EIN: 816001354
UEI: S4AXQZLFXN31
Audited by: Newland & Company, PC
Oversight agency: 93 [Department of Health and Human Services]
Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 30, 2021. 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 December 30, 2021 (1702 days ago).
What is a management decision? →While the auditor maintained independence under the Professional Standards regarding the Performance of Non-Attest Services, the auditor assisted in the preparation of draft financial statements, notes and supplementary schedules. Criteria: Generally accepted auditing standards require that financial statements be a product of a financial reporting system that offers reasonable assurance that the management is able to produce financial statements that are in accordance with generally accepted accounting principles. Effect: A significant internal control deficiency exists that results in a more than remote likelihood that a material misstatement of the financial statements will not be detected or prevented by the Anaconda- Deer Lodge County?s internal control system. Cause: Auditor assistance in the preparation of financial statements, notes and supplementary schedules is a matter of necessity rather than of convenience. Questioned Federal Costs: None Recommendation: We recommend that the county correct the material weakness in the internal control system over financial reporting by hiring a qualified consultant or providing in house training for staff to be qualified to evaluate the presentation in accordance with GAAP for the financial statements, notes and supplementary schedules. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 131. Repeat Finding 2019-002
Show full finding ▾Hide full finding ▴Financial Statement and Federal Awards Finding Major Programs Finding 2020-001: Draft financial statements, notes and schedules prepared by Auditor. Condition: While the auditor maintained independence under the Professional Standards regarding the Performance of Non-Attest Services, the auditor assisted in the preparation of draft financial statements, notes and supplementary schedules. Criteria: Generally accepted auditing standards require that financial statements be a product of a financial reporting system that offers reasonable assurance that the management is able to produce financial statements that are in accordance with generally accepted accounting principles. Effect: A significant internal control deficiency exists that results in a more than remote likelihood that a material misstatement of the financial statements will not be detected or prevented by the Anaconda- Deer Lodge County?s internal control system. Cause: Auditor assistance in the preparation of financial statements, notes and supplementary schedules is a matter of necessity rather than of convenience. Questioned Federal Costs: None Recommendation: We recommend that the county correct the material weakness in the internal control system over financial reporting by hiring a qualified consultant or providing in house training for staff to be qualified to evaluate the presentation in accordance with GAAP for the financial statements, notes and supplementary schedules. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 131. Repeat Finding 2019-002
2020-001 Draft financial statements, notes and schedules prepared by Auditor ADLC has limited accounting staff with the expertise and knowledge to complete the detailed financial statements and notes. Without the accounting resources available to dedicate the time needed to perform a comprehensive audit report, ADLC relies on the Auditors for this process. Management will continue to evaluate in the future whether ADLC has the resources available or whether to find the resources available to prepare the annual reporting package. Management reviews, approves and accepts responsibility for the financial statements and notes prepared by the Auditor.
2019-002
Cash receipting duties are not segregated in the following departments: JP Court Law Enforcement Parks and Recreation Clerk of Court Water Department Criteria: An adequate system of internal controls provides for a proper segregation of the accounting functions. The duties of receiving cash, recording them into the accounting records, and reconciling the records should be segregated. Effect: Risk of misappropriation of County assets and inaccurate financial records as a result of errors or fraud. Cause: Limited personnel in the departments. Recommendation: Management should review the current assignment of accounting functions in all of the departments and segregate to the extent possible the duties of receiving cash, recording them into the accounting records, and reconciling the records. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 131. Repeat Finding 2019-003
Show full finding ▾Hide full finding ▴Financial Statement Finding Finding 2020-002 Segregation of Duties Condition: Cash receipting duties are not segregated in the following departments: JP Court Law Enforcement Parks and Recreation Clerk of Court Water Department Criteria: An adequate system of internal controls provides for a proper segregation of the accounting functions. The duties of receiving cash, recording them into the accounting records, and reconciling the records should be segregated. Effect: Risk of misappropriation of County assets and inaccurate financial records as a result of errors or fraud. Cause: Limited personnel in the departments. Recommendation: Management should review the current assignment of accounting functions in all of the departments and segregate to the extent possible the duties of receiving cash, recording them into the accounting records, and reconciling the records. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 131. Repeat Finding 2019-003
ADLC acknowledges that implementing segregation of duties in a small organization with limited staff has proven difficult. However, ADLC continues to make progress as we introduced Cash Receipting into the Clerk & Recorder and the Water departrnents in FY 2019-20. So, we are currently doing daily cash receipting in these departments. Once more clerks get trained, ADLC plans to implement these procedures for better cash receiving, recording, and reconciliation into other departments.
2019-003
We noted instances of reserves exceeding one-third of the total amount appropriated and authorized to be spent from the funds during the current fiscal year. Criteria: Montana law requires that a reserve to any county fund not exceed one-third of the total amount appropriated and authorized to be spent from the fund during the fiscal year. Effect: Deficiency in internal controls exist in that reserves exceeded appropriations in some budgeted funds which makes those controls not in compliance with MCA 7-6-4034(2). Cause: Reserves exceeded appropriations due to miscalculations in setting the fiscal year budgets or not adhering to the budgets that were adopted. Questioned Costs: None Recommendation: We recommend that the County restrict reserves to appropriations per the adopted budgets and Montana law. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 131. Repeat Finding: 2019-006
Show full finding ▾Hide full finding ▴Financial Statement Finding Finding 2020-003 Instances of reserves exceeding one-third of appropriations Condition: We noted instances of reserves exceeding one-third of the total amount appropriated and authorized to be spent from the funds during the current fiscal year. Criteria: Montana law requires that a reserve to any county fund not exceed one-third of the total amount appropriated and authorized to be spent from the fund during the fiscal year. Effect: Deficiency in internal controls exist in that reserves exceeded appropriations in some budgeted funds which makes those controls not in compliance with MCA 7-6-4034(2). Cause: Reserves exceeded appropriations due to miscalculations in setting the fiscal year budgets or not adhering to the budgets that were adopted. Questioned Costs: None Recommendation: We recommend that the County restrict reserves to appropriations per the adopted budgets and Montana law. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 131. Repeat Finding: 2019-006
Anaconda-Deer Lodge County is a consolidated city/county form of government. Per MCA, cities can reserve a cash balance. ADLC performs an annual budget process. This budget process includes financial analysis, accounting data" and mill levy valuations. Included in this analysis is ADLC's Total Requirements comparison to Total Resources. Within that worksheet cash reserve balances are estimated, and cash reserve percentages are calculated. ADLC reviews this worksheet annually and makes a concentrated effort to keep all fund cash balance reserves within state guideline range. ADLC's budget and worksheets are reviewed and approved by commission resolution each year. If funds are found to be over their cash reserve balance ADLC reduces the Mill levy to reduce tax revenues for these funds but it may take several years to work off the cash reserve balances.
2019-006
FAC accepted this audit on June 30, 2020 — management decision was due December 30, 2020.
While the auditor maintained independence under the Professional Standards regarding the Performance of Non-Attest Services, the auditor assisted in the preparation of draft financial statements, notes and supplementary schedules. Criteria: Generally accepted auditing standards require that financial statements be a product of a financial reporting system that offers reasonable assurance that the management is able to produce financial statements that are in accordance with generally accepted accounting principles. Effect: A significant internal control deficiency exists that results in a more than remote likelihood that a material misstatement of the financial statements will not be detected or prevented by the Anaconda- Deer Lodge County?s internal control system. Cause: Auditor assistance in the preparation of financial statements, notes and supplementary schedules is a matter of necessity rather than of convenience. Questioned Federal Costs: None Recommendation: We recommend that the county correct the material weakness in the internal control system over financial reporting by hiring a qualified consultant or providing in house training for staff to be qualified to evaluate the presentation in accordance with GAAP for the financial statements, notes and supplementary schedules. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 134. Repeat Finding 2018-004
Show full finding ▾Hide full finding ▴Significant Deficiency Financial Statement and Federal Awards Finding Major Programs Finding 2019-002: Draft financial statements, notes and schedules prepared by Auditor. Condition: While the auditor maintained independence under the Professional Standards regarding the Performance of Non-Attest Services, the auditor assisted in the preparation of draft financial statements, notes and supplementary schedules. Criteria: Generally accepted auditing standards require that financial statements be a product of a financial reporting system that offers reasonable assurance that the management is able to produce financial statements that are in accordance with generally accepted accounting principles. Effect: A significant internal control deficiency exists that results in a more than remote likelihood that a material misstatement of the financial statements will not be detected or prevented by the Anaconda- Deer Lodge County?s internal control system. Cause: Auditor assistance in the preparation of financial statements, notes and supplementary schedules is a matter of necessity rather than of convenience. Questioned Federal Costs: None Recommendation: We recommend that the county correct the material weakness in the internal control system over financial reporting by hiring a qualified consultant or providing in house training for staff to be qualified to evaluate the presentation in accordance with GAAP for the financial statements, notes and supplementary schedules. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 134. Repeat Finding 2018-004
ADLC has implemented monthly closing dates, monthly journal vouchers, year-end journal entries and strict ledger close dates. All expenditures are now approved by Department Heads, journal entries and payroll are reviewed by the CFO and monthly financial statements are being issued. ADLC filed the required AFR and Montana's Local Governments Services by the 12/31/19 deadline. The report was accepted and ADLC did not receive any late fees or penalties for the first time in many years. ADLC is currently creating the Summary of Net Position, Changes in Net Position, Schedule of Capital Assets and other financial reports. We expect this finding to be removed next year.
2018-004
Anaconda-Deer Lodge County has performed a physical inventory of fixed assets but has not compared the physical inventory to existing detailed records of fixed assets. Criteria: Detailed fixed asset records must be verified to actual assets to be reliable. Effect: Detailed fixed asset records have not been verified with physical inventories. Cause: Inadequate control over fixed assets. Questioned Costs: None Recommendation: Anaconda-Deer Lodge County has performed a physical inventory of all fixed assets but has yet to compare the physical inventory to detailed asset records. We recommend that the next step in the process by completed by comparing the physical inventory to fixed asset records. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 134. Repeat Finding 2018-006
Show full finding ▾Hide full finding ▴Significant Deficiency Financial Statement and Federal Awards Finding Major Programs Finding 2019-004 Physical Inventory - Fixed Assets Condition: Anaconda-Deer Lodge County has performed a physical inventory of fixed assets but has not compared the physical inventory to existing detailed records of fixed assets. Criteria: Detailed fixed asset records must be verified to actual assets to be reliable. Effect: Detailed fixed asset records have not been verified with physical inventories. Cause: Inadequate control over fixed assets. Questioned Costs: None Recommendation: Anaconda-Deer Lodge County has performed a physical inventory of all fixed assets but has yet to compare the physical inventory to detailed asset records. We recommend that the next step in the process by completed by comparing the physical inventory to fixed asset records. Views of Responsible Officials and Planned Corrective Action: See Management?s Responses on Page 134. Repeat Finding 2018-006
Anaconda-Deer Lodge County performed a physical fixed asset inventory in September 2019. The fixed asset ledger not reflects the updated results of the physical inventory in FY 202. ADLC has set as a goal to put the physical assets and their details into the Fixed Assets module of our Black Mountain software, however, ADLC's current staffing has been a limitation to this goal. ADLC hopes it can automate depreciatio schedules, additions and deletions more easily once they are entered in Black Mountain. Currently it is being done as a manual process through Excel spreadsheets.
2018-006
FAC accepted this audit on June 18, 2019 — management decision was due December 18, 2019.
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2017-001
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2017-002
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2017-004
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2017-006
FAC accepted this audit on April 1, 2018 — management decision was due October 1, 2018.
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2016-002
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2016-006
FAC accepted this audit on September 14, 2017 — management decision was due March 14, 2018.
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2015-003
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2015-006
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