EIN: 460332131
UEI: W42NN7KQ6AK7
Audited by: Kinner & Company, Ltd
Oversight agency: 21 [Department of the Treasury]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 24, 2026. 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 September 24, 2026 (25 days from today).
What is a management decision? →FAC accepted this audit on May 17, 2024 — management decision was due November 17, 2024.
FAC accepted this audit on April 21, 2022 — management decision was due October 21, 2022.
SUMMARY OF INDEPENDENT AUDITOR'S RESULTS: Financial Statements a. The auditor?s report expresses an unmodified opinion on the financial statements of the Clay Rural Water System, Inc. b. Material weaknesses were disclosed by our audit of the financial statements for a lack of segregation of duties and a material misstatement as discussed in findings number 2021-002 and 2021-003. c. Our audit did disclose a material weakness in internal controls for noncompliance which was material to the financial statements for a lack of an internal control process designed to detect federal awards and reporting compliance as discussed in finding number 2021-001. Federal Awards a. An unmodified opinion was issued on compliance with the requirements applicable to major programs. b. Our audit did disclose an audit finding that needs to be disclosed in accordance with the audit 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). This finding regards the lack of an internal control process designed to detect federal award compliance and reporting requirements. c. The federal awards tested as major programs were: d. The dollar threshold used to distinguish between Type A and Type B federal award programs was $750,000.00. e. The Clay Rural Water System, Inc. did not qualify as a low-risk entity.
Show full finding ▾Hide full finding ▴SUMMARY OF INDEPENDENT AUDITOR'S RESULTS: Financial Statements a. The auditor?s report expresses an unmodified opinion on the financial statements of the Clay Rural Water System, Inc. b. Material weaknesses were disclosed by our audit of the financial statements for a lack of segregation of duties and a material misstatement as discussed in findings number 2021-002 and 2021-003. c. Our audit did disclose a material weakness in internal controls for noncompliance which was material to the financial statements for a lack of an internal control process designed to detect federal awards and reporting compliance as discussed in finding number 2021-001. Federal Awards a. An unmodified opinion was issued on compliance with the requirements applicable to major programs. b. Our audit did disclose an audit finding that needs to be disclosed in accordance with the audit 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). This finding regards the lack of an internal control process designed to detect federal award compliance and reporting requirements. c. The federal awards tested as major programs were: d. The dollar threshold used to distinguish between Type A and Type B federal award programs was $750,000.00. e. The Clay Rural Water System, Inc. did not qualify as a low-risk entity.
Clay Rural Water System, Inc. Wakonda, SD Corrective Plan of Action For the Year Ended 12-31-21 The Clay Rural Water System, Inc. has considered the lack of segregation of duties for all revenues and expenditures. Clay Rural Water System, Inc?s System Manager had a solution to this issue by hiring an additional full-time accounting personnel effective 11-11-21 to help with the segregation of duties. The other accounting personnel?s hours have been increased from 4 days a week to 5 days a week effective 1/1/21. The Clay Rural Water System, Inc. System Manager has also purchased a new accounting system (Quick Books) in November of 2021 that has more features to separate out Federal Funds reports from our every day-to-day financial reporting, but bring them both together on the Balance Sheet and other financial reports. The lack of an internal control process designed to detect federal award compliance will be added to the Board of Director?s monthly checklist of internal controls and will adhere to all federal award compliance and reporting requirements. The Clay Rural Water System, Inc. has considered the weakness of internal controls for every aspect of the financial statements. The System Manager and Board of Directors will continue to monitor all future financial transactions. Clay Rural Water System, Inc. System Manager has also hired an outside accounting firm to assist with the reporting of financial reports and monitor the system quarterly, in addition to the yearly audit.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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