Allowable Activities, and Matching Significant Deficiency in Internal Control over Compliance Criteria: The Society is required to have procedures in place to assure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.430(i) establishes requirements for documentation of personnel expenses. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Four instances were noted where hours used to allocate payroll to the grant differed from actual hours worked and paid. Cause: Tracking of grant-related payroll is a manual process which increases the likelihood of error. Effect: Payroll and related costs were not properly reported by an insignificant amount. Questioned Costs: Question costs as a result of the conditions outlined above were $13 related to allowable costs/allowable activities and $3 related to matching. Context/Sampling: A nonstatistical sample of 60 payroll transactions out of 783 total transactions for allowable costs/activities and matching were selected for testing. All 60 transactions were tested for both allowable costs/activities and matching. Allowable cost/activities testing accounted for approximately $41,020 of $728,121 of federal program expenditures and matching testing accounted for approximately $10,255 of $184,053 of match expenditures. Repeat Finding from Prior Year(s): Yes, Finding 2020-002 Recommendation: We recommend management continue to review the process over tracking payroll related to federal programs and consider incorporating a secondary review of any manual spreadsheets or consider if the payroll can be allocated directly within the payroll system. Views of Responsible Officials: Management is in agreement.
Finding 2021-002 Allowable Costs, Allowable Activities and Matching Significant Deficiency in Internal Control over Compliance Federal Agency Name: Department of Justice and State of South Dakota Department of Public Safety Program Name: Crime Victim Assistance CFDA # 16.575 Finding Summary: Four instances were noted where hours used to allocate payroll to the grant differed from actual hours worked and paid. Responsible Individuals: Joe Herdina, CFO Jeffrey Lush, Accounting Director Amy Carter, Program Director (CI) Janice Lee, Finance Administrator (CI) Tifanie Petro, Program Director (CAC) Corrective Action Plan: The instances noted were due to rounding differences between the hours shown on the time sheet and the notes for time tracking. During the fiscal year, we worked with staff to ensure they are verifying all totals in the notes agree to the total hours shown in the time sheet. We feel the changes implemented will help resolve this issue going forward. Anticipated Completion Date: June 30, 2022
2020-002
The following items were identified in our sample of draw requests selected for testing for the grant: 1) Seven instances in which, although there support for an independent review and approval, there was no date indicating when the review and approval was performed. Auditor was unable to determine if draw request was reviewed and approved prior to submission. 2) One instance where the draw request was submitted prior to an independent review and approval being performed. Cause: Turnover in the accounting department resulted in draw requests were submitted for reimbursement prior to an independent review and approval was completed. Effect: Failure to perform timely review of draw requests could result in a reasonable possibility that the Society would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported Context/Sampling: Cash draws were reviewed for four months in the Society?s fiscal year. Repeat Finding from Prior Year(s): No Recommendation: We recommend management to ensure a documented independent review and approval is completed prior to submission of the draw request. Views of Responsible Officials: Management is in agreement.
Show full finding ▾Hide full finding ▴2021-003 Department of Justice and State of South Dakota Department of Public Safety CFDA #16.575, 2021-1441-0013, 2021-1441-00042, 2022-1441-00011, 2022-1441-00022 Crime Victim Assistance Cash Management Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The following items were identified in our sample of draw requests selected for testing for the grant: 1) Seven instances in which, although there support for an independent review and approval, there was no date indicating when the review and approval was performed. Auditor was unable to determine if draw request was reviewed and approved prior to submission. 2) One instance where the draw request was submitted prior to an independent review and approval being performed. Cause: Turnover in the accounting department resulted in draw requests were submitted for reimbursement prior to an independent review and approval was completed. Effect: Failure to perform timely review of draw requests could result in a reasonable possibility that the Society would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported Context/Sampling: Cash draws were reviewed for four months in the Society?s fiscal year. Repeat Finding from Prior Year(s): No Recommendation: We recommend management to ensure a documented independent review and approval is completed prior to submission of the draw request. Views of Responsible Officials: Management is in agreement.
Finding 2021-003 Cash Management Significant Deficiency in Internal Control over Compliance Federal Agency Name: Department of Justice and State of South Dakota Department of Public Safety Program Name: Crime Victim Assistance CFDA # 16.575 Finding Summary: The following items were identified in our sample of draw requests selected for testing for the grant: 1) Seven instances, in which, although there was support for an independent review and approval, there is not date indicating when the review and approval was performed. Auditor was unable to determine if draw request was reviewed and approved prior to submission. 2) One instance where the draw request was submitted prior to independent review and approval being performed. Responsible Individuals: Joe Herdina, CFO Jeffrey Lush, Accounting Director Amy Carter, Program Director (CI) Janice Lee, Finance Administrator (CI) Corrective Action Plan: Independent review will be completed prior to submission of draw request. All individuals involved in the process will document their approval with initials and date of approval. Anticipated Completion Date: June 30, 2022
FAC accepted this audit on November 23, 2020 — management decision was due May 23, 2021.
The following items were identified in our sample of payroll expenditures selected for testing for the grant: 1) One instance in which the wrong hours were used in the allocation of allowable hours and paid time off (CAC) 2) Fifteen instances where hours used to allocate payroll to the grant differed from actual hours worked and paid (CI) 3) Twenty instances where employee grant allocation was not being calculated correctly, resulting in improper weighting of grant hours (CI and CAC) Cause: Tracking of grant-related payroll is a manual process which increases the likelihood of error. Effect: Payroll and related costs were not properly reported by an insignificant amount. Questioned Costs: Question costs as a result of the conditions outlined above were $557 related to allowable costs/allowable activities and $139 related to matching. Context/Sampling: A nonstatistical sample of 62 payroll transactions out of 693 total transactions for allowable costs/activities and matching were selected for testing. All 62 were tested for both allowable costs/activities and matching. Allowable cost/activities testing accounted for approximately $37,642 of $699,910 of federal program expenditures and matching testing accounted for approximately $9,408 of $175,190 of match expenditures. Repeat Finding from Prior Year(s): Yes, Finding 2019-002 Recommendation: We recommend management review the process over tracking payroll related to federal programs and consider implementing same methodology for both grants (CAC and CI). Management may also contemplate incorporating a secondary review of any manual spreadsheets or consider if the payroll can be allocated directly within the payroll system. In addition, we suggest management should ensure grant supervisors are trained on the personnel expense portion of Uniform Guidance to ensure documentation requirements are met. Views of Responsible Officials: Management is in agreement.
Show full finding ▾Hide full finding ▴2020-002 Department of Justice and State of South Dakota Department of Public Safety CFDA #16.575, 2020-1441-00013, 2020-1441-00017, 2021-1441-0013, 2021-1441-00042 Crime Victim Assistance Allowable Costs, Allowable Activities, and Matching Material Weakness in Internal Control over Compliance Criteria: The Society is required to have procedures in place to assure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.430(i) establishes requirements for documentation of personnel expenses. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award Condition: The following items were identified in our sample of payroll expenditures selected for testing for the grant: 1) One instance in which the wrong hours were used in the allocation of allowable hours and paid time off (CAC) 2) Fifteen instances where hours used to allocate payroll to the grant differed from actual hours worked and paid (CI) 3) Twenty instances where employee grant allocation was not being calculated correctly, resulting in improper weighting of grant hours (CI and CAC) Cause: Tracking of grant-related payroll is a manual process which increases the likelihood of error. Effect: Payroll and related costs were not properly reported by an insignificant amount. Questioned Costs: Question costs as a result of the conditions outlined above were $557 related to allowable costs/allowable activities and $139 related to matching. Context/Sampling: A nonstatistical sample of 62 payroll transactions out of 693 total transactions for allowable costs/activities and matching were selected for testing. All 62 were tested for both allowable costs/activities and matching. Allowable cost/activities testing accounted for approximately $37,642 of $699,910 of federal program expenditures and matching testing accounted for approximately $9,408 of $175,190 of match expenditures. Repeat Finding from Prior Year(s): Yes, Finding 2019-002 Recommendation: We recommend management review the process over tracking payroll related to federal programs and consider implementing same methodology for both grants (CAC and CI). Management may also contemplate incorporating a secondary review of any manual spreadsheets or consider if the payroll can be allocated directly within the payroll system. In addition, we suggest management should ensure grant supervisors are trained on the personnel expense portion of Uniform Guidance to ensure documentation requirements are met. Views of Responsible Officials: Management is in agreement.
Finding 2019-002 Allowable Costs, Allowable Activities and Matching Material Weakness in Internal Control over Compliance Federal Agency Name: Department of Justice and State of South Dakota Department of Public Safety Program Name: Crime Victim Assistance CFDA # 16.575 Finding Summary: The following items were found in our sample of payroll expenditures selected for testing for the grant: 1) One instance in which the wrong hours were used in the allocation of allowable hours and paid time off (CAC) 2) Fifteen instances where hours used to allocate payroll to the grant differed from actual hours worked and paid (CI) 3) Twenty instances where employee grant allocation was not being calculated correctly, resulting in improper weighting of grant hours (CI and CAC) Responsible Individuals: Joe Herdina, CFO Jeffrey Lush, Accounting Director Amy Carter, Program Director (CI) Janice Lee, Finance Administrator (CI) Tifanie Petro, Program Director (CAC) Corrective Action Plan: Management will continue to review the process over tracking payroll related to federal programs. We will work to implement a consistent methodology across both grants and make changes to hourly rate calculation to use pay statement data. This will include the implementation of secondary review of spreadsheets used to calculate payroll amounts for the grant and completion of true-up analysis, if applicable. Anticipated Completion Date: June 30, 2021
2019-002
FAC accepted this audit on October 29, 2019 — management decision was due April 29, 2020.
The following items were identified in our sample of payroll expenditures selected for testing for the Children?s Inn grant (CI): 1) In the allocation of allowable hours and paid time off, one instance in which the wrong hours were used 2) One instance in which the wrong pay rate was used 3) Five instances in which the wrong pension amount was charged to the program 4) Budgeted amounts were used to allocate health insurance expense throughout the year with no true-up analysis performed at year end. Cause: Tracking of grant-related payroll is a manual process which increase the likelihood of error. Effect: Payroll and related costs were not properly reported by an insignificant amount Questioned Costs: Question costs as a result of the conditions outlined above were as follows: 1) $20 related to allowable costs and $5 related to matching 2) $72 related to allowable costs and $18 related to matching 3) None as in total the amounts were undercharged to the program 4) None as the budgeted amounts charged to the program were lower than actual total costs. Context/Sampling: A nonstatistical sample of 60 payroll transactions out of 537 total transactions for allowable costs and 463 total transactions for matching were selected for testing. Of the 60 tested, 57 were tested for both allowable costs and matching and 3 were tested for allowable costs only. Allowable cost testing accounted for approximately $60,000 of $549,000 of federal program expenditures and matching testing accounted for approximately $14,000 of $141,000 of match expenditures. Repeat Finding from Prior Year(s): Yes, Finding 2018-001 Recommendation: We recommend management review the process over tracking payroll related to federal programs and consider implementing same methodology for both grants (CAC and CI). Management may also contemplate incorporating a secondary review of any manual spreadsheets or consider if the payroll can be allocated directly within the payroll system. In addition, we suggest management should ensure grant supervisors are trained on the personnel expense portion of Uniform Guidance to ensure they are meeting all requirements. Views of Responsible Officials: Management is in agreement.
Show full finding ▾Hide full finding ▴2019-002 Department of Justice and State of South Dakota Department of Social Services/State of South Dakota Department of Public Safety CFDA #16.575, 19-0815-642, 19-0815-643, 2020-1441-00013, 2020-1441-00017 Crime Victim Assistance Allowable Costs, Allowable Activities, and Matching Significant Deficiency in Internal Control over Compliance Criteria: The Society is required to have procedures in place to assure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.430(i) establishes requirements for documentation of personnel expenses. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award Condition: The following items were identified in our sample of payroll expenditures selected for testing for the Children?s Inn grant (CI): 1) In the allocation of allowable hours and paid time off, one instance in which the wrong hours were used 2) One instance in which the wrong pay rate was used 3) Five instances in which the wrong pension amount was charged to the program 4) Budgeted amounts were used to allocate health insurance expense throughout the year with no true-up analysis performed at year end. Cause: Tracking of grant-related payroll is a manual process which increase the likelihood of error. Effect: Payroll and related costs were not properly reported by an insignificant amount Questioned Costs: Question costs as a result of the conditions outlined above were as follows: 1) $20 related to allowable costs and $5 related to matching 2) $72 related to allowable costs and $18 related to matching 3) None as in total the amounts were undercharged to the program 4) None as the budgeted amounts charged to the program were lower than actual total costs. Context/Sampling: A nonstatistical sample of 60 payroll transactions out of 537 total transactions for allowable costs and 463 total transactions for matching were selected for testing. Of the 60 tested, 57 were tested for both allowable costs and matching and 3 were tested for allowable costs only. Allowable cost testing accounted for approximately $60,000 of $549,000 of federal program expenditures and matching testing accounted for approximately $14,000 of $141,000 of match expenditures. Repeat Finding from Prior Year(s): Yes, Finding 2018-001 Recommendation: We recommend management review the process over tracking payroll related to federal programs and consider implementing same methodology for both grants (CAC and CI). Management may also contemplate incorporating a secondary review of any manual spreadsheets or consider if the payroll can be allocated directly within the payroll system. In addition, we suggest management should ensure grant supervisors are trained on the personnel expense portion of Uniform Guidance to ensure they are meeting all requirements. Views of Responsible Officials: Management is in agreement.
Finding 2019-002 Allowable Costs, Allowable Activities and Matching Material Weakness in Internal Control over Compliance Federal Agency Name: Department of Justice and State of South Dakota Department of Social Services Program Name: Crime Victim Assistance CFDA # 16.575 Finding Summary: The following items were found in our sample of payroll expenditures selected for testing for the Children?s Inn grant (CI) 1. In the allocation of allowable hours and paid time off, one instance in which the wrong hours were used 2. One instance in which the wrong pay rate was used 3. Five instances in which the wrong pension amount was charged to the program 4. Budgeted amounts were used to allocate health insurance expense throughout the year with no true-up analysis performed at year end. Responsible Individuals: Amy Carter, Program Director (CI); Janice Lee, Finance Administrator (CI) Corrective Action Plan: Management will review the process over tracking payroll related to federal programs. We will work to implement a consistent methodology across both grants. This will include the implementation of secondary review of spreadsheets used to calculate payroll amounts for the grant and completion of true-up analysis, if applicable. Anticipated Completion Date: June 30, 2020
2018-001
FAC accepted this audit on October 30, 2018 — management decision was due April 30, 2019.
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